10-Q · May 5, 2026
Atlas Energy Solutions reported Q1 2026 results, generating $265.6 million in revenue, surpassing estimates of $255.9 million. However, the company faced a significant net loss of $47.3 million, larger than the expected…
Earnings analysis · 10-Q
AESI earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Atlas delivered Q2 revenue of $293.178 million, up 10.4% sequentially and 1.6% year over year, but reported diluted EPS of negative $0.20 and a net loss of $25.096 million. The Power segment expanded rapidly, with…
Read full summary
Atlas delivered Q2 revenue of $293.178 million, up 10.4% sequentially and 1.6% year over year, but reported diluted EPS of negative $0.20 and a net loss of $25.096 million. The Power segment expanded rapidly, with revenue up 83.1% to $29.280 million, while Sand & Logistics revenue declined 3.2% amid lower proppant pricing and shortfall revenue. Sequential margins improved from Q1, but gross margin remained 930 basis points below the prior-year level, and heavy $153.830 million capital spending drove free cash flow to negative $154.383 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.2
What stood out
-
Revenue grew sequentially and year over year
Q2 revenue was $293.178 million, up $4.502 million (1.6%) from $288.676 million a year earlier and up $27.595 million (10.4%) from Q1 2026 revenue of $265.583 million. Growth was led by power rental and last-mile service activity.
-
Power segment scaled rapidly
Power segment revenue increased 83.1% year over year to $29.280 million from $15.993 million, as rental revenue rose $11.257 million to $26.970 million on more equipment leased to customers.
-
Last-mile services offset product weakness
Services revenue increased $16.315 million year over year to $162.670 million, driven by $14.9 million from higher last-mile volumes and $1.4 million from pricing.
-
Sequential margin recovery from Q1 trough
Gross margin recovered sequentially to 8.8% in Q2 from 2.4% in Q1 2026, while operating margin improved to negative 7.7% from negative 12.2%. Adjusted EBITDA was $49.514 million, versus $71.209 million in Q2 2025.
-
Convertible issuance bolstered liquidity
Liquidity included $168.216 million of cash, $216.4 million of working capital, and $124.7 million of ABL availability at June 30. The company repaid the $75.0 million ABL balance in April after issuing $450.0 million of 0.50% convertible notes.
What to watch
-
Margins remain sharply below prior year
Profitability remained materially below last year: gross profit fell to $25.855 million from $52.139 million, compressing gross margin to 8.8% from 18.1%; operating loss was $22.547 million versus $7.193 million of operating income. Diluted EPS was negative $0.20, versus negative $0.04 a year earlier.
-
Capex drove deeply negative free cash flow
Cash generation was pressured by growth investment: operating cash flow was negative $0.553 million versus positive $88.642 million a year ago, while capital expenditures rose to $153.830 million from $40.268 million, producing free cash flow of negative $154.383 million.
-
New converts add cash-repurchase exposure
The new 2031 Notes create a refinancing and liquidity risk. Holders may require cash repurchase at 100% of principal upon a fundamental change; $450.0 million of notes mature April 15, 2031, while total debt was $966.724 million at June 30.
-
Convertible notes may dilute shareholders
The 2031 Notes create potential equity dilution and accounting pressure. Their initial conversion price is $14.51 per share, and the filing says use of the if-converted method may reduce diluted EPS when the company is profitable.
-
Sand pricing and shortfall headwinds persist
Sand and logistics revenue declined $8.785 million year over year to $263.898 million. Within product revenue, lower proppant pricing reduced revenue by $19.6 million and lower shortfall revenue reduced it by $11.5 million.
-
Financing and litigation charges weigh on earnings
Interest and exceptional charges weighed on the loss: net interest expense increased to $16.240 million from $14.798 million, and the company recorded a $6.783 million loss on early payoff of lease financing plus $2.550 million of litigation settlement expense.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. Management anticipates full energization of the five-year power purchase agreement during the first half of 2027; the associated equipment represents 50% of its recently ordered 240 MW of generation equipment.
Earlier filings 4
10-K · February 24, 2026
Atlas Energy Solutions (AESI) is a Permian-focused proppant producer and distributed power provider operating two reportable segments (Sand and Logistics; Power) and 14 proppant production facilities. The 2025 filing…
10-K · February 25, 2025
Atlas Energy Solutions reported subdued financial performance for Q4 2024, with revenues of $271M, missing estimates by approximately 1.33%, and an EPS of $0.13, falling short of the consensus of $0.17. The company's…
10-Q · May 8, 2024
Q1 2024 results show revenue growth to $192.7M (+$39.2M; +25.6% vs Q1 2023) driven by a sharp increase in service sales and the March 5, 2024 Hi‑Crush acquisition. Profitability on a per-period basis improved (diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.