LandBridge reported third‑quarter 2025 revenue of $50.8 million, a 78% year‑over‑year increase from $28.5 million in Q3 2024, and adjusted EBITDA of $44.9 million, preserving an 88% margin that matches the prior year’s high‑margin performance. The company also declared a quarterly cash dividend of $0.10 per share, payable December 18, 2025, and generated free cash flow of $33.7 million, underscoring its strong cash‑generation capability.
The revenue surge was driven by a 118% jump in resource sales and royalties, a 2% rise in surface‑use royalties, and a 22% increase in oil and gas royalties. The new Wolf Bone Ranch contributed significantly to water sales and royalty volumes, while the company’s expanding surface acreage continues to feed higher resource output. These segment gains offset modest pressure in legacy water‑sale volumes, keeping the overall mix favorable.
LandBridge’s earnings per share for the quarter were $0.3773, beating the consensus estimate of $0.3325 by $0.045 or 13.5%. The beat reflects disciplined cost control and a favorable mix shift toward higher‑margin resource sales, while the company’s prior‑quarter EPS of $0.3125 shows a clear upward trajectory. The strong EPS performance also helped mitigate investor concerns about a 7.97% after‑hours decline in the stock price, which analysts attributed to “softer earnings expectations” noted in pre‑earnings reports.
Management reaffirmed the fiscal‑year 2025 adjusted EBITDA guidance of $165–$175 million, unchanged from the prior guidance issued in Q2. The steady outlook signals confidence in continued expansion of surface acreage and the ramp‑up of high‑margin produced water volumes. The company also highlighted its recent acquisition of 37,500 acres in Texas, which is expected to diversify revenue streams and increase total holdings to over 300,000 surface acres.
Analysts noted that despite the robust results, the market reaction was muted, with the share price falling 7.97% in after‑hours trading on November 12. The decline was attributed to investors’ focus on “softer earnings expectations” and the company’s unchanged guidance, suggesting that while revenue and margins were strong, the market was looking for a more aggressive upside in earnings growth.
In a conference call following the release, CFO Scott McNeely emphasized that LandBridge’s “highly diversified and low‑capex business model” continues to deliver high EBITDA and cash‑flow margins. He added that the company is actively pursuing additional land acquisitions and long‑term leases, such as a natural‑gas processing facility, to further diversify its revenue base and reinforce its asset‑light strategy. The company’s focus on operational leverage and strategic land expansion positions it for sustained growth in the coming quarters.
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