LandBridge Q3 revenue beats analyst estimates on higher produced water volumes
LB•LandBridge reported third-quarter revenue of $70.9 million, up 39% year over year and above analyst estimates of $66.59 million. It raised its 2026 adjusted EBITDA guidance to $220 million-$235 million.
1. Quarterly results
LandBridge's third-quarter adjusted EBITDA rose 42% year over year to $63.70 million, beating analyst estimates of $60.19 million. Net income was $34 million, and free cash flow was $49 million.
2. Revenue drivers and outlook
Higher produced water handling volumes and pipeline easement revenue drove sequential growth in surface use royalties and revenue. Higher water and caliche sales, increased sand royalties, and higher net royalty production volumes also contributed to revenue growth. The company completed an acquisition of about 25,000 acres in the Delaware Basin and expects recent acquisitions to contribute to 2026 results. It expects first power delivery from Alpha Digital Campus in the fourth quarter of 2027.
