Earnings release
Page 1
February 23, 2026 Atlas Energy Solutions Announces Fourth Quarter and Year End 2025 Results AUSTIN, Texas--(BUSINESS WIRE)-- Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2025. Year End 2025 Financial Highlights and Operational Updates Revenue of $1.1 billion, net loss of ($50.3) million and Adjusted EBITDA (1) of $221.7 million for the year ended December 31, 2025 Total volumes of 21.6 million tons for the year ended December 31, 2025 Total Dune Express shipments of 5.9 million tons for year ended December 31, 2025 Fourth quarter 2025 revenue of $249.4 million, net loss of ($22.2) million and Adjusted EBITDA (1) of $36.7 million Fourth quarter 2025 volumes of 5.3 million tons Actively evaluating a robust power opportunity set representing more than 2 GW of potential opportunities Targeting approximately 500 MWs of power generation capacity deployed in 2027 Financial Summary . Year Ended December 31, 2025 December 31, 2024 December 31, 2023 (in thousands, except percentages) Revenue $ 1,095,310 $ 1,055,957 $ 613,960 Net income (loss) $ (50,304 ) $ 59,944 $ 226,493 Net Income (loss) Margin (5 %) 6 % 37 % Adjusted EBITDA (1) $ 221,680 $ 288,902 $ 329,655 Adjusted EBITDA Margin (1) 20 % 27 % 54 % Net cash provided by operating activities $ 117,346 $ 256,460 $ 299,027 Adjusted Free Cash Flow (1) $ 152,005 $ 250,480 $ 291,131 Adjusted Free Cash Flow Margin (1) 14 % 24 % 47 % (1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP. John Turner, President & CEO, commented, “Our fourth quarter results exceeded our initial expectations primarily driven by stronger volumes relative to what we anticipated going into the holiday season. The seasonality we typically see at the end of the year was particularly muted as customers took minimal time off around the holidays. Despite challenging market conditions, we believe the team’s commercial efforts should allow Atlas to grow volumes in 2026. Leaning on our cost-advantaged mines and logistics network, we were able to increase our share of current customers’ sand procurement spend while also adding some
Page 2
key new customers relationships that we expect to grow in scale over the course of 2026 and beyond. The quarter was highlighted by the highest levels of utilization for the Dune Express we have seen to date as customers in the Delaware Basin are beginning to realize the efficiency and reliability improvements the system generates in their logistics supply chains. We expect this to foreshadow the system’s utilization during 2026. In November, we announced the order of 240 MWs of power generation equipment, accelerating our evolution into a leading provider of behind-the-meter long-term power solutions across a broad range of domestic industries – from energy to data centers and manufacturing. Our pipeline of opportunities continues to expand, and we are targeting more than 500 MWs deployed across our fleet in 2027 with substantial additional growth potential as we secure larger-scale projects and build on initial orders.” Bud Brigham, Executive Chairman, said, “The growth case for Atlas is as exciting as it has ever been in my opinion. While waiting for Permian activity to recover, Atlas has an opportunity to redefine our cash flow and future with long-term behind-the-meter power contracts. I could not be more excited about the future of Atlas.” Year End 2025 Financial Results Total revenue for the year ended December 31, 2025 increased $39.4 million, or 3.7% when compared to the year ended December 31, 2024, to $1.1 billion. Product revenue decreased $37.4 million, or (7.3%) when compared to the prior year, to $478.0 million. Service revenue increased by $18.3 million, or 3.4% when compared to the prior year, to $558.8 million. Rental revenue for the year ended December 31, 2025 was $58.5 million. Cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) for the year ended December 31, 2025 increased by $59.3 million, or 8.2% when compared to the prior year, to $784.5 million. Selling, general and administrative expenses (“SG&A”) for the year ended December 31, 2025 increased by $32.6 million, or 30.7% when compared to the prior year, to $138.8 million. Included within our SG&A is $33.2 million in stock-based compensation, $2.7 million in other non-recurring costs and $7.0 million in other acquisition related costs. Net income (loss) for the year ended December 31, 2025 was $(50.3) million, and Adjusted EBITDA for the year ended December 31, 2025 was $221.7 million. Fourth Quarter 2025 Financial Results Fourth quarter 2025 total revenue declined $10.2 million, or (3.9%) when compared to the third quarter of 2025, to $249.4 million. Product revenue declined by $1.6 million, or (1.5%) when compared to the third quarter of 2025, to $105.2 million. Fourth quarter 2025 product revenue volumes were 5.3 million tons, flat sequentially when compared to the levels in the third quarter of 2025. Service revenue declined $9.6 million, or (7.1%) when compared to the third quarter of 2025, to $126.1 million. Fourth quarter 2025 rental revenue increased $1.0 million, or 5.8% when compared to third quarter of 2025, to $18.1 million. Fourth quarter 2025 cost of sales decreased by $7.9 million, or (4.0%) when compared to
Page 3
the third quarter of 2025, to $187.3 million. Cost of sales consisted of $60.6 million of plant operating costs, $115.2 million related to service costs, $7.0 million related to rental costs and $4.5 million in royalties. SG&A for the fourth quarter of 2025 decreased by $2.6 million, or (7.2%) when compared to the third quarter of 2025, to $33.7 million. Net (loss) for the fourth quarter of 2025 was ($22.2) million, and Adjusted EBITDA for the fourth quarter of 2025 was $36.7 million. Liquidity, Capital Expenditures and Other As of December 31, 2025, the Company’s total liquidity was $108.5 million, which was comprised of $40.6 million in cash and cash equivalents, and $67.9 million of availability under the Company’s 2023 ABL Credit Facility. Future Guidance The Company is providing financial guidance for the first quarter of 2026. Guidance is based on current outlook and plans and is subject to a number of known and unknown uncertainties and risks and constitutes a “forward-looking statement” within the meaning of Section 21E of the Securities Exchange Act of 1934 as further described under the Cautionary Statement below. Actual results may differ materially from the guidance set forth below. For the first quarter of 2026, EBITDA is expected to be flat with fourth quarter results due to lower realized sand pricing and the impact of severe winter weather in January, which negatively impacted EBITDA generation by approximately $6 million, offsetting improved volumes in sand and logistics and increased contribution from the Power business. Conference Call Information The Company will host a conference call to discuss financial and operational results on February 24, 2026 at 9:00am Central Time (10:00am Eastern Time). Individuals wishing to participate in the conference call should dial (877) 407-4133. A live webcast will be available at https://ir.atlas.energy/ . Please access the webcast or dial in for the call at least 10 minutes ahead of the start time to ensure a proper connection. An archived version of the conference call will be available on the Company’s website shortly after the conclusion of the call. The Company will post an updated video titled "Atlas Growth Projects Update February 2026,” at https://ir.atlas.energy/ in the "Overview” tab on the Company’s Investor Relations webpage prior to the conference call. About Atlas Energy Solutions Atlas Energy Solutions Inc. (NYSE: AESI) is a leading solutions provider to the energy industry. Atlas’s portfolio of offerings includes oilfield logistics, distributed power systems, and the largest proppant supply network in the Permian Basin. With a focus on leveraging technology, automation, and remote operations to enhance efficiencies, Atlas is centered on a core mission of improving human access to the hydrocarbons that power our lives and, by doing so, maximizing value creation for our shareholders.
Page 4
Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to statements regarding:, expectations regarding the leverage profile and expectations of Atlas, our plans and expectations regarding our stock repurchase program; expected expansion and growth opportunities in Atlas’s power business, including our ability to enter into the behind-the-meter, long-term power segment, our business strategy, industry, future operations and profitability, expected capital expenditures and the impact of such expenditures on our performance, statements about our financial position, production, revenues and losses, our capital programs, management changes, current and potential future long-term contracts and our future business and financial performance. Although forward-looking statements reflect our good faith beliefs at the time they are made, we caution you that these forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include but are not limited to: limitations on our financial flexibility due to our existing and any future indebtedness; our ability to successfully execute our share repurchase program or implement future share repurchase programs; higher than expected costs to operate our proppant production and processing facilities or the Dune Express; the volume of proppant we are able to sell and our ability to enter into supply contracts for our proppant on acceptable terms; the prices we are able to charge, and the margins we are able to realize, from our sales of proppant, logistics services, or mobile power generation; the demand for and price of proppant and power generation, particularly in the Permian Basin; the domestic and foreign supply of and demand for oil and natural gas; the effects of actions by, or disputes among or between, members of OPEC+ with respect to production levels or other matters related to the prices of oil and natural gas; customer concentration, the potential for future consolidation amongst current or potential customers and the possibility that customers may not continue to outsource their power system needs, which could affect demand for our products and services, especially in the power generation industry; inability of our customers to take delivery; any planned or future expansion projects or capital expenditures; inaccuracies in estimates of volumes and qualities of our frac sand reserves; volatility in political, legal and regulatory environments; and other factors discussed or referenced in our filings made from time to time with the U.S. Securities and Exchange Commission (“SEC”), including those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K, filed with the SEC on February 25, 2025, and Quarterly Reports on Form 10-Q, filed with the SEC on May 6, 2025, August 5, 2025 and November 4, 2025, respectively, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking
Page 5
statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Atlas Energy Solutions Inc. Condensed Consolidated Statements of Income (in thousands, except per share data) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 (unaudited) (unaudited) (unaudited) Product revenue $ 105,173 $ 106,839 $ 128,445 $ 477,985 $ 515,434 $ 468,119 Service revenue 126,167 135,643 142,893 558,774 540,523 145,841 Rental revenue 18,090 17,131 — 58,551 — — Total revenue 249,430 259,613 271,338 1,095,310 1,055,957 613,960 Cost of sales (excluding depreciation, depletion and accretion expense) 187,298 195,230 190,967 784,495 725,196 260,396 Depreciation, depletion and accretion expense 41,896 40,619 30,476 160,148 98,747 39,798 Gross profit 20,236 23,764 49,895 150,667 232,014 313,766 Selling, general and administrative expense (including stock and unit-based compensation expense of $9,075, $9,344, $6,420, $33,227, $22,381 and $7,409, respectively.) 33,724 36,322 25,511 138,829 106,223 48,608 Credit loss expense 571 97 — 4,778 25 28 Amortization expense of acquired intangible assets 6,414 5,883 3,743 23,547 12,316 — Change in fair value of contingent consideration (3,360 ) — — (3,360 ) — — Loss on disposal of assets — — — — 19,672 — Insurance recovery (gain) (2,217 ) — (10,098 ) (2,217 ) (20,098 ) — Operating income (loss) (14,896 ) (18,538 ) 30,739 (10,910 ) 113,876 265,130 Interest (expense), net (16,110 ) (15,010 ) (12,018 ) (57,996 ) (38,647 ) (7,689 ) Other income, net 101 (3 ) 101 727 551 430 Income (loss) before income taxes (30,905 ) (33,551 ) 18,822 (68,179 ) 75,780 257,871 Income tax expense (benefit) (8,661 ) (9,830 ) 4,420 (17,875 ) 15,836 31,378 Net income (loss) $ (22,244 ) $ (23,721 ) $ 14,402 $ (50,304 ) $ 59,944 $ 226,493 Net income (loss) per common share Basic $ (0.18 ) $ (0.19 ) $ 0.13 $ (0.41 ) $ 0.55 $ 1.50 Diluted $ (0.18 ) $ (0.19 ) $ 0.13 $ (0.41 ) $ 0.55 $ 1.48 Weighted average common shares outstanding Basic 124,019 123,737 110,216 122,435 108,235 70,450 Diluted 124,019 123,737 111,262 122,435 109,176 71,035 Atlas Energy Solutions Inc. Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 (unaudited) (unaudited) (unaudited) Operating activities: Net income (loss) $ (22,244 ) $ (23,721 ) $ 14,402 $ (50,304 ) $ 59,944 $ 226,493 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and accretion expense 43,430 42,048 31,342 165,459 102,207 41,634 Amortization expense of acquired intangible assets 6,414 5,883 3,743 23,547 12,316 — Amortization of debt discount 1,781 1,423 1,038 5,712 3,573 761 Amortization of deferred financing costs 102 98 117 403 435 337 Change in fair value of contingent consideration (3,360 ) — — (3,360 ) — — Loss on disposal of assets — — — — 19,672 — Stock-based compensation 9,075 9,344 6,420 33,227 22,381 7,409
Page 6
Deferred income tax (6,665 ) (9,207 ) 4,569 (17,495 ) 15,002 29,201 Credit loss expense 571 97 — 4,778 25 28 Other 2,301 126 62 2,197 (1,618 ) 111 Changes in operating assets and liabilities: (27,698 ) 6,356 9,160 (46,818 ) 22,523 (6,947 ) Net cash provided by operating activities 3,707 32,447 70,853 117,346 256,460 299,027 Investing activities: Purchases of property, plant and equipment (21,808 ) (33,806 ) (76,431 ) (148,271 ) (373,983 ) (365,486 ) Acquisition, net of cash acquired — (22,658 ) (11,192 ) (204,169 ) (153,425 ) — Proceeds from insurance recovery 2,217 — 4,700 7,615 14,700 — Net cash used in investing activities (19,591 ) (56,464 ) (82,923 ) (344,825 ) (512,708 ) (365,486 ) Financing Activities: Proceeds from equity offering, net of issuance costs — — — 253,070 — — Proceeds from term loan borrowing (2,000 ) — 20,000 186,805 168,500 — Proceeds from ABL credit facility 25,000 25,000 20,000 50,000 70,000 — Principal payments on term loan borrowings (3,259 ) (4,725 ) (4,452 ) (17,461 ) (14,383 ) (16,573 ) Payment on ABL credit facility — — — (70,000 ) — — Payment on Deferred Cash Consideration Note — — — (101,252 ) — — Issuance costs associated with debt financing (135 ) — (6 ) (281 ) (1,189 ) (4,397 ) Payments under finance leases (1,340 ) (941 ) (851 ) (3,972 ) (2,625 ) (2,001 ) Repayment of equipment finance notes (1,804 ) (1,607 ) (1,036 ) (5,475 ) (3,563 ) — Dividends — (30,940 ) (26,451 ) (92,281 ) (96,895 ) (62,163 ) Taxes withheld on vesting RSUs (1,295 ) (230 ) (2,067 ) (2,546 ) (2,067 ) — Repurchases of Common Stock under share repurchase program — — — (200 ) — — Prepayment fee on 2021 Term Loan Credit Facility — — — — — (2,649 ) Net proceeds from IPO — — — — — 303,426 Payment of offering costs — — — — — (6,020 ) Member distributions prior to IPO — — — — — (15,000 ) Net cash provided by (used in) financing activities 15,167 (13,443 ) 5,137 196,407 117,778 194,623 Net decrease in cash and cash equivalents (717 ) (37,460 ) (6,933 ) (31,072 ) (138,470 ) 128,164 Cash and cash equivalents, beginning of period 41,349 78,809 78,637 71,704 210,174 82,010 Cash and cash equivalents, end of period $ 40,632 $ 41,349 $ 71,704 $ 40,632 $ 71,704 $ 210,174 Atlas Energy Solutions Inc. Condensed Consolidated Balance Sheets (in thousands) As of As of December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 40,632 $ 71,704 Accounts receivable, including related parties, net 180,783 165,967 Inventories, prepaid expenses and other current assets 86,099 51,747 Total current assets 307,514 289,418 Property, plant and equipment, net 1,540,813 1,486,246 Right-of-use assets 43,783 18,666 Goodwill 152,903 68,999 Intangible assets 182,238 105,867 Other long-term assets 1,177 3,456 Total assets $ 2,228,428 $ 1,972,652 Liabilities and stockholders' equity Current liabilities: Accounts payable, including related parties 69,203 119,244 Accrued liabilities and other current liabilities 101,180 80,085
Page 7
Current portion of long-term debt 40,681 43,736 Total current liabilities 211,064 243,065 Long-term debt, net of discount and deferred financing costs 538,240 466,989 Deferred tax liabilities 221,622 206,872 Other long-term liabilities 48,578 19,170 Total liabilities 1,019,504 936,096 Total stockholders' and members' equity 1,208,924 1,036,556 Total liabilities and stockholders’ equity $ 2,228,428 $ 1,972,652 Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our consolidated operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis. These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies. Non-GAAP Measure Definitions: We define Adjusted EBITDA as net income before depreciation, depletion and accretion expense, amortization expense of acquired intangible assets, interest expense, income tax expense, stock and unit-based compensation, loss on extinguishment of debt, loss on disposal of assets, insurance recovery (gain), unrealized commodity derivative gain (loss), other acquisition related costs, and other non-recurring costs. Management believes Adjusted EBITDA is useful because it allows management to more effectively evaluate the Company’s consolidated operating performance and compare the results of its operations from period to period and against our peers without regard to financing method or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain prior period non- recurring costs of goods sold are now included as an add-back to adjusted EBITDA in order to conform to the current period presentation and to more accurately describe the
Page 8
Company’s consolidated operating performance and results period-over-period. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital Expenditures. Management believes that Adjusted Free Cash Flow is useful to investors as it provides a measure of the ability of our business to generate cash. We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total revenue. We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow divided by Adjusted EBITDA. We define Maintenance Capital Expenditures as capital expenditures excluding growth capital expenditures, reconstruction of previously incurred growth capital expenditures, equipment assets acquired through debt, and asset retirement obligations. Certain prior period equipment assets acquired through debt and asset retirement obligations have been removed from capital expenditures in order to conform to the current period presentation and to more accurately describe the Company’s consolidated operating performance and results period-over-period. Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income (unaudited, in thousands) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Net income (loss) $ (22,244 ) $ (23,721 ) $ 14,402 $ (50,304 ) $ 59,944 $ 226,493 Depreciation, depletion and accretion expense 43,430 42,048 31,342 165,459 102,207 41,634 Amortization expense of acquired intangible assets 6,414 5,883 3,743 23,547 12,316 — Interest expense 16,214 15,155 12,257 59,370 43,078 17,452 Income tax expense (benefit) (8,661 ) (9,830 ) 4,420 (17,875 ) 15,836 31,378 EBITDA $ 35,153 $ 29,535 $ 66,164 $ 180,197 $ 233,381 $ 316,957 Stock and unit-based compensation 9,075 9,344 6,420 33,227 22,381 7,409 Loss on disposal of assets (1) — — — — 19,672 — Insurance recovery (gain) (2) (2,217 ) — (10,098 ) (2,217 ) (20,098 ) — Other non-recurring costs (3) 1,048 638 — 6,833 14,335 4,838 Other acquisition related costs (4) (6,315 ) 669 750 3,640 19,231 451 Adjusted EBITDA $ 36,744 $ 40,186 $ 63,236 $ 221,680 $ 288,902 $ 329,655 Maintenance Capital Expenditures (5) $ 14,351 $ 18,202 $ 16,162 $ 69,675 $ 38,422 $ 38,524 Adjusted Free Cash Flow $ 22,393 $ 21,984 $ 47,074 $ 152,005 $ 250,480 $ 291,131 Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities (unaudited, in thousands, except percentages) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Net cash provided by operating activities $ 3,707 $ 32,447 $ 70,853 $ 117,346 $ 256,460 $ 299,027 Current income tax expense (benefit) (5) (1,996 ) (623 ) (149 ) (380 ) 834 2,177 Change in operating assets and liabilities 27,698 (6,356 ) (9,160 ) 46,818 (22,523 ) 6,947 Cash interest expense (5) 14,331 13,634 11,102 53,255 39,070 16,354 Maintenance capital expenditures (5) (14,351 ) (18,202 ) (16,162 ) (69,675 ) (38,422 ) (38,524 ) Credit loss expense (571 ) (97 ) — (4,778 ) (25 ) (28 ) Change in fair value of contingent consideration 3,360 — — 3,360 — — Other non-recurring costs (3) 1,048 638 — 6,833 14,335 4,838 Other acquisition related costs (4) (6,315 ) 669 750 3,640 19,231 451 Insurance recovery (gain) (2) (2,217 ) — (10,098 ) (2,217 ) (20,098 ) — Other (2,301 ) (126 ) (62 ) (2,197 ) 1,618 (111 )
Page 9
Adjusted Free Cash Flow $ 22,393 $ 21,984 $ 47,074 $ 152,005 $ 250,480 $ 291,131 Adjusted EBITDA Margin 15 % 15 % 23 % 20 % 27 % 54 % Adjusted Free Cash Flow Margin 9 % 8 % 17 % 14 % 24 % 47 % Adjusted Free Cash Flow Conversion 61 % 55 % 74 % 69 % 87 % 88 % (1) Represents loss on disposal of one of the Company's dredge mining assets at its Kermit facility and loss on disposal of assets as a result of the fire at one of the Kermit plants that caused damage to the physical condition of the Kermit asset group. (2) Represents insurance recovery (gain) related to the dredge mining assets at the Kermit facility and the fire at one of the Kermit plants. (3) Other non-recurring costs includes costs incurred during our 2025 Term Loan Credit Facility transaction, credit loss expense due to a dispute with a counterparty, reorganization under a new public holding company, temporary loadout, and other infrequent and unusual costs. (4) Represents transactions costs incurred in connection with acquisitions, including fees paid to finance, legal, accounting and other advisors, employee retention and benefit costs, and other operational and corporate costs. Additionally, includes changes in the fair value of the contingent consideration. (5) A reconciliation of these items used to calculate Adjusted Free Cash Flow to comparable GAAP measures is included below. Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Maintenance Capital Expenditures to Purchase of Property, Plant and Equipment (unaudited, in thousands) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Maintenance Capital Expenditures, accrual basis reconciliation: Purchases of property, plant and equipment $ 21,808 $ 33,806 $ 76,431 $ 148,271 $ 373,983 $ 365,486 Changes in operating assets and liabilities associated with investing activities, equipment assets acquired through debt, and asset retirement obligations (1) 2,088 4,601 (11,118 ) (6,803 ) (2,948 ) 66,132 Less: Equipment assets acquired through debt and asset retirement obligations (4,422 ) (7,955 ) 772 (21,905 ) (7,101 ) (45,050 ) Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures (5,123 ) (12,250 ) (49,923 ) (49,888 ) (325,512 ) (348,044 ) Maintenance Capital Expenditures, accrual basis $ 14,351 $ 18,202 $ 16,162 $ 69,675 $ 38,422 $ 38,524 (1) Positive working capital changes reflect capital expenditures in the current period that will be paid in a future period. Negative working capital changes reflect capital expenditures incurred in a prior period but paid during the period presented. In addition, this amount includes equipment assets acquired through debt and asset retirement obligations. Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Current Income Tax Expense to Income Tax Expense (unaudited, in thousands) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Current tax expense reconciliation: Income tax expense (benefit) $ (8,661 ) $ (9,830 ) $ 4,420 $ (17,875 ) $ 15,836 $ 31,378 Less: deferred tax expense (benefit) 6,665 9,207 (4,569 ) 17,495 (15,002 ) (29,201 ) Current income tax expense (benefit) $ (1,996 ) $ (623 ) $ (149 ) $ (380 ) $ 834 $ 2,177 Atlas Energy Solutions Inc. – Supplemental Information Cash Interest Expense to Interest Expense, Net (unaudited, in thousands) Three Months Ended Year Ended December 31, 2025 September 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Cash interest expense reconciliation: Interest expense, net $ 16,110 $ 15,010 $ 12,018 $ 57,996 $ 38,647 $ 7,689 Less: Amortization of debt discount (1,781 ) (1,423 ) (1,038 ) (5,712 ) (3,573 ) (761 ) Less: Amortization of deferred financing costs (102 ) (98 ) (117 ) (403 ) (435 ) (337 ) Less: Interest income 104 145 239 1,374 4,431 9,763
Page 10
Cash interest expense $ 14,331 $ 13,634 $ 11,102 $ 53,255 $ 39,070 $ 16,354 View source version on businesswire.com: https://www.businesswire.com/news/home/20260223112895/en/ Investor Contact Kyle Turlington 5918 W Courtyard Drive, Suite #500 Austin, Texas 78730 United States T: 512-220-1200 IR@atlas.energy Source: Atlas Energy Solutions Inc.