Atlas Energy Solutions Inc. Q3 FY25 Results

“Despite an exceptionally weak West Texas completions market, Atlas generated meaningful Adjusted Free Cash Flow, a testament to the strength of our competitive position and cost-advantaged mines and logistics network. These results were achieved despite a challenging third quarter, marked by softer than expected customer demand and higher operating costs at Kermit due to issues with the dredge feed and the wet plant. While market conditions in the Permian completions market are expected to remain challenging, Atlas is well positioned to enhance our market position and generate meaningful Adjusted Free Cash Flow in 2026. In order to maximize our efficiencies and the flow-through to our financial results, we have instituted a company-wide efficiency initiative, targeting $20 million in annualized cost savings. While overall operator activity plans for 2026 remain opaque, we are currently well-positioned to exceed 10 million tons down the Dune Express next year and will have a better grasp of total volumes in the coming months. Our power business has witnessed a rapid expansion of its commercial opportunity set that is now approaching 2 GW in opportunities for permanent power installations in the commercial and industrial, technology, and data center end markets. Based on our current customer dialogues, we are targeting having more than 400 MW deployed across our business by early 2027 with a majority of that under long-term contracts. In line with this target, we have placed an order for 240 MW of power generation assets with a blue-chip equipment provider. This equipment package will feature units with nameplate capacity of 4 MW, and we expect to take possession of these assets in late 2026 with target commissioning in early 2027. The pace at which these projects have been developing has accelerated dramatically over the past quarter, and I would not be surprised to see our target for deployed power generation increase in short order.”

“Suspending the dividend was a deliberate choice to safeguard our balance sheet’s long-term strength while unlocking the flexibility to capitalize on transformative growth opportunities, especially in our power platform. These prospects have the potential to fundamentally reshape Atlas’s cash flow profile and drive outsized, sustainable value for shareholders.”