LandBridge Company LLC Announces Third Quarter 2025 Results

HOUSTON--( BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) (the “Company,” or “LandBridge”) today announced its financial and operating results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights

(1) 3Q25 net income and net income margin include a non-cash expense of $11.2 million attributable to share-based compensation, of which $9.1 million is attributable to management incentive units issued by LandBridge Holdings LLC. Any actual cash expense associated with such incentive units will be borne solely by LandBridge Holdings LLC and not the Company. The incentive units are not dilutive of public ownership.

(2) Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See “Comparison of Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Recent Milestones

Jason Long, Chief Executive Officer of LandBridge, stated, “As we advance our business plan and trajectory, we have shifted the paradigm of active land ownership with a strategy that maximizes the value of over 300,000 optimally located and largely contiguous surface acres. We have already established partnerships with industry-leading operators and developers that provide reliable and diverse revenue streams, and have only scratched the surface in terms of the many compelling opportunities we are evaluating. LandBridge provides our business partners with unparalleled access to expansive surface acreage for conventional and alternative energy development, digital infrastructure build-out, power storage, waste management, and many other commercial uses."

Scott McNeely, Chief Financial Officer of LandBridge, said, “LandBridge delivered its sixth consecutive public quarter of strong growth, driven by increases across all key revenue streams and underpinned by a high-margin, highly capital-efficient and asset-light business model. In addition, we have further diversified our revenue portfolio with the recent 1918 acquisition, which will provide our customers with increased access to pore space and surface acreage well-suited to alternative energy development. Finally, the successful sale of the Reeves County solar project further demonstrates the potential for alternative energy development on our acreage. I'm excited for our team to continue executing on disciplined growth opportunities and acquisitions that maximize the value of our surface land asset for the benefit of all our stakeholders."

Third Quarter 2025 Consolidated Financial Information

Revenue for the third quarter of 2025 was $50.8 million as compared to $47.5 million in the second quarter of 2025 and $28.5 million in the third quarter of 2024. The sequential increase was attributable to increases of $0.2 million in resource sales and royalties, $0.8 million in surface use royalties and revenues, $0.6 million in oil and gas royalties and $1.7 million in other revenue. Net income for the third quarter of 2025 was $20.3 million as compared to $18.5 million in the second quarter of 2025 and a net loss of $2.8 million in the third quarter of 2024. (1)

Adjusted EBITDA was $44.9 million in the third quarter of 2025 as compared to $42.5 million in the second quarter of 2025 and $25.0 million in the third quarter of 2024. (2) Adjusted EBITDA during the third quarter of 2025 reflects $9.1 million of non-cash charges related to LandBridge Holdings LLC incentive units and $2.1 million of non-cash charges related to restricted share units.

Net income margin was 40% in the third quarter of 2025 as compared to 39% in the second quarter of 2025 and a net loss margin of 10% in the third quarter of 2024. (1) Adjusted EBITDA margin was 88% in the third quarter of 2025 as compared to 89% in the second quarter of 2025 and 88% in the third quarter of 2024. (2)

Diversified Revenue Streams

Surface Use Royalties and Revenue: Generated revenues of $35.0 million in the third quarter of 2025 as compared to $34.2 million in the second quarter of 2025 and $16.5 million in the third quarter of 2024. Surface Use Royalties and Revenue increased 2% sequentially, primarily driven by an increase in produced water handling royalties related to WaterBridge's Kraken development, new project easements and damages, and an overall increase in commercial activity on our lands.

Resources Sales and Royalties: Generated revenues of $10.8 million in the third quarter of 2025 as compared to $10.6 million in the second quarter of 2025 and $9.1 million in the third quarter of 2024. Revenue from Resource Sales and Royalties increased 2% sequentially, primarily driven by increases in water sales and royalty volumes.

Oil and Gas Royalties: Generated revenues of $3.3 million in the third quarter of 2025 as compared to $2.7 million in the second quarter of 2025 and $2.9 million in the third quarter of 2024. Revenue from Oil and Gas Royalties increased 22% sequentially, primarily driven by net royalty production increasing from 814 boe/d in the second quarter of 2025 to 912 boe/d in the third quarter of 2025.

Free Cash Flow Generation

Cash flow from operations for the third quarter of 2025 was $34.9 million as compared to $37.3 million in the second quarter of 2025 and $7.5 million in the third quarter of 2024. Free Cash Flow for the third quarter of 2025 was $33.7 million as compared to $36.1 million in the second quarter of 2025 and $7.1 million in the third quarter of 2024. (2)

Capital expenditures for the third quarter of 2025 were $1.2 million and net cash used in investing activities during the third quarter of 2025 was $1.1 million.

Net cash used in financing activities during the third quarter of 2025 was $25.8 million, which consisted of approximately $14.8 million of dividends and distributions paid, $5.0 million of net debt repayments, $5.7 million of required tax withholding related to the net settlement of Class A shares, and $0.3 million of other costs.

Strong Balance Sheet with Ample Liquidity

Total liquidity was $108.3 million as of September 30, 2025.

As of September 30, 2025, the Company had approximately $80.0 million of available borrowing capacity under its revolving credit facility.

Total cash and cash equivalents were $28.3 million as of September 30, 2025, as compared to $20.3 million as of June 30, 2025. The Company had $369.3 million of borrowings outstanding under its term loan and revolving credit facility as of September 30, 2025, versus $374.3 million outstanding as of June 30, 2025.

Third Quarter 2025 Dividend

The LandBridge Board of Directors declared a dividend on our Class A shares of $0.10 per share, payable on December 18, 2025 to shareholders of record as of December 4, 2025, and a corresponding required cash distribution to DBR Land Holdings LLC unitholders.

Outlook

The Company reaffirms the midpoint of its outlook for fiscal year 2025, with Adjusted EBITDA expected to be between $165 million and $175 million.

Reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue. We are unable to reasonably predict these because they are uncertain and depend on various factors not yet known, which could have a material impact on GAAP results for the guidance period. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.

Quarterly Report on Form 10-Q

Our financial statements and related footnotes are available in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on November 12, 2025.

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, November 13, 2025, at 9:30 a.m. Central Time to discuss third quarter results. A live webcast of the conference call will be available on the Events and Presentations section of the LandBridge Investor Relations website at https://www.landbridgeco.com/investor-relations/events-and-presentations. To listen to the live broadcast, go to the site at least 10-15 minutes prior to the scheduled start time to register and install any necessary audio software.

To access the live conference call, participants must pre-register online at https://registrations.events/direct/Q4I3477957 to receive unique dial-in information. Pre-registration may be completed at any time up to the call start time. An audio replay will be available following the conclusion of the call and can be accessed via the same link.

About LandBridge

LandBridge owns approximately 300,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-region in the Permian Basin, the most active region for oil and gas exploration and development in the United States. LandBridge actively manages its land and resources to support and encourage energy and infrastructure development and other land uses, including digital infrastructure. LandBridge was formed by Five Point Infrastructure LLC, a private equity firm with a track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin. For more information, please visit: www.landbridgeco.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on LandBridge’s beliefs, as well as assumptions made by, and information currently available to, LandBridge, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” or “could,” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although LandBridge believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, LandBridge may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: our customers’ demand for and use of our land and resources; the success of our affiliates, including WaterBridge, in executing their business strategies, including their ability to construct infrastructure, attract customers and operate successfully on our land; our customers’ ability to develop our land or any potential acquired acreage to accommodate any future surface use developments, such as the DBR Solar lease; our ability to continue the payment of dividends; the domestic and foreign supply of, and demand for, energy sources, including the impact of political instability or armed conflict in oil and natural gas producing regions, including the Russia-Ukraine war and heightened tensions in the Middle East, actions relating to oil price and production controls by the members of the Organization of Petroleum Exporting Countries, Russia and other allied producing countries, such as announcements of potential changes to oil production levels; the effects of a prolonged U.S. federal government shutdown; our reliance on a limited number of customers and a particular region for substantially all of our revenues, including the potential consolidation of such customers within such region; our ability to enter into favorable contracts regarding surface uses, access agreements and fee arrangements, including the prices we are able to charge and the margins we are able to realize; our business strategies and our ability to execute thereon, including our ability to attract non-traditional energy customers to use our land and resources and to successfully implement our growth plans and manage any resultant growth; our level of indebtedness and our ability to service our indebtedness; the costs associated with our acquisitions, including the 1918 acquisition, and the risk that we may not be able to integrate and/or realize the anticipated benefits and synergies therefrom; and any changes in general economic and/or industry specific conditions. These risks, as well as other risks associated with LandBridge are also more fully discussed in LandBridge's filings with the SEC, including its most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You can access LandBridge’s filings with the SEC through the SEC's website at http://www.sec.gov. Except as required by applicable law, LandBridge undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.

The historical financial information presented below reflects only our historical financial results and the historical financial results of our predecessor, DBR Land Holdings LLC, as applicable.

THIRD QUARTER 2025 RESULTS

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands) (unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues:

Surface use royalties

8,235

4,227

27,775

9,129

Surface use royalties - Related party

10,152

5,627

24,743

11,902

Easements and other surface-related revenues

15,840

5,176

36,552

15,018

Easements and other surface-related revenues - Related party

807

1,465

6,388

4,224

Resource sales

4,501

4,874

17,122

11,908

Resource sales - Related party

731

1,098

329

Resource royalties

3,929

2,686

11,927

6,803

Resource royalties - Related party

1,604

1,472

5,558

2,579

Oil and gas royalties

3,332

2,903

9,452

11,563

Other

1,700

Total revenues

50,831

28,487

142,315

73,455

Resource sales-related expense

438

423

1,384

1,739

Other operating and maintenance expense

1,160

708

3,349

1,837

General and administrative expense

15,864

22,131

45,356

98,114

Depreciation, depletion, amortization and accretion

2,584

2,038

7,730

6,294

Other operating (income) expense, net

(100

)

Operating income (loss)

30,885

3,187

84,425

(34,529

)

Interest expense, net

7,889

7,071

23,745

16,235

Other income

(241

)

Income (loss) from operations before taxes

22,996

(3,884

)

60,680

(50,523

)

Income tax expense (benefit)

2,705

(1,128

)

6,455

(890

)

Net income (loss)

20,291

(2,756

)

54,225

(49,633

)

Net loss prior to the IPO

(46,877

)

Net income (loss) attributable to noncontrolling interest

12,184

(5,412

)

32,153

(5,412

)

Net income attributable to LandBridge Company LLC

8,107

2,656

22,072

2,656

CONSOLIDATED BALANCE SHEETS

(in thousands) (unaudited)

September 30,

December 31,

2025

2024

Current assets:

Cash and cash equivalents

28,316

37,032

Accounts receivable, net

19,669

12,544

Related party accounts receivable

4,564

2,111

Prepaid expenses and other current assets

4,821

1,628

Total current assets

57,370

53,315

Non-current assets:

Property, plant and equipment, net

917,975

902,742

Intangible assets, net

41,845

45,265

Deferred tax assets

59,116

29,416

Other assets

1,614

1,741

Total non-current assets

1,020,550

979,164

Total assets

1,077,920

1,032,479

Liabilities and equity

Current liabilities:

Accounts payable

637

489

Taxes payable

702

2,286

Related party accounts payable

902

686

Accrued liabilities

7,322

7,185

Current portion of long-term debt

924

424

Deferred revenue

2,238

1,221

Other current liabilities

1,094

2,119

Total current liabilities

13,819

14,410

Non-current liabilities:

Long-term debt, net of debt issuance costs

366,081

380,815

Other long-term liabilities

192

183

Total non-current liabilities

366,273

380,998

Total liabilities

380,092

395,408

Class A shares, unlimited shares authorized and 25,337,028 shares issued and outstanding as of September 30, 2025. Unlimited shares authorized and 23,255,419 shares issued and outstanding as of December 31, 2024

254,007

208,427

Class B shares, unlimited shares authorized and 51,093,505 shares issued and outstanding as of September 30, 2025. Unlimited shares authorized and 53,227,852 shares issued and outstanding as of December 31, 2024

Retained earnings

17,981

3,349

Total shareholders’ equity attributable to LandBridge Company LLC

271,988

211,776

Noncontrolling interest

425,840

425,295

Total shareholders’ equity

697,828

637,071

Total liabilities and equity

1,077,920

1,032,479

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

Nine Months Ended

September 30,

2025

2024

Cash flows from operating activities

Net income (loss)

54,225

(49,633

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation, depletion, amortization and accretion

7,730

6,294

Amortization of debt issuance costs

1,619

1,177

Share-based compensation

33,636

84,196

Deferred income tax expense (benefit)

2,265

(1,276

)

Other

Changes in operating assets and liabilities:

Accounts receivable

(7,130

)

1,640

Related party accounts receivable

(2,452

)

(1,124

)

Prepaid expenses and other assets

(3,906

)

(341

)

Accounts payable

(50

)

Related party accounts payable

216

Deferred revenue

1,017

166

Accrued liabilities and other liabilities

(565

)

(387

)

Taxes payable

1,432

)

Net cash provided by operating activities

88,157

40,708

Cash flows from investing activities

Acquisitions

(18,767

)

(431,260

)

Capital expenditures

(2,496

)

(761

)

Proceeds from disposal of assets

210

Net cash used in investing activities

(21,053

)

(432,021

)

Cash flows from financing activities

Proceeds from issuance of Class A shares, net of underwriting discounts and fees

278,263

Taxes paid related to net share settlement of RSUs

(5,728

)

Contributions from member

120,000

Dividends, dividend equivalents, and distributions paid

(52,773

)

(170,854

)

Proceeds from term loan

265,000

Repayments on term loan

(5,750

)

(93,750

)

Proceeds from revolver

15,000

Repayments on revolver

(25,000

)

(35,000

)

Debt issuance costs

(55

)

(3,437

)

Offering costs

(1,110

)

(6,997

)

Other

(404

)

(318

)

Net cash (used in) provided by financing activities

(75,820

)

367,907

Net decrease in cash and cash equivalents

(8,716

)

(23,406

)

Cash and cash equivalents - beginning of period

37,032

37,823

Cash and cash equivalents - end of period

28,316

14,417

Comparison of Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Margin are supplemental non-GAAP measures that we use to evaluate current, past and expected future performance. Although these non-GAAP financial measures are important factors in assessing our operating results and cash flows, they should not be considered in isolation or as a substitute for net income, gross margin or any other measures presented under GAAP.

Adjusted EBITDA and Adjusted EBITDA Margin are used to assess the financial performance of our assets over the long term to generate sufficient cash to return capital to equity holders or service indebtedness. We define Adjusted EBITDA as net income (loss) before interest; taxes; depreciation, amortization, depletion and accretion; share-based compensation; non-recurring transaction-related expenses and other non-cash or non-recurring expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.

We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period, and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA and Adjusted EBITDA Margin because these amounts can vary substantially from company to company within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired.

The following table sets forth a reconciliation of net income as determined in accordance with GAAP to Adjusted EBITDA and Adjusted EBITDA Margin for the periods indicated.

Three Months Ended

September 30,

2025

June 30, 2025

September 30,

2024

(in thousands) (unaudited)

Net income (loss)

20,291

18,475

(2,756

)

Adjustments:

Depreciation, depletion, amortization and accretion

2,584

2,545

2,038

Interest expense, net

7,889

7,879

7,071

Income tax expense (benefit)

2,705

2,148

(1,128

)

EBITDA

33,469

31,047

5,225

Adjustments:

Share-based compensation - Incentive Units

9,144

9,044

9,830

Share-based compensation - RSUs

2,081

2,227

1,794

Transaction-related expenses (1)

135

351

Non-recurring expenses (2)

7,825

Other

156

(13

)

Adjusted EBITDA

44,850

42,453

25,012

Net income (loss) margin

(10

Adjusted EBITDA Margin

(1)

Transaction-related expenses consist of non-capitalizable transaction costs associated with both completed or attempted acquisitions, debt amendments and entity structuring charges.

(2)

Free Cash Flow and Free Cash Flow Margin are used to assess our ability to repay our indebtedness, return capital to our shareholders and fund potential acquisitions without access to external sources of financing for such purposes. We define Free Cash Flow as cash flow from operating activities less investment in capital expenditures. We define Free Cash Flow Margin as Free Cash Flow divided by total revenues.

We believe Free Cash Flow and Free Cash Flow Margin are useful because they allow for an effective evaluation of both our operating and financial performance, as well as the capital intensity of our business, and subsequently the ability of our operations to generate cash flow that is available to distribute to our shareholders, reduce leverage or support acquisition activities.

The following table sets forth a reconciliation of cash flows from operating activities determined in accordance with GAAP to Free Cash Flow and Free Cash Flow Margin, respectively, for the periods indicated.

Three Months Ended

September 30,

2025

June 30, 2025

September 30,

2024

(in thousands) (unaudited)

Net cash provided by operating activities

34,912

37,332

7,450

Net cash used in investing activities

(1,107

)

(2,079

)

(1,053

)

Net cash provided by operating and investing activities

33,805

35,253

6,397

Adjustments:

Acquisitions

944

750

Proceeds from disposal of assets

(85

)

(105

)

Free Cash Flow

33,725

36,092

7,147

Operating cash flow margin (1)

Free Cash Flow Margin

(1)

Operating cash flow margin is calculated by dividing net cash provided by operating activities by total revenue.