LandBridge Announces Fourth Quarter and Fiscal Year 2025 Results

HOUSTON--( BUSINESS WIRE)--LandBridge Company LLC (NYSE: LB) (the “Company,” or “LandBridge”) today announced its financial and operating results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

Fiscal Year 2025 Financial Highlights

Recent Milestones

Jason Long, Chief Executive Officer of LandBridge, stated, “We entered 2026 with strong momentum, and continue to shift the paradigm of active land management. With over 315,000 optimally-located and largely contiguous surface acres, LandBridge continues to support and encourage energy, power, digital infrastructure and broader industrial development. We have a strong balance sheet and a proven platform for organic and acquisition-driven expansion, and we are well positioned to deliver differentiated value to shareholders and a diverse customer base in the years ahead."

Scott McNeely, Chief Financial Officer of LandBridge, said, “LandBridge delivered its seventh consecutive public quarter of strong growth, driven by increases across key revenue streams. As always, our business is underpinned by a high-margin, highly capital-efficient and asset-light model, with predominately fee-based revenue that we anticipate yielding high Adjusted EBITDA and Free Cash Flow. 2025 saw approximately 450 new easements and agreements executed on our acreage, with many compelling opportunities before us across all industrial uses, and an optimized balance sheet to accelerate our growth trajectory. We look forward to executing on our disciplined strategy and anticipate delivering within our Adjusted EBITDA guidance range, representing greater than 20% projected year-over-year growth at the midpoint of the range."

Fourth Quarter 2025 Consolidated Financial Information

Revenue for the fourth quarter of 2025 was $56.8 million as compared to $50.8 million in the third quarter of 2025 and $36.5 million in the fourth quarter of 2024. The sequential increase was attributable to increases of $4.3 million in surface use royalties and revenues, $1.3 million in resource sales and royalties and $0.6 million in other revenue, offset by a decrease of $0.2 million in oil and gas royalties. Net income for the fourth quarter of 2025 was $18.2 million as compared to $20.3 million in the third quarter of 2025 and $8.2 million in the fourth quarter of 2024. (1)

Adjusted EBITDA was $51.1 million in the fourth quarter of 2025 as compared to $44.9 million in the third quarter of 2025 and $31.7 million in the fourth quarter of 2024. (2) Adjusted EBITDA during the fourth quarter of 2025 reflects $9.4 million of non-cash charges related to LandBridge Holdings LLC incentive units, $2.3 million of non-cash charges related to LandBridge's restricted share units, and $5.8 million of transaction-related expenses.

Net income margin was 32% in the fourth quarter of 2025 as compared to 40% in the third quarter of 2025 and 22% in the fourth quarter of 2024. (1) Adjusted EBITDA margin was 90% in the fourth quarter of 2025 as compared to 88% in the third quarter of 2025 and 87% in the fourth quarter of 2024. (2)

Diversified Revenue Streams

Surface Use Royalties and Revenue: Generated revenues of $39.3 million in the fourth quarter of 2025 as compared to $35.0 million in the third quarter of 2025 and $25.5 million in the fourth quarter of 2024. Surface Use Royalties and Revenue increased 12% sequentially, primarily driven by a continued increase in produced water handling royalties and new easement payments received in the quarter.

Resources Sales and Royalties: Generated revenues of $12.0 million in the fourth quarter of 2025 as compared to $10.8 million in the third quarter of 2025 and $6.6 million in the fourth quarter of 2024. Revenue from Resource Sales and Royalties increased 12% sequentially, primarily driven by increases in supply water royalty volumes and sand sales in the quarter.

Oil and Gas Royalties: Generated revenues of $3.1 million in the fourth quarter of 2025 as compared to $3.3 million in the third quarter of 2025 and $4.5 million in the fourth quarter of 2024. Revenue from Oil and Gas Royalties decreased 6% sequentially, primarily driven by activity levels in the quarter.

Free Cash Flow Generation

Cash flow from operations for the fourth quarter of 2025 was $38.1 million as compared to $34.9 million in the third quarter of 2025 and $26.9 million in the fourth quarter of 2024. Free Cash Flow for the fourth quarter of 2025 was $36.4 million as compared to $33.7 million in the third quarter of 2025 and $26.7 million in the fourth quarter of 2024. (2)

Capital expenditures for the fourth quarter of 2025 were $1.7 million and net cash used in investing activities during the fourth quarter of 2025 was $212.0 million.

Net cash provided by financing activities during the fourth quarter of 2025 was $176.3 million, which included approximately $10.9 million of dividends and distributions paid and $187.3 million of net debt proceeds.

Strong Balance Sheet with Ample Liquidity

Total liquidity was $235.7 million as of December 31, 2025.

On November 25, 2025, the Company refinanced all of its existing debt through an inaugural $500.0 million offering of 6.25% senior unsecured notes due 2030 and a new $275.0 million senior secured revolving credit facility maturing in June 2030.

As of December 31, 2025, the Company had approximately $205.0 million of available borrowing capacity under its new revolving credit facility.

Total cash and cash equivalents were $30.7 million as of December 31, 2025, as compared to $28.3 million as of September 30, 2025. The Company had $570.0 million of borrowings outstanding under its senior notes and new revolving credit facility as of December 31, 2025, versus $369.3 million of borrowings outstanding under its previous term loan and revolving credit facility as of September 30, 2025.

Return of Capital

Our Board of Directors declared a dividend on our Class A shares of $0.12 per share, a 20% increase compared to prior quarters, payable on March 19, 2026 to shareholders of record as of March 5, 2026, and a corresponding required cash distribution to DBR Land Holdings LLC unitholders.

Additionally, our Board of Directors has approved a two-year share repurchase authorization under which the Company may opportunistically repurchase up to $50 million of Class A shares. The repurchase authorization is expected to provide the Company with opportunities to acquire shares at levels that we believe do not reflect the fundamental earnings power of the Company and enable incremental capital return to shareholders. While the share repurchase authorization provides increased flexibility to deploy capital, the Company's primary capital allocation priority will continue to be investing appropriately in the long-term, sustainable growth of the business through disciplined M&A.

2026 Outlook

For the full year 2026, the Company expects Adjusted EBITDA to be between $205 million and $225 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.

LandBridge 2026 Investor Day

LandBridge will host an Investor Day on March 19, 2026, from 1:00 to 4:00 pm ET in New York City, NY. The event will include presentations from senior company leaders, including our Chief Executive Officer, Jason Long, our Chief Financial Officer, Scott McNeely and Chairman of the Board and Five Point CEO and managing partner, David Capobianco. Presentations will feature overviews of the macro environment across the Company's key growth industries in West Texas, detail how the Company's acreage portfolio acts as a perpetual call option on growth opportunities and provide insight into the value proposition of LandBridge's unique business model. In addition, the event will include a fireside chat with subject matter experts deep diving into the nuances and implications of the data center thesis for West Texas, as well as insights from experienced data center leaders such as PowerBridge CEO, Alex Hernandez. Those interested in attending the event in person may contact us via email at ir@landbridgeco.com.

(1) 4Q25 net income and net income margin reflect a non-cash expense of $11.7 million attributable to share-based compensation, of which $9.4 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.

(3) Surface use economic efficiency is calculated as “Total revenues” less “Oil and gas royalties” from our consolidated statements of operations divided by the weighed average surface acres owned during the period.

Annual Report on Form 10-K

Our financial statements and related footnotes will be available in our Annual Report on Form 10-K for the year ended December 31, 2025, which is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) on February 25, 2026 .

Conference Call and Webcast Information

The Company will hold a conference call on Thursday, February 26, 2026, at 10:00 a.m. Central Time to discuss fourth quarter and full year 2025 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://events.q4inc.com/analyst/509679838?pwd=zz0XWNﬂ 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 or manages more than 315,000 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; our ability to continue the payment of dividends; the domestic and foreign supply of, and demand for, energy sources, including the effects of geopolitical conflicts, domestic uncertainties or armed conflict in oil and natural gas producing regions and the impact of 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; our reliance on a limited number of customers and a particular region for substantially all of our revenues; 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; our level of indebtedness and our ability to service our indebtedness; our ability to successfully implement our growth plans, including through future acquisitions of acreage and/or introduction of new revenue streams; and any changes in general economic, regulatory 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.

FOURTH QUARTER 2025 RESULTS

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands) (unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Revenues:

Surface use royalties

8,829

3,992

36,604

13,121

Surface use royalties - Related party

11,425

6,597

36,168

18,499

Easements and other surface-related revenues

14,734

5,611

51,286

20,629

Easements and other surface-related revenues - Related party

4,328

9,262

10,716

13,486

Resource sales

5,883

3,056

23,005

14,964

Resource sales - Related party

620

1,718

387

Resource royalties

3,803

2,976

15,730

9,779

Resource royalties - Related party

1,739

483

7,297

3,062

Oil and gas royalties

3,137

4,464

12,589

16,027

Other

2,280

3,980

Total revenues

56,778

36,499

199,093

109,954

Resource sales-related expense

642

374

2,026

2,113

Other operating and maintenance expense

1,169

1,337

4,518

3,174

General and administrative expense

17,092

14,188

62,448

112,302

Depreciation, depletion and amortization

3,740

2,581

11,470

8,875

Other operating expense, net

131

Operating income (loss)

34,075

18,019

118,500

(16,510

)

Interest expense, net

8,961

7,100

32,706

23,335

Other loss (income)

4,329

(241

)

Income (loss) from operations before taxes

20,785

10,919

81,465

(39,604

)

Income tax expense

2,611

2,765

9,066

1,875

Net income (loss)

18,174

8,154

72,399

(41,479

)

Net loss prior to the IPO

(46,877

)

Net income attributable to noncontrolling interest

10,118

5,701

42,271

288

Net income attributable to LandBridge Company LLC

8,056

2,453

30,128

5,110

CONSOLIDATED BALANCE SHEETS

(in thousands) (unaudited)

December 31,

2025

2024

Current assets:

Cash and cash equivalents

30,741

37,032

Accounts receivable, net

19,363

12,544

Related party accounts receivable

4,945

2,111

Prepaid expenses and other current assets

4,766

1,628

Total current assets

59,815

53,315

Non-current assets:

Property, plant and equipment, net

1,084,450

902,742

Intangible assets, net

136,962

45,265

Deferred tax assets

80,973

29,416

Other assets

3,856

1,741

Total non-current assets

1,306,241

979,164

Total assets

1,366,056

1,032,479

Liabilities and equity

Current liabilities:

Accounts payable

562

489

Taxes payable

1,200

2,286

Related party accounts payable

781

686

Accrued liabilities

7,781

7,185

Current portion of long-term debt

692

424

Deferred revenue

1,263

1,221

Other current liabilities

2,119

Total current liabilities

12,286

14,410

Non-current liabilities:

Long-term debt, net of debt issuance costs

559,593

380,815

Other long-term liabilities

192

183

Total non-current liabilities

559,785

380,998

Total liabilities

572,071

395,408

Commitments and contingencies

Class A shares, unlimited shares authorized and 27,838,199 shares issued and outstanding as of December 31, 2025. Unlimited shares authorized and 23,255,419 shares issued and outstanding as of December 31, 2024

317,069

208,427

Class B shares, unlimited shares authorized and 49,250,916 shares issued and outstanding as of December 31, 2025. Unlimited shares authorized and 53,227,852 shares issued and outstanding as of December 31, 2024

Retained earnings

23,233

3,349

Total shareholders' equity attributable to LandBridge Company LLC

340,302

211,776

Noncontrolling interest

453,683

425,295

Total shareholders’ equity

793,985

637,071

Total liabilities and equity

1,366,056

1,032,479

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

Year Ended December 31,

2025

2024

Cash flows from operating activities

Net income (loss)

72,399

(41,479

)

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

11,470

8,875

Amortization of debt issuance costs

2,189

1,688

Share-based compensation

45,319

95,335

Loss on extinguishment of debt

4,416

Deferred income tax expense (benefit)

4,084

(411

)

Other

Changes in operating assets and liabilities:

Accounts receivable

(6,834

)

2,113

Related party accounts receivable

(2,834

)

(1,074

)

Prepaid expenses and other assets

1,301

(328

)

Accounts payable

272

Related party accounts payable

233

Accrued liabilities and other liabilities

(1,616

)

506

Taxes payable

(3,748

)

1,901

Net cash provided by operating activities

126,273

67,636

Cash flows from investing activities

Acquisitions

(229,048

)

(723,367

)

Capital expenditures

(4,236

)

(985

)

Proceeds from disposal of assets

210

Net cash used in investing activities

(233,074

)

(724,352

)

Cash flows from financing activities

Proceeds from debt

783,549

417,500

Repayments of debt

(599,198

)

(162,962

)

Dividends, dividend equivalents, and distributions paid

(63,713

)

(178,244

)

Debt issuance costs

(13,266

)

(4,326

)

Taxes paid related to net share settlement of RSUs

(5,750

)

Offering costs

(1,112

)

(8,186

)

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

278,263

Proceeds from issuance of Class A shares - December 2024 Private Placement, net of placement agent fees

339,291

Purchase of OpCo Units from LandBridge Holdings, net of placement agent fees

(145,411

)

Contributions from member

120,000

Net cash provided by financing activities

100,510

655,925

Net decrease in cash and cash equivalents

(6,291

)

(791

)

Cash and cash equivalents - beginning of period

37,032

37,823

Cash and cash equivalents - end of period

30,741

37,032

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, depletion, amortization, 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.

Year Ended

Three Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

September

30, 2025

December

31, 2024

(in thousands) (unaudited)

Net income (loss)

72,399

(41,479

)

18,174

20,291

8,154

Adjustments:

Depreciation, depletion and amortization

11,470

8,875

3,740

2,584

2,581

Interest expense, net

32,706

23,335

8,961

7,889

7,100

Income tax expense

9,066

1,875

2,611

2,705

2,765

EBITDA

125,641

(7,394

)

33,486

33,469

20,600

Adjustments:

Share-based compensation - Incentive Units (1)

36,508

91,307

9,375

9,144

8,905

Share-based compensation - RSUs

8,811

4,028

2,308

2,081

2,234

Transaction-related expenses (2)

5,955

1,266

5,820

Non-recurring expenses (3)

7,825

Other

256

100

156

Adjusted EBITDA

177,171

97,069

51,089

44,850

31,739

Net income (loss) margin

(38

Adjusted EBITDA Margin

(1)

Share-based compensation - Incentive Units for the year ended December 31, 2025 and for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, consists only of time-based awards of profits interests in LandBridge Holdings LLC, "LBH Incentive Units". Share-based compensation - Incentive Units for the year ended December 31, 2024, consists of $18.7 million of LBH Incentive Units, and $72.6 million of time-based awards of profits interests in WaterBridge NDB LLC, "NDB Incentive Units". NDB Incentive Units were liability awards resulting in periodic fair value remeasurement prior to July 1, 2024. Distributions attributable to Incentive Units subsequent to July 1, 2024, are based on returns received by investors of LandBridge Holdings LLC once certain return thresholds have been met and are neither an obligation of LandBridge Company LLC nor taken into consideration for distributions to investors of LandBridge Company LLC.

(2)

Transaction-related expenses for the year ended December 31, 2025 consist of $4.9 million resulting from debt amendments and extinguishments, $0.8 million related to LandBridge Holdings redemption of 2,500,000 OpCo Units (together with a cancellation of a corresponding number of Class B shares), for an equivalent amount of Class A shares and $0.4 million of other transaction-related costs. For the year ended December 31, 2024, transaction-related expenses consisted of $0.4 million resulting from debt amendments, $0.3 million of entity structuring, $0.2 million of non-capitalizable IPO-related charges and $0.2 million of other transaction-related costs.

(3)

Non-recurring expenses for the year ended December 31, 2024 consists primarily of $5.0 million in IPO-related employee bonuses and $2.6 million related to a contract termination payment.

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.

Year Ended

Three Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

September

30, 2025

December

31, 2024

(in thousands) (unaudited)

Net cash provided by operating activities

126,273

67,636

38,116

34,912

26,928

Net cash used in investing activities

(233,074

)

(724,352

)

(212,021

)

(1,107

)

(292,331

)

Net cash (used in) provided by operating and investing activities

(106,801

)

(656,716

)

(173,905

)

33,805

(265,403

)

Adjustments:

Acquisitions

229,048

723,367

210,281

292,107

Proceeds from disposal of assets

(210

)

(85

)

Free Cash Flow

122,037

66,651

36,376

33,725

26,704

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.