LandBridge Announces Third Quarter 2026 Results
LandBridge Corp (LB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 LandBridge Announces Third Quarter 2026 Results Delivers record third quarter revenue of $70.9 million, representing growth of 39% year-over-year and 6% quarter-over-quarter Increases full year 2026 Adjusted EBITDA guidance to $220 to $235 million Completes the acqui
How this was made
The 30-second read
Why it matters
The raised guidance and record revenue suggest stronger cash flow generation, potentially supporting a higher stock valuation.
Market read
The earnings beat and raised guidance are likely to drive short-term price appreciation for LB.
What to watch
Increased debt load from recent credit facility upsize may concern some investors.
LandBridge Announces Third Quarter 2026 Results Delivers record third quarter revenue of $70.9 million, representing growth of 39% year-over-year and 6% quarter-over-quarter
Revenue, net income, Adjusted EBITDA, operating cash flow and Free Cash Flow each increased year-over-year and sequentially, while the Company raised the midpoint of full-year Adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $70.9M | 6% | 39% |
| Total revenues, nine months ended September 30, 2026GAAP | $188.7M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $48.25M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $121.6M | – | – |
| Net income, three months ended September 30, 2026GAAP | $34M | 10% | 68% |
| Net income, nine months ended September 30, 2026GAAP | $82.97M | – | – |
| Net income attributable to LandBridge Company LLC, three months ended September 30, 2026GAAP | $12.96M | – | – |
| Net income attributable to LandBridge Company LLC, nine months ended September 30, 2026GAAP | $33.96M | – | – |
| Net income margin, three months ended September 30, 2026GAAP | 48% | – | – |
| Basic net income per share of Class A shares, three months ended September 30, 2026GAAP | $ 0.44 | – | – |
| Diluted net income per share of Class A shares, three months ended September 30, 2026GAAP | $ 0.44 | – | – |
| Basic net income per share of Class A shares, nine months ended September 30, 2026GAAP | $ 1.18 | – | – |
| Diluted net income per share of Class A shares, nine months ended September 30, 2026GAAP | $ 1.07 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $63.7M | 7% | 42% |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 90% | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $49.6M | 20% | 42% |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $132.1M | – | – |
| Operating cash flow margin, three months ended September 30, 2026other | 70% | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $49M | 22% | 45% |
| Free Cash Flow Margin, three months ended September 30, 2026non-GAAP | 69% | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | $600K | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $1.89M | – | – |
| Net cash used in investing activities, three months ended September 30, 2026GAAP | $267.4M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026GAAP | $280.8M | – | – |
| Net cash provided by financing activities, three months ended September 30, 2026GAAP | $74.8M | – | – |
| Net cash provided by financing activities, nine months ended September 30, 2026GAAP | $134.8M | – | – |
| Total liquidity as of September 30, 2026GAAP | $126.8M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $16.8M | – | – |
| Borrowings outstanding as of September 30, 2026GAAP | $765M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Surface Use Royalties and RevenuePrimarily driven by an increase in produced water handling volumes across acreage, including increased volumes from the ramping Speedway Phase I pipeline, as well as an increase in pipeline easement revenue. | $54.3M | increased $2.1 million sequentially | – |
| Resources Sales and RoyaltiesPrimarily driven by increases in water and caliche sales as well as sand royalties on acreage. | $12.5M | increased $1.4 million sequentially | – |
| Oil and Gas RoyaltiesPrimarily driven by net royalty production increasing from 773 boe/d in the second quarter of 2026 to 917 boe/d in the third quarter of 2026. | $4.1M | increased $0.5 million sequentially | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal year 2026 outlook
- NoteAdjusted EBITDA expected to be between $220 million and $235 million.
Capital returns
- The Board declared a dividend on Class A common stock of $0.12 per share, payable on December 10, 2026 to shareholders of record as of November 25, 2026.
- Dividends, dividend equivalents and distributions paid for the nine months ended September 30, 2026 were $ 50,731 (in thousands), compared with $ 52,773 (in thousands) for the nine months ended September 30, 2025.
- A corresponding required cash distribution to OpCo unitholders was declared.
What drove it
- Revenue increased across all key revenue streams.
- The Company acquired approximately 25,000 acres during the third quarter of 2026 across its existing footprint.
- PowerBridge exercised its option to lease an initial 825-acre portion of approximately 3,400 total acreage under option for the Alpha Digital Campus.
- PowerBridge commenced construction on Alpha Phase I in September 2026. The project is expected to include more than 300 megawatts of the planned 2 gigawatt powered data center campus project, with first power delivery anticipated in the fourth quarter of 2027.
- Q3 2026 net income and net income margin include a non-cash expense of $9.1 million attributable to share-based compensation, of which $6.5 million is attributable to management units issued by LandBridge Holdings LLC.
Concerns
- Cash and cash equivalents declined to $16.8 million as of September 30, 2026 from $39.8 million as of June 30, 2026.
- Borrowings outstanding increased to $765.0 million as of September 30, 2026 from $545.2 million as of June 30, 2026.
- The Company states that it relies on a limited number of customers and on a particular region for substantially all of its revenues.
- The expected contribution from recent acquisitions begins in the fourth quarter.
What to watch
- Expected contribution from recent acquisitions beginning in the fourth quarter.
- Commercialization of undeveloped pore space on acquired acreage.
- Alpha Phase I construction progress and the anticipated first power delivery date in the fourth quarter of 2027.
- Execution against fiscal year 2026 Adjusted EBITDA guidance of $220 million to $235 million.
- Borrowings, liquidity and acquisition-related cash use following the October 1, 2026 Additional Notes issuance.
Balance sheet and cash flow
- Total liquidity was $126.8 million as of September 30, 2026, including approximately $110.0 million of available borrowing capacity under the revolving credit facility.
- Total cash and cash equivalents were $16.8 million as of September 30, 2026, compared with $39.8 million as of June 30, 2026.
- The Company had $765.0 million of borrowings outstanding as of September 30, 2026, compared with $545.2 million as of June 30, 2026.
- During the third quarter, net cash used in investing activities was $267.4 million, including approximately $266.8 million of acquisition expenditures.
- On October 1, 2026, OpCo issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030, bringing total aggregate principal amount to $625.0 million.
Analysis
LandBridge reported record third-quarter revenue of $70.9 million, up 39% year-over-year and 6% sequentially. Consolidated net income was $34.0 million, up 68% year-over-year and 10% quarter-over-quarter, while operating income was $ 48,247 (in thousands). The Company reported a 48% net income margin, compared with 40% in the third quarter of 2025 and 46% in the second quarter of 2026.
All three disclosed revenue streams expanded sequentially. Surface Use Royalties and Revenue generated $54.3 million, with the $2.1 million sequential increase driven by produced-water handling volumes, the Speedway Phase I pipeline ramp and pipeline easement revenue. Resources Sales and Royalties generated $12.5 million, aided by water and caliche sales and sand royalties. Oil and Gas Royalties generated $4.1 million as net royalty production rose from 773 boe/d to 917 boe/d.
The cash-flow profile remained strong. Operating cash flow was $49.6 million and Free Cash Flow was $49.0 million, with margins of 70% and 69%, respectively. Adjusted EBITDA was $63.7 million, up 42% year-over-year and 7% sequentially, and the Adjusted EBITDA Margin reached 90%. The quarter's investing cash use was dominated by approximately $266.8 million of acquisition expenditures tied to approximately 25,000 acres acquired across the existing footprint.
Balance-sheet activity reflected the acquisition program and financing actions. Cash and cash equivalents were $16.8 million at September 30, 2026, while borrowings outstanding were $765.0 million. Subsequent to quarter end, OpCo issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030. The Board also declared a $0.12 per-share dividend.
Management raised the midpoint of its fiscal-year 2026 Adjusted EBITDA outlook to $227.5 million, within a new range of $220 million to $235 million, citing expected contributions from recent acquisitions. PowerBridge's long-term ground lease for Alpha Phase I and the start of construction add a disclosed digital-infrastructure development milestone, with first power delivery anticipated in the fourth quarter of 2027.
Management, verbatim
LandBridge delivered another strong quarter, with revenue growing 39% year-over-year, and we are increasing our full year 2026 guidance based on the continued organic and M&A momentum across our acreage.
Jason Long, Chief Executive Officer of LandBridge
Our third quarter results underscore the scalability of our high-margin, asset-light business model.
Scott McNeely, Chief Financial Officer of LandBridge
Not in the filing
stated, not guessed- Prior fiscal-year 2026 guidance was not provided, so comparison of actual results with prior guidance is unavailable.
- Revenue guidance was not provided.
- Gross margin was not reported.
- Forward operating-expense guidance was not provided.
- Forward tax-rate guidance was not provided.
- GAAP reconciliation for forward-looking Adjusted EBITDA guidance was not available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
LandBridge Corp filed an SEC Form 8‑K announcing Q3 2026 financials and operational updates.
Ticker impact
LandBridge Corp reported Q3 2026 results with record revenue and raised full-year Adjusted EBITDA guidance to $220-$235 million.
likely upward pressure as investors price in higher earnings outlook
The company delivered strong revenue growth and increased its EBITDA guidance, signaling improved profitability and operational scale.
Market effects
Positive for energy infrastructure and royalty-focused firms.
May boost sentiment for Texas-based energy assets.
Limited to sector peers.
Counterpoint
Higher guidance could be offset by execution risk on new acreage acquisitions.
Key entities
- companyLandBridge Corp
Energy infrastructure and royalty business listed on NYSE.
