Atlas Energy Solutions — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $267.8 million, compared to $259.6 million in the same period in 2025.
• Net loss was $45.1 million for the quarter, compared to a net loss of $23.7 million in the prior year period.
• Net loss margin was (17%) for the quarter, compared to (9%) in the prior year period.
• Adjusted EBITDA was $30.3 million, down from $41.6 million in the prior year period.
• Adjusted EBITDA margin was 11% for the quarter, compared to 16% in the prior year period.
• Net cash provided by operating activities was $23.4 million, compared to $32.4 million in the prior year period.
• Adjusted Free Cash Flow was $25.3 million, compared to $23.4 million in the prior year period.
• Adjusted Free Cash Flow margin was 9% for the quarter, compared to 9% in the prior year period.
• Total liquidity as of September 30, 2026, was $116.7 million, consisting of $22.3 million in cash and $94.4 million in availability under the 2023 ABL Credit Facility.
• Long-term debt, net of discount and deferred financing costs, was $940.8 million as of September 30, 2026, compared to $538.2 million as of December 31, 2025.
• Total assets were $2.55 billion as of September 30, 2026, compared to $2.23 billion as of December 31, 2025.

Guidance and Future Outlook:

• The Company expects sequential improvement in every segment of its business for the fourth quarter of 2026.
• Adjusted EBITDA for the fourth quarter of 2026 is expected to be in the range of $40 million to $50 million.
• The Company has a line of sight to more than 23 million allocated tons for 2027.
• The first behind-the-meter project in Socorro, Texas, is on track to come online at the end of the first quarter of 2027.

Business Segments and Product Lines:

• Revenue was comprised of product revenue of $97.9 million, service revenue of $140.8 million, and power rental revenue of $29.1 million.
• Total proppant sales volume was 5.4 million tons with an average sales price of approximately $16.93 per ton.
• Product revenue included roughly $3.5 million of power equipment sales and $2.8 million of logistics-related sales.
• Sand & Logistics segment reported a gross loss of $10.1 million (gross margin of (4%)) for the quarter.
• Power segment reported a gross profit of $15.3 million (gross margin of 47%) for the quarter.
• The Company announced two Cost Reimbursement Agreements (CRA) with a leading frontier AI lab to support balance-of-plant equipment and an incremental 283 MW for two significant data center projects.
• The Company made a deliberate choice to hold the line on pricing in the sand business rather than chase uneconomic bids, which reduced third-quarter sales volumes; these volumes were backfilled for the fourth quarter.

Market and Competitive Landscape:

• The Company is building its behind-the-meter power business to address customers requiring power where grid utilities are unavailable.
• The Company is negotiating contracts for and executing on long-term power generation for potential data center projects.
• The Company faces competition from other companies in the proppant and power generation industries.
• The Company monitors demand for proppant and power generation, particularly in the Permian Basin.

Risks and Challenges:

• Risks include limitations on financial flexibility due to existing and future indebtedness.
• Operational risks include higher than expected costs to operate proppant production and processing facilities, operating difficulties, and unfavorable geologic conditions.
• The Company faces risks related to the volume of proppant it can sell, the prices it can charge, and the margins it can realize.
• Hazards customary to power generation facilities, including transporting, storing, and handling fuel, and connecting to high voltage transmission systems.
• Risks related to the availability of capital, liquidity, and the ability to borrow funds and access capital markets.
• Potential for customer concentration, future consolidation among customers, and the possibility that customers may not continue to outsource power system needs.
• Risks related to environmental regulations, facility shutdowns, technical difficulties, and liability or operational disruptions.
• Risks related to the success of electric dredging transition efforts and the availability of water for processing proppant.
• Risks related to geopolitical developments, inflation, financial market instability, and cybersecurity breaches.

Management Commentary and Tone:

• John Turner, President & CEO, stated the Company took significant steps in its methodical approach to building out the behind-the-meter power business.
• The CEO described the plan as simple: secure equipment, sign contracts, lock in long-term financing, and deliver.
• The CEO noted that the CRAs and the new $424 million bridge facility have significantly reduced near-term financing and supply chain risk on equipment for two significant data center projects.
• The CEO highlighted that the Socorro, Texas project demonstrates the Company's ability to build quickly, operate reliably, and deploy power where needed.
• Regarding the sand business, the CEO noted the deliberate choice to hold pricing lines reduced third-quarter volumes but expects sequential improvement in the fourth quarter.

Other Key Points:

• Subsequent to the quarter end, the Company completed a $424 million Senior Secured Bridge Facility provided by Goldman Sachs and Barclays.
• As of October 23, 2026, estimated total liquidity increased to $499.4 million, comprising $152.2 million in cash and cash equivalents, $252.8 million in availability under the bridge facility, and $94.4 million in availability under the 2023 ABL Credit Facility.
• The Company recognized $1.4 million in logistics operating costs tied to the cessation of operations in a particular region during the quarter.
• Stock-based compensation expense was $8.8 million for the quarter.
• Depreciation, depletion, and accretion expense was $47.1 million for the quarter.
• Purchases of property, plant, and equipment were $184.7 million for the quarter.
• Proceeds from sales of power equipment were $3.5 million for the quarter.
• The Company will host a conference call on November 3, 2026, at 9:00 am Central Time to discuss results.