Atlas Energy Solutions Inc. (NYSE: AESI) saw its stock price plummet 18.58% in pre-market trading on Tuesday, following the release of disappointing third-quarter results and the announcement of a dividend suspension. The oilfield services provider faced significant headwinds in a challenging market environment, leading to a substantial miss on analyst expectations.
For the third quarter of 2025, Atlas Energy reported a loss of $0.19 per share, significantly below the FactSet estimate of a $0.01 loss. Total revenue came in at $259.6 million, falling short of the consensus estimate of $276.3 million. The company's adjusted EBITDA was $40.2 million, well below analyst projections of $64.7 million. Atlas attributed the weak performance to an "exceptionally weak West Texas completions market" and higher operating costs at its Kermit facility due to issues with the dredge feed and wet plant.
In response to the challenging conditions, Atlas Energy announced the suspension of its quarterly dividend and introduced a company-wide efficiency initiative targeting $20 million in annualized cost savings. The company is also shifting focus towards its power generation business, announcing an order for 240 megawatts of power generation equipment and targeting more than 400 megawatts of capacity by early 2027. Despite these efforts, investors appear to be concerned about the company's near-term prospects, as reflected in the steep pre-market decline.
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