YARDLEY, PA — Smart Sand, Inc. (NASDAQ: SND) reported a sharp increase in sales volumes and revenues for the second quarter of 2025, though higher logistics costs and negative cash flow tempered overall results.
The company posted revenue of $85.8 million, up from $65.6 million in the prior quarter and $73.8 million in the same period last year. Tons sold rose to 1.42 million, reflecting a 33% increase over the first quarter and 12% growth year over year. Net income came in at $21.4 million, aided by a $21.7 million tax benefit.
Charles Young, Smart Sand’s chief executive officer, credited expanded operations in the Blair and Ottawa facilities and growing demand from Utica Shale terminals for the company’s improved performance. “Our sales volumes rose 33% and our Adjusted EBITDA grew by $6.3 million compared to the first quarter,” Young said. “Strategic investments have driven higher frac sand sales into the Northeast United States and Canada, while our Industrial Production Solutions business continues to gain traction.”
Adjusted EBITDA was $7.8 million, up from $1.4 million in the first quarter, but below $11.9 million from the same quarter a year earlier. Contribution margin improved sequentially to $15.8 million but also fell short of the $19.8 million recorded in the second quarter of 2024.
Despite stronger profitability measures, Smart Sand reported negative operating cash flow of $5.1 million and free cash flow of negative $7.8 million, driven largely by the timing of customer payments and increased logistics expenses. Capital expenditures totaled $2.7 million, with full-year investments expected between $13 million and $17 million.
The company emphasized its ongoing shareholder return strategy, highlighting $1.8 million in share repurchases during the quarter and a $0.10 per share dividend payable August 14. Through mid-August, Smart Sand will have returned $6.4 million to shareholders in 2025 and $19.6 million since January 2023.
Looking ahead, Young noted that while market volatility continues to affect customer activity, Smart Sand expects sales volumes in the second half of 2025 to remain consistent with the first half and anticipates turning free cash flow positive for the full year. “Long-term fundamentals are strong for Northern White sand,” he said, pointing to demand growth tied to natural gas development, LNG projects, and the expansion of data centers supporting artificial intelligence.
As of June 30, the company reported $4.3 million in cash on hand and $21 million in available credit.
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