YARDLEY, PA — Smart Sand, Inc. (NASDAQ: SND) reported higher revenue, improved profitability, and stronger cash generation in the third quarter of 2025, as the frac-sand producer expanded into new markets and benefited from increased sales volumes across North America.
The company posted 3Q revenue of $92.8 million, up from $85.8 million in the second quarter and $63.2 million a year earlier, driven by higher sales volumes, stronger pricing, and a $4.4 million contractual payment tied to excess tons sold in a previous period. Net income reached $3.0 million, compared with $21.4 million in the prior quarter—when results were boosted by tax-related impacts—and a near break-even performance in last year’s third quarter.
CEO Charles Young said the quarter reflected broad strength across the company’s operating footprint. “Smart Sand delivered another strong quarter,” Young said, noting record sales volumes into Canada, growth in the company’s Industrial Product Solutions segment, and an expanding presence in the Utica shale through Ohio terminals.
Smart Sand sold 1.47 million tons of sand in the third quarter, a 3% sequential increase and a 24% jump from the prior year. Contribution margin rose to $21.7 million, or $14.76 per ton, while Adjusted EBITDA climbed to $13.6 million, up sharply from $7.8 million in the second quarter.
Cash generation improved significantly. The company reported $18.2 million in operating cash flow, turning around a second-quarter net outflow, and posted $14.8 million in free cash flow for the period. Capital spending for the full year is projected between $15 million and $17 million, excluding acquisitions.
Young said long-term fundamentals remain solid despite short-term commodity price volatility, emphasizing the growing need for natural gas to support LNG export capacity and rising electricity demand tied to AI computing. “We have one of the largest reserve bases of fine mesh Northern White sand in North America,” he said, adding that Smart Sand’s logistics network continues to expand its reach into major shale basins.
Gross profit nearly doubled from the prior quarter, rising to $14.9 million, while operating expenses increased modestly to $9.6 million. Higher freight and transloading costs, tied to delivery locations and elevated use of third-party terminals, offset some of the margin gains.
The company continued returning capital to shareholders, paying a $0.10 per-share dividend in August and repurchasing 13,627 shares during the quarter. Year-to-date, Smart Sand has returned $6.4 million through dividends and buybacks. As of Sept. 30, the company held $5.1 million in cash and had $30 million in available credit.
Looking ahead, Young said fourth-quarter demand “has started off strong,” though the company expects some seasonal slowdown. Full-year sales volumes are projected between 5.1 million and 5.4 million tons, with expectations to remain free-cash-flow positive.
Investors can access Smart Sand’s full financial filings and presentations at www.smartsand.com.
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