Oct 28, 2026 earnings call — PROPWR scaling and completions rebuild costs
PROPWR generated approximately $8 million of adjusted EBITDA in Q3, and total company revenue was $355 million.
Revenue $0.4B (est $0.3B) · EPS $0.09 (est $-0.01)
Key quotes
"We expect to keep scaling deployments through year-end, reaching between approximately 250 MW-275 MW deployed by the end of 2026 and stair-stepping to more than 500 MW by early 2028."
"On the commercial front, our recently announced agreement with Targa for approximately 230 MW brings our total capacity committed under contract to approximately 510 MW."
"While the cost of rebuilding its completions capacity continued to weigh on margins, our fleet is now essentially sold out, positioned to recontract into a tighter, better-priced market in 2027."
Analyst Q&A 8
data center contracts and equipment timing
Q (Saurabh Pant · BofA): Analyst asked where they are in data center contract talks and how contract signing fits with ordering balance-of-plant equipment and deployment timing (late 2027 / early 2028).
A: Management said the 500 MW guidance reflects contracted capacity and data center deals would be incremental. They said conversations with data center operators are positive, they have started ordering some balance-of-plant equipment and have line of sight on project timelines. They expect potential deployments in late 2027 but for sure at scale in 2028.
"As far as the conversations in the data center space, despite kind of the broader turmoil in the data center market, our specific conversation, companies we are dealing with are continuing positive, headed in the right direction towards execution." — Travis Simmering (PRESIDENT)
power contract returns and payback
Q (Alexa Breño · Goldman Sachs): Analyst asked about returns and capital needs for short-duration contracts versus data center contracts, and separately about the frac market and equipment pricing into 2H 2027.
A: For oil and gas (upstream) contracts, management said they are seeing closer to a four-year or better payback. For larger, long-term data center deals, paybacks are toward the higher end of the four- to six-year range. On frac, management said the market is tightening, natural-gas-burning and dual-fuel equipment pricing has held up, and demand for direct drive and electric is increasing going into 2027.
"On the oil and gas, and I would say more upstream space, we are certainly seeing closer to that four-year or better payback." — Travis Simmering (PRESIDENT)
why big power deals take longer
Q (Derek Podhaizer · Piper Sandler): Analyst asked what is lengthening timelines for big power projects—community pushback, moratoriums, or commercial terms—and whether the 60-MW project helps de-risk contracting.
A: Management said delays are not due to community pushback but from negotiating real contract risk exposure, liability and getting scope right between parties on large, long-term installations. They said the initial 60-MW contract gives a useful starting point since few have done this, but larger and longer deals receive much more scrutiny. They also noted parallel commercial opportunities can speed up or slow timelines.
"The initial 60-MW contract certainly gives us a great starting point in these discussions, given that there are very few of us that have done this, right?" — Travis Simmering (PRESIDENT)
frac CapEx and market demand
Q (Josh Jayne · Daniel Energy Partners): Analyst asked directionally about completions CapEx in 2027 if they hold a 13-fleet program, and how conversations with larger independents/publics have evolved as the market tightens and they turn away work.
A: Management said it's too early to give 2027 CapEx detail and they will address it next quarter. They said rig increases earlier this year were driven by privates, larger operators gain confidence as commodity prices stay higher, and they expect more rigs later this year into next year. They emphasized the equipment market is tapped out today, with no extra equipment available, which supports tighter supply-demand and pricing.
"We are tapped out. We have got no extra equipment as we sit here today, and we have heard several of our larger competitors say the exact same thing." — Sam Sledge (CEO)
electric fleet renewals and pricing
Q (Jason Kim · JPMorgan): Analyst asked how much of the electric FORCE fleet is up for renewal in 2027, how pricing compares to current contracted rates, and whether any recontracting remains to be done.
A: Management said they have already recontracted some of the electric fleet and expect maybe half the fleet going into next year to recontract partly with the same customers. They expect some new electric customers as well and noted they declined to recontract nearly 100% of electric equipment a year ago because pricing was unattractive. They expressed high confidence that equipment will not be stranded in 2027 and expect attractive pricing tied to strong operating performance.
"Maybe half the fleet going into next year is going to recontract, a little bit with the same customers." — Sam Sledge (CEO)
how many data center projects and BOP role
Q (Eddie Kim · Barclays): Analyst asked how many distinct projects the "several hundred megawatts in advanced negotiations" represents and whether data centers prefer providers to supply balance-of-plant or just lease gens. They also asked about having a 14th fleet and whether new builds could be justified by pricing.
A: Management said it's more than one opportunity and highlighted two active projects in the several hundred-megawatt range that they are focused on. They said balance-of-plant is necessary—they cannot build a power plant without electrical transformers, gas conditioning, distribution and emissions control—and that turnkey services are their model rather than dry leasing. On frac fleet expansion, they said they don't plan to add equipment beyond replacement/refurbishment and have worn-out units they do not intend to work again.
"We can't build a power plant without the balance of plant equipment, whether it's electrical transformers, upfront gas conditioning, and distribution, as well as all of the emissions control." — Sam Sledge (CEO)
eFleet buyouts and PROPWR term length
Q (Jeff LeBlanc · TPH): Analyst asked about the cadence of FORCE eFleet buyouts in 2027 and how buyouts will flow through results, and whether PROPWR 10-15 year targets include options and the expected average term.
A: Management said they are expecting three eFleet buyouts next year and noted eFleet lease expense is currently reducing EBITDA; as buyouts occur those lease expenses will roll off. For PROPWR, they said for larger, several-hundred-megawatt installations they are looking at terms of 10+ years and that options and extensions are on the table when they make sense.
"For larger installations that you are seeing in the presentation, several hundred megawatts, we are only looking at 10+ years." — Travis Simmering (PRESIDENT)
labor pressure and 10-MW delivery timing
Q (Don Crist · Johnson Rice): Analyst asked about labor trends and wage pressure as workers move to data center jobs, and also requested timing of 10-MW unit deliveries (even distribution or back-weighted).
A: Management said labor is an ongoing focus; broader economic pulls on the blue-collar workforce are felt and likely create labor inflation over time, though it has not yet stopped their operations. They also said 10-MW deliveries start in the back half of 2028 and then continue with an evenly distributed capacity through the end of the framework agreement, while smaller units are earlier in the delivery cycle.
"Yeah, it is pretty even, but starts in the back half of 2028, and then continues on an evenly distributed capacity through the end of the framework agreement." — Travis Simmering (PRESIDENT)