• Liberty Energy Inc. recently reported full-year 2025 results showing lower sales and earnings versus the prior year, while also affirming a US$0.09 per-share dividend payable in March 2026 and completing a US$479.36 million share repurchase program initiated in July 2022.
• At the same time, management outlined an ambitious push into distributed power for data centers, including long-term agreements that could materially reshape Liberty Energy’s business mix toward onsite power solutions.
• Next, we’ll examine how Liberty Energy’s expansion into distributed power for data centers influences its investment narrative in light of recent performance.

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What Is Liberty Energy's Investment Narrative?

To own Liberty Energy today, you have to believe the company can use its North American completions base as a launchpad into onsite power for data centers without losing financial discipline. The latest results show a clear reset: sales and earnings have stepped down, margins are thinner and a large one off gain clouds the quality of recent profits, even as the stock has surged well ahead of consensus price targets. Management is doubling down on distributed power, signing multi‑year data center deals and targeting several gigawatts of capacity, which now sits at the heart of the near term catalyst set. At the same time, a completed US$479.36 million buyback and a maintained US$0.09 dividend signal confidence, but they also raise the stakes if power projects are delayed, overrun costs or fail to earn attractive returns.

However, investors should be aware that Liberty’s ambitious power build out could strain profitability if execution slips. Liberty Energy's shares have been on the rise but are still potentially undervalued by 27%. Find out what it's worth.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$11 to US$33.83 per share, reflecting sharply different expectations. Set against Liberty’s pivot toward capital intensive data center power projects, that spread underlines how differently investors can view both the risks and the potential impact on future performance, so it is worth weighing several of these viewpoints side by side.

Explore 6 other fair value estimates on Liberty Energy - why the stock might be worth as much as 37% more than the current price!

Build Your Own Liberty Energy Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Liberty Energy research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Liberty Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Liberty Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.