Is ACDC a good stock to buy? We came across a bullish thesis on ProFrac Holding Corp. on Petty Cash’s Substack by Dean. In this article, we will summarize the bulls’ thesis on ACDC. ProFrac Holding Corp.’s share was trading at $6.71 as of March 26th. ACDC’s trailing and forward P/E were 93.91 and 16.16 respectively according to Yahoo Finance.
ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. ACDC reported Q4 and full-year 2025 results that reflected a weaker North American completions market, but the company demonstrated notable resilience as profitability exceeded expectations despite lower activity levels.
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Revenue for the fourth quarter came in at $436.5M with adjusted EBITDA of $61.1M, both ahead of consensus estimates, highlighting stronger-than-anticipated cost control and operational execution. While results declined year-over-year due to pricing pressure and lower utilization, EBITDA margins held at approximately 14%, signaling relative stability in a challenging environment. For the full year, ProFrac generated $1.94B in revenue and $310M in EBITDA, while maintaining positive free cash flow and reducing capex significantly, underscoring a disciplined approach to capital allocation.
The company’s vertically integrated model continues to be a key differentiator, with its stimulation services, proppant production, manufacturing, and Flotek segments working cohesively to drive efficiencies and support margins. A large portion of segment revenues being intercompany reflects this integration, which positions ProFrac to better control costs and enhance service offerings over time. Management has also initiated a cost optimization plan targeting $100M in annualized savings by mid-2026, which, combined with early signs of activity recovery and tightening supply-demand dynamics in the frac market, could drive meaningful margin expansion.
Despite near-term headwinds, including weather-related disruptions and subdued completions activity, industry fundamentals suggest that current activity levels are below what is required to sustain production, implying a potential rebound.
Trading at relatively low EBITDA multiples, ProFrac offers significant upside if activity and pricing recover. However, given its operational leverage, balance sheet exposure, and sensitivity to commodity cycles, ProFrac Holding Corp. represents a high-risk, high-reward investment opportunity with substantial upside potential in a recovering market.
