#USA #financial results #Yardley #Smart Sand #Industrial Sand

Smart Sand, Inc. Reports Strong Financial Performance for 2024

On March 3, 2025, Smart Sand, Inc. (NASDAQ: SND), a leading provider of frac and industrial sand supply services, shared its impressive results for the fourth quarter and the full year ending December 31, 2024. The company's robust performance signals strong growth trajectories supported by strategic market expansions and operational efficiencies.

Key Financial Highlights

For the full year 2024, Smart Sand achieved total revenue of $311.4 million, an increase from $296 million in 2023. This growth can be attributed to a significant rise in sand sales volume, totaling 5,263,000 tons, a remarkable 17% increase from the previous year. Notably, revenue from sand sales rose to $303.6 million, marking a 6% increase year-over-year.

In Q4 2024, Smart Sand reported total revenue of $91.4 million, a staggering 45% sequential increase, driven by a substantial rise in sand sales volume alongside improved pricing. The company sold approximately 1,464,000 tons in the fourth quarter alone, a stark 44% increase compared to the same quarter in 2023.

Charles Young, the CEO of Smart Sand, expressed great satisfaction with these results, noting, “Smart Sand delivered robust operating and financial outcomes, achieving our highest quarterly volumes and annual totals in our history.” He added that strong sales activity in the Bakken and Marcellus formations and expanding into new markets like the Utica formation and Canada were pivotal to this success.

Operational Growth and Market Expansion

Throughout 2024, Smart Sand experienced a sales volume spike, particularly in its major US markets and emerging markets. New market initiatives accounted for about 11% of the total sales volume. This strategic drive was further enhanced by increased customer activities as delayed projects commenced earlier than expected. The company's commitment to maintaining operational efficiencies and strict cost management has successfully yielded positive free cash flow for two consecutive years. In Q4 2024, Smart Sand also began returning capital to shareholders by declaring a dividend of $0.10 per share, following initiatives to bolster shareholder returns.

Looking forward to 2025, Young maintained a positive outlook, asserting that the market fundamentals in oil and natural gas would continue driving growth and the development of new wells in the primary markets served by Smart Sand. The anticipated expansion in domestic LNG export capacity and developments in AI data centers are expected to further boost demand for electricity and natural gas, positively influencing the frac sand market in the Appalachian and Canadian basins.

Future Projections

Smart Sand is bracing for some moderation in sales volumes in the initial quarter of 2025 as a result of the previous quarter's robust demand shifting traditional seasonal patterns. However, management anticipates an uptick in activities by the second quarter of 2025, with expected sales volumes remaining flat or increasing by approximately 5% compared to 2024 levels.

During 2024, Smart Sand also made significant strides to enhance its financial stability. A new five-year $30 million asset-based lending credit facility was established, providing a suitable funding source for future business operations while positioning the company to seize emerging opportunities.

In summary, Smart Sand, Inc.'s performance has positioned the company favorably within the frac sand industry, showcasing resilience and growth potential. As it explores further opportunities for expansion and efficiencies, stakeholders are optimistic about its sustainability and return on investments in the foreseeable future.

Conclusion

Smart Sand, Inc. continues to demonstrate its capacity to thrive amidst market challenges, consistently showing strength in its financial metrics and operational strategies. As the company looks ahead, its focus on enhancing shareholder value alongside growth in critical markets underscores its commitment to excellence in the industry.