Smart Sand, Inc. (NASDAQ: SND) reported significant sales growth in the second quarter of 2025, with revenues reaching $85.8 million. This marks an increase from $65.6 million in the previous quarter and $73.8 million during the same period last year. The company sold 1.42 million tons of product, reflecting a strong 33% increase compared to the first quarter and a 12% rise year on year.
Despite these positive sales figures, the company faced challenges with cash flow. Smart Sand reported a negative operating cash flow of $5.1 million and a free cash flow of negative $7.8 million. These figures were primarily attributed to the timing of customer payments and increased logistics costs.
Operational Highlights and Strategic Investments
CEO Charles Young attributed the sales growth to expanded operations at the company’s facilities in Blair and Ottawa, as well as heightened demand from Utica Shale terminals. “Our sales volumes rose 33% and our Adjusted EBITDA grew by $6.3 million compared to the first quarter,” Young stated.
Adjusted EBITDA for the quarter was recorded at $7.8 million, a notable increase from $1.4 million in the first quarter, yet below the $11.9 million achieved in the same period last year. Contribution margin improved sequentially to $15.8 million, although it fell short of the $19.8 million recorded in the second quarter of 2024.
Capital expenditures totaled $2.7 million, with projections for full-year investments expected to range between $13 million and $17 million.
Shareholder Returns and Future Outlook
Smart Sand has remained committed to its shareholder return strategy, highlighting $1.8 million in share repurchases during the quarter and a dividend of $0.10 per share, payable on August 14, 2025. By mid-August, the company anticipates having returned a total of $6.4 million to shareholders in 2025 and $19.6 million since January 2023.
Looking ahead, Young expressed cautious optimism about the company’s future. Despite ongoing market volatility affecting customer activity, Smart Sand expects sales volumes in the latter half of 2025 to remain consistent with the first half. He indicated an expectation of turning free cash flow positive for the full year, stating, “Long-term fundamentals are strong for Northern White sand,” citing demand growth linked to natural gas development, LNG projects, and the expansion of data centers supporting artificial intelligence.
As of June 30, the company reported $4.3 million in cash reserves and $21 million in available credit, positioning it to navigate ongoing challenges in the market.
