\nLandBridge Corporation (NYSE: LB; NYSE TX: LB) (the \u201cCompany,\u201d or \u201cLandBridge\u201d) today announced its financial and operating results for the third quarter ended September 30, 2026.<\/p>\n
Third Quarter 2026 Highlights<\/i><\/b><\/p>\n Management Commentary<\/i><\/b><\/p>\n \nJason Long, Chief Executive Officer of LandBridge, stated, \u201cLandBridge delivered another strong quarter, with revenue growing 39% year-over-year, and we are increasing our full year 2026 guidance based on the continued organic and M&A momentum across our acreage. Our acquisition of approximately 25,000 acres during the quarter perpetuates our strategy of acquiring strategic acreage at accretive multiples, with the goal of blending that multiple down over time through our dedicated commercial efforts. Alongside the continued strength of our acquisition pipeline, PowerBridge\u2019s conversion of its option to a long-term lease and the start of construction on Alpha Phase I demonstrate the growing momentum of our commercial strategy across the footprint.”<\/p>\n \nScott McNeely, Chief Financial Officer of LandBridge, said, \u201cOur third quarter results underscore the scalability of our high-margin, asset-light business model. Growth across every revenue stream, together with the expected contribution from recent acquisitions beginning in the fourth quarter, supports our decision to raise the midpoint of our full year Adjusted EBITDA guidance to $227.5 million. We also recently completed our conversion to a Texas corporation, a milestone that supports broader index eligibility and reinforces our focus on long-term shareholder value creation.”<\/p>\n Third Quarter 2026 Consolidated Financial Information<\/i><\/b><\/p>\n \nRevenue for the third quarter of 2026 was $70.9 million as compared to $66.8 million in the second quarter of 2026 and $50.8 million in the third quarter of 2025. The sequential increase was attributable to growth across all key revenue streams, including increases of $1.4 million in resource sales and royalties, $2.1 million in surface use royalties and revenues, $0.5 million in oil and gas royalties. Net income for the third quarter of 2026 was $34.0 million as compared to $31.0 million in the second quarter of 2026 and a net income of $20.3 million in the third quarter of 2025.(1)<\/sup><\/p>\n \nAdjusted EBITDA was $63.7 million in the third quarter of 2026 as compared to $59.8 million in the second quarter of 2026 and $44.9 million in the third quarter of 2025.(2)<\/sup><\/p>\n \nNet income margin was 48% in the third quarter of 2026 as compared to 46% in the second quarter of 2026 and a net income margin of 40% in the third quarter of 2025.(1)<\/sup> Adjusted EBITDA margin was 90% in the third quarter of 2026 as compared to 89% in the second quarter of 2026 and 88% in the third quarter of 2025.(2)<\/sup><\/p>\n Diversified Revenue Streams<\/i><\/b><\/p>\n Surface Use Royalties and Revenue:<\/b> Generated revenues of $54.3 million in the third quarter of 2026 as compared to $52.2 million in the second quarter of 2026 and $35.0 million in the third quarter of 2025. Surface Use Royalties and Revenue increased $2.1 million sequentially, primarily driven by an increase in produced water handling volumes across our acreage, including increased volumes from the ramping Speedway Phase I pipeline, as well as an increase in pipeline easement revenue.<\/p>\n Resources Sales and Royalties:<\/b> Generated revenues of $12.5 million in the third quarter of 2026 as compared to $11.1 million in the second quarter of 2026 and $10.8 million in the third quarter of 2025. Revenue from Resource Sales and Royalties increased $1.4 million sequentially, primarily driven by increases in water and caliche sales as well as sand royalties on our acreage.<\/p>\n Oil and Gas Royalties:<\/b> Generated revenues of $4.1 million in the third quarter of 2026 as compared to $3.6 million in the second quarter of 2026 and $3.3 million in the third quarter of 2025. Revenue from Oil and Gas Royalties increased $0.5 million sequentially, primarily driven by net royalty production increasing from 773 boe\/d in the second quarter of 2026 to 917 boe\/d in the third quarter of 2026.<\/p>\n Free Cash Flow Generation<\/i><\/b><\/p>\n \nCash flow from operations for the third quarter of 2026 was $49.6 million as compared to $41.4 million in the second quarter of 2026 and $34.9 million in the third quarter of 2025. Free Cash Flow for the third quarter of 2026 was $49.0 million as compared to $40.2 million in the second quarter of 2026 and $33.7 million in the third quarter of 2025.(2)<\/sup><\/p>\n \nCapital expenditures for the third quarter of 2026 were $0.6 million and net cash used in investing activities during the third quarter of 2026 was $267.4 million, which included approximately $266.8 million of acquisition expenditures in the third quarter. Net cash provided by financing activities during the third quarter of 2026 was $74.8 million.<\/p>\n Strong Balance Sheet with Ample Liquidity<\/i><\/b><\/p>\n \nTotal liquidity was $126.8 million as of September 30, 2026.<\/p>\n \nAs of September 30, 2026, the Company had approximately $110.0 million of available borrowing capacity under its revolving credit facility.<\/p>\n \nTotal cash and cash equivalents were $16.8 million as of September 30, 2026, as compared to $39.8 million as of June 30, 2026. The Company had $765.0 million of borrowings outstanding as of September 30, 2026, as compared to $545.2 million outstanding as of June 30, 2026.<\/p>\n \nSubsequent to quarter end, on October 1, 2026, DBR Land Holdings LLC (“OpCo”) issued an additional $125.0 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030 under its existing indenture (the \u201cAdditional Notes\u201d). The Additional Notes have terms identical to those of the existing $500 million aggregate principal amount of 6.25% fixed-rate senior unsecured notes due 2030 that were issued in November 2025 (the “Notes”), other than the issue date and issue price. The Additional Notes and the Notes are treated as a single series for all purposes under the existing indenture, bringing the total aggregate principal amount to $625.0 million.<\/p>\n Third Quarter 2026 Acquisitions<\/i><\/b><\/p>\n \nDuring the third quarter of 2026, the Company acquired approximately 25,000 acres, representing numerous individual strategic transactions across the Company’s existing footprint. The acquired acreage includes fee surface and mineral classified surface interests, which enables LandBridge to participate in the upside of minerals production as the surface owner. The acquisitions include material upside tied to further commercialization of the surface estate access and provide access to highly-contiguous surface acreage with attractive, undeveloped pore space, strategically positioned outside of the over-pressured injection zones close to the Stateline region, offering large, active E&P operators a responsible, long-term alternative for produced water disposal. LandBridge is engaged in active discussions with operators, providing strong confidence in its ability to develop and commercialize this pore space, helping to further diversify the asset’s cash flows while preserving their long-term, recurring nature.<\/p>\n PowerBridge Alpha Lease Phase I<\/i><\/b><\/p>\n \nDuring the third quarter of 2026, PowerBridge exercised its option to lease an initial 825-acre portion of the approximately 3,400 total acreage under option for the previously announced Alpha Digital Campus on LandBridge’s acreage in Reeves County, Texas (\u201cAlpha Phase I\u201d). In September 2026, PowerBridge and LandBridge entered into a long-term ground lease for Alpha Phase I and concurrently entered into a power royalty agreement for power generated by PowerBridge on the Alpha Phase I campus. PowerBridge subsequently commenced construction on Alpha Phase I in September 2026, which is expected to include more than 300 megawatts of the planned 2 gigawatt powered data center campus project on the Alpha Digital Campus, with first power delivery date anticipated in the fourth quarter of 2027.<\/p>\n Third Quarter 2026 Dividend<\/i><\/b><\/p>\n \nThe Board declared a dividend on our Class A common stock of $0.12 per share, payable on December 10, 2026 to shareholders of record as of November 25, 2026, and a corresponding required cash distribution to OpCo unitholders.<\/p>\n Updated 2026 Outlook<\/i><\/b><\/p>\n \nBased on the expected contribution from recent acquisitions, the Company raises the midpoint of its outlook for fiscal year 2026, with Adjusted EBITDA expected to be between $220 million and $235 million.<\/p>\n \nReconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures are not available due to the challenges and impracticability of estimating certain items, particularly non-recurring gains or losses, unusual or non-recurring items, income tax benefit or expense, or one-time transaction costs and cost of revenue. We are unable to reasonably predict these because they are uncertain and depend on various factors not yet known, which could have a material impact on GAAP results for the guidance period. Because of those challenges, a reconciliation of forward-looking non-GAAP financial measures is not available without unreasonable effort.<\/p>\n\n