LandBridge Lifts 2026 EBITDA Outlook to $220M-$235M After Record Quarter

LandBridge (NYSE: LB) raised its full-year 2026 adjusted EBITDA guidance to $220 million–$235 million, up from $210 million–$230 million, after posting record third-quarter revenue of $70.9 million. The revised outlook includes expected contributions from recent acquisitions beginning in the fourth quarter, Chief Financial Officer Scott McNeely said.

The numbers behind the raise stack up fast. Third-quarter revenue rose 39% year over year and 6% sequentially. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) climbed 42% to $63.7 million, and free cash flow increased 45% to $49 million. Margins were, by any standard, extreme: 90% adjusted EBITDA margin and a 69% free cash flow margin. Capital expenditures came in at roughly $0.6 million.

Because the acquisitions closed at the end of the quarter, McNeely noted the period's performance reflected purely organic growth across the company's key revenue streams. That's the quiet headline here: the record quarter had no deal help at all.

What did the acquisitions add?

Chief Executive Officer Jason Long said LandBridge added approximately 25,000 surface acres during the quarter, bringing its total position to more than 350,000 acres. Net cash used in investing activities included roughly $266.8 million for the purchases.

The land brings undeveloped pore space (subsurface voids suitable for storing injected fluids) outside over-pressured injection zones near the state line. Long said LandBridge is already in discussions with oil and gas operators about using that space for produced water disposal.

The math on the deals matters. Long said land acquired this year was purchased at approximately 10 times EBITDA, and the company sees a path to driving that multiple below six times through near-term pore space monetization — and to three times or less over the long term through additional commercial development. On the call's Q&A, McNeely went further: pore space monetization alone could potentially bring the multiple to three times, with other surface opportunities adding upside.

He called the acquisition pipeline robust but said the company would weigh commercial sensitivities when deciding how much detail to disclose about its purchases.

How did each revenue line perform?

• Surface use royalties and revenues: $54.3 million, up $2.1 million sequentially, supported by higher produced water handling volumes and pipeline easement revenue
• Resource sales and royalties: $12.5 million, up $1.4 million
• Oil and gas royalties: $4.1 million, up $0.5 million

In plain words: every major revenue stream grew, with water handling doing the heaviest lifting.

Where does the Alpha data center stand?

LandBridge's digital infrastructure push moved into construction in September, when PowerBridge exercised an option on an initial 825 acres of the roughly 3,400 acres under option for the Alpha Digital Campus in Reeves County, Texas. LandBridge signed a long-term ground lease and a power royalty agreement tied to power generated at the site.

Long said PowerBridge has received initial permits and begun construction on the first phase — more than 300 megawatts of a planned 2-gigawatt campus — with first power delivery anticipated in the fourth quarter of 2027.

McNeely said material cash flow from the project should begin in the first half of 2027, with ground rent starting next year. He declined to detail the economics but confirmed the agreements fall within LandBridge's previously stated framework of $10 million to $20 million per gigawatt. Asked whether a fully scaled 2-gigawatt campus implies $20 million to $40 million annually, McNeely said that's the company's target and expectation as the facility ramps over several years — not a number to expect next year. He also flagged a near-term announcement about an anchor customer, while stopping short of confirming a deal.

Long added that Alpha's first phase will use on-site natural gas generation and non-potable brackish water, avoiding demand on the ERCOT grid (the Texas power market operator) and freshwater supplies. McNeely said potential policy changes raising standards for data centers could actually strengthen LandBridge's competitive position, though it's too early to know what regulation might come.

What happened to the balance sheet?

Debt rose after the quarter's dealmaking. LandBridge ended the period with $126.8 million in liquidity and $765 million in total borrowings, up from $545.2 million at the end of the second quarter. Covenant net leverage climbed to 3.0 times from 2.5 times, above the company's long-term target of 2.0–2.5 times.

Management responded on two fronts. The company increased commitments under its revolving credit facility from $275 million to $375 million, and on October 1 it issued an additional $125 million of 6.25% senior unsecured notes due 2030, using proceeds to repay part of its revolving borrowings. Pro forma liquidity after the October transactions was approximately $252 million, McNeely said.

The board declared a $0.12-per-share dividend payable December 10 to shareholders of record November 25. LandBridge also completed its conversion from a Delaware limited liability company to a Texas corporation — a change management believes could broaden the investor base through greater index eligibility.

Bottom line: a record quarter on organic growth alone, a guidance raise, and two monetization levers — pore space and power — still ahead.