LandBridge Co LLC (LB)

Price$86.53Cached quoteAs of 2026-09-05 11:03 UTC

AI: Overvalued

Price checkThe shares look expensive because today’s valuation already assumes years of unusually strong growth.

Using the supplied cash-flow history, the last four quarters produced about $151 million of free cash flow, meaning cash left after running and investing in the business. Against roughly $6.7 billion of market value, that is about 44 times trailing cash flow. Including net debt, the business value is about 33 times management’s $220 million midpoint for 2026 adjusted earnings before interest, taxes, depreciation and amortization. A 25-times cash-flow valuation would require roughly $268 million annually, about 77% above the trailing level.

Big pictureCash generation is improving quickly, but much of the growth still depends on Permian activity.

Revenue rose 81% in 2025, then another 29% in the first half of 2026 versus the prior-year period. Cash conversion has also held up: free cash flow was about $41 million in the first quarter and $40 million in the second. Surface-use revenue produced $52.2 million of second-quarter revenue, driven partly by produced-water handling and commercial activity. About one-third of quarterly revenue came from related-party arrangements. Direct oil royalties are smaller, but drilling and water volumes still make cash generation partly cyclical.

Business strengthThe asset-light model is strong, but acquisitions have added meaningful debt and ownership complexity.

Routine capital spending remains tiny relative to cash generation, which is a major strength. However, supplied debt rose from $381 million at the end of 2024 to $560 million at the end of 2025 after acquisitions; by June 2026 it was $536 million against only $40 million of cash. Liquidity was still about $270 million. LandBridge paid $64 million of dividends in 2025 and $33 million in 2026’s first half. Share-based compensation was $45 million in 2025, although much of the management-unit expense does not dilute public ownership.

What could change the storyBinding data-center contracts could justify the premium; stalled projects would expose how much hope is priced in.

The strongest bull case is digital infrastructure: LandBridge says seven power and data-center counterparties represent more than 10 gigawatts of potential projects. But these opportunities are currently options, letters of intent or late-stage negotiations rather than fully contracted cash flows. To support even a 25-times trailing-cash valuation, annual free cash flow would need to rise by roughly $117 million. Binding long-term leases with disclosed economics could close that gap. If digital projects stall while produced-water growth normalizes, the current valuation leaves substantial room for multiple compression.

AI: News

Record second-quarter resultsRevenue and cash flow stayed strong, while the digital pipeline expanded enough to lift expectations.

On August 5, LandBridge reported second-quarter revenue of $66.8 million, up 41% year over year, and free cash flow of $40.2 million, up 11%. It reaffirmed full-year adjusted earnings before interest, taxes, depreciation and amortization guidance of $210 million to $230 million. Management also disclosed seven power and digital-infrastructure counterparties representing more than 10 gigawatts of potential projects. Shares rose about 4.7% in after-hours trading following the results, a market reaction consistent with stronger growth expectations.

Texas corporate conversionThe planned Texas corporation structure may widen index eligibility and bring more institutional buyers.

The board approved the conversion and redomestication on August 4, and a preliminary information statement was filed in August. The controlling shareholder, representing about 61% of outstanding common shares, provided written consent. Management says becoming a corporation could make LandBridge eligible for major indexes that exclude limited liability companies, potentially increasing demand and trading liquidity. The stock later surged roughly 10% intraday on August 20 amid both bullish media coverage and attention to the filing, so the conversion’s individual contribution cannot be isolated.

Large sponsor share saleA major holder sold a large block, increasing public supply without changing the underlying business.

An SEC filing reported that LandBridge Holdings converted 1.25 million operating-company units and corresponding Class B shares into Class A shares, then sold the Class A block on August 7 for roughly $94 million. About 47.2 million operating-company units remained afterward. The transaction did not raise cash for LandBridge and largely changed the form and holder of an existing economic interest rather than creating a new business expense. It can nevertheless increase public float and reminds investors that substantial sponsor-owned equity may reach the market over time.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$199.1M	$110.0M	$72.9M	$51.8M
Operating expenses	$67.1M	$115.5M	−$9.4M	$44.4M
Operating income	$118.5M	−$16.5M	$70.0M	−$3.2M
Operating margin	59.52%	−15.02%	96.08%	−6.24%
EBITDA	$130.0M	−$7.6M	$78.8M	$3.6M
EBITDA margin	65.28%	−6.94%	108.11%	7.01%
Net income	$30.1M	$5.1M	$63.2M	−$6.4M
Net profit margin	15.13%	4.65%	86.70%	−12.29%
Basic EPSper basic share	$1.18	$0.28	$4.36	-$0.44
Diluted EPSper diluted share	$0.94	$0.07	$4.36	-$0.44

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

25.09%of listed shares

FIRST MANHATTAN CO. LLC.7.08M shares · Jun 30, 2026

View holders

Top 20 reported holders of LB
Holder	% owned
FIRST MANHATTAN CO. LLC.	25.09%7.08M shares
HORIZON KINETICS ASSET MANAGEMENT LLC	20.62%5.82M shares
FMR LLC	6.29%1.78M shares
T. Rowe Price Investment Management, Inc.	4.52%1.28M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.49%1.27M shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	4.38%1.24M shares
MORGAN STANLEY	2.59%731.84K shares
SCHWARTZ INVESTMENT COUNSEL INC	2.28%644.72K shares
Hood River Capital Management LLC	2.10%592.62K shares
UBS Group AG	2.03%573.59K shares
DF DENT & CO INC	2.01%567.54K shares
TWO SIGMA INVESTMENTS, LP	1.84%518.85K shares
CORTLAND ASSOCIATES INC/MO	1.36%384.32K shares
RAYMOND JAMES FINANCIAL INC	1.33%376.81K shares
CAPTRUST FINANCIAL ADVISORS	1.00%281.95K shares
MAD RIVER INVESTORS	0.95%267.95K shares
Moors & Cabot, Inc.	0.89%251.7K shares
ASHFORD CAPITAL MANAGEMENT INC	0.83%234.86K shares
One Charles Private Wealth Services, LLC	0.79%224.15K shares
WELLS FARGO & COMPANY/MN	0.79%222.6K shares

Percentages use 28.23M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$2.36M disclosed value

Sells (SEC code S)8$814.92M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 6, 2026Form 4	WATSON CHARLES L.Director	SellClass A shares · indirect	13.0K	$75.00	$975.0K	64.3K
Mar 4, 2026Form 4	WATSON CHARLES L.Director	SellClass A shares · indirect	9.7K	$75.19	$727.1K	77.3K
Mar 2, 2026Form 4	WATSON CHARLES L.Director	SellClass A shares · indirect	30.7K	$74.07	$2.27M	86.9K
Jan 6, 2026Form 4	McNeely Scott LloydSee Remarks	BuyClass A shares	549	$45.49	$25.0K	81.3K
Jan 5, 2026Form 4	Bolling Harrison FennerSee Remarks	BuyClass A shares	850	$46.84	$39.8K	66.9K

Review ownership filings at SEC.gov ↗

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LandBridge Co LLC (LB)

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