Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Reconciliation of Income before Income Taxes for Domestic and Foreign Locations

The components of the Company’s income from continuing operations before income taxes on which the provision for income taxes was computed consisted of the following:


	Year Ended December 31,
($ in thousands)	2025		2024		2023
United States	$	202,280	$	356,340	$	668,338
Foreign	(7,089)		46,931		66,552
Total	$	195,191	$	403,271	$	734,890

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for incomes taxes from continuing operations are summarized as follows:


	Year Ended December 31,
($ in thousands)	2025		2024		2023
Current:
Federal	$	(10,268)	$	33,474	$	36,319
State	1,354		6,637		4,662
Foreign	1,449		13,306		17,189
Total Current	$	(7,465)	$	53,417	$	58,170

Deferred:
Federal	$	53,430	$	32,087	$	109,399
State	4,443		3,289		11,913
Foreign	(3,089)		(1,532)		(1,000)
Total Deferred	$	54,784	$	33,844	$	120,312
Income tax expense (benefit)	$	47,319	$	87,261	$	178,482

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) attributable to net income (loss) before income taxes differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21.0% to pre-tax income as a result of the following:


	Year Ended December 31,
	2025				2024				2023
($ in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
US Federal Statutory Tax Rate	$	40,991	21.0	%	$	84,687	21.0	%	$	154,327	21.0	%
State and Local Income Taxes Net of Federal Income Tax Effect	5,676		2.9	%	8,315		2.1	%	15,995		2.2	%





Foreign Tax Effects	(152)		(0.1)	%	1,928		0.5	%	1,269		0.1	%
Effect of Changes in Tax Laws or Rates Enacted in the Current Period	—		—	%	—		—		—		—
Effect of Cross-Border Tax Laws	—		—	%	—		—		—		—
Tax Credits:
IRA Tax Credits	—		—	%	(2,343)		(0.6)	%	—		—	%
R&D Credit	(3,578)		(1.8)	%	(4,400)		(1.1)	%	(200)		—	%
RTP Credits	(2,343)		(1.2)	%	(3,271)		(0.8)	%	(158)		—	%
Changes in Valuation Allowance	—		—	%	—		—	%	—		—	%
Nontaxable or Nondeductible Items:
Stock Comp	29		—	%	(1,935)		(0.5)	%	(354)		—	%
Executive compensation limited	5,255		2.7	%	2,920		0.7	%	6,514		0.9	%
Non-controlling interest	—		—	%	—		—	%	(19)		—	%
Other, net	955		0.5	%	1,180		0.3	%	1,357		0.1	%
Changes in Unrecognized Tax Benefits	—		—	%	—		—	%	—		—	%
Other Adjustments:
Other TRA adjustment	486		0.2	%	180		—	%	(249)		—	%
Total income tax expense/(benefit)	$	47,319	24.2	%	$	87,261	21.6	%	$	178,482	24.3	%

Schedule of Cash Flow, Supplemental Disclosures

Income taxes paid (net of refunds) were paid in the following jurisdictions:


	Year Ended December 31,
	2025		2024		2023

Current:
Federal	$	6,615	$	2,821	$	53,038
State	3,415		4,350		7,841
Foreign	1,020		28,685		5,806
Total Current	$	11,050	$	35,857	$	66,685

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:


($ in thousands)	December 31, 2025		December 31, 2024
Deferred tax assets:
Federal tax credit	$	3,578	$	9,615
Foreign net operating losses	2,006		920
Federal net operating losses	54,376		—
State net operating losses	6,090		859
Lease liabilities	60,366		67,603
Realized tax benefit - TRAs	70,631		79,175
Stock-based compensation	4,635		4,494

Intangibles	22,389		22,440
Inventory	2,474		2,604
Other	1,968		10,674
Total deferred tax assets	228,513		198,384



Deferred tax liabilities:

Property and equipment	(291,445)		(233,649)
Lease assets	(93,654)		(83,137)
Other	(34,334)		(17,782)
Total deferred tax liabilities	(419,433)		(334,568)

Net deferred tax (liability)	$	(190,920)	$	(136,184)

Liberty Energy Inc. 10-K