Key Highlights

● Second-quarter revenue reached a record $66.8 million, up 41 per cent year over year.

● Adjusted EBITDA was $59.8 million, an 89 per cent margin for the quarter.

● Surface use royalties and revenue rose to $52.2 million on higher produced water volumes.

● The board approved converting from a Delaware LLC to a Texas corporation.

LandBridge Company LLC (NYSE:LB), which owns surface land in the Permian Basin and earns income from it, reported second-quarter 2026 results on 5 August 2026. Revenue was a record $66.8 million, up 41% from $47.5 million a year earlier and 31% above the first quarter's $51.0 million. Net income was $31.0 million, a 46% margin, and adjusted EBITDA was $59.8 million, an 89% margin. Net income was after $11.2 million of non-cash share-based compensation. Operating cash flow was $41.4 million and free cash flow $40.2 million. Both measures rose 11% year on year in 2026. Chief executive Jason Long called it another strong quarter, while chief financial officer Scott McNeely described a durable, high-margin, asset-light model. Those characterisations are management's own.

Where the revenue came from

Surface use royalties and revenue were $52.2 million, up $15.2 million sequentially, which the release attributes mainly to higher produced water handling volumes across its acreage. It gave no volume figures. Resource sales and royalties were $11.1 million, and oil and gas royalties were $3.6 million, up $0.6 million on higher oil prices. The company owns more than 325,000 surface acres across Texas and New Mexico, principally in the Delaware sub-region of the Permian Basin. It agreed to buy about 560 acres of fee surface under the Northern Delaware Basin Landfill in Lea County, New Mexico, for $20 million, with closing expected in the third quarter of 2026.

Structure, dividend and balance sheet

The release is issued under the New York Stock Exchange ticker LB, and the dividend is declared on Class A shares, of which 28,233,217 were outstanding at 30 June 2026 alongside 48,680,928 Class B shares. The release does not separately state which class is listed. A quarterly dividend of $0.12 per Class A share is payable on 10 September 2026, with a matching cash distribution to operating-company unitholders. Borrowings were $545.2 million, cash was $39.8 million and total liquidity was $269.8 million. On 4 August 2026 revolver commitments increased by $100 million to $375 million, expandable to $475 million, with margins reduced by 0.25%. Fiscal 2026 adjusted EBITDA guidance of $210 million to $230 million was reaffirmed; this is a forecast, not a result.

A Concentrated Footprint With Very High Margins

LandBridge's asset-light model, owning more than 325,000 surface acres in the Permian Basin and collecting royalties rather than operating wells itself, produced margins close to 90 per cent at the adjusted EBITDA level in the quarter. The planned conversion to a Texas corporation is explicitly linked by management to broader index eligibility, though the company has not said when it takes effect or that it guarantees inclusion, leaving revenue tied closely to operators' drilling and water-handling decisions on its acreage.