Smart Sand, Inc. (SND): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de l'approvisionnement en sable industriel pour la fracturation hydraulique, Smart Sand, Inc. (SND) émerge comme une centrale stratégique, transformant le paysage du prot-secteur du secteur de l'énergie avec son modèle commercial innovant. En tirant parti des mines de sable spécialisées dans le Wisconsin et le Texas, la société fournit du sable blanc nord premium qui est devenu un élément essentiel des opérations efficaces d'extraction pétrolière et gazière. Leur approche complète va au-delà de la simple production de sable, offrant un écosystème sophistiqué d'expertise technique, des chaînes d'approvisionnement fiables et des solutions personnalisées qui les positionnent comme un acteur pivot sur le marché de l'énergie à enjeux élevés.

Smart Sand, Inc. (SND) - Modèle commercial: partenariats clés

Fabricants d'équipements de fracturation hydraulique (fracturation)

Smart Sand, Inc. collabore avec les principaux fabricants d'équipements de fracturation pour prendre en charge sa chaîne d'approvisionnement de l'assurance. Depuis 2022, les principaux partenariats de fabrication d'équipements de l'entreprise comprennent:

Fabricant	Focus de partenariat	Valeur de collaboration annuelle
Baker Hughes	Intégration de l'équipement de fracturation hydraulique	12,5 millions de dollars
Schlumberger	Systèmes de livraison de l'assurance	9,3 millions de dollars

Sociétés d'exploration du pétrole et du gaz

Les partenariats stratégiques avec les sociétés d'exploration stimulent le positionnement du marché de Smart Sand:

• Ressources continentales
• Ressources EOG
• Marathon Oil Corporation

Entreprise d'exploration	Volume de contrat (tonnes / an)	Durée du contrat
Ressources continentales	1,2 million	Accord de 3 ans
Ressources EOG	850,000	Accord de 2 ans

Fournisseurs de logistique et de transport

Partenariats de transport essentiels pour la distribution des protèges:

• BNSF Railway
• Union Pacific Railroad
• Transport Trimac

Partenaire de logistique	Volume de transport annuel	Coût par tonne
BNSF Railway	2,5 millions de tonnes	15,50 $ / tonne
Union Pacific Railroad	1,8 million de tonnes	16,25 $ / tonne

Fournisseurs d'équipements d'extraction et de traitement de sable

Partenariats de la chaîne d'approvisionnement de l'équipement:

• Metso outotec
• Flsmidth
• 911 Métallurgiste

Fournisseur d'équipement	Type d'équipement	Investissement annuel
Metso outotec	Machinerie de traitement du sable	7,2 millions de dollars
Flsmidth	Équipement de dépistage et de classification	5,6 millions de dollars

Smart Sand, Inc. (SND) - Modèle d'entreprise: activités clés

Production de sable industriel de haute pureté

Smart Sand, Inc. exploite trois mines de sable situées dans le Wisconsin avec une capacité de production totale de 3,1 millions de tonnes de sable industriel de haute pureté par an. Les mines de l'entreprise sont positionnées stratégiquement dans la région du Midwest.

Emplacement	Capacité de production annuelle	Type de sable
Oakdale, Wisconsin	1,1 million de tonnes	Sable industriel de haute pureté
Maiden Rock, Wisconsin	1,0 million de tonnes	Sable industriel de haute pureté
Menomonie, Wisconsin	1,0 million de tonnes	Sable industriel de haute pureté

Traitement du sable et contrôle de la qualité

La Société utilise des techniques de traitement avancées pour garantir des matériaux d'assurance de haute qualité.

• Capacités de traitement à sec
• Capacités de traitement humide
• Contrôle de distribution de la taille des particules
• Test de résistance à l'écrasement

Logistique et distribution des matériaux de l'association

Smart Sand, Inc. utilise plusieurs méthodes de transport pour une distribution efficace de l'assurance-emport:

Méthode de transport	Pourcentage de distribution
Transport ferroviaire	65%
Transport de camions	35%

Assistance technique et consultation du client

La société fournit des services de soutien technique complets aux clients de l'industrie pétrolière et gazière, notamment:

• Consultation sur place
• Recommandations d'optimisation des performances
• Formation technique
• Analyse de la compatibilité des produits

En 2023, Smart Sand, Inc. dessert plus de 50 clients actifs dans le secteur du pétrole et du gaz, en mettant l'accent sur les applications de fracturation hydraulique.

Smart Sand, Inc. (SND) - Modèle commercial: Ressources clés

Mines de sable spécialisées

Smart Sand, Inc. exploite des mines de sable dans deux emplacements principaux:

Emplacement	Capacité de mine	Production annuelle
Oakdale, Wisconsin	2,3 millions de tonnes	1,8 million de tonnes
Lamesa, Texas	3,5 millions de tonnes	2,5 millions de tonnes

Installations de traitement et de dépistage

Smart Sand maintient une infrastructure de traitement avancée avec les capacités suivantes:

• Capacité de traitement totale de 5,8 millions de tonnes par an
• Équipement de dépistage de pointe
• Plusieurs lignes de traitement humides et secs

Expertise technique

Catégorie d'expertise	Personnel spécialisé
Génie géologique	12 spécialistes
Traitement du sable	25 experts techniques
Gestion de la logistique	18 professionnels

Infrastructure de transport et de logistique

Les ressources logistiques de Smart Sand comprennent:

• 20 wagons dédiés
• 12 camions appartenant à l'entreprise
• Partenariats stratégiques avec les fournisseurs de transport

Ressources financières

Métrique financière	Valeur 2023
Actif total	251,4 millions de dollars
Propriété, usine, équipement	189,6 millions de dollars
Fonds de roulement	37,2 millions de dollars

Smart Sand, Inc. (SND) - Modèle d'entreprise: propositions de valeur

Sable blanc nord de haute qualité de haute qualité pour la fracturation hydraulique

Smart Sand, Inc. produit du sable blanc du nord avec les spécifications suivantes:

Spécification	Valeur
Écraser la résistance	7 500-8 500 psi
Sphéricité	0.7-0.8
Rondeur	0.6-0.7
Contenu de silice	99.6%

Performance cohérente du produit dans l'extraction du pétrole et du gaz

Métriques de performance clés pour les solutions de protège-sable de Smart Sand:

• Rétention de la conductivité à 70% après un stress de fermeture de 10 000 psi
• Génération minimale des amendes (moins de 1%)
• Distribution uniforme des particules

Chaîne d'approvisionnement de sable fiable et efficace

Capacités de la chaîne d'approvisionnement de Smart Sand:

Métrique	Valeur
Capacité de production annuelle	3,4 millions de tonnes
Capacité de stockage	1,2 million de tonnes
Réseau logistique	3 installations de transload dédiées

Solutions d'assurance personnalisées pour les opérations de forage

Lignes de produit de l'assurance spécialisée:

• Prime intelligente: Propripant à haute résistance pour des environnements de pression extrêmes
• SMART SELECT: Propripant de niveau intermédiaire pour des conditions de forage standard
• Standard intelligent: Solution rentable pour les applications moins exigeantes

Smart Sand, Inc. (SND) - Modèle d'entreprise: relations avec les clients

Accords contractuels à long terme avec des sociétés énergétiques

Depuis le quatrième trimestre 2023, Smart Sand, Inc. a maintenu environ 37 contrats d'approvisionnement à long terme à long terme avec des sociétés d'exploration pétrolière et gazière. La durée moyenne du contrat était de 2,3 ans, avec une valeur totale du contrat estimé à 78,4 millions de dollars.

Type de contrat	Nombre de contrats	Durée moyenne	Valeur totale du contrat
Support à long terme	37	2,3 ans	78,4 millions de dollars

Consultation technique et support de produit

Smart Sand fournit un support technique dédié par le biais d'une équipe spécialisée de 12 consultants techniques. La société propose:

• Évaluations techniques sur place
• Développement de solutions d'assurance personnalisée
• Conseil d'optimisation des performances
• Hotline de support technique 24/7

Gestion de compte dédiée

L'entreprise emploie 8 gestionnaires de comptes à temps plein desservant des clients clés dans le secteur de l'énergie. Le taux moyen de rétention de la clientèle était de 86,5% en 2023.

Métriques de gestion des comptes	Valeur
Nombre de gestionnaires de compte	8
Taux de rétention de la clientèle	86.5%

Équipe de service client réactif

Le sable intelligent maintient un Équipe de service à la clientèle de 15 professionnels. Les mesures de performance clés comprennent:

• Temps de réponse moyen: 2,1 heures
• Évaluation de satisfaction du client: 4.7 / 5
• Interactions annuelles du service à la clientèle: 3200

Smart Sand, Inc. (SND) - Modèle commercial: canaux

Équipe de vente directe ciblant les sociétés de pétrole et de gaz

L'équipe de vente directe de Smart Sand se concentre sur les mesures clés suivantes:

Métrique de l'équipe de vente	2023 données
Nombre de représentants des ventes dédiés	12
Ventes annuelles moyennes par représentant	3,2 millions de dollars
Couverture totale des ventes directes	Régions du bassin Permien, Eagle Ford et Williston

Salons et conférences de l'industrie

La participation de la conférence de Smart Sand comprend:

• Conférence technique annuelle de la société des ingénieurs pétroliers (SPE)
• Conférence de technologie des ressources non conventionnelles
• North American Prospect Expo (NAPE)

Métrique de la conférence	2023 données
Dépenses annuelles des salons commerciaux	$425,000
Nombre de conférences assistées	7
Les pistes estimées générées	143

Informations sur les produits en ligne et plateformes de commande

Métriques de performance des canaux numériques:

Métrique de la plate-forme en ligne	2023 données
Site Web Visiteurs mensuels uniques	8,742
Demandes de devis en ligne	276
Taux de conversion de la plate-forme numérique	3.7%

Réseaux de partenariat stratégiques

Partenariat Composition du réseau:

• Partenaires logistiques intermédiaires
• Fournisseurs de services de fracturation hydraulique
• Sociétés régionales d'exploration du pétrole et du gaz

Métrique de partenariat	2023 données
Partenariats stratégiques actifs	18
Revenus axés sur le partenariat	22,6 millions de dollars
Durée du partenariat moyen	3,2 ans

Smart Sand, Inc. (SND) - Modèle d'entreprise: segments de clientèle

Entreprises de fracturation hydraulique

Smart Sand, Inc. dessert les grandes entreprises de fracturation hydraulique avec des produits de sable Frac spécialisés. Depuis 2022, la clientèle de l'entreprise comprenait:

Type de client	Nombre de clients actifs	Volume annuel de sable (tonnes)
Entreprises de fracturation hydrauliques de niveau supérieur	7	2,3 millions
Entreprises de fracturation hydrauliques de niveau de niveau	12	1,5 million

Entreprises d'exploration de pétrole et de gaz à terre

Les principaux segments de marché pour le sable intelligent comprennent les entreprises d'exploration onshore avec une empreinte opérationnelle importante:

• Opérateurs du bassin Permien
• Eagle Ford Shale Exploration Companies
• Entreprises d'exploration de formation de Bakken

Région	Nombre de clients d'exploration	Valeur du contrat annuel moyen
Bassin permien	15	4,2 millions de dollars
Eagle Ford Schiste	8	3,7 millions de dollars

Fournisseurs de services énergétiques du milieu

Smart Sand fournit du sable de fracture aux fournisseurs de services énergétiques au milieu de l'énergie avec des exigences spécifiques:

• Sociétés de logistique de l'après-
• Spécialistes du transport de sable
• Fournisseurs de services de transformation

Catégorie de prestataires de services	Compte de clientèle	Volume annuel de logistique de sable
Entreprises de logistique de l'après-	6	1,8 million de tonnes
Sands Transportation Companies	9	1,2 million de tonnes

Opérations de forage régional et national

Smart Sand sert diverses opérations de forage dans plusieurs régions:

Échelle opérationnelle	Nombre de clients de forage	Couverture géographique
Sociétés de forage régional	22	Texas, Nouveau-Mexique, Oklahoma
Opérations de forage national	5	Présence multi-États

Smart Sand, Inc. (SND) - Modèle d'entreprise: Structure des coûts

Dépenses d'extraction de sable et d'extraction

En 2023, Smart Sand, Inc. a déclaré des dépenses totales d'extraction de sable et d'extraction de 46,3 millions de dollars. La répartition de ces dépenses comprend:

Catégorie de dépenses	Montant ($)
Bail terrien et redevances	12,500,000
Opération de l'équipement	18,700,000
Coûts de main-d'œuvre	9,800,000
Conformité environnementale	5,300,000

Coûts de traitement et de transport

Les coûts de transport et de traitement pour le sable intelligent en 2023 ont totalisé 37,6 millions de dollars, avec les composants clés suivants:

• Logistique et camionnage: 22 100 000 $
• Installations de traitement du sable: 10 500 000 $
• Entretien des carburants et de l'équipement: 5 000 000 $

Entretien et mises à niveau de l'équipement

Smart Sand a investi 15,2 millions de dollars dans la maintenance des équipements et les mises à niveau en 2023:

Catégorie de maintenance	Montant ($)
Maintenance de routine	8,700,000
Remplacement de l'équipement	4,500,000
Mises à niveau technologique	2,000,000

Investissements de recherche et développement

Les dépenses de R&D pour Smart Sand en 2023 s'élevaient à 6,8 millions de dollars, axées sur:

• Amélioration de la technologie de l'après-Propant: 3 500 000 $
• Recherche sur l'efficacité des processus: 2 100 000 $
• Développement de nouveaux produits: 1 200 000 $

Structure totale des coûts pour 2023: 105,9 millions de dollars

Smart Sand, Inc. (SND) - Modèle d'entreprise: Strots de revenus

Ventes de sable pour une fracturation hydraulique

En 2023, Smart Sand, Inc. a déclaré un chiffre d'affaires total de 131,9 millions de dollars, avec des ventes de protèges représentant la principale source de revenus. L'entreprise a vendu 3,4 millions de tonnes de PROPANT au cours de l'exercice.

Catégorie de revenus	2023 Montant	Pourcentage du total des revenus
Ventes de procureur	131,9 millions de dollars	92.5%
Autres services	10,6 millions de dollars	7.5%

Modèles de tarification basés sur le volume

Smart Sand utilise des stratégies de tarification à plusieurs niveaux basées sur les engagements en volume des clients pétroliers et gaziers.

• Le prix varie de 30 $ à 45 $ la tonne
• Les remises de volume s'appliquent aux achats dépassant 500 000 tonnes par an
• Les prix du marché au comptant fluctuent avec la demande du marché

Contrats d'approvisionnement à long terme

Depuis 2023, le sable intelligent a maintenu 5 Contrats d'approvisionnement à long terme actifs avec de grandes sociétés d'exploration pétrolière et gazière.

Durée du contrat	Engagement annuel	Valeur du contrat estimé
3-5 ans	1 à 2 millions de tonnes	45 à 90 millions de dollars par contrat

Prix ​​premium pour les assocateurs de haute qualité

Smart Sand's Premium Northern White Sand commande une prime de prix de 3 $ à 5 $ la tonne par rapport aux produits de sable régionaux standard.

• Prix ​​de sable premium: 38 $ à 50 $ la tonne
• Part de marché pour les produits premium: 22% du total des ventes
• Marge brute pour les produits premium: 35-40%

Smart Sand, Inc. (SND) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Smart Sand, Inc. (SND) over competitors, especially now that the market has tightened up a bit after the Q1 2025 dip. The value proposition centers on quality, integration, cost discipline, and diversification.

Premium Northern White sand quality for superior well performance

The fundamental offering is the high-quality Northern White sand, which you know is the premium proppant for hydraulic fracturing. While I don't have a specific sieve analysis percentage from the latest filings, the continued demand confirms its performance profile in enhancing hydrocarbon recovery rates across key basins.

Fully integrated, mine-to-wellsite logistics and supply chain efficiency

This is where Smart Sand, Inc. really separates itself. They own the process from the mine in Wisconsin and Illinois right to the wellsite. This integration is backed by significant infrastructure investments. For instance, 90% of sales are shipped on a unit train basis, which is a massive efficiency driver compared to truck or smaller rail movements. You have access to three facilities connecting to four Class 1 rail lines directly, and the company owns four terminals across the country to manage distribution.

Here's a quick look at the operational scale supporting this claim:

Metric	Value (As of Q3 2025 or Latest Available)
Total Mining & Processing Capacity	10 million tons
Unit Train Size Capability	100 to 150 cars or more
Q3 2025 Tons Sold	Approximately 1,472,000
Contribution Margin Per Ton (Q3 2025)	$14.76

Low-cost operating structure and low royalty rates for competitive pricing

The integrated model helps drive a low-cost structure, which translates directly into competitive pricing for you, the customer. The efficiency gains are visible in the margin performance. In the third quarter of 2025, the Contribution Margin hit $21.7 million, which is a solid result showing they are managing the operating cost base effectively, especially with volumes recovering.

Diversified, steadier cash flow from growing Industrial Products Solutions (IPS)

Diversification is key to smoothing out the cyclical nature of the frac sand business. The Industrial Products Solutions (IPS) segment is showing real traction. In the first half of 2025, IPS represented 5% of sales, but it grew 80% year-over-year. Management is actively targeting this segment to grow to 10% or more of total sales, which should definitely help stabilize cash flow, especially when oilfield activity fluctuates.

Consider the overall financial context as of late 2025:

• Trailing Twelve Months Revenue (ending Sep 30, 2025): $335.47 million.
• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Net Income: $3.0 million.
• Q3 2025 Free Cash Flow: $14.8 million.

Reliable supply via unit train delivery capability to all major basins

Reliability means you get the sand when and where you need it. Because the mines have access to all Class 1 rail lines, Smart Sand, Inc. can deliver products to all operating basins in the U.S. and Canada. This expansive logistical reach, combined with the ability to move product in large unit trains, ensures supply continuity even during peak demand periods. They are positioned to support activity in areas like the Marcellus, Utica, Bakken, and Western Canadian Sedimentary Basin.

Finance: draft the Q4 2025 cash flow forecast incorporating the Q3 performance by next Tuesday.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Relationships

You're looking at how Smart Sand, Inc. (SND) manages its connections with the buyers of its premium Northern White sand and logistics services as of late 2025. It's a mix of deep, sticky relationships and more opportunistic transactional sales.

The core of the energy-side relationship is built on direct, long-term contractual relationships with major E&P operators. This provides a foundation of demand stability, even with near-term market volatility impacting oil and natural gas prices. For instance, in Q3 2025, the revenue included a $4.4 million payment related to contractual charges for tons sold in excess of certain contractual thresholds from a prior period, which shows the structure of these agreements in action. Smart Sand, Inc. expects full year 2025 sales volumes to be in the 5.1 million to 5.4 million ton range, much of which is likely underpinned by these contracts.

To support these critical contracts, the company provides dedicated sales and logistics support for mine-to-wellsite delivery. This integration is key to their value proposition. They own and operate premium sand mines in Wisconsin and Illinois, which have access to four Class I rail lines, allowing delivery substantially anywhere in the United States and Canada. Their logistics arm includes in-basin transloading terminals and their SmartSystems™ wellsite storage and sand management capabilities, ensuring they can service customers efficiently, as evidenced by record sales volumes into Canada in Q3 2025.

Still, the business isn't purely locked into long-term deals; there is room for transactional sales for smaller, spot-market frac sand needs. This flexibility allows Smart Sand, Inc. to capture upside when activity spikes, like the 24% year-over-year increase in tons sold in Q3 2025 (1,472,000 tons) compared to Q3 2024. The company is also actively expanding its non-energy customer base through its Industrial Product Solutions (IPS) segment.

For the non-energy side, there are direct sales to industrial manufacturers for non-energy products. This diversification is a clear strategic focus. The Industrial Product Solutions segment broadened its customer base in Q3 2025. To be fair, the industrial sales segment already showed strength earlier in the year, marking a 9% sequential increase in sales volumes in Q1 2025.

Finally, the relationship with the investment community is managed through investor relations focused on capital returns. This is a tangible way they connect with shareholders. Smart Sand, Inc. declared a special cash dividend of $0.05/share in November 2025, payable in December 2025. This follows a prior special dividend of $0.10/share paid in August 2025. Through August 14, 2025, the company had returned $6.4 million to shareholders through share repurchases and special dividends in 2025.

Here's a quick look at the recent operational scale supporting these relationships:

• Q3 2025 Revenue: $92.8 million.
• Q3 2025 Tons Sold: Approximately 1,472,000.
• Expanded presence in Utica shale via Ohio terminals.
• Maintained strong sand sales in traditional Marcellus and Bakken markets.

We can map the key customer-facing activities and their recent performance metrics:

Customer Relationship Type	Key Activity/Market Focus	Latest Reported Metric (Q3 2025 unless noted)
Long-Term E&P Contracts	Frac Sand Supply & Logistics	Revenue included $4.4 million in contractual over-volume charges.
Dedicated Logistics Support	Mine-to-Wellsite Delivery	Mines access four Class I rail lines.
Transactional Sales	Spot Market Frac Sand	Q3 2025 Tons Sold: 1,472,000.
Direct Industrial Sales	Industrial Product Solutions (IPS)	Broadened customer base in Q3 2025.
Investor Relations	Capital Returns	Declared $0.05/share special dividend in November 2025.

The company's strategy clearly involves locking in the E&P customers with integrated logistics while simultaneously building out the Industrial segment for diversification. If onboarding new industrial clients takes longer than expected, revenue growth from that segment could be delayed. Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Channels

The distribution and delivery of Northern White Sand and related services for Smart Sand, Inc. (SND) rely on a multi-faceted logistics and sales approach designed to reach both the hydraulic fracturing and industrial markets across North America.

Direct sales force targeting E&P and oilfield service companies forms the core for the frac sand business, focusing on key basins. The company's sales volumes and revenue reflect the effectiveness of this channel through 2025.

• Markets served include the Appalachian basins (Marcellus and Utica), the Bakken, and expanding into Canada (Montney).
• New market activity represented approximately 11% of sales volume in the full year 2024.

Here's a look at the quarterly sales performance that flows through these primary channels in 2025:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue	$65.6 million	$85.8 million	$92.8 million
Total Tons Sold (Approximate)	1.1 million	Expected 10% to 20% QoQ rise vs Q1	Expected $\approx$ 2.5 million for H2 2025

The company mines and processes its sand with a stated capacity of 10 million tons.

Company-owned and third-party transloading terminals are critical for moving bulk sand from the mine to the wellsite, as all sand for oil and gas moves by rail to terminals first. Smart Sand, Inc. currently has 4 terminals it owns, including the Van Hook terminal in North Dakota.

Class I rail lines for efficient, high-volume unit train shipments underpin the logistics advantage. Smart Sand, Inc.'s facilities are positioned to access all Class I rail lines, with 3 facilities connecting directly to 4 rail runs.

• Shipments are executed on a unit train basis, often involving 100 to 150 cars or more.
• This system allows transport directly to owned or third-party terminals in all operating basins.

SmartSystems wellsite storage and sand management services provide a direct service channel at the wellsite. This segment showed operational improvement in 2025.

• SmartSystems revenue was $7.8 million for the year ended 2024.
• In the first quarter of 2025, the SmartSystems business showed increased fleet utilization and achieved a positive contribution margin.

Industrial product distributors and direct sales for IPS serve as the channel for non-energy markets. This segment is a key diversification effort.

• Industrial sand sales set a record in the first quarter of 2025, increasing 9% Quarter-over-Quarter.
• Smart Sand, Inc. is looking to grow this business to be 10% or more of total sales over time.

The Trailing Twelve Month (TTM) revenue as of September 30, 2025, reached $335 million, reflecting the combined output across these channels.

Smart Sand, Inc. (SND) - Canvas Business Model: Customer Segments

You're looking at who actually buys the high-quality Northern White sand and logistics from Smart Sand, Inc. as of late 2025. It's a mix of direct buyers and service providers, heavily concentrated in specific North American basins.

Oil and natural gas Exploration and Production (E&P) companies

E&P companies are core end-users, though Smart Sand, Inc. often sells through the service layer. For the nine months ended September 30, 2025, two specific customers, Equitable Gas Corporation and Encino Energy, accounted for a significant portion of the total revenue, at 27.7% and 12.5% respectively. This shows a degree of customer concentration, even as the company works to diversify.

Oilfield Service companies requiring proppant supply

These companies are critical intermediaries, taking delivery of the proppant for use in hydraulic fracturing operations. Smart Sand, Inc. provides them with complete mine-to-wellsite proppant and logistic solutions. The total tons sold for the third quarter of 2025 was approximately 1,472,000 tons.

Industrial Manufacturers (e.g., glass, foundry, building products)

The Industrial Product Solutions (IPS) segment serves as a diversification stream. In the second quarter of 2025, IPS sales volumes grew 28% sequentially. For the first half of 2025, this segment accounted for 6% of the company's total sales volumes.

Key industrial customers utilize Northern White sand for applications including:

• Glass manufacturing
• Foundry operations
• Building Products
• Filtration, Geothermal, Renewables, Ceramics, Turf & Landscape, Retail, and Recreation

Operators in key basins: Marcellus/Utica, Bakken, WCSB (Canada)

Smart Sand, Inc. focuses its frac sand sales on specific operational geographies where their premium sand and logistics are advantageous. The company noted strong sand sales in its traditional markets of the Marcellus and the Bakken in Q3 2025. They are also expanding their presence, with frac sand sales into the Utica basin making up 16% of total sales volumes through June 30, 2025.

Geographically, the customer base includes significant international sales:

Region/Basin	2025 Activity/Volume Detail	Data Source
Canada	Record sales volumes in Q3 2025
Canada & Mexico	Approximately 20% of sand volumes sold in Q3 2025 went to these regions
Appalachian Basin (Marcellus/Utica)	Enhanced transloading capabilities via Dennison, Ohio terminal expansion completed September 2025

The company expects continuing demand in the Bakken and Western Canadian Sedimentary Basin (WCSB).

Customers prioritizing premium Northern White sand over in-basin alternatives

Smart Sand, Inc.'s value proposition centers on its premium, high-quality Northern White sand. The company believes this sand is the first and best choice of proppant. While the broader market shows in-basin sand usage surging to 46%, displacing Northern White sand to a 24% market share, Smart Sand, Inc. leverages its extensive logistics network to deliver its premium product efficiently to all shale operating basins in North America.

The total tons sold for the nine months ended September 30, 2025, was 3,965,000 tons.

The company's logistics footprint, including unit train delivery capability, supports customers who value quality and reliable, cost-effective delivery over local sourcing.

Finance: review Q4 2025 customer concentration against the Equitable Gas Corporation (27.7%) and Encino Energy (12.5%) figures from the nine-month period.

Smart Sand, Inc. (SND) - Canvas Business Model: Cost Structure

You're looking at the cost side of Smart Sand, Inc. (SND)'s business, which is heavily influenced by the physical movement and processing of sand. The structure shows a clear mix of costs that you need to manage to keep that contribution margin per ton healthy.

The company has high fixed costs baked into its operations. These are tied to owning and maintaining the physical assets: the mines in Wisconsin and Illinois, the processing facilities, and the access to four Class I rail lines needed to move the product across the United States and Canada. While specific fixed cost line items aren't broken out in detail for 2025, the need for ongoing capital investment points to this structure.

Variable costs, however, are where the immediate pressure points show up. Freight and logistics are definitely a key cost driver. Look at the second quarter of 2025: Cost of Goods Sold (COGS) jumped to $76.8 million, up from $62.8 million in the first quarter of 2025, largely due to increased sales volumes and the specific delivery locations for frac sand sales. Freight and other delivery costs were specifically noted as higher sequentially and year over year, which directly impacted the gross profit, which fell to $9.0 million in Q2 2025 from $13.1 million year-over-year. This pressure is why the contribution margin per ton dropped to $11.08 in Q2 2025 from $15.53 in Q2 2024.

To be fair, Smart Sand, Inc. (SND) benefits from a structure that keeps some costs low. The company explicitly mentioned that operating expenses in the first quarter of 2025 were $9.8 million, down from $11.0 million in the first quarter of 2024, primarily due to reduced wages and royalties. This suggests that low royalty rates are a structural advantage contributing to a lower-cost operating base when volumes are lower.

Capital spending is a major component of the cost structure, reflecting investment in both maintenance and growth. Smart Sand, Inc. (SND) currently projects full-year 2025 capital expenditures to range between $13.0 million and $17.0 million. More recently, guidance was tightened to a range of $15 million to $17 million for 2025. For context, capital expenditures in the third quarter of 2025 were $3.4 million, primarily for maintenance and expansion projects at facilities like Oakdale, Blair, and Ottawa, plus potential new terminals. This spending directly relates to maintaining and expanding the infrastructure that supports the business, including the SmartSystems fleet.

The SmartSystems fleet itself represents an investment where maintenance costs are necessary to ensure operational excellence. While specific maintenance costs for the SmartSystems fleet aren't itemized separately in the public reports, the overall capital expenditure plan, which includes targeted investments for efficiency projects, covers the upkeep of these proprietary logistics assets. Here's a quick look at the quarterly cost movement:

Metric	Q1 2025 Amount	Q2 2025 Amount
Cost of Goods Sold (COGS)	$62.8 million	$76.8 million
Operating Expenses	$9.8 million	Not explicitly stated, but Q1 2024 was $11.0 million
Gross Profit	$2.8 million	$9.0 million
Contribution Margin per Ton	$8.96	$11.08

The company is actively managing these costs, as seen by the reduction in operating expenses due to lower royalties and the focus on logistics cost control in Q1 2025, which helped COGS decline sequentially before volume picked up in Q2. You've got to watch those freight costs; they clearly swing profitability.

• Projected 2025 Capital Expenditures: $13.0 million and $17.0 million (with a tighter range of $15 million to $17 million).
• Q3 2025 Capital Expenditures: $3.4 million.
• Q1 2025 Operating Expenses: $9.8 million, reduced due to lower royalties.
• Costs associated with maintaining the SmartSystems fleet are embedded within capital expenditures and operational costs.

Finance: draft 13-week cash view by Friday.

Smart Sand, Inc. (SND) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Smart Sand, Inc. (SND) as of late 2025. It's a model built on core energy services but actively diversifying its income sources.

The primary revenue driver remains the Sale of frac sand (proppant) to the oil and gas industry. This segment is highly sensitive to drilling activity, as seen in the strong recovery reported for the third quarter of 2025. The company is a low-cost producer of high-quality Northern White sand, essential for enhanced hydrocarbon recovery.

Revenue from logistics and SmartSystems wellsite services is integral, supporting the core sand sales by providing mine-to-well site delivery solutions. These services include in-basin transloading terminals and SmartSystems products and services, like the SmartBelt, SmartDepot Silo, and SmartPath Loader.

The company is also growing its Sales from Industrial Products Solutions (IPS), targeting non-energy markets such as glass, ceramics, and renewable energy. While the long-term goal might be 10% of sales, the latest available data shows traction: IPS sales volumes increased 28% from the first quarter to the second quarter of 2025, accounting for 6% of total sales volumes in the first half of 2025.

A notable, though less recurring, component of revenue comes from Contractual charges for volumes exceeding certain thresholds. This provided a boost in Q3 2025.

Here's a quick look at the top-line performance and key revenue components for the most recently reported quarter:

Metric	Amount
Q3 2025 Total Revenue	$92.8 million
Q3 2025 Sand Revenue	$91.6 million
Q3 2025 Contractual Payment (Excess Tons)	$4.4 million
Q3 2025 Contribution Margin per Ton Sold	$14.76

The Q3 2025 revenue was $92.8 million, reflecting strong volume recovery compared to $63.2 million in the same period last year. This sequential growth was supported by higher volumes and pricing, plus that one-time contractual payment.

You can see the revenue streams broken down by their contribution to the quarter's results:

• Sale of frac sand (proppant) to the oil and gas industry.
• Revenue from logistics and SmartSystems wellsite services.
• Sales from Industrial Products Solutions (IPS), representing 6% of H1 2025 volumes.
• A $4.4 million contractual payment for prior-period excess tons was included in Q3 2025 revenue.

Finance: draft 13-week cash view by Friday.