LandBridge Corporation (LB.N): 3Q26 Earnings Reaction: Just in Time

The primary update this quarter was the exercise of the previously announced PowerBridge lease option for an initial 825-acre portion of the ~3,400 acreage under option. No tenant has been disclosed yet, but construction has commenced on the first phase, with more than 300MW of power anticipated in 4Q27; the total planned data center campus could ultimately scale to 2GW. Otherwise, it was a beat-and-raise quarter for LandBridge, with an increased 2026 EBITDA midpoint of $227.5mm versus the prior $220mm. LB reported adj. EBITDA of $64mm, beating the $58mm Citi estimate and $59mm Street mean as a result of stronger-than-anticipated easement and surface-related revenue versus our model. M&A also contributed to the guidance increase, with LB acquiring ~25,000 acres in the third quarter; year-to-date it has acquired ~34,000 acres for ~$275mm at a ~10x EBITDA multiple that management expects to blend down to below 6x near-term. We expect a positive reaction: LB traded off more than 10% today