Natural Gas Services Group, Inc. Reports Fourth Quarter and Full Year 2025 Financial and Operating Results; Provides 2026 Guidance
Rhea-AI Summary
Natural Gas Services Group (NYSE:NGS) reported record 2025 results, with full year revenue of $172.3 million and Adjusted EBITDA of $81.0 million.
Rental revenue for Q4 2025 was $44.3 million (+16.0% YoY) and rented horsepower reached 563,000 with 84.9% utilization. 2026 guidance: Adjusted EBITDA $90.5M–$95.5M; growth CapEx $55M–$70M; maintenance CapEx $15M–$18M.
Positive
- Full year 2025 Adjusted EBITDA of $81.0 million (record)
- Rental revenue growth: $164.3 million in 2025 (+13.9% YoY)
- Rented horsepower increased to 562,676 (14.4% YoY)
- 2026 guidance implies Adjusted EBITDA growth to $90.5M–$95.5M
Negative
- Outstanding revolver debt of $230.0 million with leverage ratio 2.72x
- Cash used in investing activities Q4 2025 of $34.5 million exceeded operating cash flow
News Market Reaction – NGS
On the day this news was published, NGS gained 0.57%, reflecting a mild positive market reaction. Argus tracked a peak move of +2.5% during that session. Argus tracked a trough of -14.5% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $482M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
NGS gained 2.19% while key peers FET (-1.24%), OIS (-0.50%), FTK (-1.17%), RNGR (-0.77%) and NOA (-0.85%) declined, indicating a stock-specific response to the earnings news rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Positive | -7.2% | Raised 2025 Adjusted EBITDA guidance alongside strong Q3 rental growth. |
| Aug 11 | Q2 2025 earnings | Positive | -1.3% | Strong Q2 growth and guidance hike plus new dividend and buyback plan. |
| May 12 | Q1 2025 earnings | Positive | +18.4% | Double-digit rental growth and higher 2025 EBITDA guidance with solid leverage. |
| Mar 17 | Q4 2024 earnings | Positive | -7.6% | Record 2024 Adjusted EBITDA and strong 2025 growth outlook introduced. |
| Nov 14 | Q3 2024 earnings | Positive | +2.3% | Robust Q3 rental growth and increased FY 2024 Adjusted EBITDA guidance. |
Earnings releases have generally highlighted strong growth and guidance raises, but price reactions have been mixed, with several past positive reports followed by short-term share price weakness.
Over the past five earnings cycles, NGS has repeatedly reported higher rental revenue, expanding Adjusted EBITDA, and raised guidance, including record results in 2024 and multiple upward revisions through 2025. Despite these fundamentally positive updates, share reactions often skewed negative or muted, with only two of five earnings events showing positive next-day moves. Today’s Q4/FY 2025 results and 2026 guidance continue the pattern of operational strength and growing rental horsepower, now layered on an established dividend and increased capital spending plans.
Historical Comparison
Earnings headlines for NGS over the last five events produced an average next-day move of 0.93%. Today’s 2.19% gain on Q4/FY 2025 results and 2026 guidance sits modestly above that typical earnings reaction.
Earnings releases show a progression from strong 2024 results into 2025, with recurring upgrades to Adjusted EBITDA guidance, expanding rented horsepower, and the introduction and subsequent increase of a quarterly dividend.
Market Pulse Summary
This announcement details record 2025 results for NGS, including rental revenue of $164.3 million, net income of $19.9 million, and Adjusted EBITDA of $81.0 million, alongside new 2026 guidance of $90.5–$95.5 million. The company continues to deploy significant growth capex of $55–$70 million while maintaining a leverage ratio of 2.72x. Investors may monitor utilization levels, execution of large horsepower deployments, dividend sustainability, and adherence to credit facility covenants as key ongoing markers.
Key Terms
adjusted gross margin financial
adjusted EBITDA financial
non-GAAP financial
revolving credit facility financial
leverage ratio financial
fixed charge coverage ratio financial
AI-generated analysis. Not financial advice.
SOUTHLAKE, Texas, March 16, 2026 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced financial results for the year and three months ended December 31, 2025.
Fourth Quarter 2025 and Full Year 2025 Highlights
- Rental revenue of
$44.3 million for the fourth quarter of 2025 represents a16.0% year-over-year increase and a6.8% sequential increase compared to the third quarter of 2025. Rental revenue for the full year 2025 of$164.3 million represents a13.9% increase compared to 2024. - Net income of
$4.1 million , or$0.32 per diluted share, for the fourth quarter of 2025 compared to$2.9 million or$0.23 per diluted share for the fourth quarter of 2024. Net income for the full year 2025 of$19.9 million , or$1.57 per diluted share, compared to$17.2 million , or$1.37 per diluted share, in 2024. - Adjusted EBITDA of
$21.2 million for the fourth quarter of 2025, represents a17.6% year-over-year increase and a1.6% increase sequentially. Adjusted EBITDA for the full year 2025 of$81.0 million represents a16.5% increase compared to 2024.
Management Commentary and Outlook
"NGS delivered another strong quarter and capped off a record year in 2025," said Justin Jacobs, Chief Executive Officer. "We achieved record rented horsepower and utilization while continuing to expand our fleet and improve pricing across our compression portfolio. These results reflect the strength of our technology, disciplined execution in the field, and sustained demand for large horsepower compression."
"During the fourth quarter, rented horsepower increased by 37,000 horsepower to 563,000, representing a
"2025 also marked an important milestone in our capital allocation strategy as we initiated our inaugural dividend during the third quarter and increased it by
"Looking ahead, the strong year-over-year performance the Company delivered in 2025 reflects the structural growth taking place in our business driven by fleet expansion, improved utilization, and strong customer demand. We expect this trend to continue in 2026. Our growth investments remain focused on large horsepower and electric motor drive assets which will expand our Adjusted Rental Gross Margin in 2026."
"NGS remains committed to a balanced capital allocation framework, prioritizing organic fleet growth while returning capital to shareholders and continuing to evaluate accretive M&A opportunities. With low leverage, our balance sheet provides significant flexibility to continue investment while delivering sustainable value to our shareholders."
Corporate Guidance — 2026 Outlook
Based on the continued strength of our business, contracted large horsepower deployments, and confidence in our strategic growth initiatives, the Company is introducing the following guidance for the full year 2026:
| Outlook | |
| FY 2026 Adjusted EBITDA | |
| FY 2026 Growth Capital Expenditures | |
| FY 2026 Maintenance Capital Expenditures | |
The company expects 2026 Adjusted EBITDA of
Growth capital expenditures for 2026 are expected to range from
Consistent with prior periods, the Company remains committed to disciplined capital allocation and investing in assets that generate attractive long-term returns for shareholders. Over the past several years, the Company has demonstrated a consistent track record of deploying capital efficiently while expanding the fleet, increasing utilized horsepower, and strengthening the Company's financial position, and expects to maintain that disciplined approach going forward.
2025 Fourth Quarter Financial Results
Revenue: Total revenue for the three months ended December 31, 2025, increased
Gross Margins and Adjusted Gross Margins: Total gross margins, including depreciation expense increased to
Operating Income: Operating income for the three months ended December 31, 2025, was
Net Income: Net income for the three months ended December 31, 2025, was
Cash Flows: For the three months ended December 31, 2025, cash flows provided by operating activities were
Adjusted EBITDA: Adjusted EBITDA increased
Debt: Outstanding debt on our revolving credit facility as of December 31, 2025, was
Selected data: The tables below show revenue by product line, gross margin and adjusted gross margin for the trailing five quarters. Adjusted gross margin is the difference between revenue and cost of sales, exclusive of depreciation.
| Revenues | ||||||||||||||
| Three months ended | ||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | ||||||||||
| (in thousands) | ||||||||||||||
| Rental | $ | 38,226 | $ | 38,910 | $ | 39,580 | $ | 41,502 | $ | 44,334 | ||||
| Sales | 997 | 1,927 | 750 | 471 | 844 | |||||||||
| Aftermarket services | 1,435 | 546 | 1,052 | 1,428 | 971 | |||||||||
| Total | $ | 40,658 | $ | 41,383 | $ | 41,382 | $ | 43,401 | $ | 46,149 | ||||
| Gross Margin | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| Rental | $ | 14,865 | $ | 15,634 | $ | 15,294 | $ | 16,508 | $ | 16,346 | |||||||||
| Sales | (531 | ) | (181 | ) | (254 | ) | (75 | ) | (134 | ) | |||||||||
| Aftermarket services | 296 | 264 | 310 | 244 | 283 | ||||||||||||||
| Total | $ | 14,630 | $ | 15,717 | $ | 15,350 | $ | 16,677 | $ | 16,495 | |||||||||
| Adjusted Gross Margin (1) | ||||||||||||||||||
| Three months ended | ||||||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | ||||||||||||||
| (in thousands) | ||||||||||||||||||
| Rental | $ | 23,107 | $ | 24,070 | $ | 24,052 | $ | 25,532 | $ | 25,940 | ||||||||
| Sales | (449 | ) | (89 | ) | (161 | ) | 23 | (14 | ) | |||||||||
| Aftermarket services | 321 | 275 | 332 | 273 | 304 | |||||||||||||
| Total | $ | 22,979 | $ | 24,256 | $ | 24,223 | $ | 25,828 | $ | 26,230 | ||||||||
| Adjusted Gross Margin % | ||||||||||||||
| Three months ended | ||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | ||||||||||
| Rental | 60.4 | % | 61.9 | % | 60.8 | % | 61.5 | % | 58.5 | % | ||||
| Sales | (45.0 | )% | (4.6 | )% | (21.5 | )% | 4.9 | % | (1.7 | )% | ||||
| Aftermarket services | 22.4 | % | 50.4 | % | 31.6 | % | 19.1 | % | 31.3 | % | ||||
| Total | 56.5 | % | 58.6 | % | 58.5 | % | 59.5 | % | 56.8 | % | ||||
| Operating Statistics (at end of period): | ||||||||||||||
| Three months ended | ||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | ||||||||||
| Horsepower Utilized | 491,756 | 492,679 | 498,651 | 526,015 | 562,676 | |||||||||
| Total Horsepower | 598,840 | 603,391 | 596,322 | 625,686 | 662,542 | |||||||||
| Horsepower Utilization | 82.1 | % | 81.7 | % | 83.6 | % | 84.1 | % | 84.9 | % | ||||
| Units Utilized | 1,208 | 1,202 | 1,198 | 1,235 | 1,245 | |||||||||
| Total Units | 1,912 | 1,916 | 1,833 | 1,891 | 1,914 | |||||||||
| Unit Utilization | 63.2 | % | 62.7 | % | 65.4 | % | 65.3 | % | 65.0 | % | ||||
(1) For a reconciliation of adjusted gross margin to its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measures - Adjusted Gross Margin” below.
Non-GAAP Financial Measure - Adjusted Gross Margin: “Adjusted Gross Margin” is defined as total revenue less costs of revenues (excluding depreciation and amortization expense). Adjusted Gross Margin is included as a supplemental disclosure because it is a primary measure used by our management as it represents the results of revenue and costs (excluding depreciation and amortization expense), which are key components of our operations. Adjusted Gross Margin differs from gross margin, in that gross margin includes depreciation and amortization expense. We believe Adjusted Gross Margin is important because it focuses on the current operating performance of our operations and excludes the impact of the prior historical costs of the assets acquired or constructed that are utilized in those operations. Depreciation and amortization expense does not accurately reflect the costs required to maintain and replenish the operational usage of our assets and therefore may not portray the costs from current operating activity. Rather, depreciation and amortization expense reflects the systematic allocation of historical property and equipment costs over their estimated useful lives.
Adjusted Gross Margin has certain material limitations associated with its use as compared to gross margin. These limitations are primarily due to the exclusion of depreciation and amortization expense, which is material to our results of operations. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and our ability to generate revenue. In order to compensate for these limitations, management uses this non-GAAP measure as a supplemental measure to other GAAP results to provide a more complete understanding of our performance. As an indicator of our operating performance, Adjusted Gross Margin should not be considered an alternative to, or more meaningful than, gross margin as determined in accordance with GAAP. Our Adjusted Gross Margin may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted Gross Margin in the same manner.
The following table calculates our gross margin, the most directly comparable GAAP financial measure, and reconciles it to Adjusted Gross Margin:
| Three months ended | |||||||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| Total revenue | $ | 40,658 | $ | 41,383 | $ | 41,382 | $ | 43,401 | $ | 46,149 | |||||||||
| Costs of revenue, exclusive of depreciation | (17,679 | ) | (17,127 | ) | (17,159 | ) | (17,573 | ) | (19,919 | ) | |||||||||
| Depreciation allocable to costs of revenue | (8,349 | ) | (8,539 | ) | (8,873 | ) | (9,151 | ) | (9,735 | ) | |||||||||
| Gross margin | 14,630 | 15,717 | 15,350 | 16,677 | 16,495 | ||||||||||||||
| Depreciation allocable to costs of revenue | 8,349 | 8,539 | 8,873 | 9,151 | 9,735 | ||||||||||||||
| Adjusted Gross Margin | $ | 22,979 | $ | 24,256 | $ | 24,223 | $ | 25,828 | $ | 26,230 | |||||||||
| Year Ended December 31, | |||||||
| 2024 | 2025 | ||||||
| (in thousands) | |||||||
| Total revenue | $ | 156,742 | $ | 172,315 | |||
| Costs of revenue, exclusive of depreciation | (68,756 | ) | (71,778 | ) | |||
| Depreciation allocable to costs of revenue | (30,813 | ) | (36,298 | ) | |||
| Gross margin | $ | 57,173 | $ | 64,239 | |||
| Depreciation allocable to costs of revenue | 30,813 | 36,298 | |||||
| Adjusted Gross Margin | $ | 87,986 | $ | 100,537 | |||
Non-GAAP Financial Measures - Adjusted EBITDA: “Adjusted EBITDA” is a non-GAAP financial measure that we define as net income (loss) before interest, taxes, depreciation and amortization, as well as an increase in inventory allowance, impairments, retirement of rental equipment, nonrecurring restructuring charges including severance and non-cash equity-classified stock-based compensation expenses. This term, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, management believes Adjusted EBITDA is useful to an investor in evaluating our operating performance because: (i) it is widely used by investors in the energy industry to measure a company’s operating performance without regard to items excluded from the calculation of Adjusted EBITDA, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors; (ii) it helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure and asset base from our operating structure; and (iii) it is used by our management for various purposes, including as a measure of operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows: (i) Adjusted EBITDA does not reflect all our cash expenditures, future requirements for capital expenditures, or contractual commitments; (ii) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (iii) Adjusted EBITDA does not reflect the cash requirements necessary to service interest or principal payments on our debt and finance leases; and (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any capital expenditures for such replacements.
The following tables reconciles our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:
| Three months ended | |||||||||||||||
| December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | |||||||||||
| (in thousands) | |||||||||||||||
| Net income | $ | 2,865 | $ | 4,854 | $ | 5,188 | $ | 5,784 | $ | 4,102 | |||||
| Interest expense | 3,015 | 3,170 | 3,243 | 3,414 | 3,738 | ||||||||||
| Interest income | — | — | — | — | (2,444 | ) | |||||||||
| Income tax expense | 283 | 1,482 | 1,597 | 1,779 | 1,745 | ||||||||||
| Depreciation and amortization | 8,469 | 8,636 | 8,969 | 9,249 | 9,802 | ||||||||||
| Impairments | 705 | — | — | — | 2,600 | ||||||||||
| Inventory allowance | 1,863 | 61 | — | — | 1,053 | ||||||||||
| Retirement of rental equipment | 23 | 728 | — | — | — | ||||||||||
| Severance and restructuring charges | — | — | 89 | — | — | ||||||||||
| Stock-based compensation | 783 | 359 | 579 | 612 | 576 | ||||||||||
| Adjusted EBITDA | $ | 18,006 | $ | 19,290 | $ | 19,665 | $ | 20,838 | $ | 21,172 | |||||
| Year Ended December 31, | ||||||
| 2024 | 2025 | |||||
| (in thousands) | ||||||
| Net income | $ | 17,227 | $ | 19,928 | ||
| Interest expense | 11,927 | 13,565 | ||||
| Interest income | — | (2,444 | ) | |||
| Income tax expense | 4,439 | 6,603 | ||||
| Depreciation and amortization | 31,347 | 36,656 | ||||
| Impairments | 841 | 2,600 | ||||
| Inventory allowance | 1,863 | 1,114 | ||||
| Retirement of rental equipment | 28 | 728 | ||||
| Severance and restructuring charges | 33 | 89 | ||||
| Stock-based compensation | 1,821 | 2,126 | ||||
| Adjusted EBITDA | $ | 69,526 | $ | 80,965 | ||
Conference Call Details: The Company will host a conference call to review its third-quarter results on Tuesday, March 17, 2026 at 8:30 a.m. (EST), 7:30 a.m. (CST). To join the conference call, kindly access the Investor Relations section of our website at www.ngsgi.com or dial in at (800) 550-9745 and enter conference ID 167298 at least five minutes prior to the scheduled start time. Please note that using the provided dial-in number is necessary for participation in the Q&A section of the call. A recording of the conference will be made available on our Company's website following its conclusion. Thank you for your interest in our Company's updates.
About Natural Gas Services Group, Inc. (NGS): Natural Gas Services Group is a leading provider of natural gas and electric compression equipment, technology and services to the energy industry. The Company rents, designs, sells and maintains natural gas and electric compressors for oil and natural gas production and plant facilities, primarily using equipment from third-party fabricators and OEM suppliers along with limited in-house assembly. The Company is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.
Forward-Looking Statements
Certain statements herein (and oral statements made regarding the subjects of this release) constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “could,” “may,” “will,” “might,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions.
These forward–looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of the Company. Forward–looking information includes, but is not limited to statements regarding: guidance or estimates related to EBITDA growth, projected capital expenditures; returns on invested capital, fundamentals of the compression industry and related oil and gas industry, valuations, compressor demand assumptions and overall industry outlook, and the ability of the Company to capitalize on any potential opportunities.
While the Company believes that the assumptions concerning future events are reasonable, investors are cautioned that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Some of these factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to:
- conditions in the oil and gas industry, including the supply and demand for oil and gas and volatility in the prices of oil and gas;
- changes in general economic and financial conditions, inflationary pressures, the potential for economic recession in the U.S., tariffs and trade restrictions, including the imposition of new and higher tariffs on imported goods and retaliatory tariffs implemented by other countries on U.S. goods, and the potential effects on our financial condition, results of operations and cash flows;
- our reliance on major customers;
- failure of projected organic growth due to adverse changes in the oil and gas industry, including depressed oil and gas prices, oppressive environmental regulations and competition;
- our inability to achieve increased utilization of assets, including rental fleet utilization and monetizing other non-cash balance sheet assets;
- failure of our customers to continue to rent equipment after expiration of the primary rental term;
- our ability to economically develop and deploy new technologies and services, including technology to comply with health and environmental laws and regulations;
- failure to achieve accretive financial results in connection with any acquisitions we may make;
- fluctuations in interest rates;
- our ability to make dividends, distributions and share repurchases;
- changes in regulation or prohibition of new or current well completion techniques;
- competition among the various providers of compression services and products;
- changes in safety, health and environmental regulations;
- changes in economic or political conditions in the markets in which we operate;
- the inherent risks associated with our operations, such as equipment defects, malfunctions, natural disasters and adverse changes in customer, employee and supplier relationships;
- our inability to comply with covenants in our debt agreements and the decreased financial flexibility associated with our debt;
- inability to finance our future capital requirements and availability of financing;
- cybersecurity threats, including increased use of artificial intelligence and other emerging technologies;
- capacity availability, costs and performance of our outsourced compressor fabrication providers and overall inflationary pressures;
- impacts of world events, such as acts of terrorism, the conflicts in Ukraine, Venezuela and in the Middle East, and significant economic disruptions and adverse consequences resulting from possible long-term effects of potential pandemics and other public health crises; and
- general economic conditions.
In addition, these forward-looking statements are subject to other various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) (unaudited) | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | — | $ | 2,142 | |||
| Trade accounts receivable, net of provision for credit losses | 18,497 | 15,626 | |||||
| Inventory, net of allowance for obsolescence | 20,647 | 18,051 | |||||
| Income taxes receivable and prepayments | 14,056 | 11,282 | |||||
| Prepaid expenses and other | 1,696 | 1,075 | |||||
| Assets held for sale | 2,227 | — | |||||
| Total current assets | 57,123 | 48,176 | |||||
| Long-term inventory, net of allowance for obsolescence | — | — | |||||
| Rental equipment, net of accumulated depreciation | 498,525 | 415,021 | |||||
| Property and equipment, net of accumulated depreciation | 20,519 | 22,989 | |||||
| Other assets | 10,619 | 6,342 | |||||
| Total assets | $ | 586,786 | $ | 492,528 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 14,048 | $ | 9,670 | |||
| Accrued liabilities | 10,462 | 7,688 | |||||
| Total current liabilities | 24,510 | 17,358 | |||||
| Long-term debt | 230,000 | 170,000 | |||||
| Deferred income taxes | 52,530 | 45,873 | |||||
| Other long-term liabilities | 5,030 | 4,240 | |||||
| Total liabilities | 312,070 | 237,471 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ Equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock, 30,000 shares authorized, par value | 138 | 138 | |||||
| Additional paid-in capital | 120,811 | 118,415 | |||||
| Retained earnings | 168,771 | 151,508 | |||||
| Treasury shares, at cost, 1,310 shares for each of the periods presented, respectively | (15,004 | ) | (15,004 | ) | |||
| Total stockholders’ equity | 274,716 | 255,057 | |||||
| Total liabilities and stockholders’ equity | $ | 586,786 | $ | 492,528 | |||
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except earnings per share) (unaudited) | |||||||||||||||
| Three months ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue: | |||||||||||||||
| Rental | $ | 44,334 | $ | 38,226 | $ | 164,326 | $ | 144,236 | |||||||
| Sales | 844 | 997 | 3,992 | 7,613 | |||||||||||
| Aftermarket services | 971 | 1,435 | 3,997 | 4,893 | |||||||||||
| Total revenue | 46,149 | 40,658 | 172,315 | 156,742 | |||||||||||
| Cost of revenues (excluding depreciation and amortization): | |||||||||||||||
| Rental | 18,394 | 15,119 | 64,732 | 56,903 | |||||||||||
| Sales | 858 | 1,446 | 4,233 | 7,903 | |||||||||||
| Aftermarket services | 667 | 1,114 | 2,813 | 3,950 | |||||||||||
| Total cost of revenues (excluding depreciation and amortization) | 19,919 | 17,679 | 71,778 | 68,756 | |||||||||||
| Selling, general and administrative expenses | 5,709 | 5,831 | 22,411 | 21,012 | |||||||||||
| Depreciation and amortization | 9,802 | 8,469 | 36,656 | 31,347 | |||||||||||
| Impairments | 2,600 | 705 | 2,600 | 841 | |||||||||||
| Inventory allowance | 1,053 | 1,863 | 1,114 | 1,863 | |||||||||||
| Retirement of rental equipment | — | 23 | 728 | 28 | |||||||||||
| (Gain) loss on disposition of assets, net | (46 | ) | 45 | (270 | ) | (430 | ) | ||||||||
| Total operating costs and expenses | 39,037 | 34,615 | 135,017 | 123,417 | |||||||||||
| Operating income | 7,112 | 6,043 | 37,298 | 33,325 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (3,738 | ) | (3,015 | ) | (13,565 | ) | (11,927 | ) | |||||||
| Interest income | 2,444 | — | 2,444 | — | |||||||||||
| Other income (expense), net | 29 | 120 | 354 | 268 | |||||||||||
| Total other expense, net | (1,265 | ) | (2,895 | ) | (10,767 | ) | (11,659 | ) | |||||||
| Income before income taxes | 5,847 | 3,148 | 26,531 | 21,666 | |||||||||||
| Provision for income taxes | (1,745 | ) | (283 | ) | (6,603 | ) | (4,439 | ) | |||||||
| Net income | $ | 4,102 | $ | 2,865 | $ | 19,928 | $ | 17,227 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.33 | $ | 0.23 | $ | 1.59 | $ | 1.39 | |||||||
| Diluted | $ | 0.32 | $ | 0.23 | $ | 1.57 | $ | 1.37 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 12,564 | 12,438 | 12,538 | 12,412 | |||||||||||
| Diluted | 12,732 | 12,586 | 12,695 | 12,554 | |||||||||||
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||||||||||
| Three months ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||
| Net income | $ | 4,102 | 2,865 | $ | 19,928 | $ | 17,227 | ||||||||
| Adjustments to reconcile net income to net cash provided by | |||||||||||||||
| Depreciation and amortization | 9,802 | 8,469 | 36,656 | 31,347 | |||||||||||
| Impairments | 2,600 | 705 | 2,600 | 841 | |||||||||||
| Inventory allowance | 1,053 | 1,863 | 1,114 | 1,863 | |||||||||||
| Retirement of rental equipment | — | 23 | 728 | 28 | |||||||||||
| Gain on the disposition of assets, net | (46 | ) | 45 | (270 | ) | (430 | ) | ||||||||
| Amortization of debt issuance costs | 330 | 216 | 1,168 | 746 | |||||||||||
| Deferred income taxes | 1,857 | 182 | 6,657 | 4,237 | |||||||||||
| Stock-based compensation | 576 | 783 | 2,126 | 1,821 | |||||||||||
| Provision for credit losses | (86 | ) | — | 155 | 433 | ||||||||||
| (Gain) loss on company owned life insurance | (6 | ) | (4 | ) | (63 | ) | (156 | ) | |||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Trade accounts receivables | (4,801 | ) | 9,183 | (3,026 | ) | 23,127 | |||||||||
| Inventory | (192 | ) | 1,355 | (3,710 | ) | 2,477 | |||||||||
| Prepaid expenses, income taxes receivable and prepayments | (2,098 | ) | 1,177 | (3,395 | ) | 152 | |||||||||
| Accounts payable and accrued liabilities | 1,667 | (18,580 | ) | 5,554 | (17,727 | ) | |||||||||
| Other | (893 | ) | 1,144 | (3,295 | ) | 477 | |||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 13,865 | 9,426 | 62,927 | 66,463 | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||
| Purchase of rental equipment, property and other equipment | (34,561 | ) | (14,544 | ) | (121,487 | ) | (71,894 | ) | |||||||
| Purchase of company owned life insurance, net | — | (9 | ) | — | (22 | ) | |||||||||
| Proceeds received from insurance for damages to equipment | — | — | 96 | — | |||||||||||
| Proceeds from disposition of assets, net | 85 | (28 | ) | 94 | 476 | ||||||||||
| Proceeds from surrender of company owned life insurance | — | (178 | ) | — | — | ||||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (34,476 | ) | (14,759 | ) | (121,297 | ) | (71,440 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||
| Proceeds from credit facility borrowings | 23,000 | 20,000 | 71,122 | 28,000 | |||||||||||
| Repayments of credit facility borrowings | (1,000 | ) | (13,000 | ) | (11,122 | ) | (22,000 | ) | |||||||
| Payments of other long term liabilities | — | (158 | ) | — | (780 | ) | |||||||||
| Payments of debt issuance costs | (19 | ) | — | (1,297 | ) | (962 | ) | ||||||||
| Proceeds from exercise of stock options | 13 | 223 | 168 | 293 | |||||||||||
| Payment of dividends | (1,383 | ) | — | (2,637 | ) | — | |||||||||
| Taxes paid related to net share settlement of equity awards | — | — | (6 | ) | (178 | ) | |||||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 20,611 | 7,065 | 56,228 | 4,373 | |||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | — | 1,732 | (2,142 | ) | (604 | ) | |||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | — | 410 | 2,142 | 2,746 | |||||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 2,142 | $ | — | $ | 2,142 | |||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||||||
| Interest paid | $ | 4,071 | $ | 10,722 | $ | 14,793 | $ | 18,394 | |||||||
| Income taxes paid, net of refunds received | $ | 55 | $ | 204 | $ | 259 | $ | — | |||||||
| SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS: | |||||||||||||||
| Transfer of rental equipment to inventory | $ | — | $ | — | $ | — | $ | 51 | |||||||
| Transfer of right of use assets to property and equipment | $ | — | $ | — | $ | — | $ | 2,641 | |||||||
| Transfer of property and equipment to assets held for sale | $ | — | $ | — | $ | 2,227 | $ | — | |||||||
| Accrued purchases of property and equipment | $ | (4,965 | ) | $ | 6,940 | $ | 1,975 | $ | 2,687 | ||||||
| Right of use assets acquired through a finance lease | $ | — | $ | — | $ | — | $ | 2,174 | |||||||
| Right of use assets acquired through an operating lease | $ | 936 | $ | 1053 | $ | 1,989 | $ | 563 | |||||||
For More Information, Contact: Glenn Wiener, Investor Relations (432) 262-2700 IR@ngsgi.com www.ngsgi.com
FAQ
What were Natural Gas Services Group (NGS) Q4 2025 earnings and EPS?
How much rental revenue did NGS generate in Q4 2025 and how did it change year-over-year?
What guidance did NGS provide for 2026 Adjusted EBITDA and capital expenditures?
How large is NGS's fleet and what was utilization at year-end 2025?
What cash flow and debt metrics did NGS report for Q4 2025 that investors should note?
