Natural Gas Services Group, Inc. Reports Second Quarter 2025 Financial and Operating Results;
Natural Gas Services Group (NYSE:NGS) reported strong Q2 2025 financial results and raised its full-year guidance. The company achieved rental revenue of $39.6 million, up 13.3% year-over-year, and net income of $5.2 million ($0.41 per diluted share). Adjusted EBITDA reached $19.7 million, representing a 19.5% increase from the previous year.
NGS increased its 2025 Adjusted EBITDA guidance to $76-80 million from $74-79 million, citing strong business performance and scheduled large horsepower unit deployments. The company initiated its first quarterly dividend of $0.10 per share and authorized a $6 million share repurchase program. Additionally, NGS announced the upcoming departure of President and COO Brian Tucker, effective October 31, 2025.
The company maintains the lowest leverage ratio among public peers at 2.31x and expects 2025 growth capital expenditures of $95-115 million, primarily for contracted new units.
Natural Gas Services Group (NYSE: NGS) ha riportato solidi risultati finanziari per il secondo trimestre 2025 e ha aumentato le previsioni per l'intero anno. La società ha registrato ricavi da noleggio per $39,6 milioni, in crescita del 13,3% rispetto all'anno precedente, e un utile netto di $5,2 milioni ($0,41 per azione diluita). L'EBITDA rettificato è stato di $19,7 milioni, pari a un aumento del 19,5% rispetto all'anno precedente.
NGS ha incrementato la guidance sull'EBITDA rettificato 2025 a $76-80 milioni dai precedenti $74-79 milioni, citando una solida performance operativa e il programma di dispiegamento di unità ad alta potenza. La società ha istituito il suo primo dividendo trimestrale di $0,10 per azione e ha autorizzato un programma di riacquisto azionario da $6 milioni. Inoltre, NGS ha annunciato l'imminente uscita del Presidente e COO Brian Tucker, effettiva dal 31 ottobre 2025.
La società mantiene il rapporto di leva più basso tra i concorrenti quotati, pari a 2,31x, e prevede spese per investimenti di crescita 2025 per $95-115 milioni, principalmente destinate a nuove unità contrattualizzate.
Natural Gas Services Group (NYSE:NGS) informó sólidos resultados financieros del segundo trimestre de 2025 y elevó su guía para todo el año. La compañía registró ingresos por alquiler de $39.6 millones, un aumento del 13.3% interanual, y un beneficio neto de $5.2 millones ($0.41 por acción diluida). El EBITDA ajustado alcanzó $19.7 millones, lo que representa un incremento del 19.5% respecto al año anterior.
NGS aumentó su previsión de EBITDA ajustado para 2025 a $76-80 millones desde $74-79 millones, citando un sólido desempeño del negocio y el despliegue programado de unidades de alta potencia. La compañía inició su primer dividendo trimestral de $0.10 por acción y autorizó un programa de recompra de acciones de $6 millones. Además, NGS anunció la próxima salida del presidente y COO Brian Tucker, con efecto el 31 de octubre de 2025.
La compañía mantiene la ratio de apalancamiento más bajo entre sus pares cotizados, de 2.31x, y espera gastos de capital de crecimiento para 2025 de $95-115 millones, principalmente para nuevas unidades contratadas.
Natural Gas Services Group (NYSE:NGS)는 2025년 2분기 재무 실적을 견조하게 발표하고 연간 가이던스를 상향 조정했습니다. 회사는 임대 수익 $39.6 million을 기록해 전년 대비 13.3% 증가했으며, 순이익 $5.2 million(희석 주당 $0.41)을 달성했습니다. 조정 EBITDA는 $19.7 million으로 전년 대비 19.5% 증가했습니다.
NGS는 2025년 조정 EBITDA 가이던스를 기존 $74-79 million에서 $76-80 million으로 상향 조정했으며, 이는 강한 사업 실적과 예정된 고출력 장비 배치 때문이라고 밝혔습니다. 회사는 첫 번째 분기별 배당금 주당 $0.10을 도입하고, $6 million 규모의 자사주 매입 프로그램을 승인했습니다. 또한 NGS는 사장 겸 COO인 Brian Tucker가 2025년 10월 31일부로 퇴임한다고 발표했습니다.
회사는 상장 동종업체 중 최저 레버리지 비율 2.31배를 유지하고 있으며, 2025년 성장 관련 자본 지출을 주로 계약된 신규 장비에 대해 $95-115 million으로 예상하고 있습니다.
Natural Gas Services Group (NYSE:NGS) a publié de solides résultats financiers pour le deuxième trimestre 2025 et relevé ses prévisions annuelles. La société a réalisé des revenus locatifs de 39,6 M$, en hausse de 13,3 % sur un an, et un bénéfice net de 5,2 M$ (0,41 $ par action diluée). L'EBITDA ajusté a atteint 19,7 M$, soit une augmentation de 19,5 % par rapport à l'année précédente.
NGS a porté sa guidance d'EBITDA ajusté 2025 à 76–80 M$ contre 74–79 M$, invoquant de bonnes performances opérationnelles et des déploiements programmés d'unités de forte puissance. La société a instauré son premier dividende trimestriel de 0,10 $ par action et autorisé un programme de rachat d'actions de 6 M$. De plus, NGS a annoncé le départ prochain du président et COO Brian Tucker, effectif au 31 octobre 2025.
La société conserve le ratio d'endettement le plus faible parmi ses pairs cotés, à 2,31x et prévoit des dépenses d'investissement de croissance 2025 de 95–115 M$, principalement pour de nouvelles unités contractées.
Natural Gas Services Group (NYSE:NGS) meldete starke Finanzergebnisse für das zweite Quartal 2025 und hob die Jahresprognose an. Das Unternehmen erzielte Mieteinnahmen von 39,6 Mio. $, ein Anstieg von 13,3 % gegenüber dem Vorjahr, und einen Nettoertrag von 5,2 Mio. $ (0,41 $ je verwässerter Aktie). Das bereinigte EBITDA belief sich auf 19,7 Mio. $, was einem Zuwachs von 19,5 % gegenüber dem Vorjahr entspricht.
NGS hat die Prognose für das bereinigte EBITDA 2025 von 74–79 Mio. $ auf 76–80 Mio. $ angehoben und verwies auf eine starke Geschäftsentwicklung sowie geplante Einsätze leistungsstarker Einheiten. Das Unternehmen führte die erste vierteljährliche Dividende von 0,10 $ je Aktie ein und genehmigte ein Aktienrückkaufprogramm über 6 Mio. $. Zudem kündigte NGS den bevorstehenden Weggang des Präsidenten und COO Brian Tucker zum 31. Oktober 2025 an.
Das Unternehmen hält mit 2,31x das niedrigste Verschuldungsverhältnis unter den börsennotierten Wettbewerbern und erwartet für 2025 Wachstumsinvestitionen in Höhe von 95–115 Mio. $, hauptsächlich für vertraglich zugesicherte neue Einheiten.
- Rental revenue increased 13.3% year-over-year to $39.6 million
- Record Adjusted EBITDA of $19.7 million, up 19.5% year-over-year
- Increased 2025 Adjusted EBITDA guidance to $76-80 million
- Initiated first quarterly dividend and $6 million share repurchase program
- Lowest leverage ratio among public peers at 2.31x
- Utilized rental horsepower reached all-time high of 498,651
- Strong 83.6% horsepower utilization rate
- Cash and cash equivalents decreased to $0.3 million
- Sales segment reported negative gross margins of -21.5%
- Unexpected departure of President and COO Brian Tucker
- High capital expenditure requirements of $95-115 million for 2025
Insights
NGS delivers record Q2 with 13.3% revenue growth, initiates dividend, and raises 2025 guidance amid strong compression demand.
NGS posted robust Q2 2025 results with rental revenue increasing
The company's financial performance shows meaningful improvement with net income of
The initiation of a quarterly
The capital allocation strategy balances growth and shareholder returns effectively. NGS is deploying
One concern is the announced departure of President/COO Brian Tucker by October 31, 2025. While this transition is due to personal circumstances rather than business issues, leadership continuity will be important to monitor as the company executes its growth strategy.
The core rental business shows strong fundamentals with
Increases 2025 Adjusted EBITDA Guidance
Midland, Texas, Aug. 11, 2025 (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 three months ended June 30, 2025. The Company also provided updated guidance today, increasing both the low- and high-end of its full-year 2025 Adjusted EBITDA guidance to
Second Quarter 2025 and Recent Highlights
- Rental revenue of
$39.6 million for the second quarter of 2025 representing a13.3% year-over-year increase and a1.7% sequential increase compared to the period ended March 31, 2025. - Net income of
$5.2 million , or$0.41 per diluted share, for the second quarter of 2025 compared to net income of$4.3 million or$0.34 per diluted share for the comparable period; net income up$0.3 million or6.9% sequentially. - Adjusted EBITDA of
$19.7 million for the second quarter of 2025, representing a19.5% year-over-year increase and up1.9% sequentially. See Non-GAAP Financial Measures – Adjusted EBITDA, below. - Leverage ratio at June 30, 2025, was 2.31x.
- Initiated first quarterly cash dividend of
$0.10 per share and authorized a share repurchase program of up to$6 million , underscoring confidence in cash generation and a disciplined capital allocation strategy.
Management Commentary and Outlook
“We delivered another record-setting quarter, reflecting the strength of our technology, our high level of service to customers, and our operational discipline,” said Justin Jacobs, Chief Executive Officer. “Utilized rental horsepower reached an all-time high of 499,000. Adjusted EBITDA was a record
“In light of our first-half performance and the scheduled deployment of large-horsepower units in the second half of the year, we are raising our full-year 2025 Adjusted EBITDA guidance to
Jacobs added, “Our confidence in the business and its trajectory led to the initiation of a quarterly dividend and the authorization of a share repurchase program. We are starting the dividend at a modest level as we are deploying relatively more capital into new units than our peers in 2025, and we expect that trend to continue in 2026. At the same time, we are maintaining flexibility to pursue both organic growth and accretive M&A opportunities.”
“Our financial position remains a competitive strength. With the lowest leverage among public peers — 2.31x at quarter-end — and a demonstrated ability to monetize non-cash assets, we believe we are well positioned to capitalize on strategic opportunities.”
Corporate Guidance — 2025 Outlook
Driven by strong first-half results, contractual large horsepower additions, and continued confidence in our ability to execute our strategy, the Company raises its full-year 2025 Adjusted EBITDA guidance to
The Company expects 2025 growth capital expenditures of
| Outlook | |
| NEW FY 2025 Adjusted EBITDA | |
| FY 2025 Growth Capital Expenditures | |
| FY 2025 Maintenance Capital Expenditures | |
| Target Return on Invested Capital | At least |
Jacobs concluded, “We remain focused on operational excellence, disciplined capital allocation, and creating long-term value for our shareholders. With strong contracted growth, robust rental demand, and a flexible capital framework, we are confident in our ability to drive sustained performance through the remainder of 2025 and beyond.”
Subsequent Events - 2025 Third Quarter
On July 30, 2025, our Board of Directors declared a cash dividend of
On August 5, 2025, Brian Tucker, NGS management, and the Board reached the difficult decision that Mr. Tucker will transition out of his role as President and Chief Operating Officer. This was driven solely by an unfortunate and unexpected family loss which changed Mr. Tucker's personal circumstances. His transition will take place over the next several months with a target end date of October 31, 2025. Mr. Tucker remains fully committed to NGS during this time and beyond, if necessary. The Board and NGS management want to acknowledge not only the many significant contributions Brian has made to the success of the Company, but also the tremendous strength and dedication he has shown while facing an unexpected and profound personal challenge. We are deeply grateful for his leadership, his sacrifice, and the legacy he helped create.
On August 8, 2025, our Board of Directors approved a share repurchase program (the “Repurchase Plan”). The Repurchase Plan provides for the repurchase of shares of our common stock from time to time in the open market as conditions, cash reserves, cash flows and the evaluation of uses of cash for operations, growth and share repurchase may allow. The Repurchase Plan is authorized for up to
2025 Second Quarter Financial Results
Revenue: Total revenue for the three months ended June 30, 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 June 30, 2025, was
Net Income: Net income for the three months ended June 30, 2025, was
Cash Flows: As of June 30, 2025, cash and cash equivalents were
Adjusted EBITDA: Adjusted EBITDA increased
Debt: Outstanding debt on our revolving credit facility as of June 30, 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 | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| (in thousands) | |||||||||
| Rental | $ 34,926 | $ 37,350 | $ 38,226 | $ 38,910 | $ 39,580 | ||||
| Sales | 2,270 | 1,843 | 997 | 1,927 | 750 | ||||
| Aftermarket services | 1,295 | 1,493 | 1,435 | 546 | 1,052 | ||||
| Total | $ 38,491 | $ 40,686 | $ 40,658 | $ 41,383 | $ 41,382 | ||||
| Gross Margin | |||||||||
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| (in thousands) | |||||||||
| Rental | $ 13,211 | $ 15,043 | $ 14,865 | $ 15,634 | $ 15,294 | ||||
| Sales | (50) | (258) | (531) | (181) | (254) | ||||
| Aftermarket services | 269 | 151 | 296 | 264 | 310 | ||||
| Total | $ 13,430 | $ 14,936 | $ 14,630 | $ 15,717 | $ 15,350 | ||||
| Adjusted Gross Margin (1) | |||||||||
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| (in thousands) | |||||||||
| Rental | $ 20,698 | $ 22,908 | $ 23,107 | $ 24,070 | $ 24,052 | ||||
| Sales | 21 | (185) | (449) | (89) | (161) | ||||
| Aftermarket services | 283 | 169 | 321 | 275 | 332 | ||||
| Total | $ 21,002 | $ 22,892 | $ 22,979 | $ 24,256 | $ 24,223 | ||||
| Adjusted Gross Margin % | |||||||||
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| Rental | 59.3 % | 61.3 % | 60.4 % | 61.9 % | 60.8 % | ||||
| Sales | 0.9 % | (10.0) % | (45.0) % | (4.6) % | (21.5) % | ||||
| Aftermarket services | 21.9 % | 11.3 % | 22.4 % | 50.4 % | 31.6 % | ||||
| Total | 54.6 % | 56.3 % | 56.5 % | 58.6 % | 58.5 % | ||||
| Compression Statistics (at end of period): | |||||||||
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| Horsepower Utilized | 454,568 | 475,534 | 491,756 | 492,679 | 498,651 | ||||
| Total Horsepower | 552,599 | 579,699 | 598,840 | 603,391 | 596,322 | ||||
| Horsepower Utilization | 82.3 % | 82.0 % | 82.1 % | 81.7 % | 83.6 % | ||||
| Units Utilized | 1,242 | 1,229 | 1,208 | 1,202 | 1,198 | ||||
| Total Units | 1,899 | 1,909 | 1,912 | 1,916 | 1,833 | ||||
| Unit Utilization | 65.4 % | 64.4 % | 63.2 % | 62.7 % | 65.4 % | ||||
(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 shows gross margin, the most directly comparable GAAP financial measure, and reconciles it to Adjusted Gross Margin:
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| (in thousands) | |||||||||
| Total revenue | $ 38,491 | $ 40,686 | $ 40,658 | $ 41,383 | $ 41,382 | ||||
| Costs of revenue, exclusive of depreciation | (17,489) | (17,794) | (17,679) | (17,127) | (17,159) | ||||
| Depreciation allocable to costs of revenue | (7,572) | (7,956) | (8,349) | (8,539) | (8,873) | ||||
| Gross margin | 13,430 | 14,936 | 14,630 | 15,717 | 15,350 | ||||
| Depreciation allocable to costs of revenue | 7,572 | 7,956 | 8,349 | 8,539 | 8,873 | ||||
| Adjusted Gross Margin | $ 21,002 | $ 22,892 | $ 22,979 | $ 24,256 | $ 24,223 | ||||
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; (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 table reconciles our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:
| Three months ended | |||||||||
| June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |||||
| (in thousands) | |||||||||
| Net income | $ 4,250 | $ 5,014 | $ 2,865 | $ 4,854 | $ 5,188 | ||||
| Interest expense | 2,932 | 3,045 | 3,015 | 3,170 | 3,243 | ||||
| Income tax expense (benefit) | 1,294 | 1,383 | 283 | 1,482 | 1,597 | ||||
| Depreciation and amortization | 7,705 | 8,086 | 8,469 | 8,636 | 8,969 | ||||
| Impairments | — | 136 | 705 | — | — | ||||
| Inventory allowance | — | — | 1,863 | 61 | — | ||||
| Retirement of rental equipment | — | — | 23 | 728 | — | ||||
| Severance and restructuring charges | 33 | — | — | — | 89 | ||||
| Stock-based compensation | 242 | 522 | 783 | 359 | 579 | ||||
| Adjusted EBITDA | $ 16,456 | $ 18,186 | $ 18,006 | $ 19,290 | $ 19,665 | ||||
Conference Call Details: The Company will host a conference call to review its fourth-quarter and year-end financial results on Tuesday, August 12, 2025 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 compression equipment, technology and services to the energy industry. The Company designs, rents, sells and maintains natural gas 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 “may,” “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;
- 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;
- capacity availability, costs and performance of our outsourced compressor fabrication providers and overall inflationary pressures;
- impacts of world events, such as acts of terrorism 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, 2024. 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.
For More Information, Contact:
Anna Delgado, Investor Relations
(432) 262-2700
IR@ngsgi.com
www.ngsgi.com
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) (unaudited) | |||
| June 30, 2025 | December 31, 2024 | ||
| ASSETS | |||
| Current Assets: | |||
| Cash and cash equivalents | $ 325 | $ 2,142 | |
| Trade accounts receivable, net of provision for credit losses | 13,742 | 15,626 | |
| Inventory, net of allowance for obsolescence | 18,334 | 18,051 | |
| Federal income tax receivable | 11,408 | 11,282 | |
| Prepaid expenses and other | 2,846 | 1,075 | |
| Assets held for sale | 2,227 | — | |
| Total current assets | 48,882 | 48,176 | |
| Long-term inventory, net of allowance for obsolescence | — | — | |
| Rental equipment, net of accumulated depreciation | 446,952 | 415,021 | |
| Property and equipment, net of accumulated depreciation | 22,664 | 22,989 | |
| Other assets | 7,028 | 6,342 | |
| Total assets | $ 525,526 | $ 492,528 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current Liabilities: | |||
| Accounts payable | $ 14,491 | $ 9,670 | |
| Accrued liabilities | 10,297 | 7,688 | |
| Total current liabilities | 24,788 | 17,358 | |
| Long-term debt | 182,000 | 170,000 | |
| Deferred income taxes | 48,884 | 45,873 | |
| Other long-term liabilities | 3,640 | 4,240 | |
| Total liabilities | 259,312 | 237,471 | |
| Commitments and contingencies | |||
| Stockholders’ Equity: | |||
| Preferred stock | — | — | |
| Common stock, 30,000 shares authorized, par value | 138 | 138 | |
| Additional paid-in capital | 119,530 | 118,415 | |
| Retained earnings | 161,550 | 151,508 | |
| Treasury shares, at cost, 1,310 shares for each of the dates presented, respectively | (15,004) | (15,004) | |
| Total stockholders’ equity | 266,214 | 255,057 | |
| Total liabilities and stockholders’ equity | $ 525,526 | $ 492,528 | |
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except earnings per share) (unaudited) | |||||||
| Three months ended | Six months ended | ||||||
| June 30, | June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| Revenue: | |||||||
| Rental | $ 39,580 | $ 34,926 | $ 78,490 | $ 68,660 | |||
| Sales | 750 | 2,270 | 2,677 | 4,773 | |||
| Aftermarket services | 1,052 | 1,295 | 1,598 | 1,965 | |||
| Total revenue | 41,382 | 38,491 | 82,765 | 75,398 | |||
| Cost of revenue (excluding depreciation and amortization): | |||||||
| Rental | 15,528 | 14,228 | 30,368 | 27,342 | |||
| Sales | 911 | 2,249 | 2,927 | 4,429 | |||
| Aftermarket services | 720 | 1,012 | 991 | 1,512 | |||
| Total cost of revenues (excluding depreciation and amortization) | 17,159 | 17,489 | 34,286 | 33,283 | |||
| Selling, general and administrative expense | 5,454 | 5,020 | 10,832 | 9,722 | |||
| Depreciation and amortization | 8,969 | 7,705 | 17,605 | 14,792 | |||
| Inventory allowance | — | — | 61 | — | |||
| Retirement of rental equipment | — | — | 728 | 5 | |||
| Gain on disposition of assets, net | (124) | (229) | (178) | (229) | |||
| Total operating costs and expenses | 31,458 | 29,985 | 63,334 | 57,573 | |||
| Operating income | 9,924 | 8,506 | 19,431 | 17,825 | |||
| Other income (expense): | |||||||
| Interest expense | (3,243) | (2,932) | (6,413) | (5,867) | |||
| Other income (expense) | 104 | (30) | 103 | 163 | |||
| Total other income (expense), net | (3,139) | (2,962) | (6,310) | (5,704) | |||
| Income before income taxes | 6,785 | 5,544 | 13,121 | 12,121 | |||
| Provision for income taxes | (1,597) | (1,294) | (3,079) | (2,773) | |||
| Net income | $ 5,188 | $ 4,250 | $ 10,042 | $ 9,348 | |||
| Earnings per share: | |||||||
| Basic | $ 0.42 | $ 0.34 | $ 0.81 | $ 0.75 | |||
| Diluted | $ 0.41 | $ 0.34 | $ 0.80 | $ 0.75 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 12,483 | 12,384 | 12,473 | 12,392 | |||
| Diluted | 12,625 | 12,483 | 12,629 | 12,484 | |||
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Three months ended | Six months ended | ||||||
| June 30, | June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ 5,188 | $ 4,250 | $ 10,042 | $ 9,348 | |||
| Adjustments to reconcile net income to net cash provided by operating | |||||||
| Depreciation and amortization | 8,969 | 7,705 | 17,605 | 14,792 | |||
| Inventory allowance | — | — | 61 | — | |||
| Retirement of rental equipment | — | — | 728 | 5 | |||
| Gain on disposition of assets, net | (124) | (229) | (178) | (229) | |||
| Amortization of debt issuance costs | 294 | 165 | 506 | 315 | |||
| Deferred income taxes | 1,561 | 1,198 | 3,011 | 2,654 | |||
| Stock-based compensation | 579 | 242 | 938 | 516 | |||
| Provision for credit losses | — | 177 | 208 | 287 | |||
| Gain on company owned life insurance | (34) | 11 | (17) | (173) | |||
| Changes in operating assets and liabilities: | |||||||
| Trade accounts receivables | 1,673 | 9,163 | 1,676 | 5,898 | |||
| Inventory | (991) | (1,501) | (344) | 1,149 | |||
| Prepaid expenses and prepaid income taxes | (1,961) | (1,075) | (1,897) | (825) | |||
| Accounts payable and accrued liabilities | (4,104) | 5,387 | 513 | (2,993) | |||
| Other | (54) | 17 | (589) | 375 | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 10,996 | 25,510 | 32,263 | 31,119 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchase of rental equipment, property and other equipment | (25,809) | (17,330) | (45,065) | (28,262) | |||
| Purchase of company owned life insurance | — | (8) | — | (17) | |||
| Proceeds received from insurance for damages to equipment | 99 | — | 99 | — | |||
| Proceeds from disposition of assets, net | 4 | 355 | 4 | 355 | |||
| Proceeds from surrender of company owned life insurance | — | 43 | — | 43 | |||
| NET CASH USED IN INVESTING ACTIVITIES | (25,706) | (16,940) | (44,962) | (27,881) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from credit facility borrowings | 17,122 | — | 23,122 | 8,000 | |||
| Repayments of credit facility borrowings | (3,122) | (9,000) | (11,122) | (9,000) | |||
| Payments of other long-term liabilities | — | (210) | — | (385) | |||
| Payments of debt issuance costs | (1,187) | (885) | (1,187) | (885) | |||
| Proceeds from exercise of stock options | 75 | — | 75 | — | |||
| Taxes paid related to net share settlement of equity awards | — | (98) | (6) | (98) | |||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 12,888 | (10,193) | 10,882 | (2,368) | |||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,822) | (1,623) | (1,817) | 870 | |||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,147 | 5,239 | 2,142 | 2,746 | |||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 325 | $ 3,616 | $ 325 | $ 3,616 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
| Interest paid | $ 3,527 | $ 4,238 | $ 7,037 | $ 10,458 | |||
| Income taxes paid | $ — | $ — | $ 16 | $ — | |||
| NON-CASH TRANSACTIONS: | |||||||
| Accrued purchases of property and equipment | $ 6,730 | $ — | $ 7,254 | $ — | |||
| Right of use assets acquired through an finance lease | $ — | $ 1,219 | $ — | $ 1,751 | |||
Investor Relations IR@ngsgi.com 432-262-2700
FAQ
What were NGS's key financial results for Q2 2025?
What is Natural Gas Services Group's new 2025 EBITDA guidance?
How much is NGS's new quarterly dividend and share repurchase program?
What is NGS's current leverage ratio and capital expenditure outlook?
What operational metrics did NGS achieve in Q2 2025?
Why is NGS's President and COO Brian Tucker leaving?
