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Natural Gas Services Group (NGS) investor relations material
Natural Gas Services Group Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved record Q2 2025 results with total revenue of $41.4 million, driven by strong rental demand, high utilization of large horsepower fleet, and disciplined execution.
Net income rose to $5.2 million ($0.41 per diluted share), up over 20% year-over-year, with Adjusted EBITDA reaching $19.7 million, up 19.5%.
Rental revenues comprised over 95% of total revenue, reflecting a strategic focus on high-horsepower unit rentals and record utilization.
Initiated first quarterly dividend of $0.10 per share and authorized a $6 million share repurchase program, reflecting confidence in cash generation and outlook.
Closed Midland, TX fabrication facility, transferring assets and preparing for sale, with related inventory write-offs and severance costs.
Financial highlights
Q2 2025 total revenue was $41.4 million, up 7.5% year-over-year; rental revenue increased 13.3% to $39.6 million.
Adjusted gross margin was $24.2 million (58.5% of revenue); rental adjusted gross margin was $24.1 million (60.8%).
Net income for Q2 2025 was $5.2 million, up from $4.3 million year-over-year.
Adjusted EBITDA reached $19.7 million, up $3.2 million year-over-year.
Rented horsepower ended at 499,000, up 10% year-over-year; utilization improved to 83.6%.
Outlook and guidance
Raised 2025 Adjusted EBITDA guidance to $76–$80 million, citing strong contracted growth and market share gains.
2025 growth CapEx expected at $95–$115 million, with over half to be deployed in the second half.
Maintenance CapEx for 2025 projected at $11–$14 million; target return on invested capital remains at 20%.
Cash flow and credit facility expected to cover capital, dividend, and liquidity needs for at least the next 12 months.
No specific 2026 guidance, but contracted growth and market share gains expected to continue.
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