Mammoth Energy Services (TUSK) Q3 2025 earnings summary

Executive summary

• Transformation plan advanced with focus on higher-return businesses, portfolio simplification, and divestiture of underperforming Sand assets.

• Drilling segment delivered record gross margin and revenue more than tripled sequentially, while aviation investments increased.

• Major divestitures included sale of infrastructure services entities and hydraulic fracturing equipment, reported as discontinued operations.

• Positive free cash flow from operations achieved, supported by asset monetization and improved liquidity.

• Continued cost discipline and portfolio optimization to build a more resilient, cash-generative business.

Financial highlights

• Q3 2025 revenue was $14.8 million, down from $16.4 million in Q2 and $17.1 million year-over-year.

• Net loss from continuing operations was $12.1 million ($0.25 per diluted share), compared to $8.9 million year-over-year.

• Adjusted EBITDA from continuing operations was a loss of $4.4 million, compared to a $2.9 million loss in the prior year.

• SG&A expenses reduced to $5.2 million in Q3 2025, with normalized run rate cut in half from last year.

• Cash and cash equivalents at September 30, 2025 were $98.2 million, with total liquidity of $153.4 million and no debt.

Outlook and guidance

• Expect improved cash generation and margin recovery in 2026 as transformation initiatives take hold.

• Q4 2025 adjusted EBITDA loss from continuing operations expected to range from $2.0 million to $3.0 million.

• Sand segment volumes anticipated to increase in 2026, with encouraging sales dialogue.

• Drilling and Accommodations segments expected to maintain momentum into Q4 and 2026.

• Full year 2025 CapEx to remain within previously communicated range, focused on high-return projects, mainly aviation and equipment rental.