Ranger Energy Services (RNGR) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results with revenue up 18% year-over-year to $159.1 million, driven by AWS acquisition, high-spec rigs, and processing solutions growth, despite winter disruptions.

• Net income rose to $3.0 million ($0.12 per diluted share), up from $0.6 million in Q1 2025, reflecting improved profitability and AWS integration.

• Adjusted EBITDA increased to $23.3 million (14.6% margin), up from $15.5 million (11.5% margin) in Q1 2025, with margin improvements across all segments.

• Continued integration of AWS businesses and investment in ECHO hybrid rig program, with first rigs deployed and positive early results.

• Exited the quarter with strong momentum, improved utilization, and positive trends continuing into April.

Financial highlights

• Q1 2026 revenue was $159.1 million, up from $142.2 million in Q4 2025 and $135.2 million in Q1 2025.

• Net income was $3.0 million ($0.12 per diluted share), up from $600,000 ($0.03 per share) in Q1 2025.

• Adjusted EBITDA reached $23.3 million (14.6% margin), up from $15.5 million (11.5% margin) in Q1 2025.

• Free cash flow was -$21.7 million, primarily due to working capital timing and billing delays.

• Capital expenditures totaled $18.3 million, mainly for ECHO hybrid rig build-out.

Outlook and guidance

• Expectation for segment margins to improve in Q2 and Q3 2026 as cost management and scale benefits are realized.

• Working capital levels anticipated to normalize over the next two quarters, with DSO improvements expected by Q3.

• Management expects continued margin improvement from AWS integration, cost control, and operational consistency.

• Positive customer sentiment and increased demand, especially from smaller operators, suggest a favorable setup for the back half of the year.

• Anticipates increased U.S. activity levels and is prepared to scale operations with ECHO rigs entering the field later in 2026.