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Jun 30
NGS Q2 2025 Earnings Report
Natural Gas Services Group, Inc. reported strong second quarter 2025 financial and operating results, increasing its 2025 Adjusted EBITDA guidance.
Key Takeaways
Natural Gas Services Group, Inc. delivered a record-setting second quarter in 2025, driven by increased rental revenue and strong operational discipline. The company reported significant year-over-year increases in rental revenue, net income, and Adjusted EBITDA, leading to an upward revision of its full-year 2025 Adjusted EBITDA guidance.
Rental revenue increased by 13.3% year-over-year to $39.6 million, contributing to the overall revenue growth.
Net income rose to $5.2 million, or $0.41 per diluted share, compared to $4.3 million, or $0.34 per diluted share, in the prior year's comparable period.
Adjusted EBITDA reached a record $19.7 million, marking a 19.5% year-over-year increase.
The company raised its full-year 2025 Adjusted EBITDA guidance to $76 - $80 million, reflecting continued business strength and planned large horsepower unit deployments.
NGS
NGS
NGS Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comSales Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com Forward Guidance
Natural Gas Services Group, Inc. raised its full-year 2025 Adjusted EBITDA guidance to $76 - $80 million, driven by strong first-half results and anticipated large horsepower unit deployments. The company expects continued momentum into 2026.
Positive Outlook
- Increased full-year 2025 Adjusted EBITDA guidance to $76 - $80 million, up from $74 - $79 million.
- Anticipates continued momentum through 2025 and into 2026, driven by new large horsepower unit sets.
- Plans 2025 growth capital expenditures of $95 - $115 million, primarily for new units under multi-year contracts.
- Maintains a target return on invested capital of at least 20%.
- Initiated a quarterly cash dividend of $0.10 per share and authorized a share repurchase program of up to $6 million, signaling confidence in cash generation.
Challenges Ahead
- Commodity volatility and broader macro uncertainty remain top of mind.
- Potential impacts from tariffs and trade restrictions on imported goods.
- Risk of failure of projected organic growth due to adverse changes in the oil and gas industry.
- Inability to achieve increased utilization of assets or monetize non-cash balance sheet assets.
- Potential for customers to not renew rental equipment contracts after the primary term.
Revenue & Expenses
Visualization of income flow from segment revenue to net income