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Sep 30
NGS Q3 2025 Earnings Report
Delivered strong financial performance with double-digit growth in rental revenue and record utilization.
Key Takeaways
Natural Gas Services Group, Inc. reported solid third-quarter 2025 results with higher rental revenue and improved margins. The company achieved record rented horsepower, increased utilization, and raised its full-year 2025 Adjusted EBITDA guidance due to strong demand and execution.
Total revenue rose 6.7% year-over-year to $43.4 million, driven by rental revenue growth.
Adjusted EBITDA reached $20.8 million, up 14.6% from the same quarter last year.
Net income increased to $5.8 million ($0.46 per diluted share), reflecting strong rental performance.
The company raised its full-year 2025 Adjusted EBITDA guidance to $78–$81 million.
NGS
NGS
NGS Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comSales Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com Forward Guidance
NGS raised its full-year 2025 Adjusted EBITDA guidance to $78–$81 million and maintained its target return on invested capital of at least 20%. The company anticipates continued strong demand and capital investment tied to large horsepower deployments.
Positive Outlook
- Raised 2025 Adjusted EBITDA guidance to $78–$81 million.
- Planned 90,000 horsepower in large and electric compression for 2026.
- Maintained target return on invested capital at 20%.
- Strong opportunity pipeline tied to data centers and LNG growth.
- Continued high utilization rates and rental fleet expansion.
Challenges Ahead
- High capital expenditures of $95–$110 million expected for 2025.
- Maintenance capex projected at $11–$14 million.
- Sequential increase in SG&A and depreciation costs.
- Net cash used in investing activities totaled $41.9 million in Q3 2025.
- No cash or cash equivalents at quarter end due to reinvestment and capital deployment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income