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Dec 31, 2024
NGS Q4 2024 Earnings Report
NGS reported strong revenue growth in Q4 2024, driven by higher rental revenue and improved financial efficiency.
Key Takeaways
Natural Gas Services Group (NGS) saw a 12% increase in total revenue for Q4 2024, reaching $40.7 million. Net income rose to $2.9 million, marking a 68% year-over-year improvement. The company also reported record-high adjusted EBITDA of $18.0 million. Strong rental fleet expansion and operational efficiencies contributed to these results. Looking ahead, NGS expects continued growth, with significant capital investments planned for 2025 to support further expansion.
Total revenue grew 12% year-over-year to $40.7 million in Q4 2024.
Net income increased 68% to $2.9 million, or $0.23 per share.
Adjusted EBITDA reached a record $18.0 million, up 11% year-over-year.
Rented horsepower expanded to 491,756, a 17% increase from the prior year.
Forward Guidance
NGS expects continued revenue growth in 2025, driven by rental fleet expansion and increased capital investments.
Positive Outlook
- Projected 2025 Adjusted EBITDA of $74-78 million, reflecting 9% growth.
- Planned rental fleet expansion by 90,000 horsepower through 2025.
- Target return on invested capital of at least 20%.
- Continued investment in high-horsepower compression units.
- Strong backlog of contracted new unit deployments extending into 2026.
Challenges Ahead
- High capital expenditures of $95-120 million expected for 2025.
- Market volatility in natural gas demand may impact future pricing.
- Increased competition in the rental compression market.
- Potential delays in deploying new units affecting revenue realization.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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