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NGS Reports Third Quarter 2026 Financial and Operating Results; Increases Quarterly Dividend and Provides Updated Guidance

NGS
  • Natural Gas Services Group reported third-quarter 2026 rental revenue of $58.9 million, a 41.9% year-over-year increase & a 19.1% sequential increase.
  • Net income for the quarter was $5.6 million ($0.43 per diluted share), compared to $5.8 million ($0.46 per share) in the same period of 2025.
  • Adjusted Net Income reached $6.2 million ($0.48 per diluted share), while Adjusted EBITDA rose 42.2% year-over-year to $29.6 million.
  • The quarter marked the first full financial contribution from the Flatrock acquisition, with rental adjusted gross margin holding strong at 62.2%.
  • Horsepower utilization remained robust at 88%, & the company added over 20,000 horsepower organically, bringing year-to-date additions to approximately 43,000.
  • Management raised the 2026 full-year Adjusted EBITDA guidance range to $105 million-$108 million, increasing the midpoint from prior outlooks.
  • The company announced a fourth-quarter dividend increase to $0.16 per share, payable December 2, 2026, representing a 6.7% rise from the prior quarter.
  • An agreement was finalized to sell the Tulsa fabrication facility for $4.75 million, with closing expected by November 30, 2026.
  • Total revenue for the three months ended September 30, 2026, increased 41.1% to $61.3 million, driven by higher rental revenues & contracted fleet expansion.
  • Operating cash flow for the quarter was $16.7 million, while capital expenditures totaled $25.9 million, including $20.6 million in growth spending.
  • Outstanding debt on the revolving credit facility stood at $340.0 million as of September 30, 2026, with $139.8 million in available borrowing capacity.
  • The company narrowed its 2026 growth capital expenditure guidance to $60 million-$75 million, excluding acquisition consideration.
  • No shares were repurchased during the third quarter under the existing $6.0 million share repurchase program expiring in August 2027.
  • Total utilized horsepower reached 683,952 as of September 30, 2026, reflecting a 30.0% increase compared to the same period in 2025.
Company
Natural Gas Services Group, Inc.
Keywords
NYSE:NGS, Natural Gas Services Group, Inc., Energy Compression, Oil & Gas Compression