Natural Gas Services Group, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Natural Gas Services Group (NGS) reported a record second quarter and milestone first half of 2026, driven by strong execution, organic growth, and the accretive acquisition of Flatrock.
- Pro forma rental revenue per average horsepower per month increased to $28.06 in Q2 2026 from $21.56 in Q2 2023, a more than 30% improvement.
- The rented large horsepower fleet grew from 228,000 horsepower in Q2 2023 to 501,000 horsepower in Q2 2026, now representing 75% of total rented horsepower with 99% utilization.
- Horsepower utilization reached a record 88.3% in Q2 2026, up from 78.6% three years ago.
- Rental revenue was $49.4 million in Q2 2026, up 25% year over year and 5% sequentially, with Flatrock contributing about half a month of revenue.
- Adjusted EBITDA reached a record $25.1 million in Q2 2026, up 27.4% year over year and 3.3% sequentially.
- Reported net income was $3.8 million or $0.30 per diluted share, impacted by $3.3 million in Flatrock transaction costs; adjusted net income excluding these costs was $6.1 million or $0.47 per diluted share.
- Cash provided by operating activities was $25.4 million in Q2 and $48.5 million in the first half of 2026, a roughly 50% increase compared to the first half of 2025.
- NGS completed the acquisition of Flatrock for approximately $120 million, adding about 87,000 rented horsepower and accelerating electric motor drive strategy.
- The company domesticated from Colorado to Texas effective July 20, 2026, adopting new governance documents including elimination of the staggered board.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Transcript
Preview the first five paragraphs, organized by speaker.
Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group, Inc. quarter 2 earnings call. At this time, all participants are in listen only mode. Operator assistance is available at any time during this conference by pressing 0 pound. I would now like to turn the call over to Ms. Anna Delgado.
Please begin. Thank you, Luke, and good morning, everyone.
Before we begin, I would like to remind you that during the course of this conference call, the company will be making forward-looking statements within the meanings of the federal securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance, and that actual results or developments may differ materially from those projected in the forward-looking statements. Finally, the company can give no assurance that such forward-looking statements will prove to be correct. Natural Gas Services Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, you should not place undue reliance on forward-looking statements.
These and other risks are described in yesterday's earnings press release and in our filings with the SEC, including our Form 10-Q for the period ended June 30, 2026, and our Form 8-K. These documents can be found in the investors relations section of our website located at www.ngsgi.com. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially. In addition, our discussion today will reference certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, and adjusted gross margin, among others. For reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP, please see yesterday's earnings release. I will now turn the call over to Justin Jacobs, Chief Executive Officer.
Justin? Thank you, Anna, and good morning, everyone.
FULL TRANSCRIPT
Continue the full translated transcript in StockNow.
Log in to unlock every statement, the English original, and speaker-by-speaker history.
Log in for the full transcriptCall participants
8 people spoke on this call — only 1 are shown here.
PARTICIPANT LIST
View participant details in StockNow.
Log in to see executives and analysts, their roles, and complete speaking history.
Log in to view all participantsKeep exploring