Natural Gas Services ( (NGS) ) has released its Q1 earnings. Here is a breakdown of the information Natural Gas Services presented to its investors.
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Natural Gas Services Group, Inc. (NGS) is a prominent provider of natural gas compression equipment, technology, and services within the energy sector, primarily catering to oil and natural gas production and plant facilities. Headquartered in Midland, Texas, the company operates with a fabrication facility in Tulsa, Oklahoma, and service facilities across major U.S. oil and gas basins.
In its first quarter of 2025 earnings report, Natural Gas Services Group, Inc. announced a 15% year-over-year increase in rental revenue, reaching $38.9 million, and a total revenue increase of 12% to $41.4 million. The company also raised its full-year 2025 Adjusted EBITDA guidance to a range of $74 million to $79 million, citing strong business performance and growing demand.
Key financial highlights include a net income of $4.9 million, or $0.38 per diluted share, and an Adjusted EBITDA of $19.3 million, marking a 14% increase from the previous year. The company reported a leverage ratio of 2.18x and a fixed charge coverage ratio of 2.98x. Additionally, NGS is expanding its fleet with large-horsepower electric motor units and expects a significant increase in its rented horsepower fleet by early 2026.
Looking ahead, the company remains optimistic about its growth prospects for the remainder of 2025 and into 2026. Management is focused on disciplined capital allocation, operational excellence, and long-term value creation for shareholders, leveraging its strong balance sheet and increased borrowing capacity to capitalize on growth opportunities.