Quarterly ResultMay 11, 2026, 04:02 PM
Natural Gas Services Group Q1 Net Income $6.8M; Dividend +36%
AI Summary
Natural Gas Services Group reported strong first-quarter 2026 financial and operating results, highlighted by record rental revenue, adjusted gross margin, and Adjusted EBITDA. The company announced a 36% increase in its quarterly cash dividend to $0.15 per share, reflecting confidence in its cash generation and long-term outlook. Additionally, NGS raised its 2026 Adjusted EBITDA guidance, driven by robust performance and continued demand for large horsepower compression equipment.
Key Highlights
- Quarterly dividend increased by 36% from $0.11 to $0.15 per share, payable June 3, 2026.
- Rental revenue for Q1 2026 was $47.1 million, up 21.1% year-over-year and 6.3% sequentially.
- Net income for Q1 2026 was $6.8 million, or $0.53 per diluted share, up from $4.9 million ($0.38/diluted share) in Q1 2025.
- Adjusted EBITDA for Q1 2026 reached $24.3 million, a 25.8% year-over-year increase.
- Updated 2026 Adjusted EBITDA guidance to $92.5 million - $97.5 million, up from prior guidance of $90.5 million - $95.5 million.
- Added approximately 17,000 horsepower to the fleet in Q1, primarily large horsepower electric motor drive equipment.
- Cash flows provided by operating activities were $23.0 million for Q1 2026.
- Total utilized horsepower increased 16.7% to 574,969 as of March 31, 2026.