Overview
US natural gas compression provider's Q4 rental revenue rose 16% yr/yr
Q4 adjusted EBITDA grew 17.6% and beat analyst expectations
Company attributes results to record rented horsepower and higher fleet utilization
Outlook
Company sees 2026 adjusted EBITDA of $90.5 mln to $95.5 mln
NGS expects 2026 growth capital expenditures of $55 mln to $70 mln
Maintenance capital expenditures for 2026 expected at $15 mln to $18 mln
Result Drivers
FLEET EXPANSION - Q4 benefited from a 14.4% yr/yr increase in rented horsepower, reaching 563,000, with record fleet utilization at 84.9%
PRICING IMPROVEMENT - Co cited continued pricing strength across its compression fleet as supporting higher rental revenue in Q4
COST PRESSURES - Higher selling, general and administrative expenses and increased depreciation partially offset gains from revenue growth
Company press release: ID:nGNX48rt2l
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Rental Revenue | $44.3 mln | ||
Q4 EPS | $0.32 | ||
Q4 Net Income | $4.1 mln | ||
Q4 Adjusted EBITDA | Beat | $21.2 mln | $20.30 mln (5 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Natural Gas Services Group Inc is $40.00, about 12.4% above its March 13 closing price of $35.59
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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