Natural Gas Services (US:NGS)2025-11-12 14:41Financial Performance - Rental revenue for Q3 2025 was $41.5 million, representing an 11.1% year-over-year increase and a 4.9% sequential increase[5] - Net income for Q3 2025 was $5.8 million, or $0.46 per diluted share, up 11.5% sequentially from $5.0 million, or $0.40 per diluted share, in Q3 2024[5] - Adjusted EBITDA for Q3 2025 increased 14.6% year-over-year to $20.8 million, with a 6.0% sequential increase from $19.7 million in Q2 2025[14] - Total revenue for Q3 2025 increased 6.7% to $43.4 million from $40.7 million in Q3 2024, driven by higher rental revenues[9] - Adjusted Gross Margin for September 30, 2025, was $25,828,000, up from $22,892,000 for the same period last year, reflecting a growth of approximately 12.5%[23] - Adjusted EBITDA for the three months ended September 30, 2025, reached $20,838,000, compared to $18,186,000 in the prior year, indicating an increase of about 14.5%[25] - Net income for the three months ended September 30, 2025, was $5,784,000, an increase from $5,014,000 in the same quarter of the previous year, representing a growth of approximately 15.3%[25] - Total revenue for the three months ended September 30, 2025, was $43,401,000, showing an increase from $40,686,000 in the previous year[23] - Operating income for the nine months ended September 30, 2025, reached $30,186 thousand, up 10.5% from $27,282 thousand in the same period of 2024[35] - Earnings per share (EPS) for the three months ended September 30, 2025, was $0.46, compared to $0.40 for the same period in 2024, reflecting a 15% increase[35] Capital Expenditures and Guidance - The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $78 million to $81 million, up from $76 million to $80 million[6] - The company expects 2025 growth capital expenditures of $95 million to $110 million, tied to the deployment of approximately 90,000 horsepower[7] Debt and Leverage - The leverage ratio as of September 30, 2025, was 2.50x, with outstanding debt on the revolving credit facility at $208.0 million[15] - Long-term debt increased to $208,000,000 as of September 30, 2025, compared to $170,000,000 at the end of 2024, reflecting a rise of approximately 22.4%[33] - The company incurred interest expense of $9,827 thousand for the nine months ended September 30, 2025, compared to $8,912 thousand in the same period of 2024[35] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $49,062 thousand, down from $57,037 thousand in the same period of 2024[37] - Cash used in investing activities for the nine months ended September 30, 2025, was $86,821 thousand, an increase from $56,681 thousand in the same period of 2024[37] - The company had a net cash provided by financing activities of $35,617 thousand for the nine months ended September 30, 2025, compared to a net cash used of $2,692 thousand in the same period of 2024[37] Operational Metrics - The rental fleet was expanded by 27,000 horsepower, resulting in a total of 526,015 rented horsepower as of September 30, 2025, reflecting a 10.6% increase year-over-year[9] - Horsepower utilization increased to 84.1% as of September 30, 2025, compared to 82.0% a year earlier[19] - The company reported a gross margin of $16,677,000 for the three months ended September 30, 2025, compared to $14,936,000 for the same period last year, indicating an increase of about 11.6%[23] Shareholder Returns - The quarterly cash dividend was increased by 10% to $0.11 per share, demonstrating confidence in cash generation and capital allocation strategy[5] Future Outlook and Engagement - The company plans to host a conference call on November 11, 2025, to discuss its third-quarter results, indicating ongoing engagement with investors[26] - The company continues to focus on the development and deployment of new technologies and services to enhance operational performance and compliance with regulations[31]