Natural Gas Services (US:NGS) Globenewswireยท2025-08-11 21:20Core Viewpoint - Natural Gas Services Group, Inc. (NGS) reported strong financial results for Q2 2025, with record Adjusted EBITDA and increased guidance for the full year, driven by robust demand for compression services and strategic deployments of large horsepower units [1][3][4]. Financial Performance - Total revenue for Q2 2025 increased by 7.5% to $41.4 million compared to $38.5 million in Q2 2024, primarily due to a 13.3% rise in rental revenue [7][12]. - Adjusted EBITDA reached a record $19.7 million in Q2 2025, reflecting a 19.5% year-over-year increase [17]. - Net income for Q2 2025 was $5.2 million, or $0.41 per diluted share, compared to $4.3 million, or $0.34 per diluted share, in the same period last year [15][36]. Guidance and Outlook - The company raised its full-year 2025 Adjusted EBITDA guidance to $76 - $80 million, up from the previous range of $74 - $79 million, citing strong first-half performance and expected large horsepower unit deployments [4][8]. - Growth capital expenditures for 2025 are projected to be between $95 - $115 million, primarily for new units under contract [5][8]. Operational Highlights - Utilized rental horsepower reached an all-time high of 499,000, with a total of 498,651 rented horsepower as of June 30, 2025, marking a 9.7% increase from the previous year [3][12]. - The company initiated a quarterly cash dividend of $0.10 per share and authorized a share repurchase program of up to $6 million, indicating confidence in cash generation and capital allocation strategy [7][11]. Strategic Initiatives - NGS is focusing on deploying large-horsepower gas engine and electric motor units in key basins, with expectations of continued momentum through 2025 and into 2026 [3][4]. - The company maintains a competitive financial position with the lowest leverage among public peers at 2.31x, allowing for flexibility in pursuing organic growth and potential M&A opportunities [3][18].