Natural Gas Services (US:NGS) Globenewswire·2026-03-16 20:10Core Viewpoint - Natural Gas Services Group, Inc. (NGS) reported strong financial results for the year and fourth quarter ended December 31, 2025, highlighting record performance in rented horsepower, fleet utilization, and rental revenue, driven by sustained demand for large horsepower compression equipment [3][5]. Financial Performance - Fourth quarter rental revenue reached $44.3 million, a 16.0% increase year-over-year, contributing to a full-year rental revenue of $164.3 million, up 13.9% from 2024 [5][9]. - Adjusted EBITDA for the fourth quarter was $21.2 million, marking a 17.6% year-over-year increase, while full-year Adjusted EBITDA totaled $81.0 million, a 16.5% increase compared to 2024 [5][14]. - Net income for the fourth quarter was $4.1 million, or $0.32 per diluted share, compared to $2.9 million, or $0.23 per diluted share, in the same quarter of 2024 [12][38]. Operational Highlights - Rented horsepower increased by 37,000 to 563,000, representing a 14.4% year-over-year growth, with fleet utilization reaching a record 84.9% [3][9]. - The company initiated its inaugural dividend in Q3 2025 and increased it by 10.0% in Q4, returning $2.6 million to shareholders in the second half of 2025 [3][5]. Capital Expenditure and Guidance - For 2026, NGS expects Adjusted EBITDA between $90.5 million and $95.5 million, driven by large horsepower unit deployments and operational improvements [4][7]. - Growth capital expenditures for 2026 are projected to be between $55 million and $70 million, reflecting continued investment in large horsepower compression units [7][8]. Strategic Outlook - The company remains focused on organic fleet growth while evaluating accretive M&A opportunities, maintaining a balanced capital allocation framework [3][8]. - NGS's low leverage ratio of 2.72x and fixed charge coverage ratio of 3.45x provide significant flexibility for continued investment and shareholder value delivery [15].