Natural Gas Services Q1 adjusted EBITDA beats estimates

Natural Gas Services

11/05/2026 21:34

Overview

US natural gas compression provider's Q1 revenue rose 17% yr/yr, driven by rental growth

Q1 adjusted EBITDA beat analyst expectations, supported by higher rental revenue and gross margin

Company raised quarterly dividend 36% to $0.15 per share for Q2 2026

Outlook

NGS raises 2026 Adjusted EBITDA guidance to $92.5 mln-$97.5 mln from $90.5 mln-$95.5 mln

Company maintains 2026 growth capital expenditure outlook at $55 mln-$70 mln

NGS expects constructive market fundamentals to drive incremental demand for compression

Result Drivers

RENTAL REVENUE GROWTH - Co said higher rental revenues, driven by contracted fleet expansion and pricing strength, were the primary driver of Q1 results

LARGE HORSEPOWER DEMAND - Co cited growing demand for large horsepower compression and additions to its fleet, with a majority being electric motor drive units

HIGH UTILIZATION - Co reported record horsepower utilization, supporting revenue and margin growth

Company press release: ID:nGNX7TtrPS

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Rental Revenue
$47.10 mln
Q1 EPS
$0.53
Q1 Net Income
$6.80 mln
Q1 Adjusted EBITDA
Beat
$24.30 mln
$22.31 mln (5 Analysts)
Q1 EBIT
$13.10 mln


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"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Natural Gas Services Group Inc is $45.00, about 16.1% above its May 8 closing price of $38.75

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 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.)