Natural Gas Services Q4 core profit beats estimates, helped by better fleet utilization

Natural Gas Services

16/03/2026 20:21

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.)