Natural Gas Services Group (NYSE: NGS) reported a mixed performance for the fourth quarter of 2025. While the company exceeded revenue expectations, earnings per share fell short of forecasts. Year-over-year performance showed improvement in both revenue and earnings per share.
Earnings per share for the fourth quarter of 2025 were $0.32, compared to $0.23 in the same period last year. Analysts had estimated EPS to be $0.37 for the quarter.
The company reported revenue of $46.15 million for the fourth quarter of 2025, surpassing the analysts’ estimate of $44.1 million. This represents a 13.5% increase from the $40.66 million recorded in the fourth quarter of 2024.
Rental revenue for the fourth quarter of 2025 was $44.3 million, marking a 16.0% increase year-over-year and a 6.8% sequential increase. For the full year 2025, rental revenue reached $164.3 million, a 13.9% increase from 2024.
Adjusted EBITDA for the fourth quarter of 2025 was $21.2 million, reflecting a 17.6% year-over-year increase and a 1.6% sequential increase. For the full year 2025, adjusted EBITDA was $81.0 million, up 16.5% from 2024.
The total adjusted gross margin, excluding depreciation expense, rose to $26.2 million for the three months ended December 31, 2025, compared to $23.0 million for the same period in 2024.
Operating income for the three months ended December 31, 2025, was $7.1 million, compared to $6.0 million for the comparable period in 2024.
The company projects 2026 adjusted EBITDA to range from $90.5 million to $95.5 million, driven by contributions from large horsepower units deployed in the latter half of 2025. Growth capital expenditures for 2026 are expected to be between $55 million and $70 million, focusing on large horsepower compression units with multi-year contracts.
