The raised guidance and record utilization signal strong operational momentum; the partial quarter Flatrock contribution suggests further upside in Q3. Monitor the investor call on August 11 for integration details and organic deployment timing, but the 27% adjusted EBITDA growth validates the buy thesis.
Price Chart
Executive Summary
NGS reported Q2 2026 rental revenue of $49.4M (+24.9% YoY) and adjusted EBITDA of $25.1M (+27.4% YoY), with record horsepower utilization of 88.3%. The company raised full-year 2026 adjusted EBITDA guidance to $103M-$108M from prior $92.5M-$97.5M, reflecting the June 12 Flatrock acquisition and strong organic momentum. GAAP net income fell to $3.8M ($0.30/sh) from $5.2M ($0.41/sh) YoY due to $3.3M in strategic transaction costs, but adjusted net income rose to $6.1M ($0.47/sh). The dividend was reaffirmed at $0.15/sh.
Key Financial Metrics
Key Facts
- Rental revenue of $49.4M, up 24.9% YoY and 4.9% sequentially
- Adjusted EBITDA of $25.1M, up 27.4% YoY and 3.3% sequentially
- Full-year 2026 adjusted EBITDA guidance raised to $103M-$108M from $92.5M-$97.5M
- Record horsepower utilization of 88.3%
- Completed Flatrock acquisition on June 12, adding 87,233 rented horsepower
- GAAP net income $3.8M ($0.30/diluted) vs $5.2M ($0.41) YoY, impacted by $3.3M in transaction costs
- Adjusted net income $6.1M ($0.47/diluted) vs $5.3M ($0.42) YoY
- Operating cash flow of $25.4M vs $11.0M in prior-year quarter
- Quarterly dividend of $0.15/sh declared; leverage at 2.77x with $134.8M borrowing availability
Financial Impact
Adjusted EBITDA guidance raised by ~$10.5M at midpoint (~10.9%), reflecting the Flatrock acquisition and organic growth
Risk Factors
- GAAP net income declined YoY due to $3.3M acquisition costs; post-deal leverage at 2.77x could limit flexibility if commodity prices turn
- Full benefit of Flatrock not yet reflected; integration execution risk remains
- Significant growth capex ($60M-$80M) may pressure free cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001084991-26-000080 |
| Document: ngs-20260810.htm | 0001084991-26-000080 |
| Document: 0001084991-26-000080-index-headers.html | 0001084991-26-000080 |
| Document: 0001084991-26-000080-index.html | 0001084991-26-000080 |
| Document: 0001084991-26-000080.txt | 0001084991-26-000080 |
| 8-K Data (Synthetic) | 0001084991-26-000080 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | 8-K | $36.72 $35.22 | ▼ −4.08% | ▼ −3.64% | $31.28 (−14.81%) |
Aug 10, 2026 11w ago | 8-K | $36.78 $37.59 | ▲ +2.20% | ▲ +2.61% | $31.28 (−14.95%) |
Jul 24, 2026 13w ago | 8-K | $36.47 $35.89 | ▼ −1.59% | ▼ −1.96% | $31.28 (−14.23%) |
Jul 10, 2026 15w ago | 8-K | $40.53 $39.61 | ▼ −2.27% | ▼ −1.71% | $31.28 (−22.82%) |
Jul 8, 2026 15w ago | 8-K | $40.05 $39.61 | ▼ −1.10% | ▼ −0.97% | $31.28 (−21.90%) |
Jun 15, 2026 19w ago | 8-K | $41.73 $43.33 | ▲ +3.83% | ▲ +5.22% | $31.28 (−25.04%) |
Jun 11, 2026 19w ago | 8-K | $42.37 $42.10 | ▼ −0.64% | ▼ −1.31% | $31.28 (−26.17%) |
May 13, 2026 23w ago | 8-K | $41.80 $42.42 | ▲ +1.48% | ▲ +1.62% | $31.28 (−25.17%) |
May 11, 2026 24w ago | 8-K | $42.50 $43.73 | ▲ +2.89% | ▲ +2.82% | $31.28 (−26.40%) |
Apr 28, 2026 25w ago | DEFA14A | $39.70 $40.80 | ▲ +2.77% | ▲ +1.08% | $31.28 (−21.21%) |
US Market Status
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