The EPS miss is a clear negative, but the strong operational metrics (record rental revenue, record EBITDA, raised guidance) and the Flatrock acquisition's future contribution create a mixed picture. Traders should watch for the stock's reaction to the EPS miss versus the raised guidance; the full quarter of Flatrock results in Q3 will be a key catalyst.
Price Chart
Executive Summary
NGS reported Q2 2026 adjusted net income of $0.47 per diluted share, missing the consensus estimate of $0.56 by 16.1%. However, rental revenue grew 24.9% YoY to a record $49.4M, and Adjusted EBITDA hit a record $25.1M, up 27.4% YoY. The company raised its full-year 2026 Adjusted EBITDA guidance to $103M-$108M, reflecting the Flatrock acquisition and strong organic momentum, but GAAP net income fell to $3.8M from $5.2M due to $3.3M in transaction costs.
Key Financial Metrics
Key Facts
- Adjusted EPS of $0.47 missed consensus of $0.56 (-16.1% miss).
- Record rental revenue of $49.4M, up 24.9% YoY.
- Record Adjusted EBITDA of $25.1M, up 27.4% YoY.
- Full-year 2026 Adjusted EBITDA guidance raised to $103M-$108M from $92.5M-$97.5M.
- GAAP net income fell to $3.8M from $5.2M YoY due to $3.3M in Flatrock transaction costs.
- Horsepower utilization reached a record 88.3%.
- Completed Flatrock acquisition on June 12, adding 87,233 rented horsepower.
- Quarterly dividend maintained at $0.15 per share.
Financial Impact
Adjusted EPS miss of 16.1% vs consensus ($0.47 actual vs $0.56 estimate) is a notable negative surprise, but record revenue and EBITDA, plus raised guidance, provide a strong offset.
Risk Factors
- EPS miss of 16.1% vs consensus could pressure the stock in the short term.
- Integration risks and potential for higher-than-expected costs from the Flatrock acquisition.
- Inflationary pressures on labor, parts, and lubricants could compress margins.
- High leverage at 2.77x post-acquisition limits financial flexibility.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001084991-26-000086 |
| Document: ngs-20260811.htm | 0001084991-26-000086 |
| Document: 0001084991-26-000086-index-headers.html | 0001084991-26-000086 |
| Document: 0001084991-26-000086-index.html | 0001084991-26-000086 |
| Document: 0001084991-26-000086.txt | 0001084991-26-000086 |
| 8-K Data (Synthetic) | 0001084991-26-000086 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 10w ago | 8-K | $36.72 $35.22 | ▼ −4.08% | ▼ −3.64% | $31.14 (−15.20%) |
Aug 10, 2026 10w ago | 8-K | $36.78 $37.59 | ▲ +2.20% | ▲ +2.61% | $31.14 (−15.33%) |
Jul 24, 2026 13w ago | 8-K | $36.47 $35.89 | ▼ −1.59% | ▼ −1.96% | $31.14 (−14.61%) |
Jul 10, 2026 15w ago | 8-K | $40.53 $39.61 | ▼ −2.27% | ▼ −1.71% | $31.14 (−23.17%) |
Jul 8, 2026 15w ago | 8-K | $40.05 $39.61 | ▼ −1.10% | ▼ −0.97% | $31.14 (−22.25%) |
Jun 15, 2026 19w ago | 8-K | $41.73 $43.33 | ▲ +3.83% | ▲ +5.22% | $31.14 (−25.38%) |
Jun 11, 2026 19w ago | 8-K | $42.37 $42.10 | ▼ −0.64% | ▼ −1.31% | $31.14 (−26.50%) |
May 13, 2026 23w ago | 8-K | $41.80 $42.42 | ▲ +1.48% | ▲ +1.62% | $31.14 (−25.50%) |
May 11, 2026 23w ago | 8-K | $42.50 $43.73 | ▲ +2.89% | ▲ +2.82% | $31.14 (−26.73%) |
Apr 28, 2026 25w ago | DEFA14A | $39.70 $40.80 | ▲ +2.77% | ▲ +1.08% | $31.14 (−21.56%) |
US Market Status
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