The strong beat, raised guidance, and dividend hike confirm accelerating momentum in large-horsepower compression demand. With record utilization, pricing power, and the lowest leverage among peers, NGS is well-positioned for continued organic growth and potential M&A. Monitor the May 12 earnings call for color on midstream expansion and capex deployment timing.
Price Chart
Executive Summary
NGS reported a strong Q1 2026 beat with EPS of $0.53 (20.5% above $0.44 consensus) and revenue of $48.5M (in line with $47.1M consensus). Record rental revenue of $47.1M (+21.1% YoY), record adjusted EBITDA of $24.3M (+25.8% YoY), and record horsepower utilization of 86.9% drove the quarter. The company raised FY 2026 adjusted EBITDA guidance to $92.5M-$97.5M from $90.5M-$95.5M and increased the quarterly dividend 36% to $0.15/share, signaling strong cash generation and confidence in the outlook.
Key Financial Metrics
Key Facts
- Q1 2026 EPS of $0.53 beat consensus of $0.44 by 20.5%
- Q1 2026 revenue of $48.5M (+17.1% YoY) in line with consensus of $47.1M
- Record rental revenue of $47.1M (+21.1% YoY, +6.3% sequential)
- Record adjusted EBITDA of $24.3M (+25.8% YoY, +14.6% sequential)
- Record horsepower utilization of 86.9% vs 81.7% a year ago
- FY 2026 adjusted EBITDA guidance raised to $92.5M-$97.5M from $90.5M-$95.5M
- Quarterly dividend increased 36% to $0.15/share from $0.11
- Rental adjusted gross margin expanded to 63.7% from 61.9% a year ago
- Operating cash flow of $23.0M vs $21.3M a year ago
- Leverage ratio of 2.33x, lowest among public compression peers
Financial Impact
EPS beat of $0.09 (20.5%) on consensus of $0.44; revenue in line at $48.5M; guidance raised by $2M at midpoint to $95M; dividend increased 36% to $0.15/quarter
Risk Factors
- Inflationary pressures on costs and extended lead times for large-horsepower engines could constrain fleet growth
- Oil and gas price volatility could slow customer activity and compression demand
- Maintenance capex is gradually rising as the growing fleet ages, pressuring 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) | 0001084991-26-000041 |
| Document: ngs-20260511.htm | 0001084991-26-000041 |
| Document: 0001084991-26-000041-index-headers.html | 0001084991-26-000041 |
| Document: 0001084991-26-000041-index.html | 0001084991-26-000041 |
| Document: 0001084991-26-000041.txt | 0001084991-26-000041 |
| 8-K Data (Synthetic) | 0001084991-26-000041 |
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 11w 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 24w 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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