Natural Gas Services ( (NGS) ) has released its Q3 earnings. Here is a breakdown of the information Natural Gas Services presented to its investors.
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Natural Gas Services Group, Inc. (NGS) is a prominent provider of natural gas compression equipment, technology, and services primarily serving the energy industry. Headquartered in Midland, Texas, the company is known for its comprehensive solutions in natural gas compression, leveraging both third-party and in-house resources.
In its latest earnings report for the third quarter of 2025, NGS announced a notable increase in rental revenue and net income, alongside an upward revision of its full-year Adjusted EBITDA guidance. The company attributes its strong performance to robust field execution and increased demand for large horsepower compression units.
Key financial highlights include a 11.1% year-over-year increase in rental revenue, reaching $41.5 million, and a net income of $5.8 million, marking an 11.5% sequential growth. The company’s Adjusted EBITDA rose by 14.6% year-over-year to $20.8 million, driven by higher rental revenue and improved gross margins. Additionally, NGS increased its quarterly cash dividend, reflecting confidence in its cash generation capabilities.
Looking ahead, NGS plans to deploy approximately 90,000 horsepower in large horsepower and electric motor drive compression by early 2026. With a strong opportunity pipeline and rising demand for compression solutions, the company is well-positioned to continue delivering value to its shareholders.
Overall, Natural Gas Services Group, Inc. remains optimistic about its growth prospects, supported by strategic fleet expansions and strong customer relationships, particularly with key clients like Devon Energy.