Ranger Energy Services (97L) Q2 2026 Earnings Report

The earnings call conveyed a constructive operational and financial picture: strong sequential and year-over-year revenue growth, meaningful adjusted EBITDA expansion and an annualized EBITDA run rate above $100M, robust segment-level wins (especially wireline and ancillary lines), clear progress on Echo fleet deployment with customer commitments, and strong Q2 cash generation and share repurchases. Offsetting items include elevated receivables and billing delays, expected margin and top-line softening in the back half for Wireline and some ancillary businesses, a minor High Spec Rig margin drag tied to a sales tax audit and Echo make-ready costs, and normal seasonal risks into Q4. Overall the positives (consistency improvement post-acquisition, multi-segment growth, cash generation, Echo momentum) outweigh the manageable operational and seasonal headwinds.

Management guided adjusted EBITDA for 2026 to exceed $100 million (they've already passed an annualized adjusted EBITDA run rate >$100M) and said Q3 should be similarly strong to Q2 before the typical Q4 holiday/weather softening; Q2 results cited were total revenue $177.0M (+10.9% QoQ, +25.5% YoY) and adjusted EBITDA $28.6M (16.2% margin, +23% QoQ, +160 bps QoQ expansion). Segment detail/guidance: High Spec Rigs—Q2 revenue $113.0M, 147k rig hours, average rate $772/hr (vs. $731 QoQ, $738 YoY), segment EBITDA $20.6M with ~19% margin and margins expected closer to 20% in Q3; Ancillary—Q2 revenue $44.5M (+13% QoQ, +38% YoY), EBITDA $10.0M (22.5% margin) with coiled tubing, P&A and Torrent each up >20% QoQ; Wireline—Q2 revenue $18.6M (+75% QoQ), 2.56k completed stages, EBITDA $3.6M (19% margin) but management expects back‑half top‑line softness and potential margin compression toward single digits. Capital and cash guidance: full‑year CapEx ≈ $50M (≈ $23M Echo‑related; YTD CapEx $24.7M with $12.7M to Echo), Q2 free cash flow $20M (cash from ops $26.4M), YTD FCF neutral, used $4.5M to repurchase 283k shares in Q2 (4.6M shares repurchased for $52.1M since mid‑2023), and liquidity was $61.3M ($57.1M revolver capacity, $4.2M cash). Echo rollout: first two Echo rigs in field testing expected operational by end‑Q3, company targeting roughly ~1 rig/month to hit the earlier plan (15 rigs by end‑next‑year) and currently has ~20 rigs under contract.