Revenue: As of FY2026 Q2, the actual value is USD 51.4 M, beating the estimate of USD 50.45 M.

EPS: As of FY2026 Q2, the actual value is USD 0.3, missing the estimate of USD 0.4.

EBIT: As of FY2026 Q2, the actual value is USD 5.516 M.

Dividend Declaration

Natural Gas Services Group, Inc. announced a cash dividend of $0.15 per share of common stock on August 10, 2026, payable on September 2, 2026, to shareholders of record as of August 19, 2026.

Revenue

Total revenue for the three months ended June 30, 2026, increased 24.2% to $51.4 million from $41.4 million in the comparable 2025 period. Rental revenue rose 24.9% to $49.4 million for the second quarter of 2026, compared to $39.6 million in the second quarter of 2025, and saw a 4.9% sequential increase from the first quarter of 2026. Revenue from the Flatrock acquisition during its partial month period was $2.2 million. Sales revenue reached $980 thousand for the three months ended June 30, 2026, up from $750 thousand in the prior year period, while aftermarket services revenue was $988 thousand, compared to $1.052 million in the prior year period.

Net Income

Net income for the second quarter of 2026 was $3.8 million, or $0.30 per diluted share, a decrease from $5.2 million, or $0.41 per diluted share, in the second quarter of 2025, and $6.8 million, or $0.53 per diluted share, in the first quarter of 2026. Adjusted Net Income for the three months ended June 30, 2026, was $6.1 million, or $0.47 per diluted share, an increase from $5.3 million, or $0.42 per diluted share, in the comparable 2025 period. The year-over-year and sequential decline in net income was primarily attributed to $3.3 million of strategic transaction costs related to the Flatrock Acquisition embedded in selling, general, and administrative expenses.

Gross Margins

Total gross margins, including depreciation expense, increased to $20.1 million for the three months ended June 30, 2026, compared to $15.4 million for the same period in 2025. Total Adjusted Gross Margin, exclusive of depreciation expense, rose to $30.8 million for the three months ended June 30, 2026, from $24.2 million in the same period in 2025. Rental Adjusted Gross Margin was $30.216 million for Q2 2026, with an Adjusted Gross Margin percentage of 61.1%. Sales Adjusted Gross Margin was $316 thousand for Q2 2026, with a 32.2% Adjusted Gross Margin percentage, and Aftermarket services Adjusted Gross Margin was $279 thousand, with a 28.2% Adjusted Gross Margin percentage.

Operating Profit

Operating income for the three months ended June 30, 2026, was $9.9 million, remaining essentially unchanged from the comparable 2025 period.

Adjusted EBITDA

Adjusted EBITDA increased 27.4% to $25.1 million for the three months ended June 30, 2026, from $19.7 million for the same period in 2025. Sequentially, Adjusted EBITDA increased 3.3% when compared to $24.3 million for the three months ended March 31, 2026.

Cash Flow

Cash flows provided by operating activities were $25.4 million for the three months ended June 30, 2026, compared to $11.0 million for the comparable period in 2025. Cash flows used in investing activities were - $127.5 million for the three months ended June 30, 2026, which included - $108.7 million for the cash portion of the Flatrock Acquisition (net of cash acquired) and - $18.8 million in capital expenditures ($15.4 million for growth and $3.4 million for maintenance).

Debt and Capital Structure

Outstanding debt on the revolving credit facility as of June 30, 2026, was $328.0 million, with over $170 million available on the facility and $134.8 million of availability reflecting the applicable borrowing base calculation. The leverage ratio as of June 30, 2026, was 2.77x, and the fixed charge coverage ratio was 4.18x.

Operational Metrics

As of June 30, 2026, Natural Gas Services Group, Inc. had 669,919 rented horsepower (1,521 utilized units), marking a 34.3% increase from 498,651 horsepower (1,198 utilized units) as of June 30, 2025. The Flatrock Acquisition contributed 87,233 rented horsepower from 270 utilized units. Total horsepower stood at 758,526 as of June 30, 2026, compared to 596,322 as of June 30, 2025. Horsepower utilization reached a record 88.3% as of June 30, 2026, up from 83.6% as of June 30, 2025, and unit utilization was 72.2%, compared to 65.4% as of June 30, 2025. The company organically added 22,200 total horsepower during the first half of 2026.

Dividends

Natural Gas Services Group, Inc. returned $1.9 million to shareholders during the second quarter of 2026 through its quarterly dividend of $0.15 per share. A third-quarter dividend of $0.15 per share was announced for stockholders of record as of August 19, 2026, with an expected payment date of September 2, 2026.

Outlook / Guidance

Natural Gas Services Group, Inc. increased its full-year 2026 Adjusted EBITDA guidance to $103 million to $108 million, up from prior guidance of $92.5 million to $97.5 million, reflecting strong first-half performance and the Flatrock acquisition. The company anticipates deploying at least 55,000 horsepower organically in 2026. Growth capital expenditures for 2026 are projected to be $60 million to $80 million, with maintenance capital expenditures expected to be $15 million to $19 million.