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Ranger Energy Services (NYSE:RNGR) reported mixed first quarter 2025 results, showing sequential declines across key metrics while maintaining its shareholder return program. The company increased its quarterly dividend to $0.06 per share despite weather-related challenges impacting operations during the period.
Quarterly Performance Highlights
Ranger Energy reported Q1 2025 revenue of $135.2 million, representing a 5.5% decrease from $143.1 million in Q4 2024 and a slight decline from $136.9 million in Q1 2024. Net income fell to $0.6 million from $5.8 million in the previous quarter, though it improved from a net loss of $0.8 million in the year-ago period.
Adjusted EBITDA for the quarter was $15.5 million with an 11.4% margin, down from $21.9 million and 15.3% margin in Q4 2024, but higher than the $10.9 million and 8.0% margin reported in Q1 2024. Free cash flow generation declined significantly to $3.4 million from $27.3 million in the previous quarter.
As shown in the following chart of quarterly financial performance:
The company attributed the sequential decline primarily to Wireline business weakness and weather impacts on Ancillary business lines, partially offset by growth in the High-Specification Rigs segment. Despite these challenges, Ranger maintained a strong balance sheet with zero net debt and $104.4 million in liquidity, including $40.3 million in cash.
Segment Performance Analysis
Ranger’s three business segments showed divergent performance in Q1 2025:
The High-Specification Rigs segment remained resilient, posting record revenue of $87.5 million, a 10% increase over the prior year’s quarter despite challenging winter weather. Adjusted EBITDA for this segment reached $17.4 million with a 19.9% margin, representing a 28% increase over Q1 2024 but a sequential decline from Q4 2024.
The following chart illustrates the High-Specification Rigs segment performance:
The Processing Solutions & Ancillary Services segment showed year-over-year improvement but sequential decline. Revenue was $30.5 million with Adjusted EBITDA of $5.6 million and an 18.4% margin. The company noted a slow start to 2025 for Coil and P&A activity but expects a rebound in Q2 and Q3.
This chart shows the Processing Solutions & Ancillary Services segment trends:
The Wireline Services segment faced substantial challenges, with revenue falling to $17.2 million from $22.6 million in Q4 2024 and $32.8 million in Q1 2024. The segment posted an Adjusted EBITDA loss of $2.3 million with a -13.4% margin, significantly worse than the positive results in previous quarters. Management noted that the business posted losses in January and February before rebounding in March, and highlighted the successful subleasing of the Midland facility during Q1.
The following chart details the Wireline Services segment’s declining performance:
Capital Return Program
Despite the challenging quarter, Ranger Energy continued its commitment to shareholder returns, increasing its quarterly dividend to $0.06 per share in 2025. The company returned $1.3 million to shareholders in Q1 2025, representing approximately 38% of the quarter’s free cash flow.
Since initiating its capital return program in Q3 2023, Ranger has returned 45% of free cash flow to shareholders and repurchased 3,325,800 shares (15% of outstanding shares) at an average price of $10.37 per share.
The following chart illustrates Ranger’s capital return profile:
Balance Sheet and Liquidity
Ranger maintained strong financial flexibility with $104.4 million in liquidity at the end of Q1 2025, including $40.3 million in cash. The company has zero net debt, positioning it well to navigate market fluctuations and potentially pursue strategic opportunities.
As shown in the following chart, Ranger’s liquidity position remains robust despite the quarterly fluctuations in free cash flow:
Forward-Looking Statements
Ranger Energy Services positioned itself as a compelling investment based on its attractive free cash flow generation, exposure to operators across multiple basins, and commitment to shareholder returns. The company maintained a 7% trailing twelve-month return on invested capital, consistent with previous quarters.
The company’s stock closed at $12.54 on April 29, 2025, and rose slightly by 0.48% to $12.62 in after-hours trading following the earnings release. At current levels, Ranger trades below its 52-week high of $18.45, potentially reflecting investor concerns about the sequential decline in performance despite the year-over-year improvements in profitability.
While Ranger did not provide specific guidance for the remainder of 2025, the company’s presentation emphasized its operational resilience and financial discipline. The continued strength in the High-Specification Rigs segment and expected recovery in Coil and P&A activity in Q2 and Q3 suggest potential for improved performance in upcoming quarters, though the struggling Wireline Services segment remains a challenge that management will need to address.
Full presentation:
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