Envirotech Vehicles appoints Jason Maddox to board of directors
NEW YORK - Natural Gas Services Group, Inc. (NYSE:NGS) reported mixed fourth quarter results, with revenue beating expectations but earnings falling short. The company’s shares dropped 2.7% following the announcement.
The Midland, Texas-based provider of natural gas compression equipment posted adjusted earnings per share of $0.23 for the fourth quarter, missing analyst estimates of $0.26. However, revenue came in at $40.66 million, surpassing the consensus forecast of $39.62 million.
Rental revenue, which makes up the bulk of the company’s business, grew 21% YoY to $38.2 million in Q4. Total (EPA:TTEF) utilized horsepower increased 17% compared to the prior year period, reaching 491,756 horsepower across 1,208 rented units.
"2024 was a transformational year for Natural Gas Services Group as we executed against our strategic objectives and significantly improved our market presence and financial performance," said Justin Jacobs, Chief Executive Officer.
For the full year 2024, NGS reported net income of $17.2 million or $1.37 per diluted share, a 263% increase from 2023. Adjusted EBITDA rose 52% to a record $69.5 million.
Looking ahead, the company expects 2025 adjusted EBITDA to be in the range of $74 - $78 million, representing a 9% increase at the midpoint compared to 2024. Growth capital expenditures for 2025 are projected to be between $95 - $120 million.
Despite the earnings miss, NGS remains optimistic about future growth, anticipating its rented horsepower to increase by approximately 18% by early 2026 once new units are deployed.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.