This article first appeared on GuruFocus .
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Total Revenue:$159.1 million for Q1 2026, up from $142.2 million in Q4 2025 and $135.2 million in Q1 2025.
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Adjusted EBITDA:$23.3 million, with a margin of 14.6% for Q1 2026, compared to $20.3 million (14.3% margin) in Q4 2025 and $15.5 million (11.5% margin) in Q1 2025.
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Net Income:$3 million or $0.12 per diluted share for Q1 2026, compared to $600,000 or $0.03 per diluted share in Q1 2025.
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High Spec Rigs Revenue:$106.2 million in Q1 2026, up from $92.3 million in Q4 2025.
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High Spec Rigs Adjusted EBITDA:$21.4 million in Q1 2026, compared to $19.6 million in Q4 2025.
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Processing Solutions and Ancillary Services Revenue:$42.3 million in Q1 2026, up from $37.5 million in Q4 2025.
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Processing Solutions and Ancillary Services Adjusted EBITDA:$8 million in Q1 2026, up from $6.2 million in Q4 2025.
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Wireline Services Revenue:$10.6 million in Q1 2026.
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Free Cash Flow:Negative $21.7 million for Q1 2026, compared to positive $3.4 million in Q1 2025.
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Capital Expenditures:$18.3 million in Q1 2026, compared to $7.2 million in Q1 2025.
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Total Liquidity:$42.5 million as of March 31, 2026, including $35.6 million under the revolving credit facility and $6.9 million in cash.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ranger Energy Services Inc ( NYSE:RNGR ) reported strong financial performance with total revenue of $159.1 million and adjusted EBITDA of $23.3 million, showing growth both sequentially and year-over-year.
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The company successfully integrated AWS businesses and advanced its ECHO hybrid rig program, which is expected to deliver improved efficiency and lower emissions.
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High-spec rigs delivered strong results, with increased revenue driven by improved utilization and resilient pricing.
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The ancillary services segment showed solid growth, with revenue and profitability increasing due to higher activity and the inclusion of AWS offerings.
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Ranger's business model is well-suited to the current market environment, focusing on workover, maintenance, and production optimization services, which are essential and cost-effective.
Negative Points
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The severe winter storm in January temporarily disrupted activity, particularly in the Permian Basin, affecting the start of the quarter.
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There was slight margin pressure due to higher levels of white space earlier in the quarter and maintenance-related expenses.
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Free cash flow for the first-quarter was negative $21.7 million, primarily due to working capital timing issues.
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Capital expenditures increased significantly to $18.3 million, driven by milestone payments related to the ECHO hybrid rig build-out program.
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The company faced challenges with working capital due to customer billing blackout periods and transition-related billing changes.
Q & A Highlights
Q: How is the current oil market environment affecting customer behavior and activity levels? A: Stuart Bodden, CEO, noted that while larger customers remain disciplined, there is increased interest and inbound inquiries. Smaller operators are showing more activity, particularly in accelerating barrels through workover programs. The company exited the quarter strongly, and this positive trend has continued into April.
Q: Is there any slack in the system, or is Ranger considering reactivating rigs to meet demand? A: Stuart Bodden, CEO, mentioned that while there is a little slack, they are nearing the point where they will need to hire crews and add capacity to meet new demand.
Q: Can you elaborate on the working capital build this quarter and its expected resolution? A: Melissa Cougle, CFO, explained that the negative cash flow was due to a substantial billing blackout by a major customer and integration-related billing changes. They expect working capital levels to normalize over the next two quarters, with significant improvement anticipated in Q2 and Q3.
Q: How does the current market outlook impact Ranger's strategy, particularly regarding consolidation and ECHO new builds? A: Stuart Bodden, CEO, stated that while there won't be a massive shift in strategy, they are more confident and aggressive on the margin. The ECHO program is expected to be additive, and they are naturally adding capacity with these rigs.
Q: Are there any supply chain issues affecting Ranger's operations? A: Stuart Bodden, CEO, indicated that Ranger is not currently experiencing supply chain issues. However, he anticipates potential labor tightness in the future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
