0001628280-26-015248
SEC filingRanger Energy Services reported total revenue of $546.9 million for FY 2025, a decrease from $571.1 million in FY 2024. Net income was $12.3 million, down from $18.4 million in the prior year. Operating income declined to $15.4 million from $28.6 million. The company generated $69.0 million in net cash from operating activities, but used $76.1 million in investing activities primarily for the purchase of a business ($52.5 million) and property and equipment ($26.1 million). Key performance drivers included the acquisition of American Well Services, which added 41 rigs to the fleet, and segment performance variations with High Specification Rigs generating $347.0 million in revenue while Wireline Services declined to $68.9 million. The company maintained a strong liquidity position with $10.3 million in cash and $419.3 million in total assets.
Ranger Energy Services reported mixed financial results for FY 2025 with total revenue of $546.9 million, representing a 4.2% decrease from $571.1 million in FY 2024. Net income declined 33.2% to $12.3 million from $18.4 million in the prior year. Operating income decreased 46.2% to $15.4 million from $28.6 million. The company maintained basic and diluted earnings per share at $1.00, consistent with the prior year. Key financial metrics show a gross margin of 16.5% (calculated as total revenue of $546.9M minus total cost of services of $456.6M, divided by revenue), unchanged from the prior year. Operating margin declined to 2.8% from 5.0% in FY 2024. The company's balance sheet remained strong with total assets of $419.3 million and stockholders' equity of $300.1 million as of December 31, 2025.
Revenue performance varied significantly across segments. The High Specification Rigs segment generated $347.0 million in revenue, representing 63% of total revenue and showing a 3.2% increase from $336.1 million in FY 2024. Wireline Services revenue declined sharply to $68.9 million, down 37.5% from $110.2 million in the prior year. Processing Solutions and Ancillary Services revenue increased 5.0% to $131.0 million from $124.8 million. The company noted that three customers accounted for approximately 30%, 18%, and 11% of consolidated revenue respectively. Geographic concentration remains a factor with a significant portion of High Specification Rig operations concentrated in the Permian Basin. The AWS acquisition in Q4 2025 added 41 rigs to the fleet and contributed to segment revenue growth.
Gross profit margin remained stable at 16.5% despite revenue declines, indicating effective cost management in core operations. Operating margin declined to 2.8% from 5.0% in the prior year, reflecting increased operating expenses including general and administrative costs of $29.6 million and depreciation and amortization of $46.3 million. The company reported a $400,000 impairment of assets and a $1.4 million gain on sale of assets. Segment profitability analysis shows High Specification Rigs generated $46.0 million in operating income, while Wireline Services reported a $13.9 million operating loss. Processing Solutions and Ancillary Services contributed $14.1 million in operating income. Adjusted EBITDA, a non-GAAP measure used by management, was $73.2 million compared to $78.9 million in the prior year.
The company generated strong operating cash flow of $69.0 million, primarily driven by net income of $12.3 million adjusted for non-cash items including depreciation and amortization of $46.3 million. Investing activities used $76.1 million, with $52.5 million for the purchase of a business (AWS) and $26.1 million for property and equipment purchases. Financing activities used $23.5 million, including $12.2 million for share repurchases and $5.5 million for dividend payments. Free cash flow (operating cash flow minus capital expenditures) was negative $7.1 million. The balance sheet shows total debt of $3.5 million under the Revolving Credit Facility, with total liabilities of $119.2 million. The company maintains a $75.0 million revolving credit facility with Wells Fargo, subject to borrowing base limitations based on accounts receivable.
The company faces several risk factors including dependence on domestic capital spending by the oil and natural gas industry, volatility of oil and natural gas prices, and geographic concentration in the Permian Basin. Management noted intense competition in the oilfield services business and regulatory risks related to environmental compliance and climate change initiatives. The company announced a contract signed in January 2026 to build and deploy 15 next generation ECHO hybrid electric rigs, with the first expected in Q3 2026 and all 15 deployed by the end of FY 2027. The Board declared a quarterly cash dividend of $0.06 per share payable in April 2026. The company remains focused on strategic growth through accretive acquisitions and operational efficiency improvements while managing capital allocation through dividends and share repurchases.