Ranger Energy Services, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 27 July 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and EBITDA rose sequentially: Revenue was $176.5 million, up $17.4 million from the first quarter. Management attributed the sequential rise to expanding activity; the year-over-year rise reflects the AWS business. Source
• Adjusted EBITDA reached $28.6 million: Adjusted EBITDA was $28.6 million, a 16.2% margin, up $5.3 million from the first quarter. The company credited higher revenue and margins in High Specification Rigs, Ancillary and Wireline. Source
• Wireline swung to operating profit: Wireline revenue was $18.6 million, up 75% sequentially. Segment operating income was $1.0 million, and Adjusted EBITDA was $3.6 million against $0.2 million in the first quarter. Source
• Chevron awards three ECHO rigs: The company announced an award for three additional ECHO hybrid electric rigs to be built with Chevron, a core customer, extending the next-generation fleet build-out. Source
• Rig hours rose year over year: High Specification Rigs hours were 146,800, up 1% sequentially and 25% year over year. Management said customer activity is rising slightly with commodity prices, with fluctuations. Source
• Receivables absorbed year-to-date cash: Year-to-date free cash flow was negative $1.7 million, against $17.8 million a year earlier, as receivables and contract assets grew on customer payment delays and process lags. Source
• Liquidity down from year-end: Total liquidity was $61.3 million, down from $67.7 million at December 31, 2025. Management attributed the reduction to working capital built up earlier in the year from certain customers. Source

“During the second quarter, Ranger built on the momentum from our first quarter results and delivered another quarter of sequential topline growth across segments, EBITDA and margin expansion with meaningful cash flows.”

Stuart Bodden, Ranger's Chief Executive Officer

Guidance

What changed from last quarter

• New: The company announced an award for three additional ECHO rigs to be built with Chevron, one of its core customers. Source
• New: Management cited a multi-well Wireline contract award as a contributor to the quarter's Adjusted EBITDA. Source
• New guidance: Management expects Wireline activity to decline and profitability to be more modest in the second half of 2026, after some contract work finished. Source

Results and growth drivers

• Revenue and EBITDA rose sequentially: Revenue was $176.5 million, up $17.4 million from the first quarter. Management attributed the sequential rise to expanding activity; the year-over-year rise reflects the AWS business. Source
• Adjusted EBITDA reached $28.6 million: Adjusted EBITDA was $28.6 million, a 16.2% margin, up $5.3 million from the first quarter. The company credited higher revenue and margins in High Specification Rigs, Ancillary and Wireline. Source
• Net income and diluted EPS rose: Net income was $6.9 million, or $0.29 per diluted share, against $3.0 million, or $0.12, in the first quarter. Operating income rose to $11.8 million from $5.1 million. Source

Segment results

• Wireline swung to operating profit: Wireline revenue was $18.6 million, up 75% sequentially. Segment operating income was $1.0 million, and Adjusted EBITDA was $3.6 million against $0.2 million in the first quarter. Source
• High Spec Rigs EBITDA eased slightly: High Specification Rigs revenue was $113.4 million. Adjusted EBITDA was $20.6 million, down from $21.4 million, and management named a $750,000 audit levy as a drag. Source

“Overall, quarter over quarter, our topline expanded over 10% with EBITDA growing by more than 22%.”

Stuart Bodden, Ranger's Chief Executive Officer

Products and customers

• Chevron awards three ECHO rigs: The company announced an award for three additional ECHO hybrid electric rigs to be built with Chevron, a core customer, extending the next-generation fleet build-out. Source
• Plug and abandonment expanded: Plug and Abandonment activity expanded with recent contract awards. Torrent and Coil Tubing outperformed expectations, and most ancillary lines grew with improved profitability. Source
• Wireline stages rose on new contracts: Completed stages rose to 2,560 from 740 in the first quarter, up 2% from 2,500 a year earlier. Management linked the rise to new contract activity and improved sales and bidding processes. Source

Costs, rates and margins

• Rig rates rose with fuel surcharges: Hourly rig rate was $772, up 6% sequentially from $731 and 5% from $738 a year earlier. Management said the change largely reflects pass-through of fuel surcharges and asset and regional mix. Source
• Cost of services held at 81%: Cost of services was $142.7 million, or 81% of revenue, against $130.6 million in the first quarter. General and administrative expense was $7.6 million, including AWS acquisition costs. Source
• Make-ready costs weighed on margins: High Specification Rigs margins were also affected by make-ready costs for upcoming ECHO deployments, according to management. Source

“Our view remains unchanged, namely that Ranger is well positioned to capitalize on the continued demand for US energy resources, enabling us to generate durable, long-term value for our shareholders.”

Stuart Bodden, Ranger's Chief Executive Officer

Demand and activity

• Rig hours rose year over year: High Specification Rigs hours were 146,800, up 1% sequentially and 25% year over year. Management said customer activity is rising slightly with commodity prices, with fluctuations. Source
• Customers favor utilization over new rigs: Management said customers remain highly disciplined. Most activity increases raise utilization of existing rigs rather than prompting commitments for incremental rigs. Source
• Wireline crews adapting to swings: Management said the Wireline team is beginning to respond to oscillating activity levels more successfully, and it is more encouraged by the segment over the longer term. Source

Cash flow and liquidity

• Receivables absorbed year-to-date cash: Year-to-date free cash flow was negative $1.7 million, against $17.8 million a year earlier, as receivables and contract assets grew on customer payment delays and process lags. Source
• Quarterly operating cash flow reached $26.4 million: Operating cash flow was $26.4 million in the quarter and $23.0 million for the year to date. Source
• Liquidity down from year-end: Total liquidity was $61.3 million, down from $67.7 million at December 31, 2025. Management attributed the reduction to working capital built up earlier in the year from certain customers. Source
• ECHO milestone payments drove capex: Year-to-date capital expenditures were $24.7 million, up from $13.5 million. Of that, $12.7 million relates to ECHO milestone payments for rigs to be delivered in future periods. Source

Shareholder returns

• Quarter repurchases rose to 282,900 shares: The company repurchased 282,900 shares for $4.5 million, net of tax, at an average $15.84 per share. The first quarter had 38,700 shares repurchased. Source
• Cumulative repurchases since 2023: Since the program began in 2023, the company has repurchased 4,641,800 shares through June 30, 2026, at an average repurchase price of $11.17 per share. Source
• Dividends and buybacks year to date: Year-to-date cash flow shows $3.0 million of dividends paid to Class A stockholders and $5.0 million of Class A repurchases, with $2.4 million of shares withheld for equity compensation. Source

Strategy and investment

• ECHO and acquisitions as investment paths: Management cited continued build-out of the ECHO hybrid electric rig fleet, expanding well services, and possible acquisitions adding new service lines as paths for investment, with disciplined capital allocation. Source
• AWS integration nearing completion: Management said the AWS business is approaching full integration into the organization, while the legacy business continues to benefit from steadily improving customer activity. Source
• Ancillary investment under review: Management is evaluating which ancillary service lines could benefit from additional investment in the future. Source

Coming up, as management said on 27 July 2026

• More ECHO rig announcements expected: Management expects further ECHO rig announcements in future quarters as market adoption develops. Source

Figures management reported

Risks management discussed

• Financial: Free cash flow year to date fell on growing receivables and contract assets from customer payment delays. Source
• Regulatory: A $750,000 audit levy from a state taxing authority, related to prior years, is under dispute. Source
• Operational: Make-ready costs for upcoming ECHO deployments affected High Specification Rigs margins this quarter. Source
• Demand: Customers are committing to existing rigs more than to incremental rigs, according to management. Source
• Demand: Management expects lower Wireline activity and more modest profitability in the back half of 2026. Source

Earlier plans management reported on

• Met: Management said the company achieved the more-than-$100 million annual EBITDA run rate it had previously stated, in the second full quarter after the AWS acquisition. Source
• Not stated: The first quarter release said ECHO rigs would begin entering the field later this year; the second quarter release does not restate timing.

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.