Ranger Energy Services reported its financial and operational results for the fourth quarter and full year ended December 31, 2025.

Ranger Energy Services, Inc. (NYSE: RNGR) ("Ranger" or the "Company") today reported its financial and operational results for the fourth quarter and full year ended December 31, 2025.

Financial and Operational Highlights

Full year 2025 revenue of $546.9 million and net income of $12.3 million, or $0.54 per diluted share

Full year 2025 Adjusted EBITDA(1) of $73.2 million, representing an Adjusted EBITDA margin of 13.4%, compared to $78.9 million and 13.8% for the full year 2024

Fourth quarter 2025 Adjusted EBITDA(1) of $20.3 million, representing an Adjusted EBITDA margin of 14.3%, compared to $16.8 million in the third quarter of 2025 and $21.9 million in the fourth quarter of 2024

Fourth quarter 2025 revenue of $142.2 million, compared to $128.9 million in the third quarter of 2025 and $143.1 million in the fourth quarter of 2024

Full year 2025 Free Cash Flow(2) of $42.9 million, or $1.89 per share with returns of capital exceeding 40% of 2025 Free Cash Flow(2) through dividends and repurchases

Management Commentary

Stuart Bodden, Chief Executive Officer of Ranger Energy Services, commented, "During the fourth quarter and throughout 2025, Ranger demonstrated the resilience that is characteristic of our business model. The Company concluded 2025 with robust cash generation and reinforced its standing as a through-cycle service provider in the oilfield services sector. Our results reflect the enduring differentiation of our production-focused strategy against a backdrop of constrained crude oil pricing and declining industry activity.

"Progress on all of our core strategic priorities in 2025 has positioned us well for continued value creation. On the growth front, we completed the acquisition of American Well Services ("AWS"), which is already meaningfully contributing to our financial performance. The transaction was executed at an extremely compelling valuation, and the acquired assets are well maintained, properly certified, and deployed with premier operators. The additional service lines that accompanied the traditional well service rigs present meaningful incremental growth opportunities for Ranger going forward.

"In 2025, we launched our next-generation ECHO Hybrid Electric Rig. The first two ECHO rigs were delivered to customers late in the year and are currently operational. Building on strong customer reception, we recently executed a contract with a key customer for the construction and deployment of 15 additional ECHO rigs. Deliveries under this contract are expected to commence in the third quarter of 2026, with full deployment anticipated by the end of 2027. We are grateful for the trust our customers have placed in this technology, and we view this commitment as a strong affirmation of the ECHO platform's differentiated capabilities.

"We also see compelling growth potential within select Ancillary and Processing Solutions businesses. During the fourth quarter, we were awarded a significant Plug and Abandonment contract that not only provides financial benefits but also enables Ranger to serve as a trusted environmental partner to regulatory agencies. Work under this contract has commenced and represents an important expansion of our P&A service line.

"We continue to generate an exceptional level of free cash flow from operations, and our business model provides the flexibility to reinvest in organic growth initiatives such as the ECHO program, pursue strategic acquisitions, and simultaneously return meaningful capital to shareholders. In 2025, we repurchased nearly one million Ranger shares at an average price of $12.26. Combined with our regular quarterly dividend, these actions returned more than 40% of our annual free cash flow to shareholders. Following completion of the AWS transaction, we prioritized debt repayment, and the Company ended the year in a net cash position. Our balance sheet remains strong and is well positioned to support the next phase of growth.

"As we move through 2026, we are optimistic about Ranger's continued momentum and value creation potential. Integration of the AWS business is progressing well, as we work to build a unified OneRanger culture across the combined organization. Our High Specification Rigs segment delivered a record year, achieving its highest-ever annual rig hours while sustaining strong margins. Ancillary and Wireline service lines have stabilized over recent months, and we will pursue returns-focused growth opportunities within those businesses in 2026. Notwithstanding an industry outlook characterized by activity uncertainty, Ranger is well positioned to deliver steady year-over-year improvement, driven by our differentiated service capabilities, insightful and timely strategic acquisitions, and consistent operational discipline. Safety, efficiency, cost management, and superior service quality remain the cornerstones of our operating philosophy.

"Reflecting on our accomplishments over the past year, I want to thank the employees of Ranger whose dedication and hard work make our success possible, and also extend a warm welcome to our newest colleagues from AWS, who are now an integral part of the OneRanger family. Our people are the foundation of everything we do, and we are proud to have each of you as part of our organization."

PERFORMANCE SUMMARY

Fourth quarter 2025 revenue was $142.2 million, an increase of $13.3 million from the third quarter of 2025 and a decrease of $0.9 million compared to the fourth quarter of 2024. The sequential increase was primarily attributable to the contribution of the AWS business, while the modest year-over-year decline reflected reduced activity in the Wireline Services segment. Cost of services was $117.1 million, or 82% of revenue, in the fourth quarter of 2025, approximately flat with $116.8 million, or 83% of revenue, in the prior year period, and higher than $109.1 million in the third quarter of 2025, reflecting the consolidation of AWS. General and administrative expenses were $8.9 million in the fourth quarter of 2025, compared to $6.6 million in the third quarter of 2025 and $7.1 million in the fourth quarter of 2024, with the increase driven by transaction-related costs including investment banking, legal, and diligence fees associated with the AWS acquisition.

Net income for the fourth quarter of 2025 was $3.2 million, compared to $1.2 million in the third quarter of 2025 and $5.8 million in the fourth quarter of 2024. Fully diluted earnings per share was $0.14 for the fourth quarter of 2025, compared to $0.05 in the prior quarter and $0.25 in the prior year period.

Fourth quarter 2025 Adjusted EBITDA(1) was $20.3 million, an increase of $3.5 million from $16.8 million in the third quarter of 2025, and a decrease of $1.6 million from $21.9 million in the fourth quarter of 2024. The sequential improvement was driven by stronger revenue and margins in the High Specification Rigs and Processing Solutions and Ancillary Services segments. The year-over-year decrease was primarily attributable to margin compression within the Wireline Services segment.

BUSINESS SEGMENT FINANCIAL RESULTS

High Specification Rigs

High Specification Rigs segment revenue was $92.3 million in the fourth quarter of 2025, an increase of $11.4 million from $80.9 million in the third quarter of 2025 and an increase of $5.3 million from $87.0 million in the prior year period. Rig hours increased 16% sequentially to 128,500 from 111,200, and increased 11% year over year from 115,900. Hourly rig rates declined modestly, by 1% sequentially to $718 from $727 per hour, and by 4% year over year from $751, reflecting changes in asset mix and fluctuations in idle and downtime between jobs.

Segment operating income was $12.0 million in the fourth quarter of 2025, an increase of $2.0 million, or 20%, from $10.0 million in the prior quarter, and a decrease of $1.4 million, or 10%, from $13.4 million in the prior year period. Adjusted EBITDA(1) was $19.6 million, up from $15.7 million in the third quarter of 2025 and up from $19.0 million in the fourth quarter of 2024.

Processing Solutions and Ancillary Services

Processing Solutions and Ancillary Services segment revenue was $37.5 million in the fourth quarter of 2025, an increase of $6.7 million, or 22%, from $30.8 million in the third quarter of 2025, and an increase of $4.0 million, or 12%, from $33.5 million in the prior year period. The improvement relative to both comparison periods was primarily attributable to higher operational activity across several service lines, with the most significant contribution from ancillary solutions acquired in the AWS transaction.

Segment operating income was $2.9 million in the fourth quarter of 2025, compared to $3.4 million in the third quarter of 2025 and $5.5 million in the prior year period. Adjusted EBITDA(1) was $6.2 million, an increase from $5.5 million in the third quarter of 2025 and a decrease from $8.0 million in the fourth quarter of 2024.

Wireline Services

Wireline Services segment revenue was $12.4 million in the fourth quarter of 2025, a decrease of $4.8 million, or 28%, from $17.2 million in the third quarter of 2025, and a decrease of $10.2 million, or 45%, from $22.6 million in the prior year period. Wireline Completions reported 1,500 completed stages, a decrease of 17% from 1,800 stages in both the third quarter of 2025 and the fourth quarter of 2024. The revenue and activity declines reflect the Company's deliberate adjustment of its service mix in response to market conditions.

Segment operating loss was $2.7 million in the fourth quarter of 2025, an improvement of $1.5 million from an operating loss of $4.2 million in the third quarter of 2025, and improved from an operating loss of $3.0 million in the prior year period. Adjusted EBITDA(1) was approximately breakeven, compared to $0.4 million in the third quarter of 2025 and $0.2 million in the fourth quarter of 2024. Results continue to reflect pricing pressures and operating deleverage resulting from activity declines within the service line.

BALANCE SHEET, CASH FLOW AND LIQUIDITY

As of December 31, 2025, the Company had total liquidity of $67.7 million, comprised of $57.4 million of available capacity under its revolving credit facility and $10.3 million of cash on hand. This compares to total liquidity of $112.1 million as of December 31, 2024, comprised of $71.2 million of revolving credit facility capacity and $40.9 million of cash. The reduction in liquidity reflects the deployment of capital for the AWS acquisition.

Cash provided by Operating Activities was $69.0 million for the full year 2025, compared to $84.5 million in 2024. Full year 2025 Free Cash Flow(2) was $42.9 million, a decrease from $50.4 million in 2024, driven primarily by lower profitability in the Wireline Services segment.

Capital expenditures for 2025 totaled $26.1 million, a decrease from $34.1 million in 2024, which included approximately $9.0 million of growth-related expenditures.

Conference Call

The Company will host a conference call to discuss its fourth quarter and full year 2025 results on Thursday, March 5, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). 

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