Key Highlights

  • Rental Revenue rose 41.9% year over year to $58.9 million in the third quarter of 2026.
  • Adjusted EBITDA increased 42.2% to $29.6 million, driven by the first full quarter of Flatrock operations.
  • GAAP Net Income was $5.6 million, or $0.43 per diluted share, compared with $5.8 million a year earlier.
  • The fourth-quarter Dividend was increased to $0.16 per share from $0.15.

Natural Gas Services Group, Inc. (NYSE:NGS) reported third-quarter 2026 rental revenue of $58.9 million, an increase of 41.9% from a year earlier and 19.1% from the second quarter.

Rental Revenue and the Flatrock Contribution

Rental revenue reached $58.9 million, up from the prior-year quarter and above the second-quarter level.

Chief Executive Justin Jacobs described the quarter as one that marked a full period of contribution from the acquisition, which is why year-over-year comparisons are influenced by the timing of the deal.

Earnings and Margins

GAAP net income was $5.6 million, or $0.43 per diluted share, compared with $5.8 million, or $0.46 per diluted share, in the third quarter of 2025. Net income rose sequentially from $3.8 million, or $0.30 per share, in the second quarter. Adjusted Net Income, a non-GAAP measure, was $6.2 million, or $0.48 per diluted share, compared with $5.8 million, or $0.46 per share, a year earlier.

Adjusted EBITDA reached $29.6 million, a 42.2% increase from the prior-year quarter and an 18.2% increase sequentially.

Shareholder Returns

The company returned $5.2 million to shareholders through dividends during the first nine months of the year, including a third-quarter dividend of $0.15 per share. Management increased the fourth-quarter dividend to $0.16 per share, a change that raises the annual payout while keeping the company's dividend tied to its cash generation.

Rental contracts create recurring revenue, and the size of the rental fleet determines how much income the company can generate.

Final Word

Rental revenue rose 41.9% year over year to $58.9 million in the third quarter of 2026. Adjusted EBITDA increased 42.2% to $29.6 million, driven by the first full quarter of Flatrock operations.