Skip to content
    RNGR
    Earnings call· Jun 2026(Q2 FY26)

    Ranger Energy Services Q2 FY26 earnings call RNGR

    Jul 28, 2026 Source

    Executive summary

    Ranger Energy Services Q2 FY26 — Strong Operational Performance and ECHO Rig Expansion

    Ranger Energy Services delivered strong Q2 FY26 results, reinforcing the earnings power post-AWS acquisition with significant sequential improvements in revenue and EBITDA. The company is focused on operational consistency, cross-selling, and expanding its differentiated ECHO rig fleet, while strategically allocating capital through share repurchases and potential value-accretive acquisitions.

    Highlights

    5

    • Total revenue of $176.5 million, up 10.9% sequentially.

    • Achieved an annualized adjusted EBITDA run rate exceeding $100 million.

    • Wireline segment revenue up 75% sequentially to $18.6 million with 19% adjusted EBITDA margin.

    • Deployed nearly $4.5 million into share repurchases of 282,900 shares.

    • Generated healthy free cash flow of $20 million for the quarter.

    Concerns

    3

    • Wireline segment expected to experience reduced EBITDA margins, potentially back to single digits, and a softer top line in H2 FY26.

    • High spec rig segment margins slightly soft due to a state sales tax audit and make-ready costs for ECHO deployment.

    • Receivables and contract assets remained elevated at quarter end due to delays experienced in June.

    Guidance & targets

    9
    CategoryTargetConfidence
    Adjusted EBITDA
    exceed $100 million
    high materiality
    High
    High Spec Rig Segment Revenue
    slight increases
    medium materiality
    Medium
    High Spec Rig Segment Adjusted EBITDA Margin
    closer towards 20 percent
    medium materiality
    Medium
    Wireline Segment EBITDA Margins
    reduced, potentially back to single digits
    medium materiality
    Medium
    Wireline Segment Revenue
    softer top line
    medium materiality
    Medium
    Total Capex
    approximately $50 million
    high materiality
    High
    ECHO Capex
    approximately $23 million
    high materiality
    High
    Working Capital
    further working capital releases
    medium materiality
    Medium
    ECHO Rig Contracts
    more come under contract
    high materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    High Spec Rig Segment
    Revenue increased due to increased rig hours and modest rate uplift from fuel surcharges. Margins were slightly soft due to a state sales tax audit and make-ready costs for ECHO deployment.
    Rig hours: 146,800Rig hours YoY growth: 25%Average hourly rig rates: $772 per hourAverage hourly rig rates QoQ growth: 6% (from $731 per hour)Average hourly rig rates YoY growth: 5% (from $738 per hour)Adjusted EBITDA: $20.6 million (compared to $21.4 million in Q1 FY26 and $17.6 million in Q2 FY25)
    		$113.4 million31.4%3.9%just under 19%
    Ancillary Segment
    Benefited from AWS service lines and expansion in P&A and torrent. Multiple service lines will be explored in H2 FY26.
    Adjusted EBITDA: $10 millionCoiled tubing top line growth: >20%Plugging and abandonment top line growth: >20%Torrent top line growth: >20%
    		$44.5 million38%13%22.5%
    Wireline Segment
    Strong quarter driven by completions contract and leadership changes. Pump down and conventional production service lines showed significant growth and margin expansion. Expects softness in H2 FY26 due to contract conclusion.
    Completed stages: 2,560Adjusted EBITDA: $3.6 millionPump down service line top line: more than doubledConventional production focus service line margins: tripled
    		$18.6 million—75%19%

    Operational metrics

    10
    Adjusted EPS
    $0.29vs $0.12 in Q1 FY26, vs $0.32 in Q2 FY25
    Q2 FY26

    Reported $6.9 million in net income.

    Net Income
    $6.9 millionvs $3 million in Q1 FY26, vs $7.3 million in Q2 FY25
    Q2 FY26

    Reported net income for the quarter.

    Total Consolidated Revenue
    $176.5 millionup 10.9% sequentially from $159.1 million in Q1 FY26, up 25.5% year over year from $140.6 million in Q2 FY25
    Q2 FY26

    Driven by performance in ancillary services and wireline segments sequentially, and AWS acquisition year-over-year.

    Adjusted EBITDA
    $28.6 millionup 23% QoQ from $23.3 million in Q1 FY26, up from $20.6 million in Q2 FY25
    Q2 FY26

    Representing a 16.2% margin, compared to 14.6% in Q1 FY26 and 14.7% in Q2 FY25.

    Adjusted EBITDA Margin
    16.2%vs 14.6% in Q1 FY26, vs 14.7% in Q2 FY25
    Q2 FY26

    Expected to continue above 15% going forward.

    Share Repurchases
    $4.5 million
    Q2 FY26

    Deployed excess cash into share repurchases during the quarter.

    Cumulative Share Repurchases
    $52.1 million
    Since mid-2023

    Total repurchases since mid-2023.

    Capital Expenditures
    $24.7 million
    YTD FY26

    Remaining allocated largely to maintenance capex.

    Cash Provided by Operating Activities
    $26.4 million
    Q2 FY26

    Supported free cash flow generation for the quarter.

    Total Liquidity
    $61.3 million
    As of June 30th

    Total liquidity remained healthy.

    Industry KPIs

    5
    MetricValueDetails
    FCF CAPEX leverage$20 million FCFUSD
    M a integration progressAWS acquisition
    Orders bookings by segment20rigs
    Segment adjusted EBITDA margin19%%
    Data center new energy revenue capacity3 additional rigsrigs

    Orderbook & backlog

    1
    ECHO rigs under contract20Q2 FY26

    up 3 from previous announcement

    Includes 15 rigs announced earlier this year, 3 new from Chevron, and 2 already in the field.

    Deals & partnerships

    2
    American Well Services (AWS)Acquisition of an oilfield services provider to expand service lines and footprint.

    Significant milestone last year, integration continues to build momentum, focused on capturing synergies and cross-selling opportunities.

    ChevronCommitment for additional ECHO rigs.

    Vote of confidence in ECHO's capabilities and continued partnership for hybrid electric workover rigs.

    Capital programs

    1
    ECHO Rig Fleet Expansionunderway
    Period spend: $12.7 million
    Spent to date: $12.7 million
    Funding: Free cash flow
    Start: Early FY26

    Benefit: 20 hybrid electric workover rigs under contract

    Construction of next-generation hybrid electric workover rigs remains on schedule. The first two rigs are undergoing field testing and expected to be operational by the end of Q3 FY26. Chevron committed to three additional rigs. Deployment rate of approximately one rig per month expected through FY27.

    Risks & headwinds

    4
    Reduced profitability and softer top line for Wireline segmentBack half of the year (H2 FY26)

    EBITDA margins potentially back to single digits

    Mitigation: Focused on finding more good opportunities, even if they are sometimes hard to find.

    Elevated receivables and collection delaysOngoing

    Remained elevated at quarter end due in part to delays experienced in June.

    Mitigation: Diligently working with customers to resolve and reduce billing delays, pursuing further automation opportunities within billing processes to reduce DSO. Expects incremental working capital improvements in H2 FY26.

    High Spec Rig segment margin softnessQ2 FY26

    Segment margins just under 19%

    Mitigation: Driven by the low price of the quarter, an unusual state sales tax audit (currently under challenge), and make-ready costs on upcoming ECHO deployment.

    Seasonal softening in Q4Q4 FY26

    Typical potential softening

    Mitigation: Anticipated and planned for due to holiday and weather impacts.

    What to watch in Q3 FY26

    5

    ECHO Rig Operational Status

    End of Q3 FY26
    Current2 rigs in field, 2 more undergoing field testing
    Target4 rigs operational

    Why it matters

    Verifies progress on a key differentiated asset and future growth driver, impacting revenue and margins.

    The first two rigs contracted under our award announced at the start of the year are presently undergoing field testing and are expected to be operational by the end of the third quarter.

    Q&A highlights

    5

    Inquired about macro trends for the workover rig segment, particularly E&P expectations for higher oil prices and increased activity in 2027, and current observations on 24-hour/weekend work.

    Stuart Bodden confirmed shared view of increased activity in 2027, but noted current increases are in smaller programs filling white space, not yet meaningful enough to add capacity.

    “I think we kind to share that view that as you move into '27, just as the, you know, the forward curve is strengthening in the back part. We'll see an increase.”

    asked by Donald Crist · answered by Stuart Bodden

    2 min read5 chapters

    Detailed Narrative

    01

    AWS Integration Momentum

    The AWS acquisition continues to build momentum, driving sequential improvements in revenue and EBITDA. The company is focused on fully completing the integration, capturing synergies, advancing cross-selling opportunities, and standardizing protocols across the combined footprint. This strategic acquisition has been a key factor in Ranger's enhanced earnings power.

    02

    Market Activity & Capital Discipline

    The U.S. onshore market experienced a modest increase in workover and maintenance activity during Q2 FY26, benefiting from normal seasonal strength, longer summer days, and favorable weather. Ranger's business model, heavily weighted toward production-focused work, continues to see strong demand as customers maintain capital discipline, valuing cost-efficient and high-quality intervention services on existing wells.

    03

    ECHO Fleet Rollout & Customer Adoption

    Construction of Ranger's next-generation hybrid electric workover rigs (ECHO fleet) remains on schedule. The first two rigs are currently undergoing field testing and are expected to be operational by the end of Q3 FY26. Notably, Chevron committed to three additional ECHO rigs, bringing the total under contract to 20. The company anticipates a deployment rate of approximately one ECHO rig per month through the end of FY27.

    04

    Strategic Capital Allocation

    Ranger emphasizes a strategic approach to capital deployment, focusing on maximizing shareholder value while maintaining a strong balance sheet. This includes deploying excess cash into share repurchases, with nearly $4.5 million used to buy back 282,900 shares in Q2, and a cumulative $52.1 million since mid-2023. The company also pursues value-accretive acquisitions and expands its differentiated ECHO rig fleet.

    05

    Operational Focus & Service Line Performance

    The company's operational focus remains on prioritizing safety, service execution, and leveraging strong relationships with major E&P operators. While the High Spec Rig segment saw modest revenue growth and slight margin softness, the Ancillary segment delivered strong performance, particularly in coiled tubing, plugging and abandonment, and torrent services. The Wireline segment achieved exceptional results in Q2 due to new contracts and improved execution, though a softer outlook is anticipated for the back half of the year.

    AI-generated summary of the company’s earnings call. Not investment advice.