Ranger Energy Services (NYSE:RNGR) reported higher second-quarter revenue and adjusted EBITDA as activity strengthened across its production-focused service lines and the company continued integrating American Well Services, or AWS.
Revenue for the quarter ended June 30 totaled $176.5 million, up 10.9% from $159.1 million in the first quarter and 25.5% from $140.6 million a year earlier. Net income was $6.9 million, or $0.29 per diluted share, compared with $3 million, or $0.12 per diluted share, in the prior quarter and $7.3 million, or $0.32 per diluted share, in the second quarter of 2025.
“We continue to believe adjusted EBITDA for 2026 will exceed $100 million,” Bodden said, adding that Ranger expects third-quarter results to be similarly strong before potential fourth-quarter softness from holiday and weather effects.
Segment Performance
Ranger’s High-Spec Rig segment generated $113.4 million in revenue, up 3.9% sequentially and 31.4% year over year. The segment recorded 146,800 rig hours, modestly above the first quarter and 25% higher than a year earlier, benefiting from the expanded fleet. Average hourly rig rates were $772, up from $731 in the first quarter, primarily reflecting fuel surcharges passed through to customers.
High-Spec Rig adjusted EBITDA was $20.6 million, down from $21.4 million in the first quarter, with margins just under 19%. CFO Melissa Cougle said margins were affected by an unusual state sales-tax audit that Ranger is challenging, as well as make-ready costs for the upcoming deployment of its ECHO hybrid electric workover rigs.
Bodden said the company forecasts slight third-quarter revenue growth in High-Spec Rigs and expects margins to improve toward 20%. He said customer activity has included more smaller programs that have helped fill available capacity, although he does not believe market conditions have changed enough to meaningfully add industry capacity.
Ancillary Services revenue reached $44.5 million, increasing 13% from the first quarter and 38% from the year-earlier period. Adjusted EBITDA was $10 million, for a 22.5% margin. Ranger cited growth of 20% or more in its coiled tubing, plugging and abandonment, and Torrent service lines.
Wireline Services delivered revenue of $18.6 million, up 75% from $10.6 million in the first quarter, and generated $3.6 million in adjusted EBITDA with a 19% margin. The segment completed 2,560 stages during the quarter, aided by an efficiently executed completions contract. Cougle said the pump-down service line posted record results, while the conventional production-focused line expanded revenue and tripled margins from the prior quarter.
Management cautioned that the contracts supporting Wireline’s outperformance have concluded. Ranger expects softer revenue and reduced EBITDA margins in the second half, potentially returning to single-digit levels.
ECHO Fleet Expansion
Ranger said construction of its ECHO next-generation hybrid electric workover fleet remains on schedule. Two rigs are currently undergoing field testing and are expected to be operational by the end of the third quarter under an earlier contract award.
The company also recently announced that Chevron committed to three additional ECHO rigs. During the question-and-answer session, Bodden said Ranger has 20 ECHO rigs under contract and would not be surprised to see additional contracts over the next nine to 12 months. He said the company expects approximately one rig per month to be deployed, with the 15 rigs announced earlier in 2026 expected to be deployed by the end of 2027.
Bodden said the company is becoming increasingly confident that many ECHO rigs will add to its overall fleet, though it expects some “modest shuffling” of conventional equipment. He said customers are still evaluating the appropriate mix of electric or hybrid and conventional rigs, with wider adoption likely depending on demonstrated safety and efficiency gains over time.
Cougle said the accounting treatment of upfront ECHO payments is expected to have a muted effect on reported results initially. Ranger plans to adjust amortization of upfront payments out of EBITDA, while any premium day rates under contracts could provide margin uplift. The company said it will provide additional updates if ECHO’s effect becomes material to margins.
Cash Flow and Capital Allocation
Free cash flow totaled $20 million in the second quarter, supported by $26.4 million in cash provided by operating activities. Year-to-date free cash flow was neutral because of working-capital investment earlier in the year and spending on the ECHO fleet.
Capital expenditures totaled $24.7 million year to date, including $12.7 million related to ECHO rigs. Ranger expects approximately $50 million in capital expenditures for the full year, including roughly $23 million in ECHO-related payments that depend on deliveries through year-end.
Ranger used more than $4.5 million during the quarter to repurchase 282,900 shares. Since mid-2023, the company has repurchased 4.6 million shares for a total of $52.1 million, while continuing its standard quarterly dividend, according to Bodden.
At June 30, Ranger had total liquidity of $61.3 million, including $57.1 million of available revolver capacity and $4.2 million of cash. Cougle said receivables and contract assets remained elevated because of billing delays in June, but the company expects collection efforts, billing-process automation and potential working-capital releases in the second half to support debt reduction and strategic opportunities.
About Ranger Energy Services (NYSE:RNGR)
Ranger Energy Services, Inc, based in The Woodlands, Texas, is a North American land drilling contractor serving exploration and production companies in the oil and natural gas industry. The company provides contract drilling, well servicing, pressure pumping and completion support services designed to enhance operational efficiency and optimize well performance.
Through its diversified fleet of drilling and service rigs and ancillary equipment, Ranger offers turnkey solutions across all phases of the drilling lifecycle—from pad construction and drilling to completion and workover operations.
