Revenue growth accelerated to 17.1% in 2026Q1, while operating margins expanded significantly to 27.7% from the 14.9% reported in 2024Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 179.4M | 172.31M | 156.74M | 121.17M | 84.83M | 72.42M | 68.06M | 78.44M | 65.48M | 67.69M | 71.65M | 95.92M | 96.97M | 89.25M | 93.72M | 65.16M | 53.91M | 67.8M | 85.34M | 72.49M | 62.73M | 49.31M | 15.96M | 12.75M | 10.3M | 8.76M |
| Revenue Growth % | 11.28% | 9.94% | 29.36% | 42.84% | 17.13% | 6.41% | -13.24% | 19.8% | -3.27% | -5.53% | -25.3% | -1.09% | 8.66% | -4.77% | 43.84% | 20.87% | -20.48% | -20.55% | 17.72% | 15.56% | 27.21% | 209% | 25.17% | 23.82% | 17.51% | - |
| Cost of Goods Sold | 111.22M | 108.43M | 100.1M | 89M | 70.47M | 70.76M | 60.63M | 67.58M | 55.74M | 56.05M | 53.67M | 65.41M | 64.65M | 59.09M | 65.61M | 30.39M | 24.75M | 32.16M | 44.99M | 41.11M | 39.31M | 31.34M | 6.95M | 6.06M | 5.57M | 4.94M |
| COGS % of Revenue | - | 62.93% | 63.86% | 73.46% | 83.08% | 97.71% | 89.09% | 86.15% | 85.13% | 82.79% | 74.9% | 68.2% | 66.67% | 66.21% | 70.01% | 46.65% | 45.91% | 47.43% | 52.73% | 56.71% | 62.66% | 63.55% | 43.56% | 47.5% | 54.11% | 56.4% |
| Gross Profit | 68.18M | 63.88M | 56.64M | 32.16M | 14.35M | 1.66M | 7.43M | 10.87M | 9.73M | 11.65M | 17.99M | 30.51M | 32.32M | 30.16M | 28.11M | 34.76M | 29.16M | 35.64M | 40.34M | 31.38M | 23.42M | 17.97M | 9.01M | 6.69M | 4.73M | 3.82M |
| Gross Margin % | 38.01% | 37.07% | 36.14% | 26.54% | 16.92% | 2.29% | 10.91% | 13.85% | 14.87% | 17.21% | 25.1% | 31.8% | 33.33% | 33.79% | 29.99% | 53.35% | 54.09% | 52.57% | 47.27% | 43.29% | 37.34% | 36.45% | 56.44% | 52.5% | 45.89% | 43.6% |
| Gross Profit Growth % | - | 12.79% | 76.1% | 124.1% | 765.62% | -77.67% | -31.66% | 11.63% | -16.43% | -35.24% | -41.04% | -5.61% | 7.16% | 7.3% | -19.15% | 19.23% | -18.19% | -11.66% | 28.55% | 34% | 30.31% | 99.55% | 34.57% | 41.65% | 23.69% | - |
| Operating Expenses | 24.59M | 23.44M | 23.31M | 21.71M | 13.92M | 14.07M | 11.03M | 15.98M | 9.1M | 10.08M | 9.56M | 15.36M | 10.33M | 8.14M | 7.89M | 19.9M | 17.79M | 17.88M | 15.77M | 12.79M | 11.29M | 9.11M | 5.1M | 4.02M | 2.88M | 2.62M |
| OpEx % of Revenue | - | 13.6% | 14.87% | 17.91% | 16.41% | 19.42% | 16.2% | 20.37% | 13.89% | 14.89% | 13.34% | 16.01% | 10.66% | 9.12% | 8.42% | 30.55% | 33.01% | 26.37% | 18.48% | 17.65% | 18% | 18.48% | 31.93% | 31.51% | 28.01% | 29.91% |
| Selling, General & Admin | 23.54M | 22.32M | 21.01M | 16.94M | 13.89M | 10.76M | 10.55M | 10.71M | 9.1M | 10.08M | 9.01M | 10.99M | 10.33M | 8.14M | 7.89M | 5.91M | 5.87M | 6.19M | 5.84M | 5.32M | 5.27M | 4.89M | 2.65M | 2.29M | 1.72M | 1.72M |
| SG&A % of Revenue | - | 12.95% | 13.41% | 13.98% | 16.38% | 14.86% | 15.5% | 13.65% | 13.89% | 14.89% | 12.58% | 11.46% | 10.66% | 9.12% | 8.42% | 9.07% | 10.88% | 9.13% | 6.85% | 7.34% | 8.4% | 9.92% | 16.62% | 17.98% | 16.69% | 19.61% |
| Research & Development | 0 | 0 | 0 | 100K | 0 | 0 | 0 | 125K | 125K | 125K | 125K | 125K | 125K | 130K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.08% | - | - | - | 0.16% | 0.19% | 0.18% | 0.17% | 0.13% | 0.13% | 0.15% | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 1.11M | 2.3M | 4.67M | 29K | 3.3M | 475K | 5.14M | 182K | 50K | 43K | 132K | 182K | 548K | 14K | 13.99M | 11.93M | 11.69M | 9.93M | 7.47M | 6.02M | 4.22M | 2.44M | 1.73M | 1.17M | 903.17K |
| Operating Income | 43.59M | 40.45M | 33.33M | 10.46M | 431K | -12.41M | -3.6M | -4.5M | 638K | 1.57M | 8.43M | 15.15M | 21.99M | 22.02M | 20.21M | 14.86M | 11.36M | 17.76M | 24.57M | 18.59M | 12.13M | 8.86M | 3.91M | 2.68M | 1.84M | 1.2M |
| Operating Margin % | 24.3% | 23.47% | 21.26% | 8.63% | 0.51% | -17.13% | -5.29% | -5.74% | 0.97% | 2.31% | 11.76% | 15.79% | 22.67% | 24.67% | 21.57% | 22.81% | 21.08% | 26.2% | 28.8% | 25.64% | 19.34% | 17.97% | 24.5% | 20.98% | 17.88% | 13.68% |
| Operating Income Growth % | - | 21.37% | 218.69% | 2326.22% | 103.47% | -244.76% | 20.08% | -805.8% | -59.29% | -81.41% | -44.35% | -31.11% | -0.15% | 8.93% | 36.04% | 30.76% | -36.02% | -27.72% | 32.2% | 53.24% | 36.93% | 126.54% | 46.17% | 45.34% | 53.55% | - |
| EBITDA | 81.94M | 77.1M | 64.67M | 37.01M | 24.55M | 12.99M | 21.6M | 18.77M | 22.72M | 22.87M | 30.23M | 37.91M | 43.49M | 40.16M | 35.92M | 28.85M | 23.29M | 29.45M | 34.5M | 26.06M | 18.15M | 13.13M | 6.42M | 4.47M | 3.08M | 2.17M |
| EBITDA Margin % | 45.67% | 44.74% | 41.26% | 30.54% | 28.94% | 17.94% | 31.74% | 23.92% | 34.7% | 33.78% | 42.18% | 39.52% | 44.85% | 45% | 38.33% | 44.28% | 43.21% | 43.44% | 40.43% | 35.95% | 28.94% | 26.63% | 40.23% | 35.03% | 29.89% | 24.73% |
| EBITDA Growth % | 22.14% | 19.22% | 74.76% | 50.76% | 88.98% | -39.86% | 15.1% | -17.4% | -0.66% | -24.34% | -20.26% | -12.85% | 8.29% | 11.81% | 24.5% | 23.88% | -20.91% | -14.64% | 32.39% | 43.57% | 38.22% | 104.56% | 43.75% | 45.14% | 42% | - |
| D&A (Non-Cash Add-back) | 38.34M | 36.66M | 31.35M | 26.55M | 24.12M | 25.4M | 25.2M | 23.27M | 22.08M | 21.3M | 21.8M | 22.76M | 21.51M | 18.14M | 15.71M | 13.99M | 11.93M | 11.69M | 9.93M | 7.47M | 6.02M | 4.27M | 2.51M | 1.79M | 1.24M | 968.12K |
| EBIT | 43.53M | 40.45M | 33.59M | 10.7M | 323K | -11.72M | -2.97M | -14.54M | -325K | 1.62M | 8.47M | 15.28M | 21.99M | 22.02M | 20.23M | 15.68M | 11.49M | 17.83M | 24.96M | 18.59M | 12.13M | 9.06M | 5.35M | 2.67M | 1.84M | 1.2M |
| Net Interest Income | -11.65M | -11.12M | -11.93M | -4.08M | -364K | -65K | -14K | -15K | -69K | -14K | -8K | -15K | -10K | -56K | -18K | -55K | -194K | -606K | -742K | -1.16M | -1.65M | -2M | -837.49K | -667.12K | -975.72K | -924.38K |
| Interest Income | 2.44M | 2.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 14.09M | 13.56M | 11.93M | 4.08M | 364K | 65K | 14K | 15K | 69K | 14K | 8K | 15K | 10K | 56K | 18K | 55K | 194K | 606K | 742K | 1.16M | 1.65M | 2M | 837.49K | 667.12K | 975.72K | 924.38K |
| Other Income/Expense | -14.48M | -13.91M | -11.66M | -3.84M | -472K | 622K | 615K | 596K | 113K | 36K | 35K | 117K | 172K | 492K | -4K | 769K | -64K | -536K | -355K | 144K | -256K | -1.8M | 603.43K | -671K | -471.22K | -502.94K |
| Pretax Income | 29.11M | 26.53M | 21.67M | 6.62M | -41K | -11.79M | -2.98M | -14.56M | 751K | 1.6M | 8.46M | 15.26M | 22.16M | 22.51M | 20.21M | 15.63M | 11.3M | 17.23M | 24.22M | 18.73M | 11.88M | 7.06M | 4.51M | 2M | 1.37M | 695.89K |
| Pretax Margin % | 16.23% | 15.4% | 13.82% | 5.46% | -0.05% | -16.27% | -4.38% | -18.56% | 1.15% | 2.37% | 11.81% | 15.91% | 22.85% | 25.22% | 21.56% | 23.99% | 20.96% | 25.41% | 28.38% | 25.84% | 18.93% | 14.32% | 28.29% | 15.72% | 13.3% | 7.94% |
| Income Tax | 7.28M | 6.6M | 4.44M | 1.87M | 528K | -2.6M | -4.79M | -693K | 325K | -18.25M | 2M | 5.12M | 8.03M | 8.12M | 7.53M | 5.87M | 4.27M | 6.21M | 8.63M | 6.46M | 4.29M | 2.62M | 1.14M | 696.8K | 583.46K | 313.9K |
| Effective Tax Rate % | 24.99% | 24.89% | 20.49% | 28.29% | -1287.8% | 22.09% | 160.59% | 4.76% | 43.28% | -1138.37% | 23.58% | 33.52% | 36.24% | 36.08% | 37.24% | 37.55% | 37.81% | 36.06% | 35.62% | 34.46% | 36.1% | 37.03% | 25.25% | 34.77% | 42.6% | 45.11% |
| Net Income | 21.84M | 19.93M | 17.23M | 4.75M | -569K | -9.18M | 1.81M | -13.86M | 426K | 19.85M | 6.47M | 10.15M | 14.13M | 14.39M | 12.69M | 9.76M | 7.03M | 11.02M | 15.59M | 12.28M | 7.59M | 4.45M | 3.37M | 1.31M | 786.09K | 381.99K |
| Net Margin % | 12.17% | 11.56% | 10.99% | 3.92% | -0.67% | -12.68% | 2.66% | -17.67% | 0.65% | 29.33% | 9.03% | 10.58% | 14.57% | 16.12% | 13.53% | 14.98% | 13.04% | 16.25% | 18.27% | 16.94% | 12.1% | 9.02% | 21.14% | 10.25% | 7.63% | 4.36% |
| Net Income Growth % | 28.58% | 15.68% | 262.9% | 934.27% | 93.8% | -607.91% | 113.04% | -3354.46% | -97.85% | 206.86% | -36.25% | -28.18% | -1.82% | 13.44% | 29.97% | 38.87% | -36.2% | -29.36% | 27% | 61.81% | 70.67% | 31.77% | 158.12% | 66.28% | 105.79% | - |
| Net Income (Continuing) | 21.84M | 19.93M | 17.23M | 4.75M | -569K | -9.18M | 1.81M | -13.86M | -466K | 19.85M | 6.47M | 10.15M | 14.13M | 14.39M | 12.69M | 9.76M | 7.03M | 11.02M | 15.59M | 12.28M | 7.59M | 4.45M | 3.37M | 1.31M | 786.09K | 3.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.71 | 1.57 | 1.37 | 0.38 | -0.05 | -0.70 | 0.14 | -1.06 | 0.03 | 1.51 | 0.50 | 0.79 | 1.11 | 1.15 | 1.03 | 0.80 | 0.58 | 0.91 | 1.28 | 1.01 | 0.66 | 0.52 | 0.52 | 0.23 | 0.16 | 0.11 |
| EPS Growth % | 27.41% | 14.6% | 260.53% | 922.51% | 93.4% | -600% | 113.21% | -3321.88% | -97.82% | 202% | -36.71% | -28.83% | -3.48% | 11.65% | 28.75% | 37.93% | -36.26% | -28.91% | 26.73% | 53.03% | 26.92% | 0% | 126.09% | 43.75% | 45.45% | - |
| EPS (Basic) | - | 1.59 | 1.39 | 0.39 | -0.05 | -0.70 | 0.14 | -1.06 | 0.03 | 1.54 | 0.51 | 0.81 | 1.14 | 1.17 | 1.04 | 0.80 | 0.58 | 0.91 | 1.29 | 1.02 | 0.67 | 0.59 | 0.59 | 0.24 | 0.19 | 0.11 |
| Diluted Shares Outstanding | 12.75M | 12.7M | 12.55M | 12.38M | 12.3M | 13.1M | 13.26M | 13.11M | 12.96M | 13.11M | 12.94M | 12.79M | 12.72M | 12.55M | 12.32M | 12.25M | 12.21M | 12.12M | 12.14M | 12.11M | 11.47M | 8.48M | 6.38M | 5.25M | 4.31M | 3.48M |
| Basic Shares Outstanding | 12.58M | 12.54M | 12.41M | 12.32M | 12.3M | 13.1M | 13.22M | 13.11M | 12.96M | 12.83M | 12.7M | 12.57M | 12.43M | 12.32M | 12.22M | 12.15M | 12.11M | 12.1M | 12.09M | 12.07M | 11.4M | 7.56M | 5.59M | 4.95M | 3.65M | 3.36M |
| Dividend Payout Ratio | - | 13.23% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 9.26% | 13.56% | 2.86% |
Permian Basin consolidation risk
According to recent quarterly filings, NGS achieved a 17.1% year-over-year revenue growth in 2026Q1, signaling a sustained recovery from the mid-2025 growth deceleration and suggesting that the company's specialized compression services are successfully capturing increased demand within the Permian Basin's maturing oil-weighted production environment.
The acceleration in top-line growth appears to be driven by the essential nature of compression in maintaining artificial lift for aging wells. Investors should monitor whether this growth remains organic or if it reflects a shift toward higher-capital-intensity projects that may alter the company's historical risk profile.
As reported in financial statements, the company's gross margin reached 41.1% in 2026Q1, representing a notable recovery from the 35.6% trough observed in 2025Q4, which suggests that NGS is successfully navigating input cost pressures while maintaining premium pricing power for its specialized small-to-medium horsepower compression units.
The fluctuation in gross margins suggests that the company's profitability is sensitive to the mix of rental versus sales revenue. The recent expansion indicates that management may be effectively passing through inflationary costs, though the sustainability of these margins warrants further investigation given the competitive landscape.
Based on the latest income statement data, NGS demonstrated improved operating leverage in 2026Q1 with an operating margin of 27.7%, a significant expansion from the 14.9% reported in 2024Q4, indicating that the company is scaling its revenue base more efficiently relative to its fixed overhead costs.
The ability to expand operating margins while growing revenue suggests that the company's SG&A expenses are well-contained. This trend may indicate that the current fleet utilization levels are reaching an optimal point where incremental revenue contributes disproportionately to the bottom line.
As indicated by the periodic fluctuations in stock-based compensation, which reached $783,000 in 2024Q4 before declining to zero in 2026Q1, the quality of reported net income appears to be improving as non-cash compensation expenses have been eliminated from the most recent quarterly earnings calculations.
The absence of stock-based compensation in the most recent quarter suggests a cleaner earnings profile, though investors should monitor if this is a permanent shift in compensation strategy. The volatility in net income margins suggests that non-operating items or tax adjustments may still influence the bottom line.
While recent performance appears strong, the historical volatility in gross margins, which swung from 59.5% in 2024Q3 to 34.5% in 2024Q2, suggests that the company's profitability may be highly susceptible to project-based sales lumpy revenue and potential maintenance cost spikes in an aging rental fleet.
Short-term margin expansion may be masking underlying risks related to the electrification of the oilfield and the potential obsolescence of internal combustion engine units. The market's focus on these metrics may be premature if the company is forced to increase capital expenditures to remain competitive.
Quick answers to the most common questions about buying NGS stock.
For fiscal year 2025, Natural Gas Services Group, Inc. (NGS) reported total revenue of $172.3M. This represents a 1866.6% increase compared to $8.8M in 2001.
Natural Gas Services Group, Inc. (NGS) is profitable, generating $19.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.6%.
Natural Gas Services Group, Inc. (NGS) reported an operating income of $40.4M, resulting in an operating profit margin of 23.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Natural Gas Services Group, Inc. (NGS) generated $63.9M in gross profit for the year, representing a gross profit margin of 37.1%. This demonstrates the company's core pricing power and production efficiency.