Ranger Energy's Sequential Revenue Growth Reverses

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter revenue was $162.8 million and Adjusted EBITDA $20.1 million as activity and costs compressed earnings.

Ranger Energy Services (RNGR), a U.S. oilfield services company, reversed the second quarter’s sequential revenue expansion in the three months ended September 30, 2026, as activity softened across its service lines and costs rose.

Revenue was $162.8 million, down from $176.5 million in the second quarter. Adjusted EBITDA fell to $20.1 million from $28.6 million, and the Adjusted EBITDA margin compressed to 12.3% from 16.2%. Net income dropped to $2.5 million, or $0.10 a share, from $6.9 million, or $0.29 a share.

Chief Executive Officer Stuart Bodden said the quarter brought unexpectedly softer activity, some pricing challenges and margin degradation from inflationary costs, the largest of which was an incremental $1.5 million in employee medical costs versus the prior quarter. Cost of services was $138.0 million, or 85% of revenue. The company said the sequential EBITDA decline combined activity declines with higher costs, most significantly employee-related expenses and fuel.

High Specification Rigs, the largest segment, posted revenue of $110.5 million after the prior quarter’s modest sequential growth. Rig hours fell 2% to 143,500 from 146,800, and hourly rig rates slipped to $770 from $772. Segment operating income declined 21% to $8.9 million from $11.2 million, and Adjusted EBITDA fell to $18.4 million from $20.6 million. The company said customers were managing budgets more closely, creating white space across the fleet, and that displaced competitors were offering price reductions; Ranger said it chose to maintain pricing discipline.

Processing Solutions and Ancillary Services revenue fell 10% to $40.0 million from $44.5 million. Operating income dropped to $2.7 million from $6.3 million, and Adjusted EBITDA declined to $6.8 million from $10.0 million. Legacy Rentals and Plugging and Abandonment continued to perform, the company said, while Transportation, Mixing Plants and Tubing Inspection acquired through AWS were below expectations; those operations are being reorganized. Sequential results also included unique one-time charges in the Torrent service line.

Wireline Services revenue fell 34% to $12.3 million from $18.6 million, and completed stages dropped to 700 from 2,560. The segment swung to an operating loss of $1.4 million from operating income of $1.0 million, and Adjusted EBITDA declined to $0.2 million from $3.6 million. The company said breaks in customer well programs drove the activity decline, that it took timely cost reductions, and that new work programs began in October with higher revenue expected in the fourth quarter and a return to mid-single-digit margins.

Free Cash Flow was $20.0 million for the quarter, matching the second-quarter level. Ranger used the cash to pay off revolving credit facility borrowings from the AWS acquisition and exited September 30 with no active borrowings, $70.2 million of available capacity under the revolver and $6.0 million of cash, for total liquidity of $76.2 million. It repurchased 142,100 shares for $2.2 million, net of tax, at an average $15.74 a share, and the board declared a $0.06 a share cash dividend payable December 4, 2026.

On October 8, 2026, Ranger completed the acquisition of STEP Energy Services’ U.S. coil tubing assets, which it said positions it as the second-largest coil tubing provider in the lower 48 and expects to contribute more than $10 million of EBITDA in 2027 from the pro forma service line. During the quarter it secured contracts for four additional ECHO hybrid electric workover rigs, bringing the fleet in operation or construction to 24. Bodden said the contracted ECHO fleet is expected to reach 24 rigs by the end of 2027 and that the company remains focused on a goal of $100 million of annual EBITDA.