Ranger Energy 2025 Q3 Earnings Sharp Net Income Drop of 86.2% Amid Revenue Decline

Ranger Energy Services (RNGR) reported Q3 2025 earnings that missed expectations, with net income plummeting to $1.2 million from $8.7 million a year ago. The company’s revenue fell 16% year-over-year to $128.9 million, driven by weakness in completion-focused services and northern district operations. Despite a strategic acquisition of American Well Services, the stock opened 3% lower premarket, extending its 11.2% year-to-date decline.

Revenue

Ranger Energy’s Q3 2025 revenue declined 16% year-over-year to $128.90 million, with High Specification Rigs leading the segment with $80.90 million in revenue. Processing Solutions and Ancillary Services contributed $30.80 million, while Wireline Services reported $17.20 million. The Wireline segment faced operational challenges, including a $1.6 million inventory adjustment, and the “Other” category remained flat at $0.

Earnings/Net Income

The company’s net income fell to $1.20 million, or $0.05 per share, a stark 86.2% decline from $8.70 million in Q3 2024. Earnings per share also dropped 84.6% to $0.06, underscoring the earnings miss. The sharp contraction in profitability highlights the sector’s struggles amid depressed commodity prices and reduced activity.

Post-Earnings Price Action Review

Following the earnings release, Ranger Energy’s stock price declined 3.05% premarket, reflecting investor disappointment over the revenue and earnings shortfall. The stock closed the latest trading day up 2.12%, with a 2.72% weekly gain and a 13.02% month-to-date increase, indicating mixed sentiment. The market’s reaction suggests skepticism about near-term recovery despite the company’s strategic moves, including the American Well Services acquisition and ECHO rig program.

CEO Commentary

CEO Stuart Bodden emphasized the strategic importance of the American Well Services acquisition, which expanded Ranger’s rig count by 25% and positioned it as the largest well-servicing provider in the Lower 48. He highlighted the transaction’s immediate accretion to earnings and cash flow, alongside $4 million in anticipated annual synergies. Bodden expressed optimism about 2026, projecting over $100 million in adjusted EBITDA under current market conditions and higher potential with commodity price recovery.

Guidance

Ranger Energy provided 2026 guidance, forecasting adjusted EBITDA exceeding $100 million and $1.24 per share in earnings. The company expects $36 million in EBITDA from American Well Services within 12 months post-acquisition. Management also outlined $5 million in annual cost and revenue synergies from the AWS integration, to be realized by Q3 2026.

Additional News

Ranger Energy’s acquisition of American Well Services for $90.5 million marked a pivotal expansion in the Permian Basin, enhancing its high-spec rig fleet and complementary service lines. The company also declared a $0.06 per share quarterly dividend, aligning with its prior payout. In its SEC 10-Q filing, Ranger noted operational adjustments to inventory tracking and a focus on integrating AWS, with pro forma EBITDA expected to surpass $100 million. The acquisition is structured as a cash-free, debt-free deal, funded by existing liquidity and borrowings, maintaining a conservative leverage ratio.