Q2 2026 Mammoth Energy Services Inc Earnings Call Transcript
Key Points
- Mammoth Energy Services Inc (TUSK) delivered a strong second quarter with revenue of $26.1 million, up 19% sequentially and 110% year-over-year, and achieved a second consecutive quarter of positive adjusted EBITDA with margins of 10%.
- The company raised its full-year 2026 guidance for the second time in five months, now expecting revenue growth of greater than 90% and adjusted EBITDA margins in excess of 10%, ahead of its original timeline.
- The drilling segment turned adjusted EBITDA positive, and the sand segment saw gross margin turn positive, with sand volumes up 47% sequentially and average price per ton improving to $21.36.
- Mammoth Energy Services Inc (TUSK) completed its first acquisitions of operating businesses in eight years, acquiring Mission Construction and BRE Rentals to expand its fiber optic services, with integration progressing well.
- The company remains debt-free with $77 million in cash and marketable securities, and deployed $50 million in capital during the quarter, including a Boeing 747 package where it retained high-returning engines and sold the airframe for $2 million.
- Aviation leasing and equipment rental activity continued to grow, with the aviation fleet expanding to 38 assets and equipment rental pieces on rent increasing to 407, driving strong sequential revenue growth in these areas.
- Mammoth Energy Services Inc (TUSK) reported a net loss from continuing operations of $1.2 million in the second quarter, a sequential decline from net income of $4.7 million in the first quarter.
- Rental segment revenue declined 22% sequentially due to a $4.5 million drop in aviation asset sale revenue, which was close to cost basis and not forecasted, creating volatility in revenue.
- The sand segment still reported negative adjusted EBITDA, though the loss narrowed by 71% sequentially, and the company is nearing capacity with current staffing, limiting near-term volume growth without adding shifts.
- Infrastructure segment revenue remained down year-over-year as the operational reset continues, with only three weeks of contribution from the newly acquired fiber businesses in the quarter.
- SG&A expenses increased to $4.2 million in the second quarter, driven partly by $0.3 million in transaction costs related to aviation fleet growth, and the company faces limitations on share repurchases due to trading windows and volume constraints.
- The company's capital deployment in aviation, with over $100 million invested, has not yet translated to consistent free cash flow positivity, and the pace of lease placement lags asset acquisitions, creating a timing gap.
Greetings. Welcome to the Mammoth Energy second quarter 2026 earnings conference call.
(Operator Instructions)
At this time, I'll turn the conference over to Mohammad Topiwala with Vizara Advisors Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you joining us for Mammoth's second quarter 2026 earnings conference call. Joining us on the call today are Mark Layton, Chief Financial Officer and Bernard Lancaster, Chief Operating Officer. We will start today with our prepared remarks and then open it up for questions.
I want to remind everyone that some of today's comments include forward-looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest Securities and Exchange Commission filings for risk factors and cautions regarding forward-looking statements.
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