Executive Summary

Q2 2025 was resilient: revenue $140.6M (+2% YoY; +4% QoQ), diluted EPS $0.32, and Adjusted EBITDA $20.6M with 14.7% margin; wireline turned positive EBITDA while high-spec rigs set a record for rig hours .
Against S&P Global consensus, RNGR posted a small revenue beat (+$0.6M), an EPS beat (Primary EPS actual $0.2518 vs $0.24), and a modest EBITDA miss (S&P EBITDA actual $18.6M vs $19.0M estimate); note company-reported Adjusted EBITDA of $20.6M exceeds S&P’s standard EBITDA measure*.
Management launched the ECHO hybrid electric workover rig, contracted two units for deployment by end of Q3, a potential narrative catalyst around technology leadership and emissions reduction .
Capital returns continued: 278,100 shares repurchased ($3.3M) and a $0.06 quarterly dividend declared; total liquidity rose to $120.1M with no revolver borrowings .
Outlook: stable activity in Q3, caution on Q4 due to budgets/macro; CapEx guidance maintained in “low $30s” for FY 2025, with discipline and optionality for ECHO scaling and M&A .

What Went Well and What Went Wrong

What Went Well

Record rig hours in High Specification Rigs (117,000 hours) with segment revenue $86.3M and Adjusted EBITDA $17.6M; CEO: “Our flagship High Specification Rigs business delivered yet another record for rig hours...” .
Wireline Services rebounded sequentially: revenue +28% QoQ to $22.1M, positive Adjusted EBITDA $1.6M; stage counts rose to 2,500 (+79% QoQ) .
Technology leadership: announcement of ECHO hybrid electric rig with contracted deployments and features like regenerative braking, remote safety interlocks, and AI-enabled digital interface; “poised to reshape how well servicing work gets done” .

What Went Wrong

Pricing/mix pressure: hourly rig rates decreased 2% QoQ to $738 vs $756 in Q1, and margins down YoY in several segments despite volume strength .
Wireline still below prior-year levels: revenue -10% YoY, reflecting lingering market softness and lower operating leverage vs 2024 .
Macro uncertainty and crude price softness into the $60s; management flagged potential Q4 unpredictability tied to customer budgets and macro sentiment .

Financial Results

Consolidated Performance vs Prior Periods and YoY

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$138.1	$143.1	$135.2	$140.6
Diluted EPS ($USD)	$0.21	$0.25	$0.03	$0.32
Adjusted EBITDA ($USD Millions)	$21.0	$21.9	$15.5	$20.6
Adjusted EBITDA Margin (%)	—	15.3%	11.4%	14.7%

Notes: Adjusted EBITDA is non-GAAP; see company reconciliations .

Segment Breakdown

Segment	Q2 2024	Q1 2025	Q2 2025
High Specification Rigs – Revenue ($M)	$82.7	$87.5	$86.3
High Specification Rigs – Operating Income ($M)	$11.8	$12.0	$12.0
High Specification Rigs – Adjusted EBITDA ($M)	$18.7	$17.4	$17.6
Processing & Ancillary – Revenue ($M)	$30.9	$30.5	$32.2
Processing & Ancillary – Operating Income ($M)	$5.2	$3.3	$4.5
Processing & Ancillary – Adjusted EBITDA ($M)	$7.3	$5.6	$6.6
Wireline Services – Revenue ($M)	$24.5	$17.2	$22.1
Wireline Services – Operating Income (Loss) ($M)	$(2.6)	$(5.8)	$(1.2)
Wireline Services – Adjusted EBITDA ($M)	$0.4	$(2.3)	$1.6

KPIs and Balance Sheet

KPI	Q2 2024	Q1 2025	Q2 2025
Rig Hours (000s)	113.1	115.7	117.0
Hourly Rig Rate ($/hr)	$732	$756	$738
Wireline Completions Stages (count)	1,700	1,400	2,500
Free Cash Flow ($M)	$6.8	$3.4	$14.4
End-of-Period Liquidity ($M)	$112.1 (12/31/24)	$104.4 (3/31/25)	$120.1 (6/30/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
CapEx ($M)	FY 2025	“Low $30s” (year-over-year similar)	Maintaining prior guidance; trimming as needed	Maintained
Dividend per Share	Q3 2025	$0.06 declared in Q1 2025	$0.06 declared; payable Aug 22, 2025	Maintained
Wireline EBITDA	Q3 2025	Q1 losses and breakeven March	Positive EBITDA in Q2; “repeatable in the third quarter”	Raised (qualitative)
ECHO Rig Deployment	Q3 2025	Two rigs committed early 2025	Delivery/testing before end of Q3; contracted with major operators	On track
Share Repurchases	2H 2025	No repurchases in Q1	Resumed in Q2 ($3.3M); continued in Q3 per CFO	Resumed/Continuing

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Technology/AI	No electrified rigs; ops excellence; TRIR records	ECHO hybrid electric rig launch; AI-enabled interface; regenerative braking; remote safety interlocks	Strong positive; innovation-led differentiation
Macro & Pricing	Seasonal weakness; wireline exposed to cold weather	Macro softness; crude in $60s; stable Q3 activity, caution Q4 budgets	Mixed; resilient core, cautious Q4
High-Spec Rigs	Record revenue; utilization through holidays	Record rig hours; minor rate decline (-2% QoQ) due to package mix	Volume up; pricing stable-to-soft
Wireline	Q4 seasonal decline; Q1 losses, breakeven March	QoQ rebound; positive EBITDA; cost control focus	Improving sequentially
Ancillary (Coil/Torrent/P&A)	Torrent growth; P&A seasonal pullback	Coil rebounded; Torrent steady; P&A discretionary pullback	Coil/Torrent up; P&A softer
Regional Trends	Northern exposure weighed in winter	Permian strength; one ECHO to Permian, one to North	Balanced deployment
Capital Allocation	FY24 >40% FCF returned; dividend up to $0.06	Repurchases resumed; dividend maintained; optionality for M&A/ECHO	Shareholder returns ongoing

Management Commentary

CEO: “Our flagship High Specification Rigs business delivered yet another record for rig hours… [and] our ECHO rig design is the best evidence of [our commitment to] Lead the Way…” .
CEO on ECHO: “Zero-emissions profile when well site power is available… regenerative braking… digital interface capable of applying machine learning… 30-minute recharge window…” .
CFO: “Adjusted EBITDA… a sequential increase of 33%… Wireline returned to profitability… Free cash flow YTD totaled $17.8M… we see the Ranger share price at current levels as an incredibly compelling investment and use of capital… holding prior [CapEx] guidance” .
CEO on outlook: “We see continued stability in Q3… the fourth quarter has historically been unpredictable… we will be disciplined capital allocators… prioritize shareholder returns” .

Q&A Highlights

ECHO economics: Customers share incremental retrofit costs via down payments and uplifted rates; expected return profiles similar or better than traditional refurb rigs .
Wireline improvement drivers: Internal cost focus (labor/fixed) and seasonal normalization drove QoQ profitability; consolidation benefits still early to judge .
Q4 uncertainty: Activity depends on budgets and macro; strengthening gas markets would help; narrative remains cautious .
Scaling ECHO: Demand-driven; optioned for additional rigs with current customers; basin/weather agnostic; potential 20+ rigs over 3–5 years if demand persists .
Capital allocation: CapEx “low $30s” maintained; repurchases resumed and continuing; keeping cash optionality for ECHO, M&A, and returns without levering up .

Estimates Context

Metric (S&P Global)	Q2 2025 Consensus	Q2 2025 Actual (S&P definition)	Surprise
Revenue ($USD Millions)	140.0	140.6	+0.6 (Beat)*
Primary EPS ($USD)	0.24	0.2518	+0.0118 (Beat)*
EBITDA ($USD Millions)	19.0	18.6	-0.4 (Miss)*
Target Price (12M, $USD)	18.0	18.0	—*
# of Estimates (Revenue/EPS)	1 / 1	—	Limited sample size*

Notes: Company-reported Adjusted EBITDA was $20.6M (non-GAAP), which is above S&P’s standard EBITDA actual of $18.6M . The difference reflects non-GAAP adjustments (equity comp, gains/losses, credits, etc.) reconciled in exhibits .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Resilient production-focused profile: Record rig hours and stable pricing underpin earnings durability despite macro softness; sequential EBITDA rebound adds confidence .
Narrative catalyst: ECHO hybrid electric rigs position RNGR as a technology leader in well services, with contracted deployments and customer options that could scale over time .
Wireline turnaround: Cost discipline and seasonal normalization drove a return to positive EBITDA; management sees Q3 repeatability, which could drive multi-segment margin uplift .
Capital returns supported by balance sheet: $120.1M liquidity, no revolver borrowings, ongoing buybacks, and $0.06 dividend provide downside support and optionality .
Watch Q4 risk: Budget exhaustion and macro sentiment could pressure activity; trading tactically around Q3 stability vs Q4 caution may be prudent .
Estimates revisions: Expect modest upward adjustments to EPS and revenue given small beats, with EBITDA framing sensitive to GAAP vs adjusted definitions*; monitor consensus breadth (only one estimate)*.
Medium-term thesis: Production-centric exposure, disciplined CapEx (low $30s), and targeted M&A/technology investments (ECHO, Torrent) support cash generation and shareholder returns through cycles .

Ranger Energy Services, Inc. (RNGR)·Q2 2025 Earnings Summary