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MAMMOTH ENERGY SERVICES, INC. (TUSK)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue was $14.80M, down 9.8% q/q and 13.2% y/y; net loss from continuing operations widened to $12.06M ($0.25 per diluted share), while adjusted EBITDA loss increased to $4.38M .
  • Drilling delivered a standout quarter: revenue +207% q/q and +47% y/y, with record 19% gross margin and positive free cash flow, validating focus on the Permian Basin .
  • SG&A fell to $5.2M; management highlights a normalized run-rate roughly half of 2024 after Puerto Rico legal costs, and subsequent release of $19.8M restricted cash strengthened pro forma liquidity above $170M with no debt .
  • Sand and infrastructure underperformed (sand revenue -49% q/q; infra revenue -13% q/q) due to divestitures, railcar returns, weather, and project execution; management expects a 2026 margin recovery and aircraft redeployment at higher lease rates in Q4 .
  • Near-term stock catalysts: balance sheet strengthening via restricted cash release, visible operational improvements in drilling and accommodations, and aviation asset redeployments at higher lease rates .

What Went Well and What Went Wrong

What Went Well

  • Drilling segment achieved “gross margin reaching the highest level in the segment's history” with revenue more than tripling sequentially on Permian horizontal activity; EBITDA turned positive and free cash flow was positive with no segment CapEx .
  • Cost discipline and SG&A reduction: “lowered our SG&A run rate from approximately $35 million in 2024 to around $21 million exiting the third quarter,” with normalized SG&A roughly half of last year excluding $1M Puerto Rico-related legal expense .
  • Liquidity enhancement: $110.9M unrestricted cash and $153.4M total liquidity at quarter-end, plus “approximately $19.8M” restricted cash released post quarter, taking total liquidity pro forma above $170M; company remains debt-free .

What Went Wrong

  • Sand segment revenue fell to $2.7M (-49% q/q, -44% y/y) as Piranha divestiture and weather headwinds persisted; incurred ~$0.6M railcar return costs, with monthly railcar cost reduced by ~$30k to ~$120k .
  • Infrastructure revenue declined to $4.8M (-13% q/q) on execution challenges and customer delays; management implemented corrective actions, including leadership changes and tighter project oversight .
  • Consolidated profitability pressured: adjusted EBITDA loss widened to $4.38M vs $2.78M loss in Q2; net loss per diluted share from continuing ops at ($0.25), impacted by a non-cash Piranha-related charge of $2.4M .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$17.05 $16.41 $14.80
Net Loss per Diluted Share – Continuing Ops ($)($0.18) ($0.74) ($0.25)
Adjusted EBITDA – Continuing Ops ($USD Millions)($2.94) ($2.78) ($4.38)
SG&A ($USD Millions)$6.78 $5.34 $5.16

Segment revenue

Segment Revenue ($USD Millions)Q3 2024Q2 2025Q3 2025
Rentals$2.15 $3.08 $2.75
Infrastructure$4.35 $5.45 $4.76
Sand$4.91 $5.38 $2.73
Accommodations$2.85 $1.77 $2.28
Drilling$1.56 $0.74 $2.28
Total$17.05 $16.41 $14.80

Segment adjusted EBITDA

Segment Adjusted EBITDA ($USD Millions)Q3 2024Q2 2025Q3 2025
Rentals$0.53 $0.48 ($0.33)
Infrastructure($0.28) $0.20 ($0.99)
Sand$0.25 ($1.22) ($2.18)
Accommodations$0.70 $0.16 $0.47
Drilling($0.14) ($0.20) $0.21
Corporate/Other($4.00) ($2.20) ($1.56)
Total($2.94) ($2.78) ($4.38)

KPIs

KPIQ3 2024Q2 2025Q3 2025
Sand tons sold (000s)163 242 122
Sand ASP ($/ton)$22.89 $21.41 $18.26
Rentals – avg equipment rented (units)249 296 286
Accommodations – avg rooms utilized (units)222 145 185
Drilling gross margin (%)n/an/a19%
Quarter-end total liquidity ($USD Millions)n/a$194.8 (as of 6/30) $153.4 (as of 9/30)
CapEx ($USD Millions)n/a$26.90 $17.30

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
CapEx (ex acquisitions)FY 2025~$42M (continuing ops) “Remain within previously communicated range” Maintained
Adjusted EBITDA (continuing ops)2H 2025Loss of $3–$4M No update provided in Q3 call Maintained/Not updated
Aviation asset deploymentQ4 2025Two of eight aircraft off-lease undergoing upgrades Expect redeployment next quarter at higher lease rates Clarified higher rates
Sand margin outlook2026n/aExpect return to positive gross margin in 2026 New long-term outlook
Liquidity (restricted cash)Post Q3n/a~$19.8M of $29.5M restricted cash released; pro forma liquidity >$170M Positive liquidity event

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
Aviation platform growthBought 8 aircraft; aviation added stable revenue; IRR target 25–35% Added engines/APUs; two aircraft to be redeployed at higher lease rates next quarter Accelerating deployment and pricing
Infrastructure demand driversBacklog and macro tailwinds (AI/data centers) Demand tied to grid hardening, broadband, data centers; short-term execution issues addressed Constructive long-term; near-term fix underway
Sand volumes/pricingQ2: 242k tons at $21.41; majority sales into Montney Q3: 122k tons at $18.26; railcar fleet right-sizing; 2026 volume expected to improve; ~$20/ton 40/70 Reset in Q3, gradual rebuild expected
Drilling focus/performanceQ2 utilization improvement; modest revenue Record margins (19%) and strong q/q revenue growth; positive FCF Strong turnaround
SG&A/legalQ2: SG&A $5.3M; Puerto Rico legal overhang $2.0–$2.5M in H2 SG&A $5.2M; normalized run-rate ~50% of 2024 after excluding Puerto Rico legal Structural cost reset progressing
Liquidity/Balance sheetQ2: $127.3M cash; $194.8M total liquidity; debt-free $110.9M cash + $12.7M marketable securities; restricted cash release post quarter → >$170M total liquidity, debt-free Strengthened post quarter

Management Commentary

  • “Our drilling segment was a standout this quarter, with revenue more than tripling sequentially and gross margin reaching the highest level in the segment's history.”
  • “We delivered positive free cash flow from operations… supported by the monetization of underutilized assets.”
  • “We have now deployed approximately $40 million year-to-date to grow and diversify our aviation portfolio… generating positive EBITDA from day one.”
  • “Including bad debt expense, we have meaningfully lowered our SG&A run rate from approximately $35 million in 2024 to around $21 million exiting the third quarter.”
  • “With over $170 million in total liquidity pro forma for the release, we are well-positioned to fund our ongoing transformation.”

Q&A Highlights

  • Sand outlook: Logistics advantage into Western Canada (Montney) and Northeast; volumes expected to increase vs Q3 “reset” in 2026 .
  • Railcar costs: Q3 included ~$550k one-time railcar return costs; monthly railcar liability ~$120k, reduced by ~$30k per month after returns; fleet reduced ~30% year-to-date .
  • Pricing: Sand pricing “a little below $20” in Q3 due to offloading 30/50; ongoing demand/pricing around ~$20/ton for 40/70 .
  • Balance sheet: Cash and marketable securities around $123M at 10/31; ~$10M escrow tied to T&D sale expected April 2026; ~$5M assets held for sale (drilling rigs) .
  • PREPA: ~$20M receivable due upon PREPA’s exit from bankruptcy; tax liability on balance sheet reflects gross amount pending negotiation/write-off discussions .

Estimates Context

  • S&P Global consensus for Q3 2025 EPS and revenue was not available; comparisons anchored to reported actuals. Values retrieved from S&P Global.*
  • Where consensus is unavailable, we note results vs prior quarter and prior year; no beat/miss determination can be made .
MetricQ3 2025 ConsensusQ3 2025 Actual
Revenue ($USD Millions)Unavailable*$14.80
EPS – Continuing Ops ($)Unavailable*($0.25)

Key Takeaways for Investors

  • Portfolio transformation is taking hold: drilling and accommodations offset softness in sand and infrastructure; expect continued operational improvement as corrective actions flow through .
  • Aviation rental platform is a key growth engine with immediate EBITDA contribution and higher lease rates expected from redeployments in Q4; capital continues to be directed here given high-return profile .
  • Balance sheet remains a strategic asset: debt-free with >$170M pro forma liquidity post restricted cash release; increases flexibility for opportunistic capital deployment or buybacks when blackout periods permit .
  • Sand segment reset likely trough in Q3; right-sizing rail fleet and improved sales dialogue point to volume/margin progression into 2026, but near-term profitability remains challenged .
  • Infrastructure execution must improve; leadership changes and project oversight suggest margin recovery potential as secular demand (grid/data centers/broadband) persists .
  • Cost structure reset is material: SG&A run-rate down significantly vs 2024, supporting path to improved EBITDA and cash generation as segment mix normalizes .
  • Trading lens: Focus on near-term catalysts (aviation redeployment/higher rates, drilling strength, liquidity events) versus risks (sand volumes/pricing, project execution) for positioning around upcoming Q4 update .
Sources:
- Q3 2025 earnings call transcript: **[0001679268_2221596_0]** **[0001679268_2221596_1]** **[0001679268_2221596_2]** **[0001679268_2221596_3]** **[0001679268_2221596_4]** **[0001679268_2221596_5]** **[0001679268_2221596_6]** **[0001679268_2221596_7]**; **[0001679268_2224856_0]** **[0001679268_2224856_1]** **[0001679268_2224856_2]** **[0001679268_2224856_3]** **[0001679268_2224856_4]** **[0001679268_2224856_5]** **[0001679268_2224856_6]** **[0001679268_2224856_7]** **[0001679268_2224856_8]** **[0001679268_2224856_9]**
- Q3 2025 8-K / press release and financial exhibits: **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:0]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:1]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:2]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:3]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:5]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:6]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:7]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:8]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:9]** **[1679268_0001679268-25-000036_a2025-09x30exx991.htm:10]** **[1679268_0001679268-25-000036_tusk-20251031.htm:0]** **[1679268_0001679268-25-000036_tusk-20251031.htm:1]** **[1679268_0001679268-25-000036_tusk-20251031.htm:2]**
- Q3 2025 press release: **[1679268_20251031DA12094:0]** **[1679268_20251031DA12094:1]** **[1679268_20251031DA12094:2]** **[1679268_20251031DA12094:3]** **[1679268_20251031DA12094:4]** **[1679268_20251031DA12094:5]** **[1679268_20251031DA12094:6]** **[1679268_20251031DA12094:7]** **[1679268_20251031DA12094:8]** **[1679268_20251031DA12094:9]** **[1679268_20251031DA12094:10]**
- Q2 2025 call and release for trend: **[1679268_2067404_0]** **[1679268_2067404_1]** **[1679268_2067404_2]** **[1679268_2067404_3]** **[1679268_2067404_4]** **[1679268_2067404_5]** **[1679268_2067404_6]** **[1679268_2067404_7]** **[1679268_2067404_8]**; **[1679268_20250808DA47152:0]** **[1679268_20250808DA47152:1]** **[1679268_20250808DA47152:2]** **[1679268_20250808DA47152:6]** **[1679268_20250808DA47152:7]** **[1679268_20250808DA47152:8]** **[1679268_20250808DA47152:9]** **[1679268_20250808DA47152:10]**
- Q1 2025 call and release for trend context: **[1679268_TUSK_3425910_0]** **[1679268_TUSK_3425910_1]** **[1679268_TUSK_3425910_2]** **[1679268_TUSK_3425910_3]** **[1679268_TUSK_3425910_4]** **[1679268_TUSK_3425910_5]** **[1679268_TUSK_3425910_6]**; **[1679268_20250507DA81716:0]** **[1679268_20250507DA81716:1]** **[1679268_20250507DA81716:2]** **[1679268_20250507DA81716:4]** **[1679268_20250507DA81716:5]** **[1679268_20250507DA81716:6]** **[1679268_20250507DA81716:7]** **[1679268_20250507DA81716:8]** **[1679268_20250507DA81716:9]** **[1679268_20250507DA81716:10]** **[1679268_20250507DA81716:11]** **[1679268_20250507DA81716:12]** **[1679268_20250507DA81716:13]**