Ranger Energy Services NYSE: RNGR reported first-quarter 2026 results marked by year-over-year growth and improving momentum late in the quarter, even as operations were disrupted early on by severe winter weather. On the company’s earnings call, executives said activity rebounded in February and March after Winter Storm Fern temporarily slowed work across regions, particularly in the Permian Basin.
Quarterly results and weather-related disruption
CEO Stuart Bodden said the quarter “began sluggishly but finished with strong momentum,” adding that the improved cadence continued into April. Ranger reported total revenue of $159.1 million and adjusted EBITDA of $23.3 million for the first quarter, which Bodden characterized as “solid financial results with meaningful year-over-year growth.”
While the storm created several days of downtime in January, Bodden said utilization improved as conditions normalized, and the company exited the quarter with “stronger utilization and improving operating cadence.”
High-spec rigs: utilization rebound and pricing support
The high-spec rigs segment again served as the company’s largest contributor. Bodden said segment revenue increased sequentially and year-over-year, supported by a full quarter of legacy AWS rigs, improved utilization across the legacy Ranger fleet, and “resilient pricing.”
He noted some margin pressure from “higher levels of white space earlier in the quarter and some maintenance-related expenses,” but said segment margins remained “over 20%” and are expected to improve in the second and third quarters as scheduling and scale benefits take hold. Bodden also highlighted an “expansion of our rig rate to $731 per hour.”
CFO Melissa Cougle provided additional detail, reporting high-spec rig segment revenue of $106.2 million versus $92.3 million in the fourth quarter of 2025. Rig hours totaled about 145,400, up from 128,500 in the prior quarter and 115,700 in the first quarter of 2025. Segment adjusted EBITDA was $21.4 million, compared with $19.6 million in the fourth quarter and $17.4 million a year earlier. Cougle said margins remained above 20% due to “solid execution, cost discipline, and operating leverage.”
ECHO hybrid rig program and AWS integration
Management reiterated that integrating the AWS businesses remains a key priority, with Bodden saying integration progressed well and Ranger is already seeing early benefits from combining acquired assets with its platform.
Ranger also discussed continued progress on its ECHO hybrid electric rig program. Bodden said construction activity is underway and advancing as planned, and that the first ECHO rigs deployed in late 2025 are currently operating in the field with “impressive” early results, including “a high amount of productive time” and positive customer feedback. He said the company views ECHO as a differentiator, citing improved efficiency, lower fuel consumption, and emissions benefits for customers.
In the Q&A, Bodden said Ranger has become “more and more confident” the ECHO rigs will be “additive” capacity rather than displacing existing equipment, which he described as potentially meaningful for the business.
Ancillary services growth and wireline improvement
Bodden said ancillary services continued to grow in strategic importance, with opportunities to expand through cross-selling, utilization improvements, and leveraging customer relationships. He highlighted progress within several service lines, including the P&A group beginning work under a recently awarded Texas Railroad Commission contract. Bodden said the work is progressing well and helps diversify the revenue base.
He also called the tubing, rental, and inspection business acquired in the fall “a bright spot,” saying it has capacity to grow with minimal capital and strong incremental margins. On wireline, Bodden said the company was “particularly pleased” by improved stability and performance, noting that Ranger has historically struggled to generate positive adjusted EBITDA in the first quarter due to winter weather and the business’ more northern exposure. He said activity improved meaningfully in March and the segment exited the quarter with “respectable margins.”
Cougle reported processing solutions and ancillary services segment revenue of $42.3 million, up from $37.5 million in the fourth quarter and $30.5 million in the first quarter of 2025. Segment adjusted EBITDA was $8.0 million, up from $6.2 million sequentially and $5.6 million a year earlier, reflecting higher activity and continued ramp of AWS-acquired services.
Wireline services segment revenue was $10.6 million. Cougle said the segment was essentially break-even on adjusted EBITDA in the first quarter, compared with an adjusted EBITDA loss of $2.3 million in the prior year period.
Cash flow, working capital timing, and liquidity
Cougle said Ranger posted net income of $3.0 million, or $0.12 per diluted share, compared with $600,000, or $0.03 per diluted share, in the first quarter of 2025. Adjusted EBITDA margin was 14.6% versus 14.3% in the fourth quarter and 11.5% a year ago. She also noted general and administrative expense of $7.8 million, down from $8.9 million in the fourth quarter due to elevated AWS transaction-related costs in the prior period.
Free cash flow was negative $21.7 million, compared with positive $3.4 million in the first quarter of 2025. Cougle attributed the change primarily to working capital timing issues, including accounts receivable build tied to a customer’s billing blackout period at year-end, billing changes and new price books for the legacy AWS business, and temporary impacts from transitioning to Ranger’s ERP system.
In response to an analyst question, Cougle said the company expected gradual normalization over the next two quarters, with ERP go-live effects continuing to be challenging for about a month after April 1. She said she expected days sales outstanding to improve in May and June, adding, “I don't think you'll see everything get back to normal by the end of Q2, but I think we'll see a lot of normalization in Q2, and then we'll pick the final piece of it up in Q3.” She also noted Ranger chose late in the quarter to clear open accounts payable ahead of moving the AWS organization into Ranger, which created a near-term working capital hit but was viewed as beneficial for the transition.
Capital expenditures were $18.3 million in the quarter versus $7.2 million in the prior-year quarter, driven primarily by milestone payments for the ECHO rig build-out. Cougle also said Ranger received a large upfront contribution from a key customer related to ECHO, which increased liabilities on the balance sheet and will be recognized as revenue over the life of the contract.
As of March 31, 2026, Ranger reported total liquidity of $42.5 million, consisting of $35.6 million of revolver availability and $6.9 million in cash.
Looking ahead, Bodden said customer sentiment improved modestly during the quarter as crude oil futures strengthened and geopolitical developments influenced the market. However, he told analysts the company’s largest customers remained “fairly disciplined,” with increases more visible “on the margins” among smaller operators looking to accelerate production through workovers. Bodden said Ranger is nearing the point where meeting incremental demand could require reactivating rigs and hiring additional crews, while adding that the company has not experienced supply chain constraints but could see labor tightness emerge again in coming quarters.
About Ranger Energy Services NYSE: RNGR
Ranger Energy Services, Inc, based in The Woodlands, Texas, is a North American land drilling contractor serving exploration and production companies in the oil and natural gas industry. The company provides contract drilling, well servicing, pressure pumping and completion support services designed to enhance operational efficiency and optimize well performance.
Through its diversified fleet of drilling and service rigs and ancillary equipment, Ranger offers turnkey solutions across all phases of the drilling lifecycle—from pad construction and drilling to completion and workover operations.
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