Mammoth Energy Services (NASDAQ:TUSK) reported second-quarter revenue growth and a second consecutive quarter of positive adjusted EBITDA, supported by stronger activity in its sand, drilling, rental and infrastructure businesses. Management also raised its full-year outlook following substantial aviation-related capital deployment and acquisitions in the fiber optic services market.
Total second-quarter revenue was $26.1 million, rising 19% from the first quarter and 110% from a year earlier. Adjusted EBITDA totaled $2.6 million, up 37% sequentially, compared with an adjusted EBITDA loss of $3.5 million in the second quarter of 2025. The company reported adjusted EBITDA margins of 10%.
Guidance Raised Again
Mammoth raised its 2026 outlook for the second time in five months. The company now expects full-year revenue growth of more than 90% and adjusted EBITDA margins exceeding 10%.
Layton said the outlook is based on recurring operating revenue in the second half and does not assume further aviation asset sales. First-half results included about $8.5 million in aviation asset sales, according to the company.
The company previously targeted mid-teens adjusted EBITDA margins as a 2027 objective. Layton said attaining double-digit margins in 2026 would put Mammoth about a year ahead of its expectations at the beginning of the year.
Aviation Investment and Capital Allocation
Mammoth invested $44 million during the quarter, its most active period of capital deployment since beginning its aviation platform buildout. Approximately $41.2 million of capital expenditures went to rentals, almost entirely for aviation assets. The company said it now has more than $100 million deployed in its aviation portfolio.
During the quarter, Mammoth acquired a Boeing 747 package that included an airframe, two installed engines, a spare engine and spare-parts inventory. The company leased the engines to a “blue-chip customer” and later sold the airframe and landing gear for $2 million, retaining what Layton described as the package’s higher-returning components.
The aviation fleet ended the quarter with 38 assets, up from 27 at the end of the first quarter. Of those assets, 23 were generating lease revenue, compared with 21 in the preceding quarter. Chief Operating Officer Bernie Lancaster said the fleet additions outpaced lease placements as expected, and management expects lease placements to increase as 11 recently acquired aircraft, engines and auxiliary power units are put on lease.
Management said industry demand for leased aircraft, engines and auxiliary power units remains strong amid constrained original equipment manufacturer production and maintenance capacity.
Segment Performance
- Rentals: Revenue was $10.2 million, down 22% sequentially but up 229% year over year. Segment adjusted EBITDA rose 3% sequentially to $3.7 million. Layton said the revenue decline primarily reflected lower aviation asset-sale revenue, which fell to $2 million from $6.5 million in the first quarter. Asset sales in the second quarter were close to cost basis.
- Accommodations: Revenue totaled $3.2 million, down 9% from the first quarter and up 78% from a year earlier. Management attributed the sequential decline to normal seasonal patterns. Facility occupancy softened modestly from the prior quarter but increased more than 79% year over year.
- Drilling: Revenue increased 171% sequentially and 443% year over year to $3.8 million. The segment produced positive adjusted EBITDA of $0.6 million as utilization more than doubled from the first quarter.
- Sand: Revenue increased 105% sequentially and 48% year over year to $8 million, aided by higher volumes and freight revenue. Mammoth sold approximately 229,000 tons, compared with about 156,000 tons in the first quarter, while average pricing rose to $21.36 per ton from $19.49. Segment gross margin turned positive, while its adjusted EBITDA loss narrowed about 71% sequentially.
- Infrastructure: Revenue was $0.9 million, improving from a reset low in the first quarter but remaining below the prior-year level. The company said its recent acquisitions contributed for just under three weeks during the quarter.
Regarding sand, Layton said Mammoth is seeing increased volume demand and firmer demand for coarse-grade sands late in the second quarter. He said the company expects firmer volumes through the third quarter and the rest of 2026, and is discussing potential supply agreements with customers for late 2026 and 2027. Mammoth is also deploying capital intended to reduce fixed costs and improve gross margin in the business.
Lancaster said the equipment-rental market is showing some tightening, including delays in sourcing and purchasing equipment, which he said is beginning to support pricing. He added that supply-chain disruptions have not materially affected Mammoth so far, though the company is attempting to purchase equipment when it becomes available.
Fiber Acquisitions, Balance Sheet and Repurchases
On June 12, Mammoth acquired Mission Construction LLC and BERE Rentals LLC for combined cash consideration of $6.5 million. Both businesses provide fiber optic services to utility customers in the Midwest and are now part of Mammoth’s infrastructure segment.
The company said the acquisitions expand its fiber equipment fleet, add experienced crews and broaden the work it can pursue. Management said integration is underway, including alignment of safety programs, project-management systems and fleet-maintenance practices.
Mammoth ended the quarter debt-free, with $50.9 million in cash and cash equivalents and $26.1 million in marketable securities, totaling $77 million. It reported a net loss from continuing operations of $1.2 million, or $0.02 per diluted share, compared with net income of $4.7 million, or $0.10 per diluted share, in the first quarter.
The company repurchased approximately 43,000 shares during the quarter at an average price of $2.99 per share. Layton said management weighs share repurchases against returns available from operating investments, particularly aviation opportunities. He also cited restrictions related to trading windows and trailing trading volumes.
Looking ahead, Layton said Mammoth will monitor lease placements for recently acquired aviation assets, continued margin improvement in sand and drilling, and the growth pace of the infrastructure business as the acquired fiber operations are integrated.
About Mammoth Energy Services (NASDAQ:TUSK)
Mammoth Energy Services, Inc, headquartered in Houston, Texas, is a diversified energy services company that primarily provides hydraulic fracturing and complementary well completion and production services to oil and natural gas exploration and production companies across North America. Its core offerings include fracturing, coiled tubing, cementing, wireline, nitrogen pumping, and pressure pumping equipment, supported by proprietary fluid blends and digital monitoring systems. In addition to conventional oilfield services, the company operates a dedicated solar division—Mammoth Solar—that delivers engineering, procurement and construction (EPC) services for utility-scale and commercial solar projects.
Mammoth’s fracturing operations are focused on major shale plays such as the Permian Basin, Eagle Ford, Bakken, Williston Basin, and Rockies regions.
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