Mammoth Energy Services (NASDAQ:TUSK) used its fourth-quarter and full-year 2025 earnings call to outline a year of portfolio reshaping, expanded investment in aviation rentals, and a renewed focus on execution and cost control after results in the fourth quarter fell short of management’s expectations.
2025 portfolio changes and aviation expansion
Chief Financial Officer Mark Layton said the company completed four major transactions during 2025 that “meaningfully reshaped” Mammoth, generating approximately $150 million of proceeds. Layton said the company sold its transmission and distribution business and its engineering business at what management views as attractive valuations, describing the sales as evidence of value embedded in the company’s assets.
Layton also highlighted a strategic push into aviation rentals during 2025, with more than $65 million of capital deployed to build what management described as a more stable, recurring revenue stream. He said the aviation business began the year with limited scale and ended with operating scale and a “clear path” to becoming a core earnings contributor as utilization increases.
Fourth-quarter results: revenue down, EBITDA below plan
Mammoth reported fourth-quarter 2025 revenue of $9.5 million, compared with $10.9 million in the third quarter of 2025 and $10.0 million in the fourth quarter of 2024, representing a year-over-year decline of about 6%. For the full year, revenue was $44.3 million versus $45.6 million in 2024, down roughly 3%.
Layton said rentals, infrastructure, and accommodations came in ahead of internal revenue expectations, with aviation revenue rising as additional assets were deployed on lease. He also cited solid demand in infrastructure tied to grid and broadband-related project work and improving occupancy and cost efficiency in accommodations.
However, management emphasized that profitability was a key issue in the quarter. Layton said fourth-quarter EBITDA was below expectations and that the shortfall was driven by execution and cost control rather than demand. He said actions were already underway, including management changes within the fiber business in the infrastructure segment and targeted efforts across the portfolio to improve cost structure and the conversion of revenue to EBITDA.
Segment performance: rentals and infrastructure growth, sand and drilling declines
Chief Operating Officer Bernie Lancaster called the quarter “mixed,” pointing to momentum in rentals and accommodations while acknowledging performance pressure in other areas. He provided detail on the aviation buildout, noting the company exited the third quarter with about 15 aviation assets and added another 11 in the fourth quarter. At quarter end, 16 of 26 aviation assets were on lease, and Lancaster said the company expects the remaining assets to go on lease during the first half of 2026, subject to maintenance schedules and customer delivery timing.
In non-aviation rentals, Lancaster said assets on rent increased 15% sequentially to approximately 328 pieces, while profitability was pressured by higher equipment rental costs and insurance premiums. He said Mammoth has identified opportunities to be more strategic with customer and fleet mix to reduce coverage requirements and indicated investment in non-aviation rentals is a priority in 2026 given strong demand and a tightening equipment market.
For infrastructure, management said revenue exceeded expectations amid demand for network hardening, broadband expansion, and data-center-related work, but EBITDA performance “was not acceptable.” Lancaster attributed the margin pressure to execution challenges in fiber operations and said the company has implemented top-down management changes and tightened project oversight. Layton added that management expects an “EBITDA overhang” in infrastructure through the first half of 2026, though he said the company is encouraged by early steps under new leadership.
Accommodations revenue improved, with Lancaster citing a 25% increase in occupancy and continued quarter-over-quarter improvement along with a strong safety record.
In sand, Lancaster said pricing and volume pressure continued and that the company is working to obtain more consistent volumes while reducing lease expense from parts of its railcar fleet that are no longer needed. Drilling results weakened in the quarter versus a strong third quarter due to customer timing, and Lancaster said priorities for 2026 include high-grading the asset base and investing to improve utilization and profitability, including adding motor and MWD capacity to reduce rental expense and upgrading power sections during the first half of the year.
Layton detailed segment revenue results for the fourth quarter:
- Rental segment: revenue of $3.3 million, up 19% sequentially and 179% year-over-year, driven primarily by aviation growth; costs were pressured by insurance and equipment rental expenses.
- Infrastructure: revenue of $1.2 million, up 44% sequentially and 231% year-over-year, with profitability hurt by fiber execution issues.
- Accommodations: revenue of $2.8 million, up 24% sequentially and 19% year-over-year on higher occupancy.
- Sand: revenue of $1.7 million, down 37% sequentially and 67% year-over-year.
- Drilling: revenue of $0.5 million, down 80% sequentially and 38% year-over-year.
Losses, cost actions, and capital spending
For the fourth quarter of 2025, Mammoth reported a net loss from continuing operations of $12.3 million, or $0.26 per diluted share, compared with $0.20 in the fourth quarter of 2024. Adjusted EBITDA from continuing operations was a loss of $6.8 million, compared with a loss of $6.0 million in the prior-year period.
Layton said margin compression in sand and drilling was driven by costs declining at a significantly lower rate than activity levels, with reduced utilization and lower fixed-cost absorption during a typical winter slowdown. He also noted that fully idled operations in “the other segment” produced no revenue and only partial cost reductions, which weighed on profitability.
SG&A expense in the quarter was $5.7 million, down from $6.9 million in the fourth quarter of 2024, a decline of approximately 17% year over year. Layton said that excluding bad debt expense related to PREPA in the second quarter of 2024, SG&A declined approximately 22% on a normalized basis. He said additional cost-structure work remains a priority as the company rightsizes for its current portfolio.
Capital expenditures totaled $25.9 million in the fourth quarter, nearly all directed toward aviation. Layton said the company acquired eight APUs, two engines, and one small aircraft during the quarter. For the full year, he said total 2025 CapEx was about $70 million, with the vast majority allocated to aviation and very little directed to drilling, sand, accommodations, or infrastructure.
Balance sheet and 2026 outlook
At quarter end, Mammoth reported $121.6 million of unrestricted cash equivalents and marketable securities and total liquidity of about $158.3 million, including an undrawn credit facility. Layton said the company remains debt-free.
Subsequent to quarter end, the company closed the sale of a property in Ohio that previously supported pressure pumping operations, generating net proceeds of $4.6 million. Layton said the asset was no longer in use and framed the sale as part of an ongoing effort to monetize assets that are not generating adequate returns.
Looking ahead, Layton said management sees a path to greater than 50% revenue growth in 2026 versus 2025, driven primarily by a full year of aviation contribution at higher utilization and improved utilization across oil-and-gas-exposed businesses. He said the company nearly doubled monthly revenue from the aviation portfolio from $0.6 million in December to $1.0 million in January and believes fully utilized aviation assets could generate approximately $1.6 million per month in revenue.
On capital allocation, Layton said Mammoth expects non-aviation CapEx of approximately $11 million in 2026, including maintenance and targeted growth investments across oil and gas and infrastructure. He said the company has “underinvested” in these businesses for several years and expects the new investments to address specific inefficiencies with identifiable paybacks. Aviation CapEx, he added, will remain opportunistic and disciplined based on economics.
Layton said management expects 2026 to be a year of inflection, with revenue growth accelerating and positive EBITDA “back within reach,” and reiterated a longer-term aim of mid-teens EBITDA margins and positive free cash flow as the company moves into 2027. No questions were asked during the call’s Q&A session.
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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