Mammoth Energy Services Reports 45% Revenue Growth to $62.5 Million in Q1 2025

Mammoth Energy Services, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue rising to $62.5 million, a 45% increase from $43.2 million in the same period last year. This growth was primarily driven by a substantial increase in well completion services, which saw revenue jump 161% to $20.9 million, and infrastructure services, which rose 23% to $30.7 million. The company also recorded a net loss of $0.5 million, or $0.01 per diluted share, compared to a net loss of $11.8 million, or $0.25 per diluted share, in the prior year, indicating a marked improvement in profitability.

The company’s operational metrics reflected positive trends, with the number of stages completed in well completion services increasing from 380 to 828 year-over-year. Additionally, the average crew count in infrastructure services rose from 75 to 100, contributing to the revenue growth. However, the natural sand proppant services segment experienced a mixed performance, with revenue increasing 56% to $6.7 million, driven by a 30% increase in tons sold, despite a decline in average price per ton.

Strategically, Mammoth Energy completed the divestiture of its infrastructure services entities, including 5 Star Electric, Higher Power Electrical, and Python Equipment, for approximately $108.7 million on April 11, 2025. This transaction is expected to enhance the company's cash position and allow for further investment opportunities. The company also amended its revolving credit facility to facilitate this sale and to allow for potential stock repurchases, reflecting a proactive approach to capital management.

In terms of operational efficiency, the company reported a decrease in selling, general, and administrative expenses by 26% to $6.5 million, attributed to reduced compensation and benefits costs. The total cost of revenue increased to $53.4 million, but as a percentage of total revenue, it decreased from 94% to 85%, indicating improved operational leverage. The company’s cash and cash equivalents stood at $56.7 million as of March 31, 2025, with no outstanding borrowings under its revolving credit facility, providing a solid liquidity position for future growth initiatives.

Looking ahead, Mammoth Energy anticipates steady activity levels in 2025, particularly in the natural gas sector, with potential upside driven by increased LNG export capacity and electricity demand. The company remains focused on enhancing operational efficiencies and exploring strategic acquisitions to further bolster its market position in the energy services sector.