Mammoth Energy Services, Inc. (TUSK) Stock Analysis and Metrics

Mammoth Energy Services

NASDAQ: TUSK

$2.73 ▼ -0.08 (-2.85%)

At close: Jul 24, 2026 · 4:00 PM UTC

Financial Ratios

Market Cap135.81 Mn

P/E2.00

P/S2.68

Div. Yield0.00

Revenue Growth (1y) (Qtr)89.41

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About

Mammoth Energy Services, Inc. is an integrated services company that provides rental equipment, infrastructure construction, natural sand proppant, accommodation camps, and directional drilling services to customers in the oil and natural gas, aviation, and utility infrastructure sectors.

The company generates revenue by renting equipment such as cranes, generators, and aircraft; delivering engineering and construction services for fiber networks; mining and selling natural frac sand; offering lodging and support services in remote accommodation camps; and providing directional drilling and related downhole tools to oil and gas operators.

The company operates through the following segments: rental services, infrastructure services, natural sand proppant services, accommodation services, and drilling services.

• Rental services provide a wide range of equipment used in oilfield, construction, and aviation activities, including cranes, light plants, generators, and aircraft leasing of regional aircraft, helicopters, jet engines, and auxiliary power units.

• Infrastructure services delivers engineering, design, construction, upgrade, maintenance, and repair services for fiber networks, with a substantial portion of revenue historically derived from storm restoration work for the Puerto Rico Electric Power Authority.

• Natural sand proppant services mines, processes, and sells natural sand proppant (frac sand) for hydraulic fracturing, operating plants in Wisconsin and providing logistics via rail to customers in major shale basins.

• Accommodation services supplies modular housing, kitchen, dining, and recreational facilities for oilfield workers in remote areas, operating camps such as Sand Tiger Lodge in Alberta with a capacity of 764 rooms.

• Drilling services offers directional drilling using mud motors, measurement while drilling kits, and electromagnetic technology to enable precise wellbore placement in unconventional resource plays.

Mammoth Energy Services, Inc. holds a competitive position as a diversified service provider with cross selling capabilities across its segments, facing competitors such as Quanta Services and MasTec in infrastructure, Badger Mining, Covia, Hi-Crush, and U. S. Silica in proppant, and various regional oilfield service firms in rental and drilling.

The company serves a diversified customer base that includes independent oil and natural gas producers, sand suppliers, fiber network owners, and aircraft operators, with notable customers such as Source Energy Services Proppants, Hangingstone Demo Limited Partnership, Ascent Resources, Vero Fiber Networks, and 24/7 Sands LLC.

Investment Thesis

▲ Bull case

Cash balance and debt free position provide flexibility for opportunistic capital allocation including share repurchases and strategic investments, signaling management confidence and creating a floor for valuation that the market may be overlooking. The company ended Q1 FY26 with unrestricted cash cash equivalents and marketable securities of 125.1 million dollars and no debt on its balance sheet. This liquidity allows Mammoth to pursue accretive aviation investments return capital to shareholders and weather any short term cyclicality without needing external financing. The strong balance sheet also supports the ongoing share repurchase program which management views as a signal of underlying value not reflected in the current share price. Investors who focus only on earnings may miss the downside protection and optionality that this cash hoard provides.
Aviation segment demonstrated a gross internal rate of return of approximately 20% on a recent auxiliary power unit sale and the proceeds were redeployed into another aviation asset with an even stronger return profile, highlighting a disciplined capital recycling model that can generate sustainable high return cash flows. The transaction illustrates Mammoth’s ability to identify undervalued assets on its balance sheet monetize them at attractive returns and reallocate capital to higher quality opportunities. This capital allocation approach has been articulated since the company entered the aviation rental business and is now being executed in real time. The ability to generate such returns while maintaining a disciplined reinvestment strategy differentiates Mammoth from peers that may hold onto low yielding assets. Market participants may undervalue this skill set because it is not yet fully reflected in segment level profitability metrics.
Rental equipment utilization rose to an average of 389 pieces on rent in Q1 FY26 up from 231 a year earlier and 328 in the prior quarter, indicating a robust recovery in demand that is translating into higher revenue fall through and improving segment profitability. The increase in utilization drives higher revenue without a proportional increase in fixed costs which improves margins across the rentals platform. Management noted that the improvement in profitability was driven by higher revenue fall through particularly in rentals and accommodations along with continued discipline on the cost structure. As utilization continues to build the company expects to place additional assets on lease which should further boost revenue and EBITDA. The market may be underestimating the operating leverage embedded in the current cost base as utilization rises.
SG&A expenses have been trimmed from a run rate of roughly 25 million in 2024 to 20 million in 2025 and management now sees a clear path to an annual run rate of 11 million to 12 million as structural cost initiatives take hold, which would materially boost adjusted EBITDA margins if achieved. The reduction in SG&A reflects deliberate work sharing services more efficiently across the platform and maintaining strict discipline on spend. If the run rate reaches the targeted 11 to 12 million dollar range the savings would represent more than a 50% reduction from the 2024 level. This cost base improvement would directly increase adjusted EBITDA given the current revenue trajectory. The market may not yet be pricing in the full impact of this structural cost transformation on future profitability.
Drilling and sand operations are showing sequential revenue growth of more than 180% and 129% respectively, and with utilization building and planned capital deployment to improve operating efficiency, management expects margins to expand through the year and the drilling segment to reach EBITDA positivity in 2026. The improvement in drilling revenue was driven by a step up in utilization from low single digits in Q4 FY25 to a higher level in Q1 FY26. Management anticipates that as utilization continues to increase and maintenance costs normalize the segment will move toward profitability. In sand the company is focusing on operational efficiency and railcar fleet rationalization to improve margin conversion as activity in the Montney basin recovers. The market may be overlooking the potential for margin expansion in these segments as they scale up.

Cash balance and debt free position provide flexibility for opportunistic capital allocation including share repurchases and strategic investments, signaling management confidence and creating a floor for valuation that the market may be overlooking. The company ended Q1 FY26 with unrestricted cash cash equivalents and marketable securities of 125.1 million dollars and no debt on its balance sheet. This liquidity allows Mammoth to pursue accretive aviation investments return capital to shareholders and weather any short term cyclicality without needing external financing. The strong balance sheet also supports the ongoing share repurchase program which management views as a signal of underlying value not reflected in the current share price. Investors who focus only on earnings may miss the downside protection and optionality that this cash hoard provides.
Aviation segment demonstrated a gross internal rate of return of approximately 20% on a recent auxiliary power unit sale and the proceeds were redeployed into another aviation asset with an even stronger return profile, highlighting a disciplined capital recycling model that can generate sustainable high return cash flows. The transaction illustrates Mammoth’s ability to identify undervalued assets on its balance sheet monetize them at attractive returns and reallocate capital to higher quality opportunities. This capital allocation approach has been articulated since the company entered the aviation rental business and is now being executed in real time. The ability to generate such returns while maintaining a disciplined reinvestment strategy differentiates Mammoth from peers that may hold onto low yielding assets. Market participants may undervalue this skill set because it is not yet fully reflected in segment level profitability metrics.
Rental equipment utilization rose to an average of 389 pieces on rent in Q1 FY26 up from 231 a year earlier and 328 in the prior quarter, indicating a robust recovery in demand that is translating into higher revenue fall through and improving segment profitability. The increase in utilization drives higher revenue without a proportional increase in fixed costs which improves margins across the rentals platform. Management noted that the improvement in profitability was driven by higher revenue fall through particularly in rentals and accommodations along with continued discipline on the cost structure. As utilization continues to build the company expects to place additional assets on lease which should further boost revenue and EBITDA. The market may be underestimating the operating leverage embedded in the current cost base as utilization rises.
SG&A expenses have been trimmed from a run rate of roughly 25 million in 2024 to 20 million in 2025 and management now sees a clear path to an annual run rate of 11 million to 12 million as structural cost initiatives take hold, which would materially boost adjusted EBITDA margins if achieved. The reduction in SG&A reflects deliberate work sharing services more efficiently across the platform and maintaining strict discipline on spend. If the run rate reaches the targeted 11 to 12 million dollar range the savings would represent more than a 50% reduction from the 2024 level. This cost base improvement would directly increase adjusted EBITDA given the current revenue trajectory. The market may not yet be pricing in the full impact of this structural cost transformation on future profitability.
Drilling and sand operations are showing sequential revenue growth of more than 180% and 129% respectively, and with utilization building and planned capital deployment to improve operating efficiency, management expects margins to expand through the year and the drilling segment to reach EBITDA positivity in 2026. The improvement in drilling revenue was driven by a step up in utilization from low single digits in Q4 FY25 to a higher level in Q1 FY26. Management anticipates that as utilization continues to increase and maintenance costs normalize the segment will move toward profitability. In sand the company is focusing on operational efficiency and railcar fleet rationalization to improve margin conversion as activity in the Montney basin recovers. The market may be overlooking the potential for margin expansion in these segments as they scale up.

▼ Bear case

Sand segment margins remain below expectations due to a shift toward lower price coarse grade sand and the segment's leverage to activity in the Montney basin where any slowdown in completions could quickly erode the recent revenue improvement. The company sold approximately 156000 tons of sand at an average sales price of 19.49 dollars per ton in Q1 FY26 down from 21.49 dollars per ton a year earlier reflecting a change in grade mix that reduces per ton profitability. Because sand is highly tied to drilling activity in the Montney any reduction in completions or shift in customer preferences could depress volumes and prices simultaneously. Management acknowledged that margin improvement remains a priority but noted that operational efficiency and pricing capture are still works in progress. Investors should be aware that the recent revenue rebound may be fragile if the underlying basin activity weakens.
Although aviation has delivered strong returns the business is inherently cyclical and dependent on the timing of engine leases and maintenance schedules exposing the company to potential volatility in utilization and revenue if market demand for aviation assets softens. Aviation revenue benefited from the sale of an auxiliary power unit and the placement of additional assets on lease but utilization remains subject to maintenance cycles and customer delivery timing. A downturn in the broader aviation leasing market or unexpected maintenance delays could reduce the number of revenue generating assets and pressure returns. The company’s strategy of buying and selling assets based on return profiles works well in a stable environment but may be challenged if asset values become more correlated during a sector wide slump.
Infrastructure services continue to generate an adjusted EBITDA loss of 428 thousand dollars in Q1 FY26 and the company expects an EBITDA overhang throughout 2026 indicating that the fiber investment may not translate into profitability quickly enough to offset ongoing losses. The segment reported revenue of only 0.3 million dollars in Q1 FY26 compared to 0.7 million dollars a year earlier and 1.2 million dollars in the prior quarter showing a declining trend despite the new capital investment. Management expects the EBITDA overhang to persist as the company ramps up its fiber optic fleet and pursues utility projects that may have longer sales cycles. The current losses suggest that the infrastructure business may require more time and additional capital before it becomes a meaningful contributor to earnings.
Drilling segment profitability was pressured by higher operating costs in Q1 FY26 with a portion of these costs being front loaded maintenance expenses suggesting that achieving the forecasted margin expansion may be more challenging than management anticipates if cost inflation persists. Management noted that margins were pressured by higher operating costs in the quarter but expressed confidence that margins will expand as utilization builds and planned capital deployment improves operating efficiency. However if maintenance costs remain elevated or if inflation drives up the price of parts and labor the path to profitability could be delayed. The segment’s historical high gross margin in 2025 was achieved before timing related items affected performance indicating that achieving similar levels again may require a favorable cost environment.
The share repurchase program while a positive signal utilizes only a modest portion of the available cash and could be curtailed if unexpected capital expenditures or working capital needs arise limiting the upside from capital return to shareholders. Mammoth repurchased approximately 187000 shares for 400000 dollars at an average price of 2.14 dollars per share during Q1 FY26 representing a small fraction of the 55 million dollar or 10 million share authorization. While the program signals confidence the company also has significant capital outlays planned for aviation assets and the infrastructure fleet which could consume cash quickly. If unanticipated expenses or working capital pressures emerge the repurchase pace may slow reducing the potential boost to shareholder returns from this capital return initiative.

Sand segment margins remain below expectations due to a shift toward lower price coarse grade sand and the segment's leverage to activity in the Montney basin where any slowdown in completions could quickly erode the recent revenue improvement. The company sold approximately 156000 tons of sand at an average sales price of 19.49 dollars per ton in Q1 FY26 down from 21.49 dollars per ton a year earlier reflecting a change in grade mix that reduces per ton profitability. Because sand is highly tied to drilling activity in the Montney any reduction in completions or shift in customer preferences could depress volumes and prices simultaneously. Management acknowledged that margin improvement remains a priority but noted that operational efficiency and pricing capture are still works in progress. Investors should be aware that the recent revenue rebound may be fragile if the underlying basin activity weakens.
Although aviation has delivered strong returns the business is inherently cyclical and dependent on the timing of engine leases and maintenance schedules exposing the company to potential volatility in utilization and revenue if market demand for aviation assets softens. Aviation revenue benefited from the sale of an auxiliary power unit and the placement of additional assets on lease but utilization remains subject to maintenance cycles and customer delivery timing. A downturn in the broader aviation leasing market or unexpected maintenance delays could reduce the number of revenue generating assets and pressure returns. The company’s strategy of buying and selling assets based on return profiles works well in a stable environment but may be challenged if asset values become more correlated during a sector wide slump.
Infrastructure services continue to generate an adjusted EBITDA loss of 428 thousand dollars in Q1 FY26 and the company expects an EBITDA overhang throughout 2026 indicating that the fiber investment may not translate into profitability quickly enough to offset ongoing losses. The segment reported revenue of only 0.3 million dollars in Q1 FY26 compared to 0.7 million dollars a year earlier and 1.2 million dollars in the prior quarter showing a declining trend despite the new capital investment. Management expects the EBITDA overhang to persist as the company ramps up its fiber optic fleet and pursues utility projects that may have longer sales cycles. The current losses suggest that the infrastructure business may require more time and additional capital before it becomes a meaningful contributor to earnings.
Drilling segment profitability was pressured by higher operating costs in Q1 FY26 with a portion of these costs being front loaded maintenance expenses suggesting that achieving the forecasted margin expansion may be more challenging than management anticipates if cost inflation persists. Management noted that margins were pressured by higher operating costs in the quarter but expressed confidence that margins will expand as utilization builds and planned capital deployment improves operating efficiency. However if maintenance costs remain elevated or if inflation drives up the price of parts and labor the path to profitability could be delayed. The segment’s historical high gross margin in 2025 was achieved before timing related items affected performance indicating that achieving similar levels again may require a favorable cost environment.
The share repurchase program while a positive signal utilizes only a modest portion of the available cash and could be curtailed if unexpected capital expenditures or working capital needs arise limiting the upside from capital return to shareholders. Mammoth repurchased approximately 187000 shares for 400000 dollars at an average price of 2.14 dollars per share during Q1 FY26 representing a small fraction of the 55 million dollar or 10 million share authorization. While the program signals confidence the company also has significant capital outlays planned for aviation assets and the infrastructure fleet which could consume cash quickly. If unanticipated expenses or working capital pressures emerge the repurchase pace may slow reducing the potential boost to shareholder returns from this capital return initiative.

Product and Service Breakdown of Revenue (2025)

Peer Comparison

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6	OTTR	Otter Tail Corp	3.87 Bn	13.78	2.94	1.13 Bn
7	TTI	Tetra Technologies Inc	1.18 Bn	62.23	1.87	0.18 Bn
8	DLX	Deluxe Corp	1.16 Bn	11.16	0.54	1.41 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer Comparison

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