Mammoth Q3 2026 Earnings: Aviation Expansion Lifts Adjusted EBITDA

Mammoth Energy Services (NASDAQ: TUSK) reported Q3 2026 revenue of $21.3 million, up 95% year over year, while diluted EPS from continuing operations improved to $0.01 from a loss of $0.26. Adjusted EBITDA reached $5.8 million and more than doubled sequentially as aviation rentals, Sand profitability, and higher accommodation occupancy offset lower freight and drilling revenue.

Core Financial Results

Revenue nearly doubled from the prior year but declined from $26.1 million in Q2 2026. Despite the sequential revenue decrease, adjusted EBITDA rose from $2.6 million in Q2 and its margin expanded from 10.0% to 27.2%, indicating a more profitable business mix.

GAAP operating results also improved substantially, although Mammoth still recorded a small operating loss. A $1.2 million gain on marketable securities helped continuing operations reach positive net income.

Adjusted EBITDA and its margin are non-GAAP measures. The prior-year adjusted EBITDA margin is calculated from the reported revenue and adjusted EBITDA figures.

Business and Segment Performance

Rental Services generated most of the quarter’s segment-level adjusted EBITDA, supported by aviation fleet expansion and higher utilization. Sand and Accommodations also produced positive adjusted EBITDA, while Infrastructure and Drilling remained slightly or meaningfully negative.

Rental revenue increased primarily because aviation fleet expansion and greater utilization contributed an additional $5.4 million from the prior year. Mammoth ended the quarter with 44 aviation assets—14 aircraft, 14 engines, and 16 auxiliary power units—compared with 15 assets one year earlier. Of the 44 assets, 29 were producing revenue, up from 23 of 38 at the end of Q2.

Sand volume rose to approximately 228,000 tons from 122,000 tons a year earlier, while the average selling price increased to $22.18 from $18.26 because of a change in grade mix. Sequentially, volume was nearly unchanged, but a $3.0 million reduction in freight revenue lowered segment revenue from $8.0 million in Q2.

Accommodation room utilization increased to an average of 270 rooms from 185 a year earlier and 259 in Q2. Drilling revenue declined sequentially as utilization and activity levels were affected by normal seasonal trends.

Mix Improved Faster Than Revenue, but Depreciation Kept GAAP Operations in the Red

The quarter’s main divergence was between revenue and adjusted EBITDA. Revenue declined approximately 18% from Q2, but adjusted EBITDA increased by about 122%. Rental adjusted EBITDA rose to $5.0 million from $3.7 million even as its revenue edged lower, while Sand moved from a $0.4 million adjusted EBITDA loss to a $1.5 million profit despite the freight-related revenue decline.

The improvement did not fully translate into GAAP operating profit. Depreciation, depletion, amortization, and accretion increased to $6.6 million from $2.8 million a year earlier as the asset base expanded, leaving Mammoth with a $0.4 million operating loss. The company’s $0.3 million net income from continuing operations also benefited from a $1.2 million marketable-securities gain, meaning quarterly net income was not generated solely by operating profit.

Cash Flow, Capital Spending, and Liquidity

Mammoth’s aviation expansion remained capital intensive. Capital expenditures from continuing operations were $41.8 million in Q3, including $40.1 million in Rental Services, and reached $97.5 million for the first nine months of 2026.

For the nine-month period, continuing operations used $9.9 million of operating cash. Increases in accounts receivable and inventory represented operating cash outflows of $8.6 million and $10.7 million, respectively.

At September 30, Mammoth had $13.1 million of unrestricted cash and $24.5 million of marketable securities, for combined liquidity of $37.6 million. It reported no funded debt, and its revolving facility was undrawn with $20.0 million of available capacity after accounting for $5.0 million of letters of credit.

By October 27, combined cash and marketable securities had decreased to $27.5 million, while the revolver remained undrawn. On October 28, the company entered a senior secured term-loan facility providing commitments of up to $58.0 million to support further aviation growth.

Earnings Guidance

Mammoth raised its 2026 outlook for the third time during the year, increasing its adjusted EBITDA margin expectation to the mid-teens. It also reaffirmed revenue growth above 90%. Through the first nine months, revenue had increased to $69.4 million from $34.8 million, while the adjusted EBITDA margin was 15.0%.

The 2027 outlook assumes continued deployment of the existing aviation fleet, contributions from additional aviation investments, and operating improvement across the portfolio. It does not assume material aviation asset sales. Mammoth did not provide a reconciliation of forward-looking adjusted EBITDA to a comparable GAAP measure because certain necessary components were unavailable.

Management View

Chief Financial Officer Mark Layton identified aviation as Mammoth’s priority for capital deployment because of its returns profile and recurring revenue potential. Management also expects additional aviation assets to require comparatively modest incremental operating personnel, which could support further margin expansion if utilization and deployment progress as planned.

Recent Insider Transactions

The supplied insider transaction history lists several purchases during 2026, including a significant indirect purchase by Wexford Capital. These records describe transaction activity only and do not establish the insiders’ views on future operating performance.

The separate six-month aggregate supplied with the transaction data reported zero purchases, which conflicts with the dated records above. The underlying filings would therefore need to be checked before relying on that aggregate summary.

Risks Investors Need to Watch

• Aviation deployment risk: Only 29 of Mammoth’s 44 aviation assets were producing revenue at quarter-end. The 2027 adjusted EBITDA outlook depends partly on deploying more of the existing fleet and earning expected returns on additional investments.
• Capital intensity and liquidity: Nine-month capital expenditures reached $97.5 million while continuing operations used $9.9 million of operating cash. Combined cash and marketable securities also declined after quarter-end, increasing the importance of disciplined asset deployment and access to financing.
• GAAP profitability remains limited: Mammoth still reported an operating loss, and its positive continuing-operations net income benefited from a marketable-securities gain. Rising depreciation from the larger asset base may continue to create a gap between adjusted EBITDA and GAAP earnings.
• Uneven segment performance: Freight revenue volatility reduced Sand revenue sequentially, seasonal activity pressured Drilling, and Infrastructure remained adjusted EBITDA-negative. These operations could offset part of the progress in aviation and accommodations.

Summary

Mammoth’s Q3 2026 results showed that aviation-led growth and a better segment mix can improve adjusted profitability even when sequential revenue declines. Rental Services, Sand, and Accommodations drove the adjusted EBITDA increase, but heavy capital spending, negative operating cash flow for the first nine months, and the remaining gap between adjusted EBITDA and GAAP operating profit are important counterweights. The next indicators are the pace of aviation asset deployment, conversion of adjusted earnings into operating cash, and progress toward the mid-teens 2026 margin and more than 40% adjusted EBITDA growth targeted for 2027.