Mammoth Energy (TUSK) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Mon, May 11, 2026 at 11:10 PM GMT+7 16 min read TUSK Image source: The Motley Fool. Chief Operating Officer — Bernard Lancaster Need a quote from a Motley Fool analyst? Email pr@fool.com Mark Layton: Thank you, Mohammed, and good morning, everyone. I will cover first quarter results and the key themes driving the quarter s performance, then turn it over to Bernard Lancaster, our Chief Operating Officer, to walk through operational performance by segment. I will then come back to cover the financials, capital allocation, and our updated outlook for 2026, after which we will open the line for questions. The first quarter of 2026 represents a clear inflection point for Mammoth Energy Services, Inc. When we last spoke in March, we were direct about where the fourth quarter fell short. The demand was there, but our execution and cost control did not meet our expectations, and we own that. We took targeted action, and the first quarter is early proof that those actions are working. Revenue was $22 million, up 90% year-over-year and 133% sequentially. Adjusted EBITDA was positive $1.9 million, our first positive EBITDA quarter in eight quarters. The momentum we are seeing across the platform is strong enough that we are now raising our 2026 guidance on both revenue and EBITDA. I will walk through the specifics later in the call. During the first quarter, for the first time since our share repurchase program was authorized in August 2023, we began returning capital directly to shareholders, a reflection of our confidence in where this business is headed. Stepping back, the pivot we have spent the last several quarters executing—simplifying the portfolio, redeploying capital into higher-return businesses, and rebuilding the cost structure to match the size and shape of the company we are today—is now showing up in the numbers. There is more work ahead, and I will be specific about where later in the call. As reflected in the first quarter results, we are seeing early measurable proof points across multiple parts of the business that the strategy is working. Starting with revenue, growth was led by our rentals. In addition to the improved utilization, during the quarter we sold an aviation APU that we had purchased only two quarters earlier, generating a gross IRR of approximately 20%. We then redeployed the proceeds into another aviation asset where we see a strong return profile. As we said on our last call, there are assets on our balance sheet that carry value not reflected in where the stock trades. This transaction is a real-time data point on exactly that, and it reinforces the capital allocation philosophy we have articulated since we entered this business. Beyond rentals, we saw improvement across several other segments. Drilling revenue increased over 180% sequentially, sand revenue increased over 129% sequentially, and accommodations delivered another strong quarter, with revenue up 25% sequentially. The improvement in profitability was driven by a combination of higher revenue fall-through—particularly in rentals and accommodations—along with continued discipline on the cost structure, with SG&A of $3.6 million, a 38% decrease sequentially. Putting SG&A into longer perspective, we have taken our SG&A run rate from approximately $25 million in 2024 to $20 million in 2025, and we now have line of sight to an annual run rate of approximately $11 million to $12 million as the work on structural cost continues to take hold. The cost trajectory is the result of deliberate work sharing services more efficiently across the platform, and maintaining strict discipline on spend. In accommodations specifically, we generated gross margins of approximately 40%, the highest level in the past five quarters, reflecting both improved utilization and the operating leverage that comes with it. While we are encouraged by the progress, there are still areas where we see meaningful opportunities for improvement. In drilling, revenue improved significantly versus the fourth quarter; however, margins were pressured by higher operating costs, with a portion of these being front-loaded in nature, particularly on the maintenance side. As context, drilling delivered the highest gross margin in the segment s history in 2025, before timing-related items affected the fourth quarter. The first quarter saw activity rebound on that base. With utilization building, costs normalizing, and planned capital deployment improving our operating efficiency, we expect margins to expand through the year and the segment to reach EBITDA positive in 2026. In sand, while volumes and revenue improved meaningfully, margins remained below our expectations. This business is leveraged to activity in the Montney, and we expect performance to track with that market. Our internal focus continues to be on operational efficiency and pricing capture as activity increases. In infrastructure, demand—particularly for

Mammoth Energy (TUSK) Q1 2026 Earnings Transcript

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Mammoth Energy (TUSK) Q1 2026 Earnings Transcript

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