Strategic Transformation and Operational Recovery – Achieved first positive adjusted EBITDA in eight quarters, signaling a successful pivot toward a simplified portfolio and higher-return businesses. – Performance was primarily driven by the rental segment, specifically the…
ployment of aviation assets and improved utilization in gas-weighted basins. – Aggressive cost restructuring reduced SG&A by 38% sequentially, with management targeting a long-term annual run rate of $11 million to $12 million. – Accommodations segment delivered 40% gross margins, the highest in five quarters, due to strong customer activity and inherent operating leverage. – Drilling and sand segments saw significant sequential revenue growth of 180% and 129% respectively, though margins remain pressured by front-loaded maintenance and pricing competition. – Management executed a strategic ‘buy-and-sell’ approach in aviation, monetizing an APU at a 20% gross IRR to recycle capital into higher-yielding assets. – Infrastructure services are undergoing an operational reset under new leadership to improve project oversight and cost discipline in the fiber optic business. Accelerated Profitability and Growth Outlook – Raised 2026 revenue growth guidance to greater than 60%, up from the previous 50% estimate, led by continued momentum in the rental segment. – Pulled forward the timeline for full-year adjusted EBITDA profitability by one year, now expecting to be positive for the full year of 2026. – Anticipates drilling segment will reach positive EBITDA in 2026 as utilization builds and front-loaded maintenance costs normalize. – Expects fiber optic demand to build in the second half of 2026 and into 2027, supported by a $1.9 million investment in the fiber optic fleet. – Aviation portfolio growth is expected to continue with four of six newly acquired engines slated to go on lease during the second quarter
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