Mammoth Energy Services, Inc. (TUSK) Stock

Understand Mammoth Energy Services, Inc.: how it makes money

Mammoth Energy Services performs well completion, high-voltage infrastructure work, drilling, and natural sand supply for upstream oil and gas operators, earning service fees and product sales. Each of its four lines is individually sub-scale, so the company depends on all segments clearing their fixed costs simultaneously to reach profitability.

Profitability requires four individually sub-scale service lines to each clear their own fixed-cost hurdle while the company still carries quarterly capex that dwarfs its revenue base.

Business quality (Mixed): Mixed: revenue is growing near 60% YoY and operating margin has ticked to about 10%, but the company is still net-loss-making, capex-heavy, and trades at a multiple over 14x the industry average. The business model is sound in theory; execution at this revenue scale is the open question.

Valuation: At 233× earnings, TUSK trades 1401% above the Petroleum & Natural Gas average (16×).

Bull case

• Drilling cleared EBITDA breakeven early: Management confirmed on the Q2 FY26 call that drilling became EBITDA positive ahead of the previously stated timeline. Removing the company's largest ongoing loss driver gives the remaining segments room to swing profitable on lower-revenue bases.
• Sand volumes and pricing inflecting up: Sand volumes and pricing both improved materially in the quarter, with management expecting a stronger second half. This is meaningful because sand adjusted EBITDA had been negative despite positive gross margin in prior periods, making it the clearest margin-conversion catalyst.
• $40M aviation pipeline adds optionality: Management identified more than $40 million of actionable aviation investment opportunities with attractive return profiles on the call. If executed, this would add a capital-light revenue stream beyond the four energy service lines.

Bear case

• Quarterly capex dwarfs revenue: Capital expenditures rose to $44 million in the quarter while total revenue remains under $10 million annualized. The company is spending roughly four times its revenue each quarter to build out capacity, creating a long runway to positive free cash flow.
• Still posting a net loss: The company reported a $1.2 million net loss from continuing operations in Q2 FY26. Despite 59% revenue growth, no segment yet generates enough operating leverage to cover the full cost stack.
• Valuation prices in flawless execution: The stock trades at a P/E of 232.8x versus a 16x industry average, a premium of roughly 1,401%. At sub-$10 million revenue with ongoing losses, the multiple leaves essentially no margin for execution slippage or a slowdown in any single segment.

Mammoth Energy Services, Inc. earnings call transcripts

• TUSK Q2 FY26 earnings call transcript (reported 2026-08-07) · analysis
• TUSK Q1 FY26 earnings call transcript (reported 2026-05-11) · analysis

All TUSK earnings calls

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