Mammoth Energy Services is no longer the leveraged oilfield contractor that spent years chasing Puerto Rico grid work and frac spreads. Last year the company sold transmission, engineering, and pressure-pumping assets and pointed the cash at aircraft, engines, and auxiliary power units that it leases rather than operates. The second-quarter print covers the period ended June 30, 2026. That period is the first clean look at the rebuilt machine running at commercial scale. The investment debate is whether the aviation platform can convert a shrinking cash pile into recurring earnings before the remaining oilfield lines pull the story back into cyclicality.
Management raised the full-year outlook for the second time, now calling for revenue growth above ninety percent and adjusted earnings before interest, taxes, depreciation, and amortization margins above ten percent. Sequential revenue still rose even as one-time aviation part sales faded, because sand volumes, drilling activity, and leased-fleet utilization all improved. Adjusted EBITDA printed just under three million on a double-digit margin, a second consecutive profitable quarter on that measure. The counterargument is cash conversion. Capital spending in the quarter nearly doubled quarterly revenue, and first-half operating cash from continuing operations was still an outflow.
Drilling flipped to positive adjusted EBITDA ahead of the internal timetable, and sand returned to a positive gross margin even though that segment still lost money at the adjusted EBITDA line. The fleet ended the quarter with thirty-eight aviation assets, of which twenty-three were already generating lease revenue. Cash and marketable securities still totaled $77 million against no funded debt, yet a large income-tax payable and a remaining Puerto Rico Electric Power Authority claim keep the net-cash story from being simple. The next several quarters decide whether aviation utilization funds the next wave of aircraft purchases from internal cash rather than from the remaining war chest.