Mammoth Energy Services FY 2025 results: revenue steady, losses persist
Mammoth Energy Services (TUSK) has posted another loss making quarter, with Q3 FY 2025 revenue of US$14.8 million and basic EPS of a US$0.25 loss, while trailing twelve month figures show EPS of a US$1.76 loss on revenue of US$186.3 million. Over recent periods the company has seen quarterly revenue move between US$16.4 million and US$14.8 million in FY 2025, compared with US$53.2 million in Q4 FY 2024, as EPS ranged from a US$0.03 loss to a US$0.74 loss across the same FY 2025 stretch. For investors, the latest figures keep the focus firmly on pressure at the bottom line and the pace at which margins might be stabilised.
See our full analysis for Mammoth Energy Services.With the numbers on the table, the next step is to set these results against the widely held narratives around Mammoth, highlighting where the story around growth and risk matches the data and where it is challenged.
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Losses remain heavy at US$85.1 million over the year
- On a trailing twelve month basis to Q3 FY 2025, Mammoth reported net income excluding extra items of a US$85.1 million loss on US$186.3 million of revenue, and basic EPS of a US$1.76 loss, highlighting that the business is still firmly in loss making territory.
- What stands out against a more bullish view that diversification across oilfield services and utility work can smooth performance is that losses have been widening over five years at about 10.3% per year, even with revenue in the trailing twelve months sitting near US$186 million, which suggests scale alone has not yet translated into profitability.
- Supporters of the business model may point to exposure across well completion, sand, logistics and infrastructure as a positive mix. Yet the continued loss of US$12.1 million in Q3 FY 2025 on US$14.8 million of revenue shows that a broad footprint has not prevented sustained red ink.
- Critics highlight the 10.3% annual decline in earnings over five years as a core risk, and the Q2 FY 2025 loss of US$35.7 million excluding extra items, despite US$16.4 million of revenue and US$44.5 million from discontinued operations, fits that concern about earnings pressure.
Valuation flags: 0.5x P/S and wide DCF gap
- The shares trade on a P/S ratio of 0.5x, compared with a peer average of 1.0x and a US Energy Services industry average of 1.3x, while a DCF fair value of US$62.75 in the dataset sits far above the current share price of US$2.12.
- Investors weighing a more bullish angle on valuation will notice that the combination of a 0.5x sales multiple and a modeled DCF fair value well above the share price points to a large gap. However, the same data also shows an unprofitable trailing twelve month record and a 10.3% annual decline in earnings over five years, which keeps valuation arguments tied closely to the company’s ability to improve its loss profile.
- Supporters might argue that US$186.3 million of trailing twelve month revenue against a market value implied by a 0.5x P/S creates room if profitability improves, but the trailing EPS of a US$1.76 loss means any such case rests on changes that are not visible in the current figures.
- Skeptics can point to the US$85.1 million trailing twelve month loss and the large loss years in the recent history, such as the US$155.6 million loss in Q2 FY 2024 excluding extra items, as reasons why the market may be applying a low multiple despite the high DCF fair value in the dataset.
Discontinued operations add noise to the story
- Earnings from discontinued operations swung from a US$15.2 million loss in Q3 FY 2024 to gains of US$1.0 million in Q1 FY 2025 and US$44.5 million in Q2 FY 2025, then back to a US$0.6 million loss in Q3 FY 2025, contributing to a total of US$65.3 million from discontinued operations over the trailing twelve months.
- What makes the bearish narrative about earnings quality more pointed is that even with US$65.3 million from discontinued operations in the trailing twelve months, net income excluding extra items was still a US$85.1 million loss, so one off items and segment exits have not changed the underlying loss making pattern.
- Bears argue that heavy reliance on such items complicates the picture, and the contrast between the US$44.5 million boost from discontinued operations in Q2 FY 2025 and the same quarter’s US$35.7 million loss excluding extra items highlights how core performance differs from headline figures.
- For you as an investor, the swing from a US$15.2 million loss on discontinued operations in Q3 FY 2024 to positive contributions in the following quarters but continuing operating losses shows why it helps to separate recurring business performance from disposal related effects when thinking about the story here.
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Mammoth Energy Services's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
Does the mixed tone of losses and valuation gaps leave you on the fence? Take a moment to look through the figures yourself and form your own view, then see how that compares with our breakdown of 1 key reward and 1 important warning sign.
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Mammoth’s recurring losses, heavy reliance on discontinued operations and weak earnings trend over several years point to a business profile that carries meaningful risk for shareholders.
If that risk profile feels uncomfortable, use our 63 resilient stocks with low risk scores to quickly find companies with steadier fundamentals and potentially fewer financial shocks competing for your attention.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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