Mammoth Energy Services, Inc. (TUSK): Business Model Canvas [Dec-2025 Updated]

You're looking at Mammoth Energy Services, Inc. after their big 2025 portfolio overhaul, and honestly, the new map is quite different from the old one. After divesting assets, the firm is sitting on a rock-solid foundation with $98.2 million in unrestricted cash as of Q3 2025 and a debt-free balance sheet, giving them the firepower to hit their $42 million CapEx target for the year. The core value now hinges on balancing stable, recurring rental income-like the $3.1 million from equipment rentals in Q2 2025-with essential, project-based work in infrastructure and sand. It's a complex pivot, blending aviation leasing with energy services, so let's break down exactly how Mammoth Energy Services, Inc. plans to generate revenue across its nine building blocks below.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Key Partnerships

Mammoth Energy Services, Inc. engages in specific, quantifiable relationships that support its transformed business focus, particularly in equipment rental services.

Commuter airline for long-term lease of acquired passenger aircraft

• Acquired eight small passenger aircraft in April 2025.
• Aggregate purchase price for the aircraft was approximately $11.5 million.
• Each aircraft is under long-term leases with a commuter airline.

Fifth Third Bank, National Association for the $50 million revolving credit facility

• Revolving Loan Commitments were reduced from $75.0 million to $50.0 million on July 2, 2025.
• As of August 6, 2025, the facility was undrawn, with a borrowing base of $50.0 million.
• Available borrowing capacity was $42.5 million as of August 6, 2025, after accounting for $7.5 million of outstanding letters of credit.
• Fifth Third Bank consented to the December 2, 2025 sale of Aquawolf LLC, releasing associated collateral.

Qualus, LLC and Peak Utility Services Group, Inc. as buyers of divested assets

Mammoth Energy Services, Inc. executed two major asset sales in 2025 to Qualus, LLC and Peak Utility Services Group, Inc., as part of its portfolio optimization.

The escrow for the Peak Utility Services Group, Inc. transaction is set to be released until at least May 15, 2026. The escrow for the Qualus, LLC transaction is set to be released until at least December 1, 2026. The sale to Peak Utility Services Group, Inc. was completed at over four times tangible book value and at a trailing twelve month EBITDA multiple of nine.

Suppliers for specialized equipment and maintenance services

Capital allocation for continuing operations, which includes growth CapEx for aviation and other equipment rental services, was set at $42 million for the 2025 CapEx budget. Year-to-date through October 2025, Mammoth spent $25 million on its aviation portfolio.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Key Activities

Strategic portfolio optimization and asset monetization activities included the completion of the divestiture of Piranha assets within the Sand segment during the third quarter of 2025. Mammoth Energy Partners LLC received $23.5 million in cash from a recent transaction, with $2.5 million set aside in escrow until December 1, 2026. In the second quarter of 2025, the company sold three infrastructure subsidiaries for an aggregate sales price of $108.7 million and sold all hydraulic fracturing equipment for proceeds of $15 million.

Specialized equipment rental, particularly aviation assets, saw the Rental Services segment generate revenue of $2.8 million for the third quarter of 2025. During the second quarter of 2025, Mammoth purchased eight small passenger aircraft to expand this segment. On average, during the third quarter of 2025, approximately 286 pieces of equipment were rented out to customers.

Mining, processing, and logistics for natural sand proppant operations resulted in the Natural Sand Proppant Services segment contributing revenue of $2.7 million for the third quarter of 2025. For that quarter, the Company sold approximately 122,000 tons of sand at an average sales price of $18.26 per ton. This compares to sales of approximately 163,000 tons at an average price of $22.89 per ton during the third quarter of 2024.

Engineering and fiber optic infrastructure operations are reflected in the Infrastructure Services segment, which contributed revenue of $4.8 million for the third quarter of 2025. This revenue increase was primarily due to an increase in fiber optic activity. Separately, on December 2, 2025, Mammoth Energy Services, Inc. announced the sale of its Engineering Business.

Directional drilling services for oil and gas exploration were conducted through the Drilling Services division, which contributed revenue of $2.3 million for the third quarter of 2025. This was an increase from the $0.7 million generated in the second quarter of 2025.

The following table summarizes the revenue contribution from continuing operations by segment for the third quarter of 2025:

The total revenue from continuing operations for the third quarter of 2025 was $14.8 million.

Key operational metrics for other segments include:

• Accommodation Services utilized 185 rooms on average in Q3 2025.
• The net loss from continuing operations for Q3 2025 was $12.1 million.
• Adjusted EBITDA from continuing operations for Q3 2025 was a loss of ($4.4) million.
• Total liquidity at the end of Q3 2025 was approximately $153.4 million with no debt.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Key Resources

You're looking at the core assets Mammoth Energy Services, Inc. (TUSK) relies on as of late 2025. These are the tangible and intangible things the company uses to create value, and right now, the balance sheet strength is a major component.

The financial foundation is solid, which gives management room to maneuver. As of September 30, 2025, Mammoth Energy Services, Inc. had $98.2 million in unrestricted cash and cash equivalents on hand. This liquidity is a key resource supporting their ongoing transformation. Total liquidity at that time stood at $153.4 million.

This strong cash position is paired with a debt-free balance sheet. The revolving credit facility was undrawn as of September 30, 2025, providing exceptional financial flexibility for capital deployment decisions. The company also received a cash infusion from a recent divestiture, closing the sale of its engineering subsidiary Aquawolf for $30.0 million, receiving $23.5 million in cash proceeds at closing in December 2025.

Mammoth Energy Services, Inc. maintains a fleet of specialized rental equipment, with a notable recent expansion in its aviation platform. This includes the acquisition of eight small passenger aircraft for approximately $11.5 million in early April 2025, which were immediately placed under long-term leases. This move diversifies the rental services segment, which is now a focus area for capital deployment.

The company still holds its natural sand proppant mine assets, though this segment has seen portfolio pruning. For the third quarter of 2025, the natural sand proppant services segment sold approximately 122,000 tons of sand at an average sales price of $18.26 per ton. This contrasts with the $5.4 million in revenue generated by this segment in the second quarter of 2025.

The experienced management team is actively focused on capital deployment, prioritizing high-return areas like the aviation platform while exiting lower-return assets, such as the divestiture of Piranha assets in the Sand segment during Q3 2025. The management's focus is clearly on building a leaner organization centered on consistent cash generation.

Here's a quick look at the financial structure supporting these resources as of the end of Q3 2025:

The key tangible and intangible assets supporting the current strategy include:

• Financial Capital: $98.2 million in unrestricted cash as of Q3 2025.
• Debt Capacity: Undrawn revolving credit facility, supporting a debt-free balance sheet.
• Aviation Fleet: Eight small passenger aircraft acquired for $11.5 million, immediately leased.
• Proppant Assets: Natural sand proppant mine assets used to sell volumes like 122,000 tons in Q3 2025.
• Management Focus: Disciplined capital deployment away from lower-return assets.

The management team is actively deploying capital, having spent $17.3 million in Q3 2025 capital expenditures, primarily for aviation fleet expansion.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Value Propositions

You're looking at the core strengths Mammoth Energy Services, Inc. (TUSK) is banking on as of late 2025, following a major portfolio shift. It's all about the quality of the assets they kept and the cash they generated by selling others.

Stable, predictable recurring revenue from leased aviation assets.

Mammoth Energy Services, Inc. is actively building out its rental services with a focus on aviation, which management noted was providing positive EBITDA from day one following the Q2 2025 acquisitions. This segment is highlighted as a high-return and scalable growth area. Capital expenditures for the nine months ended September 30, 2025, were primarily directed toward the expansion of this aviation rental fleet.

• Acquired eight small passenger aircraft for $11.5 million in Q2 2025.
• Rental Services revenue reached $3.1 million in Q2 2025.
• Average equipment on rent climbed to 296 units in Q2 2025 versus 223 in Q2 2024.

High liquidity and a debt-free structure for strategic M&A.

The company's balance sheet strength is a key proposition, giving it flexibility to pursue accretive transactions. Mammoth Energy Services, Inc. has explicitly stated its commitment to maintaining a debt-free status. This financial positioning allows for opportunistic capital deployment.

Here's the quick math on their cash position as of the third quarter of 2025:

What this estimate hides is the $20 million receivable from PREPA, which is contingent on bankruptcy proceedings.

Diversified service offerings across energy, rental, and infrastructure.

Mammoth Energy Services, Inc. operates across several distinct service lines, providing a mix of energy-related and infrastructure services. This diversification is central to their strategy following divestitures.

• The suite of services includes Rental Services, Infrastructure Services, Natural Sand Proppant Services, Accommodation Services, and Drilling Services.
• For Q2 2025, the revenue mix from continuing operations was weighted toward Natural Sand Proppant Services at 33% and Infrastructure Services at 33%.
• Infrastructure Services revenue in Q3 2025 was $4.8 million, driven by fiber optic activity.

Ability to unlock significant value by monetizing non-core assets.

The company has actively pruned its portfolio, realizing substantial cash proceeds from asset sales to fund its transformation. This is a clear demonstration of unlocking value from assets that were either non-core or lower-return.

• Divestiture of three infrastructure subsidiaries in April 2025 for an aggregate of $108.7 million.
• Sale of hydraulic fracturing equipment in Q2 2025 for proceeds of $15 million.
• Sale of engineering subsidiary Aquawolf LLC in December 2025 for $30 million, providing immediate cash proceeds of $23.5 million.
• The Aquawolf unit generated $12 million in revenue for the first nine months of 2025.

Essential natural sand proppant for North American unconventional drilling.

The Natural Sand Proppant Services segment remains a core component, supplying essential material for hydraulic fracturing in North America. While volumes have fluctuated, the segment continues to be a significant revenue contributor.

Data on sand sales volume and pricing for the continuing operations segment:

Sand volumes surged 72% YoY to 242,000 tons in Q2 2025.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Customer Relationships

You're looking at how Mammoth Energy Services, Inc. (TUSK) structures its interactions with the various customers across its diversified service lines. It's not one-size-fits-all; the relationship model shifts based on whether they are leasing high-value assets, providing specialized energy services, or selling bulk commodities.

Long-term contractual agreements for aviation and equipment rental

For the Rental Services segment, especially the newer aviation platform, the relationship is anchored in long-term contracts. Mammoth Energy Services, Inc. deployed capital into acquiring eight small passenger aircraft for an aggregate amount of approximately $11.5 million. These aircraft are leased to a commuter airline under long-term agreements, which is key to securing predictable cash flow. Management is targeting internal rates of return (IRRs) for these aviation investments in the 25-35% range, projecting a 2-3x multiple on invested capital (MOIC) over a 3-5 year horizon. This structure moves the relationship from a simple rental transaction to a contracted asset deployment.

The equipment rental side, which saw revenue of $3.1 million in the second quarter of 2025, relies on utilization driven by these contracted assets and other equipment on rent, which climbed to an average of 296 units in Q2 2025 versus 223 in Q2 2024.

Direct, project-based relationships with utility and energy companies

The relationships with utility and energy companies are inherently direct and project-based, particularly within the Infrastructure Services and Well Completion Services segments. For Infrastructure Services, which is now focused on engineering and fiber operations, the customer interaction is tied to specific utility build-outs. Revenue for this segment was $4.8 million in the third quarter of 2025, with the increase primarily due to fiber optic activity. In the first quarter of 2025, the Infrastructure Services segment generated $30.7 million in revenue, supported by an average crew count of 100 crews. The Well Completion Services segment engages directly with energy producers, evidenced by an average utilization of 1.3 fleets in Q1 2025, completing 828 stages.

You can see the project-based nature reflected in the quarterly revenue fluctuations:

• Infrastructure Services revenue was $5.4 million in Q2 2025 and $4.8 million in Q3 2025.
• Well Completion Services revenue was $20.9 million in Q1 2025.

Transactional sales model for natural sand proppant

The Natural Sand Proppant Services segment operates on a more transactional sales model, focusing on volume and per-ton pricing for hydraulic fracturing needs. The company completed the divestiture of its Piranha assets within this segment, signaling a pruning of lower-return assets. Sales volume and pricing dictate the relationship success here, which is less about long-term commitment and more about spot or short-term fulfillment.

Here's a look at the transactional metrics from recent quarters:

This segment's revenue was $2.7 million in Q3 2025, with 122,000 tons sold at an average price of $18.26 per ton.

Dedicated account management for remote accommodation services

For the remote accommodation services, which provide housing, kitchen, and dining facilities for large-scale projects, the relationship requires dedicated management to handle logistics and occupancy. This service line is tied to the activity levels of the energy and infrastructure customers it supports. Revenue for this segment was $2.3 million in the third quarter of 2025, with an average of 185 rooms utilized. This compares to $1.8 million in revenue in Q2 2025, where 145 rooms were utilized. The dedicated account management ensures the logistical needs of the remote workforce are met consistently, which is critical for customer retention in this niche.

Key utilization data for Accommodation Services:

• Q3 2025 Revenue: $2.3 million; Rooms Utilized: 185.
• Q2 2025 Revenue: $1.8 million; Rooms Utilized: 145.

Finance: draft 13-week cash view by Friday.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Channels

You're looking at how Mammoth Energy Services, Inc. (TUSK) gets its services and products to the customer base as of late 2025. The channels show a clear focus on direct engagement across its remaining core areas, especially after portfolio pruning.

Direct sales force targeting oil and gas operators for sand and drilling

The channel for the Natural Sand Proppant Services segment relies on direct sales to operators, though the segment has seen portfolio adjustments; the Company completed the divestiture of its Piranha assets within the Sand segment during the third quarter of 2025, which is a deliberate step in pruning the portfolio. For the third quarter of 2025, this channel generated revenue of $2.7 million. During that quarter, Mammoth Energy Services sold approximately 122,000 tons of sand at an average sales price of $18.26 per ton. The Drilling Services division, also targeting the energy sector, contributed revenue of $2.3 million in the third quarter of 2025. To be fair, the Company sold all equipment used in its hydraulic fracturing business for proceeds of $15 million in the second quarter of 2025, suggesting the direct sales force for that specific service is now focused on different assets or has been significantly reduced.

Direct contracts with utility companies for infrastructure services

The Infrastructure Services segment primarily uses direct contracts, serving government-funded utilities, private utilities, and public investor-owned utilities. This channel brought in revenue of $4.8 million for the third quarter of 2025. The increase in this revenue stream was primarily due to an increase in fiber optic activity, which remains structurally resilient versus drilling-linked services. This segment's structure has changed significantly, as the Company completed the sale of three infrastructure subsidiaries in April 2025 for an aggregate sales price of $108.7 million.

Internal leasing and rental division for specialized equipment

Mammoth Energy Services uses an internal division for its specialized equipment rentals, which supports aviation, construction, and energy operations. The Rental Services segment contributed revenue (inclusive of inter-segment revenue) of $2.8 million for the third quarter of 2025. The average number of pieces of equipment rented to customers was 286 for the third quarter of 2025. The Company expanded its aviation rental offerings during the second quarter of 2025, which contributed to increased revenue in that period.

Direct-to-customer logistics for sand delivery

Logistics for sand delivery is integrated with the sand sales process, representing the final step in delivering the Natural Sand Proppant Services product. The volume moved through this channel in the third quarter of 2025 was approximately 122,000 tons of sand, corresponding to the $2.7 million in segment revenue. This channel's performance is directly tied to the average sales price per ton, which was $18.26 in the third quarter of 2025.

Here's a quick look at the Q3 2025 revenue contribution by segment, which reflects the output of these channels:

The total revenue from continuing operations for the third quarter of 2025 was $14.8 million.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Customer Segments

You're looking at the core groups Mammoth Energy Services, Inc. (TUSK) serves as of late 2025, based on their recent operational reports. The company is clearly focused on a diversified set of industrial and energy-related clients, especially following portfolio optimization moves.

The total revenue from continuing operations for the third quarter ended September 30, 2025, was reported at $14.8 million. This revenue base is supported by several distinct customer groups across their service lines.

North American oil and gas exploration and production (E&P) companies are served through the Well Completion Services and Natural Sand Proppant Services segments. The Well Completion Services division brought in revenue of $2.3 million for Q3 2025, with an average of 1.3 of the Company's fleets active during Q1 2025. The Sand segment recorded revenue of $2.7 million in Q3 2025, with approximately 122,000 tons of sand sold at an average price of $18.26 per ton.

Utility companies (private, public, co-operative) for fiber and infrastructure are the customers for the Infrastructure Services segment. This segment contributed revenue of $4.8 million in the third quarter of 2025, with the increase primarily due to fiber optic activity. Backlog figures from Q1 2025 showed engineering revenue at $4M and fiber revenue at $0.7M.

Commuter airlines and other operators needing specialized equipment rental form a key part of the Rental Services customer base. This segment generated revenue of $2.8 million for Q3 2025, with an average of 286 pieces of equipment rented to customers. The company expanded its aviation rental offerings in Q2 2025.

Companies requiring remote workforce accommodations in Canada are served by the Accommodation Services segment. This group generated revenue of $2.3 million in Q3 2025, utilizing an average of 185 rooms. This compares to $1.8 million in revenue from this segment in Q2 2025, which was driven by remote workforce operations in Northern Alberta, Canada.

Here's a quick look at the Q3 2025 revenue contribution from the continuing operations segments:

Mammoth Energy Services, Inc. also serves customers through its Drilling Services division, which contributed revenue of $0.7 million in Q2 2025 and $2.3 million in Q3 2025. The company's overall market capitalization as of the Q3 2025 report was $85.06 million.

The customer base is characterized by:

• Utility entities needing electric grid construction and repair.
• E&P firms needing hydraulic fracturing support materials.
• Aviation operators requiring specialized equipment leases.
• Companies with large projects in remote areas needing housing solutions.

Finance: draft 13-week cash view by Friday.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Cost Structure

When you look at the cost side of Mammoth Energy Services, Inc. (TUSK)'s business model as of late 2025, the capital intensity jumps right out at you. The company is making significant investments to grow its rental fleet, specifically targeting a full-year 2025 Capital Expenditures (CapEx) allocation of $42 million for continuing operations, not counting any acquisitions. To give you a sense of the pace, CapEx for the second quarter of 2025 alone was $26.9 million.

Next up are the Selling, General, and Administrative (SG&A) expenses. For the second quarter of 2025, these expenses clocked in at $5.3 million. Honestly, the ratio is something to watch; the SG&A as a percentage of total revenue, excluding that big 2024 PREPA charge, was 32% in Q2 2025, up from 29% in Q1 2025.

For the operating costs tied to the Natural Sand Proppant Services segment, the direct operating expense figures aren't explicitly broken out in the latest releases, but we can see the scale of the activity. In Q2 2025, this segment generated $5.4 million in revenue. That revenue came from selling approximately 242,000 tons of sand at an average price of $21.41 per ton. You'd need to dig into the full cost of goods sold for that segment to get the true operating cost number, but the volume gives you a starting point.

Regarding the legal expenses related to the old Puerto Rico Electric Power Authority (PREPA) contract, those costs are definitely declining, which is good news for the run rate. Management forecasted about $2 million to $2.5 million in overall SG&A legal fees for the back half of 2025 related to the wind-down of that litigation. This follows the major settlement where Cobra Acquisitions LLC was set to receive a total of $188.4 million.

Here's a quick look at some of those key cost and spending figures we just discussed:

Finance: draft 13-week cash view by Friday.

Mammoth Energy Services, Inc. (TUSK) - Canvas Business Model: Revenue Streams

You're looking at how Mammoth Energy Services, Inc. brings in cash as of late 2025, which is definitely shifting toward a more demand-centric portfolio. The revenue streams are a mix of ongoing services and asset deployment, reflecting the strategic transactions you've been tracking.

The core of the recent revenue picture comes from several distinct service lines. For instance, you saw Rental services revenue hit $3.1 million in the second quarter of 2025. Also, the Infrastructure services revenue, driven by fiber operations, totaled $4.8 million in the third quarter of 2025. To be fair, that infrastructure segment revenue was $5.4 million in the second quarter of 2025, so there was a slight sequential dip in Q3.

The Natural Sand Proppant segment shows commodity pressure, with sales totaling $2.7 million in the third quarter of 2025. That compares to $5.4 million in the second quarter of 2025. Separately, the Accommodation services revenue brought in $1.8 million in the second quarter of 2025, improving to $2.3 million in the third quarter of 2025.

Here's a quick look at how the key continuing operations segments stacked up in the most recent reported quarters:

The total revenue from continuing operations was $16.41 million for the second quarter of 2025, but it stepped down to $14.8 million in the third quarter of 2025, which reflects the ongoing portfolio pruning, like the divestiture of Piranha assets in the sand segment.

The utilization metrics give you a clearer view of the activity supporting these revenue streams:

• Average equipment rented in Q3 2025 was 286 pieces.
• Rooms utilized for accommodations averaged 185 in Q3 2025.
• Natural sand sold in Q2 2025 was approximately 242,000 tons.
• Natural sand sold in Q3 2025 was approximately 122,000 tons.
• The average sales price per ton for sand in Q3 2025 was $18.26.

Finally, a significant potential future cash inflow is the $20 million Mammoth Energy Services is owed by PREPA, although that collection is contingent upon PREPA exiting bankruptcy proceedings. As of the end of Q3 2025, the company reported total liquidity of $153.4 million, which improved to $166.7 million by October 29, 2025, after the release of some restricted cash.

Finance: draft 13-week cash view by Friday.