Mammoth Energy Services, Inc. (NASDAQ: TUSK) completed the sale of its wholly owned subsidiary Aquawolf LLC to Qualus, LLC for a total consideration of $30 million. The transaction closed on December 2 2025 at 16:30 ET, with Mammoth receiving $23.5 million in cash and an additional $2.5 million held in escrow to cover post‑closing adjustments and indemnified liabilities through December 1 2026.
The $30 million proceeds provide a significant cash infusion that bolsters Mammoth’s balance sheet at a time when the company’s Q3 2025 results showed a net loss from continuing operations and declining revenue. The escrow arrangement, which covers potential adjustments and liabilities, reflects the parties’ intent to protect both sides against unforeseen post‑closing events while allowing Mammoth to deploy the majority of the cash toward higher‑return initiatives such as its expanding aviation rental fleet and other growth opportunities.
Aquawolf’s performance in the nine months ended September 30 2025 was $12.0 million in revenue and $1.3 million in net income, a decline from its 2024 revenue of $17.3 million. The drop is attributable to a modest contraction in the transmission and distribution engineering market, but the company’s profitability margin remained healthy, underscoring the value of its specialized services. The sale therefore represents a strategic divestiture of a profitable but non‑core business that aligns with Mammoth’s portfolio optimization plan.
Qualus, a leading pure‑play power solutions firm focused on grid modernization, sees the acquisition of Aquawolf as a complementary fit that expands its engineering capabilities in transmission and distribution. The deal is Qualus’s largest disclosed transaction to date and positions the company to capture synergies in project delivery and service integration across its existing portfolio.
Investors responded positively to the announcement, reflecting confidence in Mammoth’s strategic focus on higher‑return segments and the strengthening of its capital position. CFO Mark Layton noted that the sale “reinforces our belief that the underlying value across Mammoth is significantly disconnected from the current share price,” highlighting the company’s intent to unlock value through targeted divestitures.
The transaction signals a continued shift in Mammoth’s business model toward leaner operations and capital deployment in growth areas. By divesting a profitable but non‑core unit, the company is expected to improve its cash flow profile and reduce debt, setting the stage for future investments in high‑margin opportunities.
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