Aug 6, 2026, 5:04 PM ETEnergy

Kodiak Gas Services — Second Quarter 2026 Earnings Summary

KGSKODIAK GAS SERVICES INC

Financial Performance

Total revenues for the quarter ended June 30, 2026, were $391.1 million, compared to $322.8 million in the second quarter of 2025.
Net income attributable to common shareholders was $52.0 million ($0.53 per diluted share), compared to $39.5 million ($0.43 per diluted share) in the second quarter of 2025.
Adjusted net income was $54.3 million ($0.55 per adjusted diluted share), compared to $40.0 million in the second quarter of 2025.
Record adjusted EBITDA was $216.8 million, representing a 21.7% increase compared to the second quarter of 2025.
Adjusted EBITDA percentage was 55.4% for the quarter.
Quarterly net cash provided by operating activities was $99.5 million.
Record discretionary cash flow was $163.3 million, a 40.2% increase compared to the second quarter of 2025.
Free cash flow for the quarter was $(87.5) million.
Total debt outstanding was $2.8 billion as of June 30, 2026.
The Company had $1.6 billion available on its ABL Facility and $1.7 billion in total liquidity (including cash) as of June 30, 2026.
Credit agreement leverage ratio was 3.2x for the second quarter of 2026, and 3.1x when netting all cash on the balance sheet against debt.

Increased full-year 2026 Adjusted EBITDA guidance to a range of $830 million to $860 million.
Increased full-year 2026 discretionary cash flow guidance to a range of $570 million to $600 million.
Reduced the midpoint for Power Infrastructure segment growth capital expenditures to reflect updated expectations for the timing and amount of down payments for future deliveries.
Full-year 2026 Compression Infrastructure revenue guidance is $1.25 billion to $1.28 billion with an adjusted gross margin percentage of 69.0% to 70.5%.
Full-year 2026 Power Infrastructure revenue guidance is $95 million to $125 million with an adjusted gross margin percentage of 60.0% to 70.0%.
Full-year 2026 Other Services revenue guidance is $125 million to $160 million with an adjusted gross margin percentage of 13.0% to 16.0%.
Full-year 2026 maintenance capital expenditures guidance is $80 million to $90 million.
Full-year 2026 growth capital expenditures guidance is $680 million to $750 million ($280 million to $300 million for Compression Infrastructure; $400 million to $450 million for Power Infrastructure).
Full-year 2026 other capital expenditures guidance is $45 million to $55 million.
Management expects to develop more than two gigawatts of power generation capacity by the end of the decade.

Compression Infrastructure: Revenue was $315.1 million, a 7.4% increase compared to $293.5 million in the second quarter of 2025. Adjusted gross margin was $220.7 million (70.0% margin), a 10.1% increase compared to $200.4 million in the second quarter of 2025. Fleet utilization was 98.2%, a 100 basis point increase compared to the second quarter of 2025.
Power Infrastructure: Revenue was $32.9 million in the second quarter of 2026 (first full quarter following the April 1, 2026 acquisition of Distributed Power Solutions, LLC). Adjusted gross margin was $21.2 million (64.5% margin). Fleet utilization was 89.6%.
Other Services: Revenue was $43.1 million, a 47.1% increase compared to $29.3 million in the second quarter of 2025. Adjusted gross margin was $4.9 million (11.3% margin), a 32.3% decrease compared to $7.2 million in the second quarter of 2025.
Announced a multi-year gas turbine order for one gigawatt of gas turbines to be delivered by 2030.
Continued commercial progress in Power Infrastructure with detailed engineering and design work on multiple high-quality projects in data center and energy microgrid applications.
Subsequent to the quarter, in July 2026, the Company purchased leased compression equipment totaling approximately 43,000 horsepower for approximately $32.8 million.

Strong demand for large horsepower compression continues to drive improvements in pricing and utilization.
The market environment for compression equipment is characterized by a tight supply.
There is strong visibility into future U.S. natural gas production growth.
Significant market opportunity exists for scalable power solutions to meet growing customer demand.
The Company maintains a robust pipeline of customer engagements.

The press release includes a standard cautionary note regarding forward-looking statements, noting that actual results may differ materially due to inherent uncertainties, risks, and changes in circumstances outside of the Company's control.
Specific risks mentioned include volatility in credit markets, future market conditions, potential acquisition transactions, claims, litigation, environmental costs, contingent liabilities, governmental and regulatory investigations, production and capacity forecasts, interest rate hedges, and risk management strategies.
The Company is unable to reconcile projected adjusted EBITDA to projected net income and discretionary cash flow to projected net cash provided by operating activities without unreasonable efforts due to unpredictable components like changes in current assets and liabilities and unknown future events.

Mickey McKee, President and CEO, stated that second quarter results highlight the strength of the established Compression Infrastructure business and the growing momentum of the Power Infrastructure platform.
Management expressed being "highly constructive" on the long-term outlook for the contract compression business due to strong visibility into U.S. natural gas production growth and tight supply.
Management noted meaningful progress in Power Infrastructure, underscoring the significant market opportunity ahead and a clear path toward developing more than two gigawatts of capacity by the end of the decade.
The tone reflects confidence in the strategy to provide scalable power solutions and create substantial long-term value for shareholders.

The Company reorganized its reportable segments to reflect the acquisition of Distributed Power Solutions, LLC (DPS), establishing a new Power Infrastructure segment and renaming the Contract Services segment to Compression Infrastructure.
During the second quarter, on May 13, 2026, Kodiak completed an underwritten public offering of 10.6 million shares at $71.00 per share, with the underwriters exercising an option for an additional 1.6 million shares. The offering closed on May 15, 2026, with aggregate net proceeds of approximately $836.1 million.
Net income for the second quarter included $3.3 million of nonrecurring transaction expenses primarily related to the acquisition of DPS.
Goodwill increased from $408.7 million as of December 31, 2025, to $753.5 million as of June 30, 2026.
Cash and cash equivalents increased from $3.2 million as of December 31, 2025, to $137.6 million as of June 30, 2026.
The Company paid dividends to stockholders of $92.6 million during the six months ended June 30, 2026.
The Company acquired DPS, net of cash acquired, for $576.0 million during the six months ended June 30, 2026.