Kodiak Gas Services — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the quarter ended September 30, 2026, were $401.8 million, compared to $391.1 million in the second quarter of 2026 and $322.7 million in the third quarter of 2025.
• Net income attributable to common shareholders was $71.5 million ($0.70 per diluted share), compared to $52.0 million ($0.53 per diluted share) in the second quarter of 2026 and a net loss of $14.0 million ($0.17 per diluted share) in the third quarter of 2025.
• Adjusted EBITDA was $224.5 million, a 28.5% increase compared to the third quarter of 2025 ($174.7 million).
• Quarterly net cash provided by operating activities was $196.3 million, and discretionary cash flow was $158.5 million, a 35.9% increase compared to the third quarter of 2025.
• Compression Infrastructure segment revenues were $318.4 million with an adjusted gross margin percentage of 70.0%.
• Power Infrastructure segment revenues were $42.0 million, a 27.6% increase compared to the second quarter of 2026, with an adjusted gross margin percentage of 75.2%.
• Other Services segment revenues were $41.4 million, a 60.6% increase compared to the third quarter of 2025.
• Total debt outstanding was $2.8 billion as of September 30, 2026.
• The company had $1.6 billion available on its ABL Facility and $1.7 billion in total liquidity including cash on the balance sheet.
• The credit agreement leverage ratio was 3.1x for the third quarter of 2026.

Guidance and Future Outlook:

• Full-year 2026 Adjusted EBITDA guidance was increased to a range of $840 million to $860 million.
• Full-year 2026 discretionary cash flow guidance was increased to a range of $580 million to $600 million.
• Full-year 2026 Compression Infrastructure revenue guidance is $1.255 billion to $1.275 billion.
• Full-year 2026 Power Infrastructure revenue guidance is $100 million to $120 million.
• Full-year 2026 Other Services revenue guidance is $125 million to $160 million.
• Full-year 2026 maintenance capital expenditures guidance is $80 million to $90 million.
• Full-year 2026 growth capital expenditures guidance is $640 million to $710 million.
• Full-year 2026 other capital expenditures guidance is $45 million to $55 million.
• Power Infrastructure segment growth capital expenditures were reduced to reflect updated expectations for the timing of new equipment deliveries.
• Compression Infrastructure segment growth capital expenditures were slightly increased to reflect incremental equipment deliveries.

Business Segments and Product Lines:

• Compression Infrastructure fleet utilization was 98.3%, a 70 basis point increase compared to the third quarter of 2025.
• Power Infrastructure fleet utilization was 92.5%.
• The company added 102 thousand horsepower of new, large compression units to revenue-generating horsepower.
• The company announced an agreement to provide 76 megawatts of behind-the-meter, baseload power capacity, including balance of plant, to a West Texas data center.
• Initial site work and equipment setting began at the West Texas data center project, expected to provide stable revenue in 2027.
• The company established a new Power Infrastructure segment following the acquisition of DPS, representing distributed power generation operations.
• The former Contract Services segment was renamed Compression Infrastructure.

Market and Competitive Landscape:

• Management noted robust market demand for assets, with gensets realizing meaningful increases in pricing and staying on location longer.
• There is high visible demand for large horsepower compression and a robust commercial pipeline of power projects.
• The company serves customers across the energy and digital infrastructure sectors, including oil and gas producers, midstream operators, and data center developers.

Risks and Challenges:

• The press release includes a standard cautionary note regarding forward-looking statements, citing inherent uncertainties such as changes to current assets and liabilities, unknown future events, and volatility in credit markets.
• Actual results may differ materially from forward-looking statements due to factors discussed in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Management Commentary and Tone:

• Mickey McKee, President and CEO, stated that third-quarter results reflect continued strength and profitability across core business segments.
• Management highlighted that increased operating efficiencies in Compression Infrastructure, driven by technology and cost discipline, offset inflationary pressures.
• Management expressed high confidence in the long-term trajectory of both platforms and a focus on executing strategic priorities to drive sustainable value for shareholders.

Other Key Points:

• A quarterly dividend of $0.51 per share was declared, a 4.1% increase over the second quarter of 2026.
• The Board of Directors extended the expiration date of the share repurchase program to December 31, 2027.
• Approximately $31.7 million remains available for share repurchases under the program.
• The DPS acquisition closed on April 1, 2026, and its financial impact is incorporated into the full-year 2026 guidance.
• A $42.6 million non-cash finance lease addition related to an operational office was excluded from full-year capital expenditures guidance.
• The company reported a loss on sale of assets of $2.0 million for the quarter.
• Equity compensation expense was $9.1 million for the quarter.