second quarter 2026
Filed Aug 6, 2026Kodiak Gas Services Reports Second Quarter 2026 Financial Results, Increases Full Year 2026 Adjusted EBITDA and Discretionary Cash Flow Guidance
Record Compression Infrastructure revenue, record adjusted EBITDA and discretionary cash flow, higher full-year Adjusted EBITDA and discretionary cash flow guidance, and strong Compression Infrastructure utilization and adjusted gross margin supported the period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $391,120 (in thousands) | – | – |
| Net income attributable to common shareholdersGAAP | $51,971 (in thousands) | – | – |
| Diluted earnings per shareGAAP | $0.53 per diluted share | – | – |
| Adjusted net incomenon-GAAP | $54,275 (in thousands) | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.55 per adjusted diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $216,846 (in thousands) | – | 21.7% |
| Adjusted EBITDA percentagenon-GAAP | 55.4% | – | – |
| Maintenance capital expendituresother | $19,947 (in thousands) | – | – |
| Compression Infrastructure growth capital expendituresother | $66,790 (in thousands) | – | – |
| Power Infrastructure growth capital expendituresother | $134,371 (in thousands) | – | – |
| Other capital expendituresother | 53,709 (in thousands) | – | – |
| Total Growth and Other capital expendituresother | $254,870 (in thousands) | – | – |
| Discretionary cash flownon-GAAP | $163,251 (in thousands) | – | 40.2% |
| Free cash flownon-GAAP | $(87,496) (in thousands) | – | – |
| Quarterly net cash provided by operating activitiesGAAP | $99.5 million | – | – |
| Compression Infrastructure fleet utilizationother | 98.2% | – | 100 basis point increase |
| Power Infrastructure fleet utilizationother | 89.6% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Compression InfrastructureStrong demand for large horsepower compression continued to drive improvements in pricing and utilization. | $315.1 million | – | 7.4% increase |
| Power InfrastructureThe Company secured a strategic turbine supply agreement covering up to one gigawatt of generation capacity and advanced multiple commercial opportunities. | $32.9 million | – | – |
| Other ServicesCertain ancillary services associated with the power business that are similar in nature to existing service offerings are included within the Other Services segment. | $43.1 million | – | 47.1% increase |
full year 2026 outlook
- NoteAdjusted EBITDA: $830 million to $860 million
- NoteDiscretionary cash flow: $570 million to $600 million
- NoteReduced the midpoint for Power Infrastructure segment growth capital expenditures to reflect updated expectations for the timing and amount of down payments for future deliveries
What drove it
- Compression Infrastructure segment revenue was a record $315.1 million.
- Compression Infrastructure segment gross margin was $147.6 million and adjusted gross margin was $220.7 million.
- Compression Infrastructure adjusted gross margin percentage was 70.0%.
- Power Infrastructure revenue was $32.9 million, with gross margin of $15.7 million and adjusted gross margin of $21.2 million.
- Kodiak announced a multi-year gas turbine order for one gigawatt of gas turbines to be delivered by 2030.
- The Company continued detailed engineering and design work on multiple projects in data center and energy microgrid applications.
Concerns
- Free cash flow was $(87,496) (in thousands), compared with $36,962 (in thousands) in the first quarter of 2026 and $70,290 (in thousands) in the second quarter of 2025.
- Total Growth and Other capital expenditures were $254,870 (in thousands), compared with $93,010 (in thousands) in the first quarter of 2026 and $54,364 (in thousands) in the second quarter of 2025.
- Other Services adjusted gross margin was $4.9 million, a 32.3% decrease compared to $7.2 million in the second quarter of 2025.
- Total debt outstanding was $2.8 billion as of June 30, 2026.
- Net income attributable to common shareholders included $3.3 million of nonrecurring transaction expenses related primarily to the acquisition of DPS.
What to watch
- Execution of the strategic turbine supply agreement covering up to one gigawatt of generation capacity to be delivered by 2030.
- Progress toward developing more than two gigawatts of power generation capacity by the end of the decade.
- Timing and amount of down payments for future Power Infrastructure deliveries.
- Compression Infrastructure pricing, utilization and demand for large horsepower compression.
- Power Infrastructure commercial opportunities in data center and energy microgrid applications.
Balance sheet and cash flow
- Quarterly net cash provided by operating activities of $99.5 million
- Record discretionary cash flow of $163.3 million
- Free cash flow of $(87,496) (in thousands)
- 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 on the balance sheet as of June 30, 2026.
- Kodiak’s credit agreement leverage ratio was 3.2x for the second quarter of 2026, and was 3.1x netting all cash on the balance sheet at June 30, 2026 against debt outstanding.
- The Company received aggregate net proceeds of approximately $836.1 million from its underwritten public offering, after deducting underwriting discounts and offering expenses.
- In July 2026, Kodiak purchased leased gas compression equipment totaling approximately 43,000 horsepower for approximately $32.8 million.
Analysis
Kodiak reported record Compression Infrastructure revenue of $315.1 million, up 7.4% from $293.5 million in the second quarter of 2025. The segment delivered gross margin of $147.6 million, adjusted gross margin of $220.7 million and a 70.0% adjusted gross margin percentage. Fleet utilization was 98.2%, a 100 basis point increase compared with the second quarter of 2025. Management attributed this performance to strong demand for large horsepower compression, improving pricing and utilization, technology-enabled efficiency and cost discipline.
Consolidated total revenues were $391,120 (in thousands), compared with $345,759 (in thousands) in the first quarter of 2026 and $322,843 (in thousands) in the second quarter of 2025. Net income attributable to common shareholders was $51,971 (in thousands), while adjusted net income was $54,275 (in thousands). Adjusted EBITDA reached a record $216,846 (in thousands), up 21.7% compared with the second quarter of 2025, and adjusted EBITDA percentage was 55.4%.
The first full quarter of Power Infrastructure fleet-utilization reporting following the April 1, 2026 DPS acquisition included $32.9 million of revenue, $15.7 million of gross margin, $21.2 million of adjusted gross margin and 89.6% fleet utilization. Kodiak also secured a strategic turbine supply agreement covering up to one gigawatt of generation capacity. Other Services revenue increased 47.1% to $43.1 million, but its gross margin and adjusted gross margin each declined 32.3% to $4.9 million.
Cash generation before growth investment was strong, with $99.5 million of quarterly net cash provided by operating activities and record discretionary cash flow of $163.3 million. Free cash flow was $(87,496) (in thousands), as total Growth and Other capital expenditures rose to $254,870 (in thousands), including $134,371 (in thousands) of Power Infrastructure growth capital expenditures. Kodiak ended the period with $2.8 billion of total debt outstanding, $1.7 billion of total liquidity and a 3.2x credit agreement leverage ratio.
Kodiak increased full-year 2026 Adjusted EBITDA guidance to $830 million to $860 million and discretionary cash flow guidance to $570 million to $600 million. The Company reduced the midpoint for Power Infrastructure segment growth capital expenditures because of updated expectations for the timing and amount of down payments for future deliveries. The key execution items are Power Infrastructure commercial conversion, turbine delivery timing, power-project capital requirements and continued Compression Infrastructure pricing and utilization.
Management, verbatim
Our second quarter results highlight the strength of both our established Compression Infrastructure business and the growing momentum of our Power Infrastructure platform,
Mickey McKee, President and Chief Executive Officer
With strong visibility into future U.S. natural gas production growth and a tight supply environment for compression equipment, we remain highly constructive on the long-term outlook for our contract compression business.
Mickey McKee, President and Chief Executive Officer
With a robust pipeline of customer engagements and a clear path toward developing more than two gigawatts of power generation capacity by the end of the decade, we believe we are well positioned to drive sustainable growth and create substantial long-term value for our shareholders.
Mickey McKee, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior full-year 2026 guidance was not provided, so comparison with prior guidance cannot be made.
- Consolidated GAAP gross margin and gross margin percentage were not provided in the supplied filing text.
- Consolidated operating income, operating margin, adjusted operating income and adjusted operating margin were not provided in the supplied filing text.
- GAAP diluted earnings per share for the prior-year and prior-quarter periods were not provided in the supplied filing text.
- Adjusted diluted earnings per share for the prior-year and prior-quarter periods were not provided in the supplied filing text.
- Exact cash balance was not provided in the supplied filing text.
- Share repurchases and dividends were not provided in the supplied filing text.
- Revenue, gross-margin, operating-expense and tax-rate guidance were not provided in the supplied filing text.
- The supplied filing text cuts off within the Summary Operating Data table; remaining operating metrics are unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.