Kodiak Gas Services, Inc. (KGS) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: 4.86%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.87
• Revenue Growth: 19.43%
• EPS Growth: 164.71%
• Country: US
• Employees: 1,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.28
• Shares Outstanding: 85,869,390
• 10 Day Avg. Volume: 1,146,914
• 30 Day Avg. Volume: 1,642,132
• PEG Ratio: 0.75
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 11.34
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 3.70
• Enterprise Value/Gross Profit: 7.83
• Enterprise Value/Ebitda: 8.23
• 1Y Price Target: $55.88
• Price Target Upside: -0.04% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $1.45B

• Rating: 72 Outperform
• Price Target: $63.00 ▲(12.70% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by solid financial performance (notably the 2025 cash-flow step-up) and a positive earnings outlook with high utilization and contracted backlog. Technicals support the trend but look somewhat stretched. Valuation is the main headwind due to the elevated P/E despite a supportive dividend yield.

Positive Factors

Strengthened cash generation

Kodiak’s large 2025 cash-flow step-up produced durable internal funding capacity. Strong OCF and positive FCF support ongoing maintenance and growth capex, dividends and buybacks while reducing reliance on external financing, providing sustained flexibility through cycles.

Material balance-sheet improvement

A markedly lower leverage profile and sizable equity cushion strengthen solvency and borrowing optionality. If sustained, this improves resilience to cycle stress, enables strategic M&A funding and lowers refinancing risk, supporting durable capital-allocation choices.

Contracted fleet and high utilization

High utilization and significant recontracting create predictable, recurring revenue and pricing leverage. A large contracted orderbook into 2027 and planned new-horsepower deployments underpin mid-term growth visibility and reduce near-term revenue cyclicality.

Negative Factors

Severe equipment lead times

Extremely long supplier lead times limit the company’s ability to scale capacity responsively, creating a structural constraint on growth timing. This forces advance ordering, complicates deployment schedules, and raises execution risk for multi-year expansion plans.

Spec-ordering and capex timing risk

Spec orders and pre-booked shop capacity increase the probability of capital being deployed before revenue is secured. That elevates working-capital needs and the risk of idle assets or write-downs if demand or timing shifts, pressuring returns and liquidity if prolonged.

Margin volatility / potential reversion

Margins have swung materially year-to-year and recent exceptional quarters may not be durable. If costs or pricing normalize, adjusted margins and FCF could compress, weakening sustainable cash generation and raising uncertainty around long-term profitability.

Kodiak Gas Services, Inc. Business Overview & Revenue Model

Company Description

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is based in Montgomery, Texas. Kodiak Gas Services, Inc. operates as a subsidiary of Frontier Topco Partnership, L.P.

How the Company Makes Money

KGS primarily makes money by providing contract compression services under service agreements where customers pay for access to and operation of compression horsepower over a contracted term. Revenue is generally driven by (i) recurring contract payments tied to reserved or deployed compression capacity (often expressed in horsepower) and contract duration, and (ii) ancillary charges associated with operating the equipment in the field. In addition to base contract fees, the company can generate revenue from services that support deployed units, such as start-up/installation activities, operations and maintenance work, and parts/service-related offerings when included in customer arrangements. Earnings are influenced by fleet utilization (how much of its available horsepower is contracted and operating), pricing per horsepower (contract rates), contract mix and length (which affect stability and repricing cadence), and the cost structure of maintaining and fueling/servicing equipment. The company’s customer relationships are typically with upstream and midstream operators, and its revenue profile is generally supported by multi-month to multi-year contracts that can provide recurring cash flows when equipment remains deployed.

Kodiak Gas Services, Inc. Financial Statement Overview

Summary

Strong multi-year revenue growth and a major 2025 step-up in operating/free cash flow support solid fundamentals. Offsetting factors include volatile profitability/free cash flow across years and large swings in leverage metrics that add uncertainty around durability.

Income Statement

Revenue has grown strongly over the period (from $532M in 2020 to $1.31B in 2025), including a very large step-up in 2025. Profitability is positive and improving versus earlier years, with net margin rising from a small loss in 2020 to ~6.2% in 2025. That said, margins have been volatile (very high in 2021–2022, then meaningfully lower in 2023–2025), and 2025 shows inconsistencies in reported line items (e.g., gross profit and EBIT margin fields), which reduces confidence in margin quality for that year.

Balance Sheet

Leverage risk appears to have improved materially by 2025: total debt is very low relative to equity (debt-to-equity ~0.04 in 2025 versus ~1.6–2.5 in 2020–2024, and extremely high in 2022), which is a clear balance-sheet positive if sustained. Equity is sizable ($1.21B in 2025) against a ~$4.32B asset base. The main weakness is the sharp year-to-year swing in leverage metrics (and debt level), which suggests potential non-recurring changes or classification effects; returns on equity are modest in 2023–2025 (mid-single digits), indicating profitability is not yet strong relative to the capital base.

Cash Flow

Cash generation strengthened meaningfully in 2025 with operating cash flow of ~$600M and free cash flow of ~$284M, a major improvement from near-breakeven/free-cash outflow in 2024. Cash flow has generally been sufficient to cover accounting earnings (operating cash flow above net income in most years), supporting earnings quality. The key weakness is inconsistency in free cash flow—negative in 2020, 2022, and 2024—indicating capital spending and/or working-capital swings can materially impact cash available to shareholders.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.31B	1.16B	850.38M	707.91M	606.38M
Gross Profit	551.99M	440.66M	316.64M	266.10M	236.15M
EBITDA	588.03M	533.32M	440.52M	479.69M	367.07M
Net Income	80.52M	49.90M	20.07M	106.27M	180.96M
Balance Sheet
Total Assets	4.32B	4.44B	3.24B	3.21B	3.01B
Cash, Cash Equivalents and Short-Term Investments	3.18M	4.75M	5.56M	20.43M	28.80M
Total Debt	43.80M	2.65B	1.83B	2.73B	1.85B
Total Liabilities	3.11B	3.06B	2.10B	2.98B	2.05B
Stockholders Equity	1.21B	1.36B	1.14B	229.09M	960.07M
Cash Flow
Free Cash Flow	284.27M	-8.97M	46.53M	-39.50M	48.04M
Operating Cash Flow	599.74M	327.99M	266.33M	219.85M	249.98M
Investing Cash Flow	-285.29M	-292.47M	-218.42M	-251.38M	-202.03M
Financing Cash Flow	-316.02M	-36.33M	-62.77M	23.17M	-43.25M

Kodiak Gas Services, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGS, the sentiment is Positive. The current price of 55.9 is above the 20-day moving average (MA) of 55.27, above the 50-day MA of 47.90, and above the 200-day MA of 37.34, indicating a bullish trend. The MACD of 2.15 indicates Positive momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KGS.

Kodiak Gas Services, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	77 Outperform	$3.47B	6.88	39.31%	―	8.71%	72.09%
AROC	76 Outperform	$6.22B	9.70	22.73%	3.08%	31.94%	64.74%
KGS	72 Outperform	$4.80B	40.03	6.27%	4.86%	19.43%	164.71%
NGS	70 Outperform	$491.67M	21.17	7.43%	0.63%	9.53%	15.48%
USAC	69 Neutral	$4.15B	24.95	-178.66%	9.11%	6.66%	43.66%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WHD	65 Neutral	$3.64B	18.87	14.21%	1.16%	-3.76%	-11.00%

Kodiak Gas Services, Inc. Corporate Events

Kodiak Gas Services Prices $1 Billion Senior Notes Offering

On March 11, 2026, Kodiak Gas Services announced that its subsidiary priced a $1.0 billion private offering of 5.875% senior unsecured notes due April 1, 2031, with closing expected on March 20, 2026, and the notes guaranteed on a senior unsecured basis by Kodiak and key U.S. subsidiaries. The company plans to use the proceeds to redeem all $750 million of its higher‑coupon 7.25% senior notes due 2029 at a premium and to pay down its revolving asset‑based facility, which in turn is expected to support funding for the acquisition of Distributed Power Solutions, LLC, signaling a balance‑sheet refinancing and growth‑oriented capital deployment that could lower interest costs and expand its service footprint.

The transaction underscores Kodiak’s ongoing optimization of its capital structure while reinforcing its role as a critical infrastructure provider to the oil and gas sector. By shifting debt into longer‑dated, lower‑cost notes and freeing ABL capacity for strategic acquisitions, the move may enhance financial flexibility and competitive positioning for both lenders and equity holders in the contract compression market.

The most recent analyst rating on (KGS) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.

Kodiak Gas Services Launches Notes Offering for Acquisition

On March 11, 2026, Kodiak Gas Services announced that its subsidiary Kodiak Gas Services, LLC launched a $750 million private offering of senior unsecured notes due 2031, targeted exclusively at qualified institutional buyers under Rule 144A and certain non‑U.S. persons under Regulation S. The company plans to use the proceeds, along with cash and borrowings under its asset-based loan facility, to redeem all of its outstanding 7.25% senior notes due 2029 at a premium and to help fund the acquisition of Distributed Power Solutions, LLC, a move that reshapes its capital structure while supporting a strategic expansion into distributed power services.

The most recent analyst rating on (KGS) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.

Kodiak Gas Services to Acquire Distributed Power Solutions

On February 5, 2026, Kodiak Gas Services, Inc. announced a definitive agreement for its subsidiary to acquire all membership interests in Distributed Power Solutions, LLC (DPS) in a cash-and-stock transaction valued at about $675 million, comprising $575 million in cash and roughly $100 million in Kodiak common stock, with closing targeted for early April 2026 subject to regulatory approvals and customary conditions. The deal, priced at roughly 7.4 times DPS’s estimated 2026 adjusted EBITDA, adds a 384 MW fleet of Caterpillar engine- and turbine-driven distributed power assets, expands Kodiak’s reach into high-growth digital infrastructure customers and deepens ties with upstream and midstream energy clients under contracted cash flows, while also being positioned as immediately accretive to earnings and cash flow per share and leveraging Kodiak’s large-horsepower engine expertise and DPS’s management team to strengthen the company’s role in distributed power and critical energy infrastructure markets.

The most recent analyst rating on (KGS) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.

Kodiak Gas Services Declares Quarterly Dividend, Sets Earnings Date

On January 29, 2026, Kodiak Gas Services, Inc. declared a quarterly cash dividend of $0.49 per share on its common stock for the fourth quarter of 2025, payable on February 20, 2026 to shareholders of record as of February 13, 2026, while its subsidiary Kodiak Gas Services, LLC simultaneously approved an identical $0.49 per unit distribution to its unitholders on the same record and payment dates. The company also scheduled the release of its fourth‑quarter and full‑year 2025 financial results for February 25, 2026, followed by an earnings conference call and webcast on February 26, 2026, moves that underscore an ongoing capital‑return program and provide investors with a defined timetable for reviewing Kodiak’s recent operating and financial performance.

The most recent analyst rating on (KGS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Kodiak Gas Services, Inc. stock, see the KGS Stock Forecast page.