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Kodiak Gas Services, Inc. (KGS)
NYSE:KGS
Earnings Data
Report Date
May 13, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.53Last Year’s EPS
0.33Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated a strongly positive operational and financial performance in 2025 with multiple record metrics (revenue, adjusted EBITDA, discretionary and free cash flow), significant balance sheet improvements (leverage target achieved, ample liquidity), high utilization and pricing discipline in the core compression business, successful technology and ERP rollouts, and a strategic acquisition (DPS) to enter distributed power. The primary negatives relate to industry-wide supply constraints and >100-week lead times for new equipment, which introduce execution and capital-timing risk and require spec ordering. Management is proactively mitigating supply risk, and 2026 guidance is constructive though somewhat conservative on margins given Q4's exceptional performance. Overall, the positive operational momentum, strong cash generation, and strategic positioning materially outweigh the supply-chain and timing challenges.Company Guidance
Record Financial Performance
Total revenue grew 13% year-over-year to approximately $1.3 billion in 2025. Adjusted EBITDA rose 17% to ~$715 million and adjusted net income increased ~51% to $139 million. Fourth-quarter adjusted EBITDA set a company record at $184 million, up 9% year-over-year.
Strong Cash Generation and Capital Returns
Generated approximately $462 million in discretionary cash flow for the year and reported $230 million of free cash flow in 2025. Returned over $260 million to shareholders (including >$100 million of buybacks at an average price of $33.79 and dividend increases), and declared/paid a $0.49 per share dividend with Q4 dividend up ~20% year-over-year.
Balance Sheet and Liquidity Improvements
Achieved targeted leverage of 3.5x at year-end, termed out a large portion of ABL, extended weighted average debt maturity, and exited 2025 with approximately $1.5 billion in undrawn liquidity and over three years before first debt maturity.
Contract Services Operational Strength
Ended 2025 with ~4.35 million revenue-generating horsepower and industry-leading average horsepower per revenue-generating unit of 970 (increasing each quarter since CSI acquisition). Added ~150,000 new large horsepower during the year and achieved fleet utilization of 98%.
Margin Expansion and Pricing
Contract Services adjusted gross margin increased 247 basis points year-over-year to 69.2%, exceeding guidance. Revenue per ending horsepower was $23.10 at year-end, up ~2% sequentially and ~5% year-over-year. Management recontracted ~40% of the fleet in 2025, exiting the year with only ~10% of contracts on a month-to-month basis.
Technology and Operational Improvements
Implemented new ERP enterprise-wide (stable since August 1) enabling faster month-end closes and better insights. Deployed AI/ML tools including a custom large language model to aid field technicians and agentic AI for parts sourcing; using condition-based maintenance to extend overhaul intervals and reduce repair costs.
Strategic Investments and Facilities
Broke ground on a new industry-leading training and operations facility in Midland (move-in expected May) and invested in wearable/autonomous solutions roadmap; maintained low maintenance CapEx ($76 million for the year at the low end of guidance).
Growth Outlook and Backlog
Management expects to deploy ~150,000 new unit horsepower in 2026 with average horsepower per unit of ~1,700, and has secured engine deliveries and shop space into 2028. Company forecasts deployment of over 750,000 new large horsepower between now and the end of 2030.
2026 Financial Guidance
Provided 2026 guidance (pre-DPS acquisition) of revenue $1.37–$1.43 billion; Contract Services adjusted gross margin 67.5%–69.5%; and adjusted EBITDA $750–$780 million (midpoint ~8% annual growth). Growth CapEx expected $235–$265 million; maintenance CapEx $75–$85 million.
Strategic M&A and Market Entry
Announced pending acquisition of Distributed Power Solutions (DPS) to enter distributed power market; management reports significant inbound interest since announcement and sees synergies between compression and power offerings.
KGS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KGS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $52.75 | $54.85 | +3.98% |
Nov 04, 2025 | $35.92 | $33.58 | -6.51% |
Aug 06, 2025 | $31.24 | $31.09 | -0.47% |
May 07, 2025 | $32.87 | $34.13 | +3.84% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kodiak Gas Services, Inc. (KGS) report earnings?
Kodiak Gas Services, Inc. (KGS) is schdueled to report earning on May 13, 2026, After Close (Confirmed).
What is Kodiak Gas Services, Inc. (KGS) earnings time?
Kodiak Gas Services, Inc. (KGS) earnings time is at May 13, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KGS EPS forecast?
KGS EPS forecast for the fiscal quarter 2026 (Q1) is 0.53.