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

• Market Cap: $4.95B
• Dividend Yield: 4.86%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.90
• 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: 1,848,339
• 30 Day Avg. Volume: 1,741,257
• 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: 1.02
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 8.14
• Enterprise Value/Ebitda: 8.56
• 1Y Price Target: $53.14
• Price Target Upside: -7.83% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.39
• Revenue Forecast (FY): $1.44B

• Rating: 72 Outperform
• Price Target: $59.00 ▲(2.32% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improved financial performance (notably 2025 cash generation and growth) and a positive earnings outlook with strong utilization and contracted visibility. Technicals support the uptrend but are overextended, while valuation is a meaningful constraint due to the high P/E despite a supportive dividend.

Positive Factors

High contracted utilization & scale

A large, highly utilized fleet with multi‑year contracts provides durable, recurring cash flows and strong operational leverage. Near‑full utilization (98%) and growing horsepower reduce revenue volatility, improve bargaining power on pricing, and support predictable deployment and maintenance planning over 2–6 months and beyond.

Material balance-sheet improvement

Substantially lower leverage materially enhances financial flexibility and reduces refinancing risk. A stronger capital structure supports funding for growth capex, opportunistic M&A, and dividends while mitigating downside in cyclical energy markets, improving resilience across multi‑year industry cycles.

Stronger cash generation and capital returns

Meaningful improvement in operating and free cash flow signals improved earnings quality and internal funding capacity. Consistent cash generation enables dividends, buybacks and reinvestment for growth, reducing dependence on external financing and supporting sustainable shareholder returns over the medium term.

Negative Factors

Severe equipment lead times

Industry‑wide supply constraints and >100‑week lead times create structural execution risk: Kodiak must spec order and precommit shop space, raising the chance of capital deployed ahead of contracted demand, delayed deployments, or margin erosion if input costs shift before revenue realization.

Margin volatility and reporting inconsistencies

Material margin swings and inconsistent 2025 line items weaken visibility into sustainable profitability. This raises the risk that exceptional quarters may not persist, complicates forecasting for reinvestment capacity, and reduces confidence in margin-driven cash flow durability.

Spec ordering and elevated capex timing risk

Proactive spec orders mitigate supply risk but transfer demand timing risk to Kodiak’s balance sheet. If contracted demand shifts, the company may carry underutilized assets or face delayed returns, increasing working capital and capex volatility and pressuring free cash flow in adverse scenarios.

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

Kodiak Gas Services generates revenue primarily through the rental of natural gas compression equipment, charging clients on a contractual basis for the use of its machinery. The company may also offer maintenance and operational support services, adding recurring revenue streams through service contracts. Key revenue streams include long-term rental agreements with large operators in high-demand areas, as well as one-time rentals for short-term projects. Significant partnerships with major oil and gas companies further contribute to its earnings, as these relationships often result in stable, long-term contracts that enhance KGS's financial stability.

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 the core financial profile. Offsetting this are volatile margins and free cash flow across years, sharp swings in leverage metrics, and noted inconsistencies in some 2025 reported margin line items that reduce confidence in 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: 57.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 57.66 is above the 20-day moving average (MA) of 51.48, above the 50-day MA of 43.24, and above the 200-day MA of 36.04, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 83.82 is Negative, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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	$3.50B	6.88	39.64%	―	8.71%	72.09%
AROC	76 Outperform	$6.43B	20.09	22.66%	3.08%	31.94%	64.74%
NGS	74 Outperform	$483.27M	15.18	7.15%	0.63%	9.53%	15.48%
KGS	72 Outperform	$4.95B	40.03	6.28%	4.86%	19.43%	164.71%
USAC	69 Neutral	$3.98B	24.95	―	9.11%	6.66%	43.66%
WHD	69 Neutral	$4.01B	18.87	14.45%	1.16%	-3.76%	-11.00%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Kodiak Gas Services, Inc. Corporate Events

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.

Kodiak Gas Services Stock Sale Agreement Finalized

On December 1, 2025, Kodiak Gas Services, Inc. entered into an Underwriting Agreement with Frontier TopCo Partnership, L.P. and Goldman Sachs & Co. LLC for the sale of 9,762,573 shares of common stock by the Selling Stockholder at $34.60 per share. The company did not sell any shares or receive proceeds from this transaction, which closed on December 2, 2025, and included standard representations, warranties, and indemnification agreements.

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.