Kodiak Gas Services, Inc. (KGS)
NYSE:KGS
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Kodiak Gas Services, Inc.
(NYSE:KGS)
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Rating:74Outperform
Price Target:
$65.00
â–²(2.77% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving financial performance (notably the 2025 cash-flow step-up and strong revenue growth) and a positive earnings outlook from the latest call. Technicals also support the rating with the stock trending above major moving averages. The main offset is valuation, with a high P/E only partly balanced by the dividend yield and management’s acknowledged execution/supply-chain timing risks.
Positive Factors
Cash generation
A large, sustained step-up in operating and free cash flow materially improves Kodiak’s ability to fund maintenance and growth capex, pay dividends and buybacks, and delever. Durable cash generation reduces refinancing risk and supports selectable capital allocation over multiple years.
Negative Factors
Equipment lead times
Extended >100-week lead times create structural execution risk: they delay capacity growth, force early ordering, and can mismatch investment timing versus contracted customer demand, raising the chance of idle capital or missed deployments over multiple years.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
A large, sustained step-up in operating and free cash flow materially improves Kodiak’s ability to fund maintenance and growth capex, pay dividends and buybacks, and delever. Durable cash generation reduces refinancing risk and supports selectable capital allocation over multiple years.
Read all positive factors
Kodiak Gas Services, Inc. (KGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.44B
Dividend Yield4.86%
Average Volume (3M)1.12M
Price to Earnings (P/E)40.0
Beta (1Y)0.81
Revenue Growth19.43%
EPS Growth164.71%
CountryUS
Employees1,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding88,295,784
10 Day Avg. Volume877,325
30 Day Avg. Volume1,123,382
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)2.67
Price to Sales (P/S)2.46
P/FCF Ratio11.34
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.30
Enterprise Value/Gross Profit9.10
Enterprise Value/Ebitda9.57
Forecast
1Y Price Target
$59.11Price Target Upside-6.55% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)2.47
Revenue Forecast (FY)$1.46B
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 opera...
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 p...
Kodiak Gas Services, Inc. Key Performance Indicators (KPIs)
Any
Assets by Segment
Maps the company’s assets to each segment to show where capital is tied up and how asset-heavy each line of business is. Offers insight into capital intensity, maintenance and replacement needs, potential bottlenecks, and which segments may require more investment or be candidates for divestiture.
Maps the company’s assets to each segment to show where capital is tied up and how asset-heavy each line of business is. Offers insight into capital intensity, maintenance and replacement needs, potential bottlenecks, and which segments may require more investment or be candidates for divestiture.
Data provided by:
The Fly
The FlyKodiak Gas Services, Inc. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
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.Positive Updates
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.
Negative Updates
Severe Equipment Lead Times and Supply Constraints
Lead times for new large-horsepower compression equipment have extended to greater than 100 weeks, driven by surging demand (including conversion of planned electric drives to gas-driven engines). This creates supply risk, requires spec ordering and securing shop space/engines into 2027–2028, and increases execution complexity.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Kodiak’s 2026 guidance (pre‑DPS) calls for total revenue of $1.37–$1.43 billion, Contract Services adjusted gross margin of 67.5%–69.5%, and adjusted EBITDA of $750–$780 million (midpoint ≈ $765M, ~8% YoY growth), with maintenance CapEx of $75–$85 million, growth CapEx of $235–$265 million and other CapEx of $40–$50 million; the company plans to deliver ~150,000 new unit horsepower in 2026 at an average ~1,700 hp/unit, enters the year with its 2026 new‑unit order book fully contracted into 2027, and—after recontracting ~40% of the fleet in 2025 and exiting the year with ~98% utilization and only ~10% of contracts month‑to‑month—will revise guidance to include the Distributed Power Solutions acquisition after close (expected around the start of Q2).Kodiak Gas Services, Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
78
Positive
| 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
Positive
63.25
Price Trends
55.86
Positive
46.42
Positive
39.86
Positive
Market Momentum
2.11
Negative
72.05
Negative
80.30
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 63.25 is above the 20-day moving average (MA) of 59.61, above the 50-day MA of 55.86, and above the 200-day MA of 39.86, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 80.30 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.56B | 6.88 | 39.31% | ― | 8.71% | 72.09% | |
76 Outperform | $6.36B | 9.70 | 22.73% | 3.08% | 31.94% | 64.74% | |
74 Outperform | $5.44B | 40.03 | 6.27% | 4.86% | 19.43% | 164.71% | |
70 Outperform | $487.77M | 25.71 | 7.43% | 0.63% | 9.53% | 15.48% | |
69 Neutral | $3.89B | 24.95 | -178.66% | 9.11% | 6.66% | 43.66% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $4.28B | 18.87 | 14.21% | 1.16% | -3.76% | -11.00% |
* Energy Sector Average
KGS
Kodiak Gas Services, Inc.
63.25
32.05
102.73%
AROC
Archrock
36.30
14.26
64.72%
NGS
Natural Gas Services Group
38.10
20.21
113.00%
OII
Oceaneering International
37.45
20.03
114.98%
USAC
USA Compression
26.53
3.87
17.05%
WHD
Cactus
52.68
16.25
44.62%
Kodiak Gas Services, Inc. Corporate Events
Business Operations and StrategyM&A Transactions
Kodiak Gas Services Completes Distributed Power Solutions Acquisition
Positive
Apr 2, 2026
On April 1, 2026, Kodiak Gas Services completed its previously announced acquisition of Distributed Power Solutions, LLC, which has been rebranded as Kodiak Power Solutions, a division of Kodiak Gas Services. The deal, executed via cash considerat...
Private Placements and Financing
Kodiak Gas Services Issues $1 Billion Senior Notes
Neutral
Mar 24, 2026
On March 20, 2026, Kodiak Gas Services, LLC issued $1 billion of 5.875% senior unsecured notes due April 1, 2031, with semi-annual interest payments starting October 1, 2026, and a tiered optional redemption schedule beginning in 2028. The notes a...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Kodiak Gas Services Prices $1 Billion Senior Notes Offering
Positive
Mar 12, 2026
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...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Kodiak Gas Services Launches Notes Offering for Acquisition
Positive
Mar 11, 2026
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 c...
Business Operations and StrategyM&A Transactions
Kodiak Gas Services to Acquire Distributed Power Solutions
Positive
Feb 5, 2026
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, comprisi...
DividendsFinancial Disclosures
Kodiak Gas Services Declares Quarterly Dividend, Sets Earnings Date
Positive
Jan 29, 2026
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 subs...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.