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Kodiak Gas Services (KGS) investor relations material

Kodiak Gas Services Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Achieved record net income of $39.5M and EPS of $0.43 per diluted share for Q2 2025, up from $6.2M and $0.06–$0.07 per share in Q2 2024.

  • Board increased share repurchase program by $100M, now totaling $115M available, with 2M shares repurchased at ~$30/share.

  • Added to S&P Small Cap 600 Index, enhancing visibility and shareholder value.

  • Completed CSI Compressco integration, expanding revenue and asset base.

  • Continued capital returns to shareholders via buybacks and a $0.45/share dividend.

Financial highlights

  • Q2 2025 revenue rose 4.3% year-over-year to $322.8M; adjusted EBITDA reached a record $178.2M, up 15–15.5% year-over-year.

  • Net income attributable to common shareholders was $39.5M, up from $6.2M in Q2 2024.

  • Free cash flow was $70M–$70.3M, a company record.

  • Declared and paid $0.45/share dividend for Q2 2025; $76.6M in dividends paid in first half 2025.

  • Leverage ratio declined to 3.6x, an all-time low.

Outlook and guidance

  • Raised full-year 2025 adjusted EBITDA guidance to $700–$725M and discretionary cash flow to $445M–$465M.

  • Contract Services revenue guidance increased to $1.16–$1.2B with adjusted gross margin of 67–69%.

  • Other Services revenue guidance reduced to $120M–$140M, margin outlook unchanged.

  • Expects to fund dividends and growth capex from discretionary cash flow; $366.4M available under ABL Facility.

  • Anticipates material reduction in 2025 income tax expense due to new legislation.

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Frequently asked questions

Kodiak Gas Services, Inc. is a provider of contract compression services in the United States, specializing in the operation of both company-owned and customer-owned compression infrastructure. This infrastructure supports the production, gathering, and transportation of natural gas and oil. Kodiak operates in two main segments: Compression Operations and Other Services. The latter includes a variety of contract services such as station construction, maintenance, overhaul, and other ancillary services. The company's headquarters are located in The Woodlands, Texas, and its shares are listed on the New York Stock Exchange.

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