Kodiak Gas Services (KGS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with revenue of $391.1 million, up 21.1% year-over-year, and adjusted EBITDA of $217 million, up 22% year-over-year, driven by strong Compression and Power Infrastructure performance and the DPS acquisition.

• Net income attributable to common shareholders was $52.1 million ($0.53 per diluted share); adjusted net income was $54.3 million ($0.55 per adjusted diluted share).

• Discretionary cash flow reached a record $163.3 million, a 40.2% increase year-over-year, driven by record EBITDA, lower interest expense, and a $13 million tax benefit.

• Completed DPS acquisition, establishing a new Power Infrastructure segment and expanding the project pipeline by 2 GW.

• Completed a public equity offering in May, raising $836.1 million in net proceeds to strengthen the balance sheet and fund growth.

Financial highlights

• Q2 2026 revenue: $391.1 million (+21.1% YoY); adjusted EBITDA: $217 million (+22% YoY, 55.4% margin); net income: $52.1 million (+30.4% YoY); adjusted net income: $54.3 million.

• Discretionary cash flow: $163.3 million; net cash from operations: $99.5 million; free cash flow: -$87.5 million due to high capex.

• Net debt at quarter end: $2.6 billion; total debt: $2.8 billion; leverage ratio at 3.1x, lowest in company history.

• Cash and cash equivalents at June 30, 2026: $137.6 million; total liquidity: $1.7 billion including $1.6 billion ABL Facility.

• Dividend declared: $0.49 per share, covered at over 3x by discretionary cash flow, payable August 27, 2026.

Outlook and guidance

• Raised full-year 2026 adjusted EBITDA guidance to $830–$860 million and discretionary cash flow guidance to $570–$600 million.

• Compression Infrastructure revenue guidance: $1.25–$1.28 billion; adjusted gross margin: 69.0–70.5%.

• Power Infrastructure revenue guidance: $95–$125 million; adjusted gross margin: 60–70%.

• Compression Infrastructure CapEx guidance: $280–$300 million; Power Infrastructure CapEx: $400–$450 million; maintenance CapEx: $80–$90 million.

• Expect to receive 50 MW of new power gen sets in H2 2026; deliveries of secured 1.8 GW power generation assets to be spread through 2030.