Kodiak Gas Services (KGS) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $401.8M; adjusted EBITDA reached a record $224.5M, up 28.5% YoY, and net income was $71.5M.

• Strong compression and power performance supported higher FY2026 adjusted EBITDA and discretionary cash flow guidance.

• The April 1 DPS acquisition added a distributed-power platform serving data centers, microgrids, manufacturing and other infrastructure markets.

Financial highlights

• Revenue rose 24.5% YoY to $401.8M; operating income was $138.5M and net income was $71.5M, versus a $14.0M net loss a year earlier.

• Adjusted EBITDA was $224.5M, up 28.5% YoY; adjusted EBITDA margin was 55.9%, versus 54.1%.

• Discretionary cash flow was $158.5M, up 35.9% YoY; operating cash flow was $196.3M and free cash flow was negative $28.1M.

• Diluted EPS was $0.70, versus a $0.17 loss; 9M revenue increased 16.8% to $1.139B and adjusted EBITDA rose to $631.4M from $530.6M.

Outlook and guidance

• FY2026 adjusted EBITDA guidance rose to $840M–$860M and discretionary cash flow guidance to $580M–$600M.

• Compression guidance: revenue of $1.255B–$1.275B and adjusted gross margin of 69.5%–70.5%; power adjusted gross margin guidance is 65%–70%.

• FY2026 growth CapEx guidance is $640M–$710M, including $350M–$400M for Compression and $290M–$310M for Power; power growth CapEx was reduced to $350M–$400M in one outlook update.

• Compression growth CapEx midpoint increased $10M; ~170,000 HP is expected in FY2026, including ~21,000 HP from a Permian purchase-leaseback.

• ~16 MW of reciprocating generators are expected in Q4, bringing FY2026 deliveries to 29 MW; the West Texas data-center project targets Q1 startup, with Baker Hughes turbines expected to drive growth in early 2028.