Kodiak Gas Services profits exceeded expectations, revenue did not meet analyst forecasts

Investing.com - Kodiak Gas Services Inc. (NYSE:KGS) announced first quarter adjusted earnings per share of $0.59, revenue of $345.46 million, below the analyst consensus estimate of $355 million.

Revenue increased 4.9% year-over-year from $329.64 million.

The company achieved a record adjusted EBITDA of $190.1 million, up 7.0% from Q1 2025. Contract services revenue reached a record $307 million, up 6.2%, with an adjusted gross margin of 70.6%.

The company completed the acquisition of Distributed Power Solutions on April 1, 2026, and announced the procurement of over 260 megawatts of additional power generation capacity.

Kodiak President and CEO Mickey McKee said, “Kodiak had a strong start to 2026, with record contract services revenue and adjusted gross margin driving a new high in quarterly adjusted EBITDA.”

“Our contract compression business continues to outperform expectations, and the new energy business also shows tremendous growth potential.”

Kodiak raised its full-year 2026 adjusted EBITDA guidance to a range of $820 million to $860 million, including contributions from the acquisition of Distributed Power Solutions over the past three quarters. The midpoint of the guidance is $840 million, representing the company’s latest outlook for the full year.

The company expects its power generation business to add 300 to 500 megawatts of capacity annually before 2030.

As of March 31, 2026, fleet utilization was 98.0%, up from 96.9% at the same time last year. The company’s free cash flow was $126.5 million, a 9.0% increase year-over-year.

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