Kodiak Gas Services (KGS) Company Report

Kodiak Gas Services (KGS) reported a record-setting 2025, with total revenue growing 13% to $1.3 billion and adjusted EBITDA increasing 17% to $715 million. The company also achieved its leverage target of 3.5x by year-end.
KGS returned over $260 million to shareholders in 2025, including a 20% year-over-year increase in the Q4 dividend and over $100 million in common stock buybacks.
The company announced the acquisition of Distributed Power Solutions (DPS) and provided 2026 guidance, projecting overall revenue between $1.37 billion and $1.43 billion and adjusted EBITDA between $750 million and $780 million.
KGS plans to deploy approximately 150,000 new unit horsepower in 2026 and over 750,000 new large horsepower compression by the end of 2030, driven by strong customer demand and strategic supply chain management.

1 day ago

Transcript

Kodiak Gas Services Reports Record Full-Year 2025 Results and Announces Acquisition

KGS

Earnings

Guidance Update

M&A

Kodiak Gas Services reported record full-year 2025 financial results, with total revenue growing 13% to $1.3 billion and adjusted EBITDA increasing 17% to $715 million. For Q4 2025, adjusted EBITDA was $184 million, up 9% year-over-year, and contract services adjusted gross margin percentage reached 69.2%.
The company achieved its leverage target of 3.5x by year-end 2025 and returned over $260 million to shareholders, including a 20% year-over-year dividend increase and over $100 million in stock buybacks.
Kodiak announced the acquisition of Distributed Power Solutions (DPS), expected to close around Q2 2026, and provided 2026 guidance for overall revenue between $1.37 billion and $1.43 billion and adjusted EBITDA between $750 million and $780 million.
The company maintained strong operational performance with 98% fleet utilization in 2025 and is addressing extended lead times for large horsepower equipment (greater than 100 weeks) by securing engine deliveries into 2028, with plans to deploy over 750,000 new large horsepower by the end of 2030.

1 day ago

Transcript

Kodiak Gas Services Reports Record Q4 and Full Year 2025 Results, Provides 2026 Outlook

KGS

Earnings

Guidance Update

M&A

Kodiak Gas Services reported a record-setting year in 2025, with total revenue of approximately $1.3 billion (up 13% over 2024) and adjusted EBITDA of approximately $715 million (up 17% from the prior year). For Q4 2025, total revenues were nearly $333 million and adjusted EBITDA was a record $184 million.
The company achieved its stated leverage target of 3.5x by year-end 2025 and returned over $260 million to shareholders in 2025, including a 20% year-over-year dividend increase and over $100 million in stock buybacks.
For 2026, Kodiak expects overall revenue between $1.37 billion and $1.43 billion and adjusted EBITDA between $750 million and $780 million, with the midpoint representing approximately 8% annual growth.
Kodiak recontracted approximately 40% of its fleet in 2025 and has secured new compression equipment commitments into 2027 and 2028, driven by extended lead times of over 100 weeks for large horsepower equipment. The company is also proceeding with the pending acquisition of Distributed Power Solutions (DPS) to enhance earnings and growth.

1 day ago

Transcript

Kodiak Gas Services Reports Q4 and Full Year 2025 Results, Provides 2026 Guidance, and Announces Acquisition

KGS

Earnings

Guidance Update

M&A

Kodiak Gas Services, Inc. reported net income of $24.6 million or $0.28 per diluted share and a record quarterly adjusted EBITDA of $184.5 million for the fourth quarter ended December 31, 2025.
For the full year 2025, the company generated $599.7 million in net cash provided by operating activities and $461.7 million in discretionary cash flow, while returning over $263 million to stockholders through dividends and share repurchases. The company also achieved its total leverage target of 3.5x at year-end 2025.
The company provided full-year 2026 guidance, expecting Adjusted EBITDA to be in the range of $750 million to $780 million, excluding any impact from the pending acquisition of Distributed Power Solutions, LLC.
On February 5, 2026, Kodiak announced an agreement to acquire Distributed Power Solutions, LLC for approximately $675 million in an equity and cash transaction, with the acquisition expected to close in early April 2026.

2 days ago

8-K

Kodiak Gas Services to Acquire Distributed Power Services

KGS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Kodiak Gas Services, Inc. (KGS) announced the acquisition of Distributed Power Services, LLC (DPS) for $675 million, with $575 million funded from an ABL facility and $100 million in KGS equity to DPS.
DPS operates a 384 MW fleet of Caterpillar reciprocating and turbine generators, primarily serving data center (67% of contracted megawatts) and microgrid (21%) customers.
The transaction is valued at approximately 7.4x 2026E Adjusted EBITDA and is expected to be accretive on a discretionary cash flow per share and earnings per share basis.
The acquisition is anticipated to close in early Q2 2026 and is expected to expand Kodiak's customer reach into high-growth end markets like data centers.

Feb 5, 2026, 2:00 PM

Presentation

Kodiak Gas Services Announces Acquisition of Distributed Power Solutions

KGS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Kodiak Gas Services (KGS) has agreed to acquire Distributed Power Solutions (DPS) for $675 million, expanding its product offering to include power generation solutions.
The acquisition adds a fleet of 384 MW of distributed power generation equipment, with approximately two-thirds of DPS's active fleet currently contracted to data centers.
The transaction, totaling approximately $690 million including fees, will be financed by drawing $590 million on KGS's existing ABL facility and issuing $100 million of KGS stock to the sellers, representing about 2.4 million shares or just under 3% ownership post-close.
KGS expects the transaction to be accretive to both discretionary cash flow and earnings on a per-share basis.
The U.S. power market is experiencing significant demand growth, with electricity demand for data centers projected to double by 2035 and over 40% of future data centers expected to use on-site power solutions.

Feb 5, 2026, 2:00 PM

Transcript

Kodiak Gas Services Announces Acquisition of Distributed Power Solutions

KGS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Kodiak Gas Services (KGS) has agreed to acquire Distributed Power Solutions (DPS) for $675 million, with a total transaction cost of approximately $690 million including fees.
The acquisition will be financed by drawing $590 million from KGS's existing ABL facility and issuing $100 million of KGS stock to the sellers, which will be approximately 2.4 million shares, totaling just under 3% ownership post-close.
DPS provides a state-of-the-art fleet of 384 MW of distributed power generation equipment, with approximately two-thirds of its active fleet currently contracted to data centers.
The transaction is expected to be accretive to both discretionary cash flow and earnings per share for Kodiak, positioning the company to expand its product offering into the rapidly growing distributed power market.
The U.S. power market is experiencing an inflection point, with electricity demand from data centers projected to double by 2035, driving a need for on-site power solutions due to long grid connection wait times.

Feb 5, 2026, 2:00 PM

Transcript

Kodiak Gas Services announces acquisition of Distributed Power Solutions

KGS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Kodiak Gas Services (KGS) has agreed to acquire Distributed Power Solutions (DPS) for $675 million.
The total transaction cost, including estimated fees and expenses, is approximately $690 million.
The acquisition will be financed with approximately $590 million drawn on KGS's existing ABL facility and the issuance of $100 million of KGS stock to the sellers, equating to about 2.4 million shares and just under 3% ownership post-close.
This acquisition expands Kodiak's product offering to include power generation solutions, adding a fleet of 384 MW of distributed power generation equipment.
The transaction is expected to be accretive to both discretionary cash flow and earnings per share, and approximately two-thirds of DPS's active fleet is currently contracted to data centers.

Feb 5, 2026, 2:00 PM

Transcript

Kodiak Gas Services to Acquire Distributed Power Solutions

KGS

M&A

New Projects/Investments

Kodiak Gas Services (KGS) has entered into a definitive agreement to acquire Distributed Power Solutions, LLC (DPS) for approximately $675 million.
The acquisition will be paid with $575 million in cash and the issuance of 2,401,278 shares of Kodiak common stock, representing approximately $100 million.
The transaction is valued at approximately 7.4x DPS’s estimated 2026 full year adjusted EBITDA and is expected to be immediately accretive to earnings and discretionary cash flow per share.
The acquisition expands Kodiak's customer base into high-growth digital infrastructure companies and is anticipated to close in early April of 2026.

Feb 5, 2026, 1:00 PM

Press Release

Kodiak Delivers Strong Q3 2025 Results, Exits International Operations, and Raises Discretionary Cash Flow Guidance

KGS

Earnings

Guidance Update

M&A

Kodiak reported strong Q3 2025 financial results, with $117 million in discretionary cash flow and $31.5 million in adjusted net income, or $0.36 per diluted share. The contract services segment saw revenue growth of 4.5% year-over-year and adjusted gross margin increase of 230 basis points to 68.3%.
The company completed significant strategic actions, including the divestiture of all international operations (Mexico, Argentina, Canada, Chile, and Romania) and the implementation of a new ERP system.
Kodiak strengthened its balance sheet by terming out $1.4 billion of debt through bond offerings at a weighted average cost of 6.6%.
The company returned capital to shareholders by buying back approximately $50 million in stock in Q3 2025 and declaring an increased quarterly dividend of $0.49 per share.
Kodiak increased its full-year discretionary cash flow guidance to between $450 million and $470 million and remains on track to achieve annual revenue, margin, and adjusted EBITDA guidance. The 2026 new unit horsepower order book is essentially fully contracted.