Kodiak Gas Services (KGS) Company Report

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.

1 day ago

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.

1 day ago

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.

1 day ago

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.

1 day ago

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.

1 day ago

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.

Nov 5, 2025, 4:00 PM

Kodiak Gas Services Reports Q3 2025 Results, Raises Full-Year Discretionary Cash Flow Guidance

KGS

Earnings

Guidance Update

Dividends

Kodiak Gas Services reported a net loss of $14.0 million, or $(0.17) per diluted share, for the third quarter of 2025, alongside adjusted net income of $31.5 million, or $0.36 per adjusted diluted share.
The company generated $116.7 million in discretionary cash flow for Q3 2025, representing a 13.2% increase compared to the third quarter of 2024, and increased its full-year 2025 discretionary cash flow guidance to a range of $450 to $470 million.
Contract Services segment revenues reached a record $297.0 million in Q3 2025, and fleet utilization increased to 97.6%.
Kodiak declared a quarterly dividend of $0.49 per share, a 9% increase over the second quarter of 2025, and returned over $90 million to stockholders through dividends and share repurchases.