Kodiak Gas Services (KGS) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 Adjusted EBITDA of $190.1 million, up 7% year-over-year, driven by strong Contract Compression and initial Power segment contributions.

• Revenue for Q1 2026 increased 4.9% year-over-year to $345.8 million, led by higher Contract Services revenue and fleet expansion.

• Closed the DPS acquisition, launching the new Power Infrastructure segment focused on data centers and microgrids.

• Maintained industry-leading fleet utilization at 98% and increased average horsepower per unit to 977.

• Net income attributable to common shareholders declined 41.5% year-over-year to $17.8 million, primarily due to a $36.5 million loss on extinguishment of debt.

Financial highlights

• Total Q1 2026 revenue was $346 million, up 5% year-over-year, with Contract Services revenue up 6.2% year-over-year to $307.0 million.

• Adjusted gross margin for Contract Services reached a record 70.6%, up from 67.7% in Q1 2025.

• Adjusted net income was $52 million ($0.59 per diluted share); discretionary cash flow rose 9% year-over-year to $126.5 million.

• Net debt at quarter end was $2.7–$2.8 billion; leverage ratio at 3.6x.

• Board declared a $0.49/share dividend, covered 2.9x by discretionary cash flow.

Outlook and guidance

• 2026 Adjusted EBITDA guidance raised to $820–$860 million, reflecting DPS acquisition and power segment growth.

• Compression Infrastructure revenue guidance increased at the low end; Power Infrastructure 2026 revenue guidance set at $95–$125 million, with 60%–70% adjusted gross margin.

• Growth capital expenditures for 2026 expected at $645–$775 million, with Power growth CapEx at $400–$500 million and Compression growth CapEx at $245–$275 million.

• Power segment targeting 300–500 MW annual additions through 2030.

• Management anticipates continued investment in fleet expansion and power generation assets, with $244.8 million in new purchase commitments post-quarter.