Kodiak Gas Services (KGS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with revenue of $391.1 million, up 21.1% year-over-year, and adjusted EBITDA of $217 million, up 22% year-over-year, driven by strong Compression and Power Infrastructure performance and the DPS acquisition.

• Net income attributable to common shareholders was $52.1 million ($0.53 per diluted share); adjusted net income was $54.3 million ($0.55 per adjusted diluted share).

• Compression Infrastructure segment delivered 4.4 million revenue-generating horsepower with 98.2% utilization and a 4.5% year-over-year price increase.

• Power Infrastructure segment exited the quarter with a 405 MW fleet, $33 million in revenue, and 64.5% adjusted gross margin.

• Raised full-year guidance for adjusted EBITDA, Compression Infrastructure gross margin, and discretionary cash flow.

Financial highlights

• Q2 2026 revenue: $391.1 million, up 21.1% year-over-year; Compression Infrastructure revenue $315.1 million (+7.4% YoY); Power Infrastructure revenue $32.9 million.

• Adjusted EBITDA: $217 million, up 22% year-over-year; adjusted EBITDA margin: 55.4%; adjusted net income: $54.3 million ($0.55 per diluted share).

• Discretionary cash flow: $163.3 million, driven by record EBITDA, lower interest expense, and a $13 million tax benefit.

• Net debt: $2.6 billion; total debt outstanding: $2.8 billion as of June 30, 2026; leverage ratio: 3.1x, lowest in company history.

• Cash and cash equivalents at June 30, 2026: $137.6 million; liquidity of $1.7 billion including $1.6 billion ABL Facility availability.

Outlook and guidance

• Increased full-year 2026 adjusted EBITDA guidance to $830–$860 million and discretionary cash flow guidance to $570–$600 million.

• Compression Infrastructure revenue guidance set at $1.25–$1.28 billion with adjusted gross margin percentage of 69.0–70.5%.

• Power Infrastructure revenue guidance of $95–$125 million and adjusted gross margin percentage of 60–70%.

• Compression Infrastructure CapEx guidance raised to $280 million–$300 million; Power Infrastructure CapEx reduced to $400 million–$450 million.

• Expect to receive 50 MW of new power gen sets in H2 2026; deliveries of secured 1.8 GW power assets to be spread ratably through 2030.