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Kodiak Gas Services, Inc.
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$4.1B
Market Cap
86.1
P/E
0.23
PEG
7.6%
ROCE
4.6%
ROE
1.30
D/E
33.2%
OPM
-41.8%
% from 52W High
69
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for KGS including FX impact
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📈 Price History
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About

Kodiak Gas Services, Inc. operates and provides contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Contract Services and Other Services. The Contract Services segment operates company-owned and customer-owned compression, and gas treating and cooling infrastructure to enable the production, gathering, processing, and transportation of natural gas and oil. The Other Services segment provides a range of services to support the needs of customers, including station construction, maintenance and overhaul, freight and crane charges, parts sales, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

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📈 Growth Pattern
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⭐ Superinvestors Holding KGS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 838.6K $48.9M 0.08% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Kodiak Gas Services posts record Q1 2026 Adjusted EBITDA of $190M, launches Power segment.
Revenue & Profitability
Q1 2026 total revenue was $346 million, up 5% year-over-year. Contract Services revenue increased 6% year-over-year. Adjusted EBITDA was a record $190 million, up 7% year-over-year. Adjusted net income was $52 million, or $0.59 per diluted share. Discretionary cash flow was $126.5 million, up 9% year-over-year. The company declared a dividend of $0.49 per share. Full-year 2026 Adjusted EBITDA guidance is $820 million-$860 million.
Outlook
Management sees 'uncharted territory' for natural gas compression due to rising demand from LNG exports, power generation, and AI-driven data centers. Supply chains are strained with new engine lead times exceeding 180 weeks. Permian operators are increasing activity with higher oil prices and new gas takeaway capacity. In the power market, Texas leads in data center development with over 30 GW planned over the next two years, and behind-the-meter solutions are increasingly cost-competitive and considered permanent rather than bridging.
Growth Drivers
Key growth levers include: continued pricing power in Compression driven by supply tightness; longer-term Compression contracts (10-year extensions with top customers); the new Power Infrastructure segment targeting 300-500 MW per year of capacity additions through 2030; strategic asset acquisitions like the purchase leaseback transaction that added 20,000 HP. The company is in advanced discussions for an additional 1.3 GW of power generation equipment.
Balance Sheet & CapEx
Q1 2026 growth CapEx was $86 million, including $24 million for the Compression purchase leaseback and $18 million for new power generation equipment. Full-year 2026 Compression growth CapEx guidance is $245 million-$275 million. Power growth CapEx guidance is $400 million-$500 million, with ~$90 million for equipment delivered in 2026 and the remainder for future deliveries. Balance of plant costs are estimated at ~$1.5 million per megawatt total. Maintenance CapEx guide raised by $5 million due to the power fleet addition.
Margins
Contract Services adjusted gross margin reached a record 70.6% in Q1 2026, the seventh consecutive quarterly increase and up 286 basis points year-over-year. Margin improvement is driven by technology investments (real-time monitoring, AI tools) reducing parts expense and failures. Guidance for Compression Infrastructure adjusted gross margin is 68.5%-70% for full-year 2026, slightly below Q1 due to expected higher lube oil and fuel costs from rising oil prices. Power Infrastructure adjusted gross margin guidance is 60%-70%, reflecting the newness of the business and short-term contracts.
Key Risks
Risks flagged include: rising oil prices increasing lube oil and fuel costs, which could pressure margins; extended lead times for new large-horsepower engines (over 180 weeks) and shop space constraints; supply chain challenges for power generation equipment; integration risk from the DPS acquisition; potential counterparty credit risk in data center contracts; and the need to maintain financial flexibility while investing heavily in power growth CapEx. Management noted leverage may periodically drift above the 4x target during the investment cycle.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-07
Record Q2 2026 results featured 21% revenue growth and 22% higher adjusted EBITDA, with strong Compression and Power Infrastructure performance. Raised full-year guidance for margins, EBITDA, and cash flow, while securing major turbine supply and expanding the project pipeline.
Q1 2026 Q1 2026 2026-05-11
Record Q1 2026 results with 7% Adjusted EBITDA growth, strong Compression and Power segment momentum, and raised full-year guidance. Supply chain tightness and robust demand support pricing power, while major investments target long-term growth in both segments.
Q4 2025 Q4 2025 2026-02-26
Record 2025 results with double-digit revenue and EBITDA growth, industry-leading utilization, and strong free cash flow enabled significant shareholder returns and balance sheet improvements. 2026 guidance calls for continued growth, with the DPS acquisition expected to accelerate expansion.
Q3 2025 Q3 2025 2025-11-05
Q3 2025 saw strong revenue, margin, and cash flow growth, driven by robust US demand, strategic divestitures, and technology investments. Guidance for 2025 was raised, with nearly all 2026 capital already contracted and continued pricing strength expected.
Q2 2025 Q2 2025 2025-08-07
Record Q2 results included 15% Adjusted EBITDA growth, margin expansion, and a $100M share repurchase increase. Guidance was raised for 2025, reflecting strong contract services demand, high fleet utilization, and continued capital returns to shareholders.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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