Kodiak Gas Services, Inc.

Q2 revenue was $391 million, up 21% year over year. Adjusted EBITDA was $217 million, up 22% year over year and a company record. Adjusted net income was $54 million, or $0.55 per diluted share. Compression Infrastructure revenue increased 7% year over year and 3% sequentially, ending horsepower was 4.4 million, utilization was 98.2%, and average revenue-generating horsepower was 991. Compression Infrastructure adjusted gross margin was 70%, up 170 basis points year over year, while ending revenue-generating horsepower pricing was $23.80, up 4.5% year over year. Power Infrastructure revenue was $33 million with a 64.5% adjusted gross margin. Discretionary cash flow was $163 million. Net debt was approximately $2.6 billion, leverage was 3.1x, and the board declared a $0.49 per share dividend. For 2026, Kodiak raised adjusted EBITDA guidance to $830 million-$860 million, discretionary cash flow to $570 million-$600 million, Compression Infrastructure adjusted gross margin to 69%-70.5%, Compression Infrastructure CapEx to $280 million-$300 million, and Power Infrastructure CapEx to $400 million-$450 million. Management also said it expects about 50 megawatts of new gensets in the second half of 2026.

Mickey McKee said demand for behind-the-meter power is being reinforced by grid strain and data center power growth, and he framed Kodiak as well positioned because of its operating expertise, balance sheet, and vendor relationships. He emphasized the company’s progress toward its 2030 goals, including a target compression fleet of at least 5.2 million horsepower and about 2 gigawatts of power-producing assets. His tone was notably confident and upbeat, repeatedly describing the opportunity set as real and accelerating.

John Griggs focused on the financial strength of the quarter and the improved outlook. He highlighted the 70% compression margin, the $217 million of adjusted EBITDA, $163 million of discretionary cash flow, and the $0.49 dividend that he said was covered at north of 3x by second-quarter DCF. He also pointed to $836 million of primary equity raised in May, net debt of about $2.6 billion, and 3.1x leverage as evidence that the company has funded its power plan while keeping the balance sheet at the lowest leverage in company history.

Analysts focused on what differentiates Kodiak in power, how fast the West Texas data center project could move, and what the economics and contract terms might look like. Management said its edge is rotating-equipment expertise, DPS’s engineering/commercial capabilities, and Kodiak’s balance sheet; it expects to announce something more firm before year-end, with equipment potentially being installed in the first quarter. Questions also centered on lube oil inflation, and management said training, AI/ML, supply-chain discipline, and vendor partnerships are helping it offset those costs and even raise compression margin guidance.