Kodiak Gas Services Stock Earnings Reports

Kodiak reported a strong Q1 2026: revenue of $346M, record adjusted EBITDA of $190M (up 7% YoY), adjusted net income of $52M ($0.59/sh), and industry-leading contract compression metrics (98% fleet utilization; 977 average HP per revenue-generating unit). Contract compression continues to benefit from extended equipment lead times (>180 weeks for certain large engines), driving pricing power, longer-term customer contracts (multiple 10-year extensions) and opportunistic purchase-leaseback growth (20k+ HP acquired and contracted). Kodiak closed the DPS distributed power acquisition April 1, created a new Power Infrastructure segment and has already sourced >260 MW of power generation equipment (mix of reciprocating engines and turbines) with plans to add 300–500 MW/year through 2030 (targeting ~2 GW by YE2030). Management expects power unlevered returns >15% and EBITDA build multiples around 5x, but will fund initial power growth while guarding the balance sheet (net debt $2.7B; ABL liquidity; recently issued $1B notes). Updated 2026 guidance: adjusted EBITDA $820M–$860M, discretionary cash flow $520M–$570M, compression growth CapEx $245M–$275M, and Power growth CapEx for 2026 of $400M–$500M (reflecting multi-year equipment commitments). Board declared a $0.49/share dividend (coverage ~2.9x). Management emphasized investments in telemetry, training and AI tools to drive margins and operational reliability; they will report segments separately and provide more cadence on power contracts and deliveries quarterly.