Kodiak Gas Services, Inc. (KGS)

Price$61.52Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is offset by heavy spending and debt.

Kodiak's equity value is about $6.0 billion. Adding roughly $2.68 billion of net debt gives an enterprise value near $8.7 billion, about 10.3 times the midpoint of management's 2026 adjusted operating-earnings guidance. The equity value is also about 10.3 times guided discretionary cash flow, a management measure that excludes growth spending. Those are reasonable multiples for strong growth, but not an obvious bargain given leverage and large investment needs.

Big pictureCore compression is growing strongly, but expansion spending currently absorbs the cash it creates.

Revenue rose about 13% in 2025 while operating income climbed 36% and operating cash flow increased 83%. Momentum continued in the second quarter of 2026: revenue rose 21%, operating income about 25%, and reported net income about 32% from a year earlier. Management reported record adjusted operating earnings of $216.8 million. However, adjusted free cash flow was negative $87.5 million because growth and other capital spending reached $254.9 million.

Business strengthHigh equipment use supports profits, while debt and new shares reduce financial flexibility.

Compression equipment utilization reached 98.2% and its adjusted gross margin was 70%, showing unusually tight capacity and strong pricing. Kodiak also reported $1.7 billion of liquidity and a 3.1-times leverage ratio after netting cash against debt. The trade-off is dilution: shares outstanding increased from about 85.8 million at year-end to 100.9 million by June. A May offering raised about $836 million net by issuing roughly 12.1 million shares, partly to repay borrowings and fund power expansion.

What could change the storyData-center power wins could justify today's valuation, but weak returns would expose costly expansion.

Kodiak's new power business creates the biggest upside and risk. Its Baker Hughes agreement provides a pathway to as much as 1.8 gigawatts of generation capacity, while management plans $680 million to $750 million of total growth spending this year. The thesis strengthens if signed projects produce attractive cash returns and debt falls. It weakens if spending arrives well before contracted revenue, another large share issue becomes necessary, or natural-gas compression demand softens enough to reduce today's exceptional utilization and pricing.

AI: News

Guidance rises on record resultsRecord operating results and higher guidance strengthened confidence that the core compression business remains healthy.

On August 6, Kodiak reported second-quarter revenue of $391.1 million and record adjusted operating earnings of $216.8 million, up 21.7% from a year earlier. Management lifted its 2026 adjusted operating-earnings range to $830 million to $860 million and discretionary cash flow to $570 million to $600 million. Shares gained about 5% the following session. The timing supports an earnings-related reaction, although it does not prove the report alone caused the move.

Data-center power dealA major turbine agreement expanded Kodiak's potential role in supplying power to data centers.

On July 8, Kodiak and Baker Hughes announced a multi-year agreement covering an initial roughly one gigawatt of gas-turbine generation equipment, with a framework supporting as much as 1.8 gigawatts over time. The equipment is intended partly for behind-the-meter data-center power where grid constraints create demand for dedicated generation. Shares rose about 4% in morning trading, according to Investing.com. The opportunity is large, but realizing it requires substantial capital investment and customer commitments.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$1.31B	$1.16B	$850.4M	$707.9M	$606.4M
Gross profit	$828.2M	$700.9M	$316.6M	$266.1M	$236.2M
Gross margin	63.31%	60.46%	37.24%	37.59%	38.95%
Operating expenses	$968.1M	$909.9M	$606.3M	$485.8M	$417.4M
Operating income	$340.0M	$249.4M	$244.1M	$222.1M	$189.0M
Operating margin	25.99%	21.52%	28.71%	31.37%	31.16%
EBITDA	$616.2M	$509.7M	$427.0M	$396.6M	$349.0M
EBITDA margin	47.11%	43.97%	50.21%	56.02%	57.56%
Net income	$80.5M	$49.9M	$20.1M	$106.3M	$181.0M
Net profit margin	6.16%	4.30%	2.36%	15.01%	29.84%
Basic EPSper basic share	$0.90	$0.58	$0.29	$1.80	$3.07
Diluted EPSper diluted share	$0.89	$0.56	$0.29	$1.80	$3.07

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

15.07%of listed shares

BlackRock, Inc.15.2M shares · Jun 30, 2026

View holders

Top 20 reported holders of KGS
Holder	% owned
BlackRock, Inc.	15.07%15.2M shares
Invesco Ltd.	7.99%8.06M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.34%4.38M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.09%4.13M shares
STATE STREET CORP	4.09%4.13M shares
FMR LLC	4.04%4.07M shares
PRICE T ROWE ASSOCIATES INC /MD/	3.01%3.04M shares
AMERICAN CENTURY COMPANIES INC	2.92%2.95M shares
Zimmer Partners, LP	2.51%2.53M shares
DIMENSIONAL FUND ADVISORS LP	2.50%2.52M shares
GEODE CAPITAL MANAGEMENT, LLC	2.47%2.49M shares
WELLINGTON MANAGEMENT GROUP LLP	2.41%2.43M shares
TWO SIGMA INVESTMENTS, LP	2.09%2.1M shares
GOLDMAN SACHS GROUP INC	1.73%1.75M shares
BANK OF AMERICA CORP /DE/	1.45%1.46M shares
140 Summer Partners LP	1.29%1.3M shares
MORGAN STANLEY	1.25%1.26M shares
CITADEL ADVISORS LLC	1.17%1.18M shares
KAYNE ANDERSON CAPITAL ADVISORS LP	1.12%1.13M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.09%1.1M shares

Percentages use 100.9M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$627.3K disclosed value

Sells (SEC code S)18$1.92B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 17, 2026Form 4 · 10b5-1	Buhigas Pedro R.Chief Information Officer	SellCommon Stock	4.6K	$67.78	$313.5K	38.5K
Jun 16, 2026Form 4 · 10b5-1	Hamilton Ewan WilliamEVP & Chief Accounting Officer	SellCommon Stock	2.7K	$68.62	$187.3K	31.6K
Jun 11, 2026Form 4 · 10b5-1	Lenamon William ChadExecutive Vice President & COO	SellCommon Stock	1.0K	$67.79	$67.8K	90.9K
Mar 19, 2026Form 4 · 10b5-1	Buhigas Pedro R.Chief Information Officer	SellCommon Stock	13.9K	$55.73	$777.0K	42.7K
Mar 17, 2026Form 4	Hamilton Ewan WilliamEVP & Chief Accounting Officer	SellCommon Stock	5.8K	$56.18	$325.7K	34.3K