Kodiak Gas Services Q2 Earnings Call Highlights

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Kodiak Gas Services (NYSE:KGS) reported grounds second-quarter adjusted EBITDA and raised portions of its 2026 outlook, arsenic its declaration compression concern delivered higher pricing and margins and the institution precocious plans to physique a larger behind-the-meter powerfulness procreation platform.

The institution reported second-quarter gross of $391 million, up 21% from a twelvemonth earlier, and adjusted EBITDA of $217 million, up 22% twelvemonth implicit year. Adjusted nett income was $54 million, oregon $0.55 per diluted share, according to Executive Vice President and Chief Financial Officer John Griggs.

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Management attributed gross maturation chiefly to the summation of DPS, alongside continued enlargement successful its Compression Infrastructure business. Kodiak acquired DPS 4 months agone and has since focused its Power Infrastructure commercialized efforts connected larger projects with longer-term contracts, the institution said.

Compression Business Posts Higher Pricing and Margins

In Compression Infrastructure, Kodiak ended the 4th with 4.4 cardinal revenue-generating horsepower. Revenue-generating horsepower accrued by astir 24,000 sequentially, portion fleet utilization reached 98.2%.

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Revenue successful the conception accrued 7% twelvemonth implicit twelvemonth and 3% from the anterior quarter. Ending gross per horsepower was $23.80, representing a 4.5% summation from a twelvemonth earlier. Compression Infrastructure adjusted gross borderline was 70%, up 170 ground points twelvemonth implicit twelvemonth and marking the 2nd consecutive 4th astatine oregon supra that level.

Griggs said the borderline show occurred contempt accrued lubricant lipid expenses. He said the institution mitigated those costs done vendor relationships, supply-chain management, and operational improvements tied to training, artificial quality and machine-learning tools.