Kodiak Gas Services, Inc. (NYSE:KGS) reported first-quarter adjusted earnings per share of $0.59, beating analyst expectations on profitability, although quarterly revenue of $345.46 million came in below the consensus estimate of $355 million.
Despite the revenue miss, total sales increased 4.9% year-over-year from $329.64 million recorded in the same period last year.
Record EBITDA Driven by Contract Services Growth
The company delivered record adjusted EBITDA of $190.1 million during the quarter, representing a 7.0% increase compared with the first quarter of 2025.
Kodiak’s Contract Services division generated record revenue of $307.0 million, up 6.2% from a year earlier. The segment also posted an adjusted gross margin of 70.6%, reflecting continued operational strength in the company’s compression services business.
“Kodiak is off to a fantastic start in 2026, with record contract services revenue and adjusted gross margin percentage driving record quarterly adjusted EBITDA,” said Mickey McKee, Kodiak’s President and Chief Executive Officer.
“Our contract compression business continues to outperform expectations, and our new power business has tremendous growth potential.”
Company Raises Full-Year EBITDA Guidance
Kodiak increased its full-year 2026 adjusted EBITDA forecast to a range of $820 million to $860 million, incorporating contributions from the recently completed acquisition of Distributed Power Solutions (DPS).
The acquisition officially closed on April 1, 2026. The midpoint of the updated guidance range stands at $840 million.
The company also revealed that it has secured more than 260 megawatts of additional power generation capacity as it expands its presence in the power infrastructure market.
Management said it expects annual growth of between 300 and 500 megawatts per year through 2030 within its power generation business.
Utilisation and Cash Flow Continue to Improve
Fleet utilisation reached 98.0% as of March 31, 2026, improving from 96.9% during the same period last year.
Kodiak also reported discretionary cash flow of $126.5 million for the quarter, marking a 9.0% increase year-over-year as the company continues to benefit from strong demand across its contract compression operations.