Kodiak Gas Services (NYSE:KGS) Posts Earnings Results, Beats Estimates By $0.05 EPS

Kodiak Gas Services (NYSE:KGS) released its earnings results on Monday. The company reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.54 by $0.05, Briefing.com reports. The company had revenue of $345.76 million during the quarter, compared to analysts’ expectations of $340.23 million. Kodiak Gas Services had a return on equity of 13.12% and a net margin of 5.13%.The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.33 EPS.

Here are the key takeaways from Kodiak Gas Services’ conference call:

• Kodiak’s compression business set new records with 4.4 million revenue-generating horsepower, ~98% utilization and a contract services adjusted gross margin of 70.6%, helping drive a company‑record adjusted EBITDA of $190M in Q1.
• The company closed the DPS acquisition and is building a new Power Infrastructure segment, having ordered >260 MW (≈61 MW arriving in 2026) and targeting 300–500 MW/year to reach ~2 GW by 2030, with modeled unlevered returns >15% but limited operating history to date.
• Scaling the power business requires large upfront spending — Kodiak guides $400–$500M of power growth CapEx in 2026 — and expects to temporarily drift above its 4x leverage target (net debt was $2.7B at quarter end), creating near‑term funding and execution risk.
• Tight industry supply chains (engine and packager lead times > 180 weeks / 3+ years) are amplifying pricing power and longer-term contract demand, and Kodiak says it has proactively secured large‑horsepower compression packages for 2027–2029.

Kodiak Gas Services Stock Down 0.6%

Shares of KGS stock traded down $0.42 during mid-day trading on Wednesday, hitting $74.72. The company’s stock had a trading volume of 187,449 shares, compared to its average volume of 1,448,830. Kodiak Gas Services has a 52-week low of $30.06 and a 52-week high of $76.68. The business has a 50-day moving average price of $61.16 and a 200 day moving average price of $46.97. The company has a debt-to-equity ratio of 2.38, a quick ratio of 0.57 and a current ratio of 1.28. The stock has a market cap of $6.42 billion, a price-to-earnings ratio of 100.99, a PEG ratio of 1.06 and a beta of 1.01.

Kodiak Gas Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Monday, May 18th will be paid a dividend of $0.49 per share. The ex-dividend date is Monday, May 18th. This represents a $1.96 dividend on an annualized basis and a yield of 2.6%. Kodiak Gas Services’s payout ratio is presently 225.29%.

Wall Street Analyst Weigh In

A number of research firms have recently commented on KGS. Mizuho raised their target price on Kodiak Gas Services from $36.00 to $44.00 and gave the company an “outperform” rating in a research note on Tuesday, January 20th. The Goldman Sachs Group raised their target price on Kodiak Gas Services from $60.00 to $69.00 and gave the company a “buy” rating in a research note on Monday, April 20th. Stifel Nicolaus set a $84.00 target price on Kodiak Gas Services in a research note on Tuesday. Citigroup restated a “buy” rating on shares of Kodiak Gas Services in a research note on Wednesday. Finally, Zacks Research upgraded Kodiak Gas Services from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 6th. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $61.00.

Insider Transactions at Kodiak Gas Services

In other news, EVP Cory Anne Roclawski sold 21,161 shares of the business’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $56.52, for a total value of $1,196,019.72. Following the completion of the transaction, the executive vice president owned 42,257 shares in the company, valued at $2,388,365.64. The trade was a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Ewan William Hamilton sold 5,797 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $56.18, for a total value of $325,675.46. Following the completion of the transaction, the chief accounting officer owned 34,346 shares of the company’s stock, valued at $1,929,558.28. This represents a 14.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have bought 11,433 shares of company stock valued at $624,360 and have sold 58,673 shares valued at $3,269,110. Company insiders own 0.64% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of KGS. Invesco Ltd. raised its stake in shares of Kodiak Gas Services by 29.5% in the third quarter. Invesco Ltd. now owns 6,305,789 shares of the company’s stock worth $233,125,000 after purchasing an additional 1,436,443 shares during the last quarter. CIBC Private Wealth Group LLC boosted its stake in shares of Kodiak Gas Services by 3,046.3% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,471,663 shares of the company’s stock worth $55,040,000 after buying an additional 1,424,888 shares during the last quarter. Zimmer Partners LP boosted its stake in shares of Kodiak Gas Services by 45.7% in the 4th quarter. Zimmer Partners LP now owns 4,271,553 shares of the company’s stock worth $159,756,000 after buying an additional 1,339,849 shares during the last quarter. Ghisallo Capital Management LLC boosted its stake in shares of Kodiak Gas Services by 380.0% in the 4th quarter. Ghisallo Capital Management LLC now owns 1,200,000 shares of the company’s stock worth $44,880,000 after buying an additional 950,000 shares during the last quarter. Finally, State Street Corp boosted its stake in shares of Kodiak Gas Services by 31.8% in the 4th quarter. State Street Corp now owns 3,340,008 shares of the company’s stock worth $124,916,000 after buying an additional 806,191 shares during the last quarter. Hedge funds and other institutional investors own 24.95% of the company’s stock.

About Kodiak Gas Services

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings.