THE WOODLANDS, Texas--(BUSINESS WIRE)--February 25, 2026--
Kodiak Gas Services, Inc. $(KGS)$ ("Kodiak" or the "Company"), a leading provider of critical energy infrastructure and contract compression services, today reported financial and operating results for the fourth quarter and full year ended December 31, 2025. The Company also announced full-year 2026 guidance.
Fourth Quarter 2025 and Recent Highlights
-- Reported net income of $24.6 million, or $0.28 per diluted share and
adjusted net income(1) of $35.3 million, or $0.40 per adjusted diluted
share(1)
-- Realized Contract Services gross margin percentage of 45.0% and record
adjusted gross margin percentage(1) of 69.2%
-- Record quarterly adjusted EBITDA(1) of $184.5 million, a 9.1% increase
compared to fourth quarter 2024
-- Quarterly net cash provided by operating activities of $194.9 million
and discretionary cash flow(1) of $112.5 million, a 4.5% increase
compared to fourth quarter 2024
-- Fleet utilization increased to 97.7%, a 120 basis point increase
compared to fourth quarter 2024
-- Announced agreement to acquire Distributed Power Solutions, LLC on
February 5, 2026
Full Year 2025 Highlights
-- Generated net cash provided by operating activities of $599.7 million
and discretionary cash flow(1) of $461.7 million, a 23.7% increase
compared to 2024
-- Returned over $263 million to stockholders through dividends and share
repurchases
-- Achieved total leverage target of 3.5x at year-end 2025
-- Sold Mexico operations, completing the divestment of all international
operations
2026 Guidance Highlights
-- Provided full year 2026 capital spending outlook and financial guidance
ranges, excluding any impact from the pending acquisition of Distributed
Power Solutions, LLC
-- 2026 Adjusted EBITDA expected to be in the range of $750 million to
$780 million
-- Growth capital expenditures expected to be in the range of $235 million
to $265 million and deliver approximately 150,000 new unit horsepower
CEO Commentary
"I'm extremely proud of Kodiak's record performance in 2025, which reflects the strength of our business model, the dedication of our team, and the continued demand for large horsepower contract compression," said Mickey McKee, Kodiak's President and Chief Executive Officer. "Our strong fourth--quarter results included new high--water marks in Contract Services adjusted gross margin percentage, adjusted EBITDA, and free cash flow, underscoring the effectiveness of our strategic focus on large--horsepower compression and fleet optimization. Continued investments in technology and talent are enhancing our operational execution and enabling us to meet our customers' evolving needs with greater reliability and efficiency.
"Kodiak continues to deliver on the commitments we've made to our stakeholders, including returning capital to shareholders and maintaining a disciplined balance sheet. In 2025, we returned over $263 million to shareholders through dividends and share repurchases and achieved our leverage target of 3.5x at year--end.
"As we look ahead to 2026, we remain focused on operational excellence, disciplined capital allocation, and strategic growth--supported by the recently announced acquisition of Distributed Power Solutions. Our 2026 guidance reflects confidence in our ability to generate sustainable growth in our contract compression business, and we look forward to providing updates on our combined compression and distributed power offering in the months ahead. I want to thank our employees for their exceptional work and our customers and shareholders for their continued support as we build on this momentum in the year ahead."
Segment Information
Contract Services segment revenue was $301.8 million in the fourth quarter of 2025, a 7.7% increase compared to $280.2 million in the fourth quarter of 2024. Contract Services segment gross margin was $135.7 million in the fourth quarter of 2025, a 16.4% increase compared to $116.6 million in the fourth quarter of 2024 and adjusted gross margin was $208.9 million in the fourth quarter of 2025, an 11.7% increase compared to $187.0 million in the fourth quarter of 2024.
Other Services segment revenue was $31.1 million in the fourth quarter of 2025, a 6.0% increase compared to $29.3 million in the fourth quarter of 2024. Other Services segment gross margin and adjusted gross margin were each $4.0 million in the fourth quarter of 2025, a 6.6% decrease compared to $4.2 million for each measure in the fourth quarter of 2024.
Long-Term Debt and Liquidity
Total debt outstanding was $2.6 billion as of December 31, 2025, and the Company had $1.5 billion available on its ABL Facility. Kodiak's credit agreement leverage ratio was 3.5x as of December 31, 2025.
Acquisition of Distributed Power Solutions, LLC
On February 5. 2026, Kodiak announced that it entered into a definitive agreement to acquire Distributed Power Solutions, LLC, a leading provider of turnkey, scalable and highly-reliable distributed power solutions, in an equity and cash transaction valued at approximately $675 million (the "Acquisition"), subject to adjustment in accordance with the purchase agreement. The purchase price includes $575 million in cash, subject to adjustment in accordance with the purchase agreement, and the issuance of 2,401,278 shares, of Kodiak common stock, to the sellers.
The Acquisition is expected to close in early April of 2026, subject to regulatory approvals and customary closing conditions, including the expiration or termination of all waiting periods imposed under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended. Kodiak expects to update full-year 2026 guidance after closing to reflect the contribution from the Acquisition.
Summary Financial Data
Three Months Ended Year Ended
------------------------------------------- ------------------------------
(in thousands,
excluding December 31, September 30, December 31, December 31, December 31,
percentages) 2025 2025 2024 2025 2024
------------- ------------- ------------- -------------- --------------
Total revenues $332,871 $322,744 $309,519 $1,308,100 $1,159,311
Net income (loss)
attributable to
common
shareholders $ 24,625 $(14,011) $ 19,083 $ 80,521 $ 49,895
Adjusted net
income (1) $ 35,261 $ 31,539 $ 20,645 $ 139,421 $ 92,078
Adjusted EBITDA
(1) $184,451 $174,702 $169,072 $ 715,033 $ 609,550
Adjusted EBITDA
percentage (1) 55.4% 54.1% 54.6% 54.7% 52.6%
Contract Services
revenue $301,810 $296,970 $280,211 $1,181,270 $1,034,173
Contract Services
adjusted gross
margin (1) $208,911 $202,748 $187,027 $ 807,777 $ 679,157
Contract Services
adjusted gross
margin percentage
(1) 69.2% 68.3% 66.7% 68.4% 65.7%
Other Services
revenue $ 31,061 $ 25,774 $ 29,308 $ 126,830 $ 125,138
Other Services
adjusted gross
margin (1) $ 3,961 $ 3,782 $ 4,242 $ 20,398 $ 21,778
Other Services
adjusted gross
margin percentage
(1) 12.8% 14.7% 14.5% 16.1% 17.4%
Maintenance
capital
expenditures $ 22,265 $ 19,765 $ 14,858 $ 76,002 $ 66,200
Growth capital
expenditures (2) $ 25,253 $ 80,330 $ 44,693 $ 199,532 $ 227,193
Other capital
expenditures (3) 11,895 12,202 26,393 62,753 58,799
------- --- ------- --- ------- --- --------- ---------
Total Growth
and Other
capital
expenditures $ 37,148 $ 92,532 $ 71,086 $ 262,285 $ 285,992
Discretionary cash
flow (1) $112,524 $116,652 $107,690 $ 461,684 $ 373,281
Free cash flow (1) $ 78,609 $ 33,463 $ 56,657 $ 229,581 $ 122,319
(1) Adjusted net income, adjusted EBITDA, adjusted EBITDA percentage,
adjusted gross margin, adjusted gross margin percentage, discretionary
cash flow and free cash flow are non-GAAP financial measures. For
definitions and reconciliations to the most directly comparable
financial measures calculated and presented in accordance with GAAP,
see "Non-GAAP Financial Measures" below.
(2) Growth capital expenditures made to (1) expand the operating capacity
or operating income capacity of assets including, but not limited to,
the acquisition of additional compression units, upgrades to existing
equipment, expansion of supporting infrastructure, and implementation
of new technologies, (2) maintain the operating capacity or operating
income capacity of assets by acquisition of replacement compression
units and their supporting infrastructure, and (3) expand the operating
capacity or operating income capacity of existing assets.
(3) Other capital expenditures made on assets required to support our
operations--such as rolling stock, leasehold improvements, technology
hardware and software and related implementation expenditures, safety
enhancements to equipment, and other general items that are typically
capitalized and that have a useful life beyond one year. Other capital
expenditures were previously included in growth capital expenditures,
but are now shown separately for both current and historical periods.
Summary Operating Data
(as of the dates indicated)
December 31, September 30, December 31,
2025 2025 2024
--------------- --------------- ----------------
Fleet horsepower (1) 4,456,285 4,456,492 4,402,747
Revenue-generating
horsepower (2) 4,354,724 4,350,576 4,250,499
Fleet compression
units 4,736 4,767 5,069
Revenue-generating
compression units 4,490 4,510 4,592
Revenue-generating
horsepower per
revenue-generating
compression unit
(3) 970 965 926
Fleet utilization
(4) 97.7% 97.6% 96.5%
(1) Fleet horsepower includes (x) revenue-generating horsepower and (y)
idle horsepower, which is comprised of compression units that do not
have a signed contract or are not subject to a firm commitment from our
customer and therefore are not currently generating revenue.
(2) Revenue-generating horsepower includes compression units that are
operating under contract and generating revenue and compression units
which are available to be deployed and for which we have a signed
contract or are subject to a firm commitment from our customer.
(3) Calculated as (i) revenue-generating horsepower divided by (ii)
revenue-generating compression units at period end.
(4) Fleet utilization is calculated as (i) revenue-generating horsepower
divided by (ii) fleet horsepower.
Full-Year 2026 Guidance
Kodiak is providing initial guidance for the full year 2026. Note that the amounts below do not include any impact from the pending acquisition of Distributed Power Solutions, LLC.
Full-Year 2026 Guidance
------------------------------
(in thousands, excluding percentages) Low High
Adjusted EBITDA (1) $ 750,000 $ 780,000
Discretionary cash flow (1)(2) $ 480,000 $ 510,000
Segment Information
Contract Services revenues $1,240,000 $1,280,000
Contract Services adjusted gross
margin percentage (1) 67.5% 69.5%
Other Services revenues $ 125,000 $ 150,000
Other Services adjusted gross margin
percentage (1) 13.0% 16.0%
Capital Expenditures
Maintenance capital expenditures $ 75,000 $ 85,000
Growth capital expenditures $ 235,000 $ 265,000
Other capital expenditures 40,000 50,000
--------- ---------
Total Growth and Other capital
expenditures $ 275,000 $ 315,000
(1) The Company is unable to reconcile projected adjusted EBITDA to
projected net income (loss) and discretionary cash flow to projected
net cash provided by operating activities and projected adjusted gross
margin percentage to projected gross margin percentage, the most
comparable financial measures calculated in accordance with GAAP,
respectively, without unreasonable efforts because components of the
calculations are inherently unpredictable, such as changes to current
assets and liabilities, unknown future events, and estimating certain
future GAAP measures. The inability to project certain components of
the calculation would significantly affect the accuracy of the
reconciliations.
(2) Discretionary cash flow guidance assumes no change to Secured Overnight
Financing Rate futures.
Conference Call
Kodiak will conduct a conference call on Thursday, February 26, 2026, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss financial and operating results for the fourth quarter and full year ended December 31, 2025. To listen to the call by phone, dial 877-407-4012 and ask for the Kodiak Gas Services call at least 10 minutes prior to the start time. To listen to the call via webcast, please visit the Investors tab of Kodiak's website at www.kodiakgas.com.
About Kodiak
Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high--volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. More information is available at www.kodiakgas.com.
Non-GAAP Financial Measures
Adjusted net income and adjusted earnings per share are considered non-GAAP measures. Adjusted net income (loss) is defined as net income (loss) excluding (i) impairment of long-lived assets; (ii) severance expenses; (iii) transaction expenses; (iv) sales tax reserve; (v) loss on disposal of business; (vi) loss (gain) on derivatives; and (vii) the tax effects of the adjustments.
Adjusted earnings (loss) per share is calculated by dividing adjusted net income by the weighted average diluted shares outstanding.
Adjusted EBITDA is defined net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) impairment of long-lived assets; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) sales tax reserve; (vii) loss (gain) on disposal of business; and (viii) loss (gain) on sale of assets. Adjusted EBITDA percentage is defined as adjusted EBITDA divided by total revenues.
Adjusted net income, adjusted diluted EPS, adjusted EBITDA and adjusted EBITDA percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: (i) the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and (iv) our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe adjusted net income, adjusted diluted EPS, adjusted EBITDA and adjusted EBITDA percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Reconciliations of adjusted net income and adjusted EBITDA to net income (loss) and adjusted diluted EPS to GAAP diluted earnings (loss) per share, the most directly comparable GAAP financial measures are presented below.
Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Adjusted gross margin percentage is defined as adjusted gross margin divided by total revenues. We believe adjusted gross margin and adjusted gross margin percentage are useful as supplemental measures to investors of our operating profitability. Reconciliations of adjusted gross margin to gross margin are presented below.
Discretionary cash flow is considered a non-GAAP measure. We define discretionary cash flow as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) severance expenses; (x) transaction expenses; and (y) sales tax reserve. We believe discretionary cash flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. A reconciliation of discretionary cash flow to net cash provided by operating activities is presented below.
Free cash flow is considered a non-GAAP measure. We define free cash flow as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; (iv) growth capital expenditures; and (v) other capital expenditures; plus (w) severance expenses; (x) transaction expenses; (y) sales tax reserve; and (z) proceeds from sale of assets. We believe free cash flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. A reconciliation of free cash flow to net cash provided by operating activities is presented below.
Cautionary Note Regarding Forward-Looking Statements
This news release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding: (i) expected operating results, such as revenue growth and earnings, including the integration of acquired businesses into our operations, and our ability to service our indebtedness; (ii) anticipated levels of capital expenditures and uses of capital; (iii) current or future volatility in the credit markets and future market conditions; (iv) potential or pending acquisition transactions or other strategic transactions, including the pending acquisition of Distributed Power Solutions, LLC ("DPS"), the timing thereof, the receipt of necessary approvals to close such acquisitions, our ability to finance such acquisitions, and our ability to achieve the intended operational, financial, and strategic benefits from any such transactions; (v) expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings; (vi) production and capacity forecasts for the natural gas and oil industry; (vii) strategy for customer retention, growth, fleet maintenance, market position and financial results; (viii) our interest rate hedges; and (ix) strategy for risk management.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) our ability to successfully integrate any acquired businesses, including DPS, if acquired, and realize the expected benefits thereof in the expected timeframe or at all; (vi) our ability to fund purchases of additional compression equipment; (vii) a deterioration in general economic, business, geopolitical or industry conditions, including as a result of the conflict between Russia and Ukraine, hostilities in the Middle East and developments between the United States and Venezuela, inflation, and slow economic growth in the United States; (viii) a downturn in the economic environment, as well as continued inflationary pressures; (ix) the outcome of any pending internal review or any future related government enforcement actions; (x) tax legislation and the impact of changes to applicable tax laws, including the passage of the One Big Beautiful Bill Act, ("OBBBA") and administrative initiatives or challenges to our tax positions; (xi) the loss of key management, operational personnel or qualified technical personnel; (xii) our dependence on a limited number of suppliers; (xiii) the cost of compliance with existing and new governmental regulations, including climate changed legislation, and the associated uncertainty given the current U.S. federal government administration; (xiv) changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs or quotas and other similar measures, as well as the potential direct and indirect impact of retaliatory tariffs and other actions; (xv) the cost of compliance with regulatory initiatives and stakeholders' pressures, including sustainability and corporate responsibility; (xvi) the inherent risks associated with our operations, such as equipment defects and malfunctions; (xvii) our reliance on third-party components for use in our information technology ("IT") systems; (xviii) legal and reputational risks and expenses relating to the privacy, use and security of employee and client information; (xix) threats of cyber-attacks or terrorism; (xx) agreements that govern our debt contain features that may limit our ability to operate our business and fund future growth and also increase our exposure to risk during adverse economic conditions; (xxi) volatile and/or elevated interest rates and associated central bank policy actions; (xxii) our ability to access the capital and credit markets or borrow on affordable terms (or at all) to obtain additional capital that we may require; (xxiii) major natural disasters, severe weather events or other similar events that could disrupt operations; (xxiv) unionization of our labor force, labor interruptions and new or amended labor regulations; (xxv) renewal of insurance; (xxvi) the effectiveness of our disclosure controls and procedures; and (xxvii) such other factors as discussed throughout the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025, to be filed with the U.S. Securities and Exchange Commission.("SEC").
Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.
KODIAK GAS SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Year Ended
---------------------------------- --------------------------
(in thousands,
except per share December September December December December 31,
data) 31, 2025 30, 2025 31, 2024 31, 2025 2024
--------- ------------ --------- ----------- -------------
Revenues:
Contract
Services $301,810 $296,970 $280,211 $1,181,270 $1,034,173
Other Services 31,061 25,774 29,308 126,830 125,138
------- ------- ------- --------- ---------
Total revenues 332,871 322,744 309,519 1,308,100 1,159,311
Operating expenses:
Cost of operations
(exclusive of
depreciation and
amortization shown
below):
Contract
Services 92,899 94,222 93,184 373,493 355,016
Other Services 27,100 21,992 25,066 106,432 103,360
Depreciation and
amortization 73,192 66,329 70,413 276,185 260,272
Long-lived asset
impairment 6,344 -- -- 6,344 9,921
Selling, general and
administrative 38,923 37,771 31,401 144,070 151,680
Loss on sale of
assets 7,519 38,230 20,409 61,566 29,612
------- ------- ------- --------- ---------
Total operating
expenses 245,977 258,544 240,473 968,090 909,861
------- ------- ------- --------- ---------
Income from
operations 86,894 64,200 69,046 340,010 249,450
Other income
(expenses):
Interest expense (48,985) (56,406) (51,280) (198,370) (197,144)
Gain on
derivatives -- -- 17,790 -- 24,017
Other income
(expense), net 1,072 (28,292) (409) (28,168) (415)
------- ------- ------- --------- ---------
Total other expenses,
net (47,913) (84,698) (33,899) (226,538) (173,542)
------- ------- ------- --------- ---------
Income (loss)
before income
taxes 38,981 (20,498) 35,147 113,472 75,908
Income tax
expense
(benefit) 14,216 (6,301) 15,547 31,884 25,574
------- ------- ------- --------- ---------
Net income (loss) 24,765 (14,197) 19,600 81,588 50,334
------- ------- ------- --------- ---------
Less: Net income
(loss)
attributable to
noncontrolling
interests 140 (186) 517 1,067 439
------- ------- ------- --------- ---------
Net income (loss)
attributable to
common shareholders $ 24,625 $(14,011) $ 19,083 $ 80,521 $ 49,895
======= ======= ======= ========= =========
Earnings (loss) per
share attributable
to common
shareholders:
Basic $ 0.28 $ (0.17) $ 0.21 $ 0.90 $ 0.58
Diluted $ 0.28 $ (0.17) $ 0.21 $ 0.89 $ 0.56
Weighted average
shares outstanding:
Basic 86,184 87,055 87,011 87,199 83,094
Diluted 87,483 87,055 89,272 88,523 85,170
KODIAK GAS SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands) December 31, 2025 December 31, 2024
------------------- ---------------------
Assets
Current assets:
Cash and cash
equivalents $ 3,179 $ 4,750
Accounts receivable,
net 197,600 253,637
Inventories, net 101,530 103,341
Fair value of
derivative
instruments -- 3,672
Contract assets 5,190 7,575
Prepaid expenses and
other current assets 15,637 10,686
-------------- --------------
Total current assets 323,136 383,661
Property, plant and
equipment, net 3,377,555 3,395,022
Operating lease right-of-use
assets, net 42,218 53,754
Finance lease right-of-use
assets, net 6,500 5,696
Goodwill 408,681 415,213
Identifiable intangible
assets, net 154,474 162,747
Fair value of derivative
instruments 4,664 17,544
Other assets 789 1,486
-------------- --------------
Total assets $ 4,318,017 $ 4,435,123
============== ==============
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 72,974 $ 57,562
Accrued liabilities 218,463 188,732
Contract liabilities 94,505 73,075
-------------- --------------
Total current
liabilities 385,942 319,369
Long-term debt, net of
unamortized debt issuance
cost 2,555,250 2,581,909
Operating lease liabilities 39,391 49,748
Finance lease liabilities 4,405 3,514
Deferred tax liabilities 122,851 103,826
Other liabilities 2,782 3,150
-------------- --------------
Total liabilities $ 3,110,621 $ 3,061,516
-------------- --------------
Stockholders' equity:
Preferred stock 4 9
Common stock 903 892
Additional paid-in capital 1,334,333 1,305,375
Treasury stock, at cost (143,968) (40,000)
Noncontrolling interest 4,910 13,694
Accumulated other
comprehensive loss (1,586) --
Retained earnings 12,800 93,637
-------------- --------------
Total stockholders' equity 1,207,396 1,373,607
-------------- --------------
Total liabilities and
stockholders' equity $ 4,318,017 $ 4,435,123
============== ==============
KODIAK GAS SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Year Ended December 31,
----------------------------
(in thousands) 2025 2024
---------- ----------
Cash flows from operating activities:
Net income $ 81,588 $ 50,334
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation and amortization 276,185 260,272
Long-lived asset impairment 6,344 9,921
Equity compensation expense 24,529 17,658
Amortization of debt issuance costs 12,694 11,969
Non-cash lease expense 8,416 4,730
Provision for credit losses 1,032 4,664
Inventory reserve 124 559
Loss on sale of assets 61,566 29,612
Loss on discontinuation of hedge 9,398 --
Amortization of interest rate swap 5,152 --
Change in fair value of derivatives -- 1,234
Deferred tax provision 25,663 15,429
Changes in operating assets and
liabilities, exclusive of effects of
business acquisition:
Accounts receivable 43,757 (102,887)
Inventories 1,070 (1,336)
Contract assets 2,385 9,849
Prepaid expenses and other current
assets (8,525) 4,434
Accounts payable 5,167 4,967
Accrued and other liabilities 17,172 (2,097)
Contract liabilities 22,554 9,366
Other assets 3,469 (691)
---------- ----------
Net cash provided by operating
activities 599,740 327,987
---------- ----------
Cash flows from investing activities:
Net cash acquired in acquisition of
CSI Compressco LP -- 9,458
Purchase of property, plant and
equipment (315,472) (336,956)
Proceeds from sale of assets 30,182 35,030
---------- ----------
Net cash used for investing activities (285,290) (292,468)
---------- ----------
Cash flows from financing activities:
Borrowings on debt instruments 2,857,499 2,642,370
Payments on debt instruments (2,863,679) (2,475,572)
Principal payments on other
borrowings (5,344) (5,634)
Payment of debt issuance cost (33,173) (16,271)
Principal payments on finance leases (2,455) (2,421)
Offering costs -- (1,162)
Dividends paid to stockholders (159,557) (133,886)
Repurchase of common shares (103,968) (40,000)
Cash paid for shares withheld to
cover taxes (6,362) (2,766)
Net effect on deferred taxes and
taxes payable related to the
vesting of restricted stock 2,329 4,540
Distributions to noncontrolling
interest (1,311) (5,529)
---------- ----------
Net cash used for financing activities (316,021) (36,331)
---------- ----------
Net decrease in cash and cash
equivalents (1,571) (812)
Cash and cash equivalents - beginning of
period 4,750 5,562
---------- ----------
Cash and cash equivalents - end of
period $ 3,179 $ 4,750
========== ==========
KODIAK GAS SERVICES, INC.
RECONCILIATION OF NET INCOME AND
DILUTED EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE
(UNAUDITED)
Three Months Ended Year Ended
---------------------------------- ----------------------
December September December December December
(in thousands) 31, 2025 30, 2025 31, 2024 31, 2025 31, 2024
--------- ------------ --------- --------- -----------
Net income (loss) $ 24,765 $(14,197) $ 19,600 $ 81,588 $ 50,334
Long-lived
asset
impairment 6,344 -- -- 6,344 9,921
Severance
expense (1) 2,121 -- (712) 2,497 10,500
Transaction
expenses (2) 793 1,523 4,731 4,102 32,552
Sales tax
reserve (3) -- 27,968 -- 27,968 --
Loss on
disposal of
business -- 33,349 13,574 33,349 20,598
Gain on
derivatives -- -- (17,790) -- (24,017)
Tax effect of
adjustments
(4) 1,238 (17,104) 1,242 (16,427) (7,810)
-------- ------- ------- ------- -------
Adjusted net
income $ 35,261 $ 31,539 $ 20,645 $139,421 $ 92,078
======== ======= ======= ======= =======
Weighted-average
common shares
outstanding:
(MORE TO FOLLOW) Dow Jones Newswires
February 25, 2026 17:00 ET (22:00 GMT)
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