Kodiak Gas Services Raises Full-Year EBITDA Guidance on Record Cash Flow
The company reported discretionary cash flow of $163.3 million for the second quarter, a 40.2% increase over the prior year.
Kodiak Gas Services (KGS), a provider of compression services, reported record discretionary cash flow and adjusted EBITDA for the second quarter. The results followed a strategic reorganization of the company's reportable segments and the acquisition of Distributed Power Solutions, LLC (DPS) on April 1, 2026.
Total revenues rose to $391.1 million in the second quarter, increasing from $345.8 million in the first quarter and $322.8 million in the second quarter of 2025. Adjusted EBITDA reached a record $216.8 million, representing a 21.7% increase compared to the same period last year and an increase from $190.1 million in the prior quarter.
Performance in the Compression Infrastructure segment, formerly known as Contract Services, was supported by fleet utilization increasing to 98.2%, a 100 basis point rise compared to the second quarter of 2025. The segment's adjusted gross margin held steady at 70.0%, marking the second consecutive quarter at this level and an increase from 68.3% in the prior year.
The newly formed Power Infrastructure segment reported its first full quarter of results with revenue of $32.9 million and an adjusted gross margin of 64.5%. Meanwhile, the Other Services segment saw revenue grow 47.1% year-over-year to $43.1 million, though its adjusted gross margin compressed to 11.3% from 24.5% in the second quarter of 2025.
Kodiak increased its full-year 2026 adjusted EBITDA guidance to a range of $830 million to $860 million, up from the $820 million to $860 million range provided in the first quarter and the $750 million to $780 million range provided in the fourth quarter of 2025. The company also raised its full-year 2026 discretionary cash flow guidance to a range of $570 million to $600 million.
The company reduced the midpoint for Power Infrastructure segment growth capital expenditures due to updated expectations for down payment timing.
Kodiak completed a public offering of 12.2 million shares on May 15, 2026, receiving aggregate net proceeds of approximately $836.1 million. In July 2026, the company exercised buyout options for leased compression equipment totaling approximately 43,000 horsepower for $32.8 million.