10-Q · May 11, 2026
Kodiak Gas Services reported a stronger-than-expected Q1 2026, achieving revenues of $345.8 million, slightly above estimates, along with an EPS of $0.59 which exceeded expectations by nearly 9%. Though revenue rose…
Earnings analysis · 10-Q
KGS earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Kodiak delivered strong Q2 2026 top-line growth, with revenue of $391.12 million up approximately 13.0% sequentially and 21.1% year over year. Diluted EPS of $0.55 improved from both comparison periods but missed the…
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Kodiak delivered strong Q2 2026 top-line growth, with revenue of $391.12 million up approximately 13.0% sequentially and 21.1% year over year. Diluted EPS of $0.55 improved from both comparison periods but missed the $0.75 consensus estimate, while current gross margin, operating margin, and free cash flow were not available in the provided filing extract. ABL debt declined by $83.7 million from year-end, but the company faces execution, equipment-availability, grid-competition, customer-concentration, and interest-rate risks as it expands into distributed power.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.55
What stood out
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Revenue Growth Accelerated
Q2 2026 revenue was $391.12 million, up from $346 million in Q1 2026 and $323 million in Q2 2025. This represents sequential growth of approximately 13.0% and year-over-year growth of approximately 21.1%.
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EPS Improved Year Over Year
Diluted EPS was $0.55 in Q2 2026, compared with $0.20 in Q1 2026 and $0.43 in Q2 2025. EPS increased approximately 175% sequentially and 27.9% year over year, although it was below the $0.75 consensus estimate.
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ABL Borrowings Declined
ABL borrowings declined to $380.9 million at June 30, 2026 from $464.6 million at December 31, 2025, a reduction of $83.7 million. The company also had $325.0 million of interest-rate-swap notional protection at both dates.
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Controls Remained Effective
Disclosure controls and procedures were concluded to be effective as of June 30, 2026. Management is integrating DPS operations and internal controls following the acquisition completed during the quarter.
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Customer Concentration Eased
The four largest customers accounted for approximately 30% of revenue during the six months ended June 30, 2026, versus 32% for 2025, and no single customer exceeded 15% in either period. The concentration profile improved modestly but remains material.
What to watch
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Distributed Power Execution Risk
The filing states that there were no material changes to previously disclosed risk factors as of June 30, 2026, but adds emphasis on distributed-power execution, including long sales cycles, extended equipment lead times, and capital commitments before binding customer contracts. Delayed or canceled deployments could create stranded assets or impairment charges.
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New Business and Grid Competition
Distributed-power offerings may face competition if grid access improves or utility transmission and distribution projects are completed. The filing identifies the expansion of distributed power as a new business line requiring additional capital and resources, with execution risk heightened by management's lack of direct prior experience in the business.
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Floating-Rate Debt Exposure
Interest-rate exposure remains material: ABL borrowings were $380.9 million at June 30, 2026, and the company estimates that a 1.0% increase in the applicable average interest rate would have increased six-month ABL interest expense by $3.1 million, excluding swaps. The average annualized ABL borrowing rate was approximately 6.03%.
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Customer Concentration Risk
Customer concentration remains a counterparty risk, with the four largest customers representing approximately 30% of revenue for the six months ended June 30, 2026 and no single customer exceeding 15%. A significant customer's failure or delay in payment could adversely affect results and cash flows.
Management's outlook
The provided 10-Q text does not include quantitative revenue, EPS, or EBITDA guidance. The prior outlook of $820 million to $860 million of FY 2026 adjusted EBITDA was disclosed in the May 15, 2026 8-K, but no update is provided here.
Earlier filings 4
10-Q · May 8, 2025
Kodiak reported strong top-line and cash-flow performance for the quarter ended March 31, 2025: revenues rose to $329,642 (in thousands) and operating income was $89,186 (in thousands), supported by double-digit growth…
10-K · March 7, 2025
Kodiak Gas Services positions itself as a market leader in large-horsepower contract compression, owning a 4.40 million horsepower fleet (3,428,062 hp or 78% categorized as large horsepower) and deploying ~82% of assets…
10-Q · November 9, 2023
Q3 2023 revenue increased materially to $230,983 (in thousands), driven by growth in Compression Operations and a large increase in Other Services; however net income and EPS fell vs. prior-year quarter due to a swing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.