Bullish indicating open at $55-$60, IPO prices at $37
THE WOODLANDS, Texas - Kodiak Gas Services, Inc. (NYSE:KGS), a $2.77 billion market cap company, reported record second-quarter earnings on Tuesday, with net income attributable to common shareholders reaching $39.5 million, or $0.43 per diluted share, compared to $6.2 million in the same period last year. According to InvestingPro data, the company has shown impressive revenue growth of 45.4% over the last twelve months.
The company, which provides critical energy infrastructure and contract compression services, posted record quarterly adjusted EBITDA of $178.2 million, a 15.5% increase from the second quarter of 2024. Contract Services adjusted gross margin percentage improved to 68.3%, up 430 basis points year-over-year. The company maintains a healthy gross profit margin of 60.5% and offers an attractive dividend yield of 5.7%.
Kodiak generated record quarterly free cash flow of $70.3 million and returned over $50 million to stockholders through dividends and share repurchases during the quarter. The company also deployed 31,800 horsepower of new, large horsepower compression units and increased fleet utilization to 97.2%, up 290 basis points from the previous year.
Based on strong performance, Kodiak raised its full-year 2025 adjusted EBITDA guidance to a range of $700 million to $725 million, a $5 million increase to the low end of the range. The company also increased its full-year 2025 discretionary cash flow guidance to between $445 million and $465 million. InvestingPro analysis shows that two analysts have recently revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s outlook.
The Board of Directors approved a $100 million increase to Kodiak’s share repurchase program and extended the program’s expiration date to December 31, 2026. To date, the company has repurchased approximately 2.0 million shares for $60.0 million at a weighted average price of $30.24.
"Kodiak’s performance in the second quarter reflects our commitment to operational excellence and the strong fundamentals for contract gas compression," said Mickey McKee, President and Chief Executive Officer, in a statement based on the press release.
S&P Dow Jones Indices announced that Kodiak would join the S&P SmallCap 600 index effective August 6, 2025, which the company described as a significant milestone affirming its financial strength.
During the second quarter, Kodiak reduced its debt outstanding by approximately $48 million. Total debt outstanding was $2.6 billion as of June 30, 2025. InvestingPro data indicates the company maintains a debt-to-equity ratio of 1.98 and an overall Financial Health Score of "GOOD," with particularly strong scores in growth and profitability metrics. For deeper insights into Kodiak’s financial health and valuation, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Kodiak Gas Services Inc. reported its first-quarter 2025 earnings, showcasing a significant revenue beat but a miss on earnings per share (EPS) expectations. The company achieved a revenue of $329.64 million, surpassing the forecasted $226.11 million. However, the EPS came in at $0.33, below the expected $0.39. Additionally, Kodiak Gas Services announced a cash dividend of $0.45 per share for the second quarter of 2025. This dividend will be paid on August 14, 2025, to shareholders of record as of August 4, 2025. These developments highlight the company’s recent financial activities and investor-related announcements.
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