Kodiak Gas Services misses Q2 revenue estimates

Kodiak Gas Services

06/08/2025 22:37

Overview

Kodiak Q2 revenue misses analyst expectations, per LSEG data

Adjusted EBITDA beats estimates, per LSEG data

Company announces $100 mln increase to share repurchase program

Kodiak raises full-year 2025 guidance for adjusted EBITDA and discretionary cash flow

Outlook

Kodiak raises 2025 adjusted EBITDA guidance to $700-$725 mln

Company increases 2025 discretionary cash flow guidance to $445-$465 mln

Kodiak cites Permian Basin gas growth for long-term confidence

Company sees strong demand from data centers, and domestic LNG projects

Result Drivers

LARGE HORSEPOWER COMPRESSION - Strategic focus on large horsepower compression drove record adjusted EBITDA and improved margins, per CEO Mickey McKee

FLEET OPTIMIZATION - Increased fleet utilization to 97.2% contributed to higher contract services gross margin

RESILIENT OPERATIONS - Despite global economic challenges, Kodiak maintained high fleet utilization and increased margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$322.84 mln
$334.10 mln (6 Analysts)
Q2 EPS
$0.43
Q2 Net Income
$39.50 mln
Q2 Adjusted EBITDA
Beat
$178.22 mln
$177.50 mln (8 Analysts)
Q2 Free Cash Flow
$70.29 mln
Q2 Income from Operations
$99.73 mln
Q2 Operating Expenses
$223.11 mln
Q2 Pretax Profit
$53.43 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Kodiak Gas Services Inc is $45.00, about 29% above its August 6 closing price of $31.97

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw36v8xda

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)