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Jun 30
Kodiak Gas Services Q2 2025 Earnings Report
Kodiak Gas Services reported strong second quarter 2025 financial results, including record adjusted EBITDA and earnings per share, and increased its share repurchase program and full-year 2025 guidance.
Key Takeaways
Kodiak Gas Services achieved record financial performance in the second quarter of 2025, driven by strong demand for contract gas compression services. The company reported record adjusted EBITDA and earnings per share, alongside increased fleet utilization and improved contract services adjusted gross margin. This robust performance led to an increase in full-year 2025 guidance for adjusted EBITDA and discretionary cash flow, and a significant increase in its share repurchase program, reflecting confidence in future growth and commitment to shareholder returns.
Kodiak Gas Services reported record earnings per share of $0.43 per diluted share for Q2 2025.
The company achieved record quarterly adjusted EBITDA of $178.2 million, a 15.5% increase compared to Q2 2024.
Contract Services adjusted gross margin percentage increased to 68.3%, a 430 basis point improvement year-over-year.
Kodiak generated record quarterly free cash flow of $70.3 million and increased its share repurchase program by $100 million.
Kodiak Gas Services
Kodiak Gas Services
Kodiak Gas Services Revenue by Segment
Revenue by Segment
Contract Services Revenue
CapyFin.comOther Services Revenue
CapyFin.com Forward Guidance
Kodiak Gas Services has raised its full-year 2025 guidance for adjusted EBITDA and discretionary cash flow, reflecting strong market fundamentals and operational performance. The company anticipates continued growth driven by Permian Basin natural gas production and demand from data centers and LNG projects.
Positive Outlook
- Raised full-year 2025 adjusted EBITDA guidance to a range of $700 million to $725 million.
- Increased full-year 2025 discretionary cash flow guidance to a range of $445 million to $465 million.
- Anticipates Contract Services revenues between $1.16 billion and $1.20 billion for full-year 2025.
- Projects Contract Services adjusted gross margin percentage between 67.0% and 69.0% for full-year 2025.
- Expects total growth and other capital expenditures to be between $240 million and $270 million for full-year 2025.
Challenges Ahead
- Guidance for adjusted EBITDA and discretionary cash flow is non-GAAP and cannot be reconciled to GAAP measures without unreasonable efforts due to unpredictable components.
- Discretionary cash flow guidance assumes no change to Secured Overnight Financing Rate futures, which could introduce risk.
- The company is subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and outside of its control.
- Potential for a reduction in demand for natural gas and oil or a decrease in prices could impact future results.
- Competitive pressures may cause the company to lose market share.