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Sep 30, 2025
Kodiak Gas Services Q3 2025 Earnings Report
Kodiak Gas Services reported its financial and operating results for the third quarter ended September 30, 2025, and increased its full-year 2025 guidance for discretionary cash flow.
Key Takeaways
Kodiak Gas Services demonstrated continued strength in its business model during the third quarter of 2025, achieving record Contract Services segment revenues and increased fleet utilization. Despite reporting a net loss, the company delivered strong adjusted net income and discretionary cash flow, driven by strategic focus on large horsepower compression and fleet optimization. The company also increased its full-year discretionary cash flow guidance.
Generated record Contract Services segment revenues of $297.0 million, a 4.5% increase compared to the third quarter of 2024.
Reported a net loss of $14.0 million, or $(0.17) per diluted share, but an adjusted net income of $31.5 million, or $0.36 per adjusted diluted share.
Achieved quarterly adjusted EBITDA of $174.7 million and discretionary cash flow of $116.7 million, a 13.2% increase year-over-year.
Increased fleet utilization to 97.6%, a 120 basis point increase compared to the third quarter of 2024, and deployed 59,550 horsepower of new, large horsepower compression units.
Revenue by Segment
Forward Guidance
Kodiak Gas Services increased its full-year 2025 discretionary cash flow guidance and reiterated other guidance metrics, reflecting confidence in continued strong performance and market demand.
Positive Outlook
- Increased full-year 2025 discretionary cash flow guidance to a range of $450 million to $470 million.
- Anticipates full-year 2025 Adjusted EBITDA to be between $700 million and $725 million.
- Projects Contract Services revenues for the full year 2025 to be in the range of $1.16 billion to $1.20 billion.
- Expects Contract Services adjusted gross margin percentage to be between 67.0% and 69.0% for the full year.
- Forecasts growth capital expenditures for the full year 2025 to be between $180 million and $205 million.
Challenges Ahead
- Other Services revenues are projected to decrease, with full-year guidance between $120 million and $140 million.
- Other Services adjusted gross margin percentage is expected to be lower, ranging from 14.0% to 17.0% for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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