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Dec 31, 2025
Kodiak Gas Services Q4 2025 Earnings Report
Kodiak Gas Services reported record quarterly adjusted EBITDA and gross margin percentages for the fourth quarter of 2025.
Key Takeaways
Kodiak Gas Services delivered a strong finish to 2025, achieving record adjusted gross margin percentages and adjusted EBITDA. The company successfully divested its international operations and reached its leverage target of 3.5x, while announcing a significant acquisition of Distributed Power Solutions to drive future growth.
Record quarterly adjusted EBITDA of $184.5 million, representing a 9.1% increase year-over-year.
Fleet utilization reached 97.7%, a 120 basis point improvement compared to Q4 2024.
Achieved a record adjusted gross margin percentage of 69.2% in the Contract Services segment.
Announced the acquisition of Distributed Power Solutions, LLC for approximately $675 million to expand into turnkey power solutions.
Revenue by Segment
Forward Guidance
Kodiak provided initial full-year 2026 guidance excluding the impact of the pending DPS acquisition, projecting continued growth in EBITDA and horsepower.
Positive Outlook
- 2026 Adjusted EBITDA expected between $750 million and $780 million.
- Growth capital expenditures planned between $235 million and $265 million.
- Expected delivery of approximately 150,000 new unit horsepower.
- Contract Services adjusted gross margin percentage projected between 67.5% and 69.5%.
- Discretionary cash flow projected between $480 million and $510 million.
Challenges Ahead
- Guidance currently excludes any potential positive impact from the Distributed Power Solutions acquisition.
- Other Services adjusted gross margin percentage expected to be lower than Contract Services at 13.0% to 16.0%.
- Maintenance capital expenditures expected to be between $75 million and $85 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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