Kodiak Lifts 2026 Adjusted EBITDA Floor After Record Quarter

The Tip Desk · November 12, 2026 · 3 min read

Adjusted EBITDA reached a record $224.5 million in the third quarter, up 28.5% from a year earlier, as Power Infrastructure revenue rose 27.6% sequentially.

Kodiak Gas Services (KGS), a contract compression and distributed power provider, reported record adjusted EBITDA of $224.5 million for the three months ended September 30, 2026, a 28.5% increase from the third quarter of 2025. Year-over-year growth in that measure accelerated from 21.7% in the second quarter. The company raised full-year 2026 adjusted EBITDA guidance to $840 million to $860 million, lifting the low end from $830 million, and lifted discretionary cash flow guidance to $580 million to $600 million.

Net income attributable to common shareholders was $71.5 million, or $0.70 a share, compared with $52.0 million, or $0.53 a share, in the second quarter. Total revenues were $401.8 million. Adjusted EBITDA as a percentage of revenue was 55.9%.

Compression Infrastructure, the renamed contract compression segment, posted record revenue of $318.4 million, up 7.2% from $297.0 million a year earlier. That year-over-year rate increased from 6.2% in the first quarter. Gross margin was $151.2 million and adjusted gross margin was $222.8 million. The adjusted gross margin percentage held at 70.0%, matching the second quarter and following 70.6% in the first quarter. President and Chief Executive Officer Mickey McKee said the company delivered a third consecutive quarter of 70% adjusted gross margins in Compression Infrastructure, with operating efficiencies offsetting inflation. Fleet utilization was 98.3%, 70 basis points above the year-ago quarter. The company added 102 thousand horsepower of new large compression units to revenue-generating horsepower.

Power Infrastructure, created after the April 1, 2026 close of the Distributed Power Solutions acquisition, generated $42.0 million of revenue, a 27.6% increase from the second quarter. Adjusted gross margin was $31.6 million, and the adjusted gross margin percentage rose to 75.2% from 64.5%. McKee said gensets were realizing higher pricing and staying on location longer. Fleet utilization was 92.5%. The company announced an agreement to provide 76 megawatts of behind-the-meter, baseload power capacity, including balance of plant, to a West Texas data center, and said it had begun site work and equipment setting on that project.

Other Services revenue was $41.4 million. Adjusted gross margin in that segment was $4.7 million.

Discretionary cash flow was $158.5 million, up 35.9% from the third quarter of 2025. Net cash provided by operating activities was $196.3 million. Free cash flow was negative $28.1 million. Growth and other capital expenditures totaled $189.4 million in the quarter. Total debt outstanding was $2.8 billion as of September 30, 2026, with $1.7 billion in total liquidity including cash. The credit agreement leverage ratio was 3.1x.

The company declared a quarterly dividend of $0.51 a share, a 4.1% increase over the second quarter. On November 4, 2026, the board extended the share repurchase program to December 31, 2027, with about $31.7 million remaining.

Full-year 2026 guidance incorporates three quarters of the DPS contribution. Compression Infrastructure revenue is guided at $1.255 billion to $1.275 billion, with adjusted gross margin of 69.5% to 70.5%. Power Infrastructure revenue is guided at $100 million to $120 million, with adjusted gross margin of 65.0% to 70.0%. Other Services revenue is guided at $125 million to $160 million. Growth capital expenditures are guided at $290 million to $310 million for Compression Infrastructure and $350 million to $400 million for Power Infrastructure. The company said it reduced Power Infrastructure growth capital expenditures to reflect updated expectations for the timing of new equipment deliveries and slightly increased Compression Infrastructure growth capital expenditures to reflect incremental deliveries.