Overview

• U.S. energy infrastructure provider's Q1 revenue and adjusted EBITDA beat analyst expectations

• Company raised full-year guidance to include new distributed power business after DPS acquisition

• Net income fell yr/yr due to debt extinguishment and acquisition-related expenses

Outlook

• Kodiak raises 2026 adj EBITDA guidance to $820 mln-$860 mln including new power segment

• Company expects 2026 compression infrastructure revenue of $1.25 bln-$1.28 bln

• Kodiak anticipates annual power generation capacity growth of 300-500 MWs through 2030

Result Drivers

• CONTRACT COMPRESSION GROWTH - Record Contract Services revenue and gross margin driven by strong demand for natural gas compression infrastructure

• POWER SEGMENT EXPANSION - Acquisition of DPS and increased power generation capacity positioned to meet rising demand from data centers and industrial customers

• HIGH FLEET UTILIZATION - Tight market for large horsepower compression units led to high fleet utilization, supporting revenue growth

Company press release: ID:nBw6Ss92ta

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "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 $63.00, about 9.5% below its May 8 closing price of $69.65

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 18 three months ago

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