Start here if you're new
what it is
Kodiak rents giant compressors that keep natural gas moving through wells, processing plants, and pipelines.
how it gets paid
Last year Kodiak Gas Services made $1.3B in revenue. Permian Basin compression was the main engine at $0.52B, or 40% of sales.
why it's growing
Revenue grew 12.8% last year. Revenue was up 202% vs. prior year, and EPS was up 459% vs. prior year.
what just happened
Kodiak posted $975M of revenue, $0.61 EPS, and 32.8% gross margin.
At a glance
B balance sheet — gets the job done, barely
44.6x trailing p/e — you're paying up for this one
3.6% dividend yield — cash in your pocket every quarter
3.8% return on capital — nothing to write home about
$0.56 fy2024 eps est
xvary composite: 53/100 — below average
What they do
Kodiak rents giant compressors that keep natural gas moving through wells, processing plants, and pipelines.
You do not rip out 4.3 million horsepower on a weekend. Contract compression → rented machines that keep gas moving → so what: your customer is buying uptime, not a nice-to-have. With 82% of the fleet in the Permian and Eagle Ford, leaving Kodiak means risking flow in the places that matter most.
How they make money
$1.3B
annual revenue · their business grew +12.8% last year
Permian Basin compression
$0.52B
Eagle Ford compression
$0.22B
Gas gathering & processing
$0.39B
Transmission & gas lift
$0.17B
The products that matter
long-term compressor rentals
Contract Compression Services
~$1.2B revenue mix · 92.3% of split shown here
This is the business. Last quarter it produced a record $135.7M of gross margin, up 16.4% from a year ago. If you want the number that mattered, it was this one.
record margin
parts, service and shorter-duration work
Other Services
~$100M revenue mix · 7.7% of split shown here
It matters mostly as a read on demand around the edges. Last quarter gross margin was $4.0M, down 6.6% from a year ago. Small segment, but the direction is still the wrong one.
small and weaker
compression fleet scale
4.4 Million Horsepower Fleet
largest provider in the continental U.S.
The fleet is what customers are really renting. Scale matters because replacing millions of horsepower is expensive, slow, and operationally messy. That is the moat here, even if it is made of metal and maintenance crews.
scale matters
Key numbers
$1.3B
annual revenue
That is the size of the machine. It tells you this is not a small niche service business.
44.6x
trailing p/e
You are paying 44.6 dollars for each dollar of trailing earnings. That is rich for a business with 3.8% return on capital.
$2.7B
long-term debt
Debt is 36% of capital. That means the balance sheet is doing more work than you probably want.
4.3M
horsepower
This is the fleet size. More horsepower means more gas-moving hardware under Kodiak's control.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $2.7B (36% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for KGS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Kodiak posted $975M of revenue, $0.61 EPS, and 32.8% gross margin.
Revenue was up 202% vs. prior year, and EPS was up 459% vs. prior year. The quarter was big enough to move the business into a different size class.
$975M
revenue
$0.61
eps
32.8%
gross margin
the number that mattered
The $975M revenue print mattered because it showed the business can run near a billion dollars a quarter.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the main risk is simple: a premium multiple is sitting on top of earnings that still look uneven. this is not a generic warning. it is the actual setup in front of you.
high
valuation leaves little room for another stumble
KGS trades at 44.6x trailing earnings after missing q4 EPS by $0.13. That is an expensive stock price attached to a business still proving it can turn record contract margin into cleaner bottom-line profit.
multiple compression would hurt the stock even if the fleet stays busy
med
the business is steadier than most energy services names, but it is still concentrated
About 92.3% of the revenue mix shown here comes from Contract Services. Fixed-fee contracts help. Concentration still matters. If utilization or renewal pricing weakens, the hit lands on most of the model at once.
one operating engine powers nearly the whole investment case
med
debt and dividend together reduce your margin for error
Kodiak carries $2.7B of long-term debt, equal to 36% of capital, while also paying a 3.6% dividend that costs about $65M annually. That is workable when contract cash flow stays firm. It gets tighter fast if growth cools or financing conditions stop helping.
cash has more than one job here, and that narrows flexibility
med
the Distributed Power Solutions deal adds a fresh execution test
The acquisition is expected to close in early april 2026, subject to approval. The page does not include the purchase price or return targets. That means the right stance is restraint, not optimism by default.
integration costs or weak returns would pressure an already expensive setup
What would change our mind: two straight quarters where contract gross margin keeps rising and EPS starts converting that strength into cleaner profit. What would break the story: another miss paired with flat or weaker contract margin. That is the kill criterion. The valuation does not give you much grace in between.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
q1 2026 earnings report
Expected around may 5, 2026. Consensus EPS is $0.44. After a $0.13 miss, you want proof that contract-margin strength is reaching the bottom line.
business trend
contract services margin momentum
Record gross margin hit $135.7M last quarter. If that number keeps climbing, the bull case stays intact. If it stalls, the premium multiple loses its cover.
execution risk
Distributed Power Solutions close and integration
The deal is expected in early april 2026. Watch what management says about cost, fit, and returns, because this page still does not give you the economics.
valuation test
whether earnings growth starts matching 44.6x p/e
A premium multiple survives one noisy quarter. It rarely survives a pattern. You are tracking a bigger earnings base, not just a better explanation.
Analyst rankings
coverage
12 analysts
There is real sell-side coverage here. in human-speak, KGS is followed closely enough that every miss, beat, and guidance tweak gets priced quickly.
consensus q1 EPS
$0.44
That is the near-term number to beat. If KGS misses again, analysts will have to ask whether the margin story is translating into enough actual earnings.
target data
thin here
This snapshot does not include a usable target range. So you should lean harder on operating data and valuation discipline than on headline target chatter.
source: institutional data
Institutional activity
institutional ownership data for KGS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$36
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive