Kodiak Gas Services misses Q2 revenue estimates
Overview
Kodiak Q2 revenue misses analyst expectations, per LSEG data
Adjusted EBITDA beats estimates, per LSEG data
Company announces $100 mln increase to share repurchase program
Kodiak raises full-year 2025 guidance for adjusted EBITDA and discretionary cash flow
Outlook
Kodiak raises 2025 adjusted EBITDA guidance to $700-$725 mln
Company increases 2025 discretionary cash flow guidance to $445-$465 mln
Kodiak cites Permian Basin gas growth for long-term confidence
Company sees strong demand from data centers, and domestic LNG projects
Result Drivers
LARGE HORSEPOWER COMPRESSION - Strategic focus on large horsepower compression drove record adjusted EBITDA and improved margins, per CEO Mickey McKee
FLEET OPTIMIZATION - Increased fleet utilization to 97.2% contributed to higher contract services gross margin
RESILIENT OPERATIONS - Despite global economic challenges, Kodiak maintained high fleet utilization and increased margins
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $322.84 mln | $334.10 mln (6 Analysts) |
Q2 EPS | $0.43 | ||
Q2 Net Income | $39.50 mln | ||
Q2 Adjusted EBITDA | Beat | $178.22 mln | $177.50 mln (8 Analysts) |
Q2 Free Cash Flow | $70.29 mln | ||
Q2 Income from Operations | $99.73 mln | ||
Q2 Operating Expenses | $223.11 mln | ||
Q2 Pretax Profit | $53.43 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "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 $45.00, about 29% above its August 6 closing price of $31.97
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago
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