Kodiak Gas (KGS) Rides Record Earnings Into A Power Buildout
On August 7, Kodiak Gas Services reported strong Q2 2026 earnings, with revenue up 21% year-over-year to $391 million. Adjusted EBITDA hit a record $217 million, while adjusted net income reached $54 million. The company plans to grow its power infrastructure business to 2 gigawatts by 2030, having already secured 1 gigawatt of capacity through 2030 with options for more.
Kodiak's compression business remained robust, with fleet utilization at 98.2% and adjusted gross margin of 70%. The power segment generated $33 million in revenue with a 65% adjusted gross margin, but is more capital-intensive. Capital spending on power infrastructure grew 80% year-over-year as hyperscale data centers demand increased.
Kodiak raised $836 million in equity in May, reducing net debt to 3.1 times. However, the stock trades at a forward P/E of 30.40, and the company's power business growth relies on securing long-term contracts with a few hyperscalers.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
