Kodiak Gas Services recently released its 10-Q report. Kodiak Gas Services, Inc. provides contract compression infrastructure for oil and gas customers in the United States through its Compression Infrastructure segment, along with Other Services that include station construction, maintenance, overhaul, freight and crane charges, parts sales, and related ancillary work. The company, founded in 2010 and based in The Woodlands, Texas, also added a Power Infrastructure segment after acquiring Distributed Power Solutions on April 1, 2026.
In Item 2, Management’s Discussion and Analysis, Kodiak said its business is now organized into three operating segments: Compression Infrastructure, Power Infrastructure, and Other Services. The company said the DPS acquisition expanded its platform into distributed and behind-the-meter power generation, and that the segment change did not affect previously reported consolidated financial position, results of operations, or cash flows. It also said its Compression Infrastructure business remains centered on large horsepower units under fixed-revenue contracts, with the Permian Basin as a key market.
Kodiak reported total revenue of $391.1 million for the second quarter of 2026, up 21.1% from $322.8 million a year earlier. Compression Infrastructure revenue rose 7.4% to $315.1 million from $293.5 million, Power Infrastructure contributed $32.9 million for the first time, and Other Services revenue climbed 47.1% to $43.1 million from $29.3 million. Income from operations increased 24.6% to $124.2 million from $99.7 million, while net income attributable to common shareholders rose 31.6% to $52.0 million from $39.5 million.
Second-quarter Compression Infrastructure revenue increased by $21.6 million, driven mainly by a $23.4 million lift from pricing increases and higher revenue-generating horsepower, partly offset by a $1.8 million decline in gas treating and cooling services. Compression Infrastructure operating expenses rose only 1.4% to $94.4 million, helped by a $3.6 million increase in direct labor that was partly offset by lower parts costs. Other Services revenue increased $13.8 million, led by station construction services and customer-requested services and materials, while Other Services operating expenses climbed 72.9% to $38.2 million.
Depreciation and amortization increased 18.9% to $78.7 million, reflecting additional depreciation tied to the DPS assets acquired on April 1, 2026. Selling, general and administrative expenses rose 16.5% to $40.9 million, including a $5.0 million increase in payroll expenses and $3.3 million of DPS acquisition transaction costs. Interest expense increased 9.4% to $50.1 million, mainly because of higher interest on senior notes, including the 2031 Senior Notes issued in the first quarter of 2026 and the 2033 and 2035 Senior Notes issued in the third quarter of 2025.
For the first six months of 2026, Kodiak reported revenue of $736.9 million, up 12.9% from $652.5 million. Compression Infrastructure revenue rose 6.8% to $622.1 million, Power Infrastructure added $32.9 million, and Other Services revenue increased 17.0% to $81.9 million. Income from operations climbed 22.3% to $231.0 million, but net income fell 1.4% to $70.0 million, as higher operating income was offset by a $36.5 million loss on extinguishment of debt and higher interest expense.
Operationally, Kodiak’s compression fleet capacity reached 4,495,394 horsepower at June 30, 2026, up 1.7% from 4,419,884 horsepower a year earlier. Revenue-generating horsepower increased 2.7% to 4,413,451 horsepower, and fleet utilization improved to 98.2% from 97.2%. The company said its fleet units declined to 4,623 from 4,881, while revenue-generating units fell to 4,452 from 4,514. In Power Infrastructure, fleet capacity was 405 megawatts, with 363 megawatts revenue-generating and fleet utilization of 89.6%.
Kodiak also completed a public offering on May 15, 2026, selling 12.2 million shares in total after the underwriters exercised their option, and received net proceeds of about $836.1 million. On April 1, 2026, it closed the DPS acquisition for $587.3 million in cash and 2.4 million shares valued at $139.0 million. As a result of these announcements, the company's shares have moved 5.35% on the market, and are now trading at a price of $59.90. For more information, read the company's full 10-Q submission here.
