KGSNYSENatural Gas TransmissionUS GAAP · USD

Kodiak Gas Services, Inc.

Kodiak Gas Services, Inc. owns and operates large-horsepower contract compression infrastructure used to move, gather, process, and transport natural gas and oil across major U.S. production basins. The company also provides related field services such as station construction, maintenance and overhaul, freight and crane support, and parts sales through its Other Services segment.

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Revenue1,308m USD
+12.8 %y/y
Operating profit (EBIT)340m USD
+36.3 %y/y
EBIT margin26.0%
+4.5 ppy/y
Net income80.5m USD
+61.4 %y/y
Free cash flow284m USD
+3,269.5 %y/y

Fiscal year 2025 · change from previous year

Development 2021–2025

05001,0001,500m USD2021: 606 m USD2021: EBIT 189 m USD20212022: 708 m USD2022: EBIT 222 m USD20222023: 850 m USD2023: EBIT 244 m USD20232024: 1,159 m USD2024: EBIT 249 m USD20242025: 1,308 m USD2025: EBIT 340 m USD20251,308340
RevenueOperating profit (EBIT)

Business

Share of revenue
Contract Services88 %

Operating company-owned and customer-owned compression, gas treating, and cooling assets under fixed-revenue contracts.

Other Services12 %

Station construction, maintenance and overhaul, freight and crane charges, parts sales, and other ancillary services.

Products

Reported · share of revenue
90.3%9.7%FY2025100 %
  • Contract Services90.3 %
  • Services and other9.7 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Kodiak sells primarily to upstream and midstream oil and gas companies that need outsourced compression to produce, gather, process, and transport natural gas and oil. Customers use Kodiak to avoid owning compression fleets themselves, preserve capital, and access reliable high-horsepower equipment in active basins. The business is also exposed to customer concentration, contract renewals, and the spending cycles of producers and processors tied to commodity prices.

Upstream oil and gas producers

Buy large-horsepower compression for gas lift and field production support because it helps them produce more efficiently without owning the equipment.

Midstream gatherers and processors

Use Kodiak's compression and gas treating/cooling assets to move and condition gas through gathering and processing systems.

Natural gas transmission operators

Use compression infrastructure to maintain throughput and reliability in transmission networks.

Customers needing ancillary field services

Buy station construction, maintenance, overhaul, freight, crane, and parts services to support installed compression fleets.

Strategy

Kodiak's strategy centers on being the preferred outsourced compression operator in core U.S. basins through large-horsepower assets, long-term customer relationships, and fixed-revenue contracts. Management is also focused on fleet standardization, geographic concentration in attractive basins, and cross-selling ancillary services to improve utilization and cash flow. The company continues to invest in new large-horsepower units and operational discipline while pursuing selective acquisitions and portfolio optimization.

Grow large-horsepower compression capacityMedium term

Demand is shifting toward larger units for multi-well pads and centralized gathering systems.

Deepen customer relationships and renew contractsShort term

Long-term contracts and renewals are central to revenue visibility and fleet utilization.

Cross-sell ancillary servicesMedium term

Other Services adds cash flow with limited incremental capital expenditure.

Integrate acquisitions and optimize the fleetShort term

Acquisitions can expand scale, but value depends on integration and synergy capture.

Geography

Kodiak's operations are concentrated in the U.S., with the Permian Basin and Eagle Ford Shale called out as the core operating areas. The company also serves other active U.S. hydrocarbon production regions, but management emphasizes that geographic concentration increases exposure to regional production, regulation, and infrastructure disruptions. A prior divestiture of Mexico operations suggests the portfolio is being focused on core U.S. basins.

Risks

Kodiak's earnings are exposed to customer concentration, contract renewals, and commodity-cycle weakness that can reduce producer spending on compression. The business also depends on a limited supplier base, reliable IT and cybersecurity defenses, and compliance with environmental and safety rules, while its asset-heavy model creates impairment risk if demand or utilization weakens.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration and non-renewal risk1Commodity-cycle and customer capex risk2Supplier concentration and supply chain disruption3Geographic concentration in the Permian Basin and Eagle Ford Shale4Cybersecurity and IT disruption5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentration and non-renewal riskImpact: HighLikelihood: Medium

    A small number of large customers can materially affect revenue if contracts are not renewed or are repriced lower.

    Exposure: Contract Services revenue and fleet utilization

  2. Commodity-cycle and customer capex riskImpact: HighLikelihood: Medium

    Lower oil and gas prices can reduce producer spending and delay infrastructure demand.

    ExposureNew deploymentsRenewalsAncillary services
  3. Supplier concentration and supply chain disruptionImpact: HighLikelihood: Medium

    Compression equipment depends on a limited number of vendors and packagers, creating lead-time and pricing risk.

    Exposure: Fleet expansion and maintenance availability

  4. Geographic concentration in the Permian Basin and Eagle Ford ShaleImpact: HighLikelihood: Medium

    Regional disruptions, regulation, or production curtailments could disproportionately affect results.

    Exposure: Core operating footprint

  5. Cybersecurity and IT disruptionImpact: MediumLikelihood: Medium

    Operations rely on IT systems and third-party providers, and prior incidents show the business is exposed to future breaches.

    Exposure: Operational continuity and confidential data

Accounting

Judgemental items
Long-lived asset and goodwill impairment

The fleet is large and capital intensive, so lower demand or utilization could trigger non-cash charges.

Impact: Could reduce earnings and book value

Sales tax accruals on compression equipment purchases

Management notes open audit periods and estimated accruals, especially in Texas.

Impact: Affects growth capex and liabilities

Acquisition-related costs

CSI acquisition severance and professional fees reduce comparability across periods.

Impact: Impacts operating expenses and adjusted earnings

Lease expense and non-cash lease items

Lease-related costs are included in operating results and can affect cash flow presentation.

Impact: Affects EBITDA-like measures and liabilities

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Last updated: 24/09/2026