Kodiak Gas Services Q3 revenue rises 25%, beats estimates

Overview

• US energy infrastructure provider beat Q3 revenue expectations

• Adjusted EPS and adjusted EBITDA exceeded analyst expectations

• Company raised full-year 2026 adjusted EBITDA and discretionary cash flow guidance

Outlook

• Kodiak raises 2026 adj EBITDA guidance to $840 mln-$860 mln

• Company lifts 2026 discretionary cash flow forecast to $580 mln-$600 mln

• Kodiak lowers Power Infrastructure growth capex, raises Compression Infrastructure growth capex for 2026

Result Drivers

• OPERATING EFFICIENCIES - Co said increased operating efficiencies and cost discipline in Compression Infrastructure offset inflationary pressures

• POWER INFRASTRUCTURE DEMAND - Co said higher demand, increased pricing, and longer contracts in Power Infrastructure drove revenue growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", no "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 $78.00, about 87.2% above its November 6 closing price of $41.67

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Nov 9 - QXO Q3 revenue beats analyst estimates, helped by Kodiak and acquisitions

• Nov 6 - Canada's Enbridge Q3 EBITDA rises on higher gas transmission, distribution rates

• Nov 6 - Brookfield Infrastructure Q3 FFO rises 10% on data growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)