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Kodiak Gas posts record earnings as it expands toward power buildout
Revenue rose 21% year over year to $391 million, and adjusted EBITDA hit a company record of $217 million as the firm lined up turbine supply with Baker Hughes for 1 gigawatt by 2030.
Kodiak Gas Services reported stronger-than-a-year-ago results during its second quarter of 2026 earnings call, with revenue climbing 21% year over year to $391 million. Adjusted EBITDA reached a company record $217 million, up 22% from the prior year quarter, while adjusted net income was $54 million, or $0.55 per diluted share.
The company said its core compression business continued to expand, ending the quarter with 4.4 million revenue-generating horsepower and fleet utilization of 98.2%. Kodiak priced its equipment at $23.80 per horsepower, a 4.5% increase versus a year earlier, and reported compression infrastructure adjusted gross margin of 70% for a second straight quarter.
Management used the call to outline its plan to scale from compression into power infrastructure by 2030. Kodiak signed a multiyear turbine supply deal with Baker Hughes for 1 gigawatt of capacity by 2030, with an option to increase to 1.8 gigawatts, and said it has secured about 1.8 gigawatts of power generation overall toward a 2-gigawatt target.
Kodiak also discussed demand from data centers tied to hyperscalers, noting about 90% utilization in its current power fleet and that it issued a limited notice to proceed on a West Texas project, including an initial deposit while negotiations continue for long-term supply starting in early 2027. It estimated power infrastructure requires roughly $1.2 million per megawatt before balance-of-plant costs, and said the power segment generated $33 million of revenue with a 65% adjusted gross margin during the quarter.