Kodiak Gas Services, Inc. (KGS) AI Stock Analysis

Kodiak Gas Services, Inc. specializes in providing contract compression infrastructure solutions for clients within the United States oil and gas sector. The company operates through two main segments: Compression Operations and Other Services. In Compression Operations, Kodiak manages both company-owned and customer-owned compression infrastructure, supporting the production, gathering, and transportation of natural gas and oil. The Other Services segment provides contract station construction, maintenance, and overhaul activities, alongside ancillary time and material-based solutions. Headquartered in The Woodlands, Texas, the company was founded in 2010 as Frontier TopCo, Inc. and has 1,300 employees.

Kodiak grew annual revenue from $606.4M in FY2021 to $1.31B in FY2025, recording a 12.8% revenue increase in FY2025. Gross margin expanded to 42.2% in FY2025 from 38.0% in FY2024, while operating margin rose to 31.7% from 21.5%. Net income reached $80.5M in FY2025, up from $49.9M in FY2024, resulting in FY2025 diluted EPS of $1.43. For the trailing twelve months ended June 30, 2026, revenue stood at $1.39B with an operating margin of 34.2% and a profit margin of 5.8%. In the latest quarter ended June 30, 2026, quarterly revenue grew 21.1% year-over-year, and quarterly earnings grew 23.3%.

As of June 30, 2026, Kodiak held $137.6M in cash and short-term investments against total debt of $85.5M, yielding a net cash position of $52.1M. The company reported a current ratio of 1.45 and a debt-to-equity ratio of 0.04 on shareholders' equity of $2.16B. Operating cash flow in FY2025 was $599.7M, generating free cash flow of $284.3M after capital expenditures of $315.5M. Capital return in FY2025 consisted of $159.6M in dividends paid and $104.0M in share buybacks.

KGS shares trade at a trailing P/E of 54.9x and a forward P/E of 19.7x, both above the median of its US-listed Energy peers at 15.0x and 12.7x, respectively. The company carries an enterprise value of $8.07B, trading at an EV-to-EBITDA multiple of 13.4x compared to the peer median of 8.0x, and a price-to-sales ratio of 3.4x versus 1.8x for the peer group. Over the past year, KGS returned 43.9%, outpacing the S&P 500 ETF (SPY) return of 16.8%, though the stock closed at $47.21 on October 16, 2026, which is 18.9% below its 200-day moving average.

Kodiak Gas Services pays a quarterly dividend totaling an annual forward payout of $1.96 per share, representing a dividend yield of 4.15%. The dividend payout ratio stands at 118.8%, and the company has paid dividends for 4 consecutive years, with its most recent ex-dividend date on August 17, 2026.

Wall Street coverage includes 10 Strong Buy and 5 Buy ratings, with zero Hold, Sell, or Strong Sell recommendations. The mean price target is $81.00, representing a 71.6% premium over the last close of $47.21. For the fiscal year ending December 31, 2026, analysts estimate EPS of $2.54 on revenue of $1.52B. For the following fiscal year, 6 analysts project EPS of $3.17 on revenue of $1.74B. Kodiak has beaten EPS estimates in 1 of the last 4 quarters, with its next earnings release scheduled for November 3, 2026.

This page is an AI-written research summary of Kodiak Gas Services, Inc. (KGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: KGS income statement, KGS balance sheet, KGS key metrics, KGS analyst forecast, KGS chart. See the KGS stock overview for the latest quote and news.