OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-41732 For the quarterly period ended June 30, 2025 (Address of principal executive offices) (Zip Code) (Exact Name of Registrant ...

Kodiak Gas Services (KGS) Q2 2025 Earnings Call August 07, 2025 10:00 AM ET Speaker0Greetings, and welcome to the Kodiak Gas Services Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Graham Sellens, Vice President, Investor Relations.Please go ahead.Speaker1Good morning and thank you for jo ...

Kodiak Gas Services (KGS) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.52%. A quarter ago, it was expected that this provider of oil and gas infrastructure services would post earnings of $0.39 per share when it actually produced earnings of $0.42, delivering a surprise of +7.69 ...

Kodiak Gas Services Reports Second Quarter 2025 Financial Results, Announces $100 Million Increase to Share Repurchase Program and Provides Updated Full Year 2025 Guidance NEWS RELEASE Investor Contact Graham Sones, VP – Investor Relations ir@kodiakgas.com (936) 755-3529 THE WOODLANDS, Texas — August 6, 2025 — Kodiak Gas Services, Inc. (NYSE: KGS) ("Kodiak" or the "Company"), a leading provider of critical energy infrastructure and contract compression services, today reported financial and operating result ...

NEW YORK, Aug. 1, 2025 /PRNewswire/ -- Kodiak Gas Services Inc. (NYSE: KGS) will replace NV5 Global Inc. (NASD: NVEE) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, August 06. Acuren Corp. (NYSE: TIC) is acquiring NV5 Global in a deal expected to be completed soon pending final conditions. Following is a summary of the change that will take place prior to the open of trading on the effective date: Effective Date Index Name Action Company Name Ticker GICS Sector Aug ...

标普道琼斯指数公司：将Kodiak Gas Services Inc.（KGS）纳入标普小盘股600指数。 ...

Group 1: Market Overview - The U.S. equity markets are experiencing a downtrend due to President Trump's proposed tariffs on imported goods from 14 countries, including Japan and South Korea, set to take effect in August [1] - The sudden shift in tariff policy has increased market uncertainty and financial turmoil, prompting policymakers to take action to protect their economies [1] Group 2: Investment Strategies - Investors are turning to momentum stocks as a strategy to achieve sustained profits amid market volatility [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends in stock prices [3] Group 3: Momentum Strategy Implementation - A screening strategy has been developed to identify momentum anomaly stocks, focusing on the top 50 stocks with the best percentage price change over the last 52 weeks [5] - The strategy also includes selecting stocks that are among the 10 worst performers over the past week to identify those experiencing a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized for selection, indicating a higher probability of success [7] Group 4: Selected Stocks - Urban Outfitters, Inc. has seen a 63.6% increase in stock price over the past year but a 4.2% decline in the past week, with a Momentum Score of B [8] - Royal Gold, Inc. has experienced a 22% increase in stock price over the past year but a 9.8% decline in the past week, holding a Momentum Score of A [9] - Kodiak Gas Services has seen a 25.3% increase in stock price over the past year but a 3.8% decline in the past week, also with a Momentum Score of A [10]

Group 1 - The sale of approximately 3.2 million shares of Kodiak Gas Services, Inc. resulted in gross proceeds of around USD 116 million [1] - The sale was executed on May 12, 2025, under Rule 144 of the Securities Act of 1933, with J.P. Morgan Securities LLC acting as the broker [1] - Concurrently, Kodiak Gas Services repurchased approximately 278,000 shares from EQT for gross proceeds of about USD 10 million [1] Group 2 - Following these transactions, EQT now holds approximately 31.3 million shares of Kodiak Gas Services' common stock [1]

PART I [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for Q1 2025, detailing balance sheets, operations, equity, and cash flows, with key notes on accounting policies and the CSI Compressco acquisition [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at **$4.436 billion** as of March 31, 2025, with a slight increase in liabilities and decrease in equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $387,078 | $383,661 | | **Property, plant and equipment, net** | $3,400,154 | $3,395,022 | | **Total assets** | **$4,436,122** | **$4,435,123** | | **Total current liabilities** | $329,869 | $319,369 | | **Long-term debt, net** | $2,588,329 | $2,581,909 | | **Total liabilities** | **$3,080,265** | **$3,061,516** | | **Total stockholders' equity** | **$1,355,857** | **$1,373,607** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues rose **53.0%** to **$329.6 million** in Q1 2025, but net income remained flat at **$31.0 million** due to increased expenses and absence of derivative gains Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenues** | $329,642 | $215,492 | | **Income from operations** | $89,186 | $60,158 | | **Interest expense** | $(47,224) | $(39,740) | | **Gain on derivatives** | $— | $19,757 | | **Net income** | $31,036 | $30,232 | | **Net income attributable to common shareholders** | $30,411 | $30,232 | | **Diluted EPS** | $0.33 | $0.39 | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$1.356 billion** in Q1 2025, primarily due to **$37.0 million** in dividends and **$10.0 million** in share repurchases, partially offset by net income - Key activities affecting stockholders' equity in Q1 2025 included net income of **$31.0 million**, dividend payments of **$37.0 million**, and common share repurchases of **$10.0 million**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations more than doubled to **$114.3 million** in Q1 2025, while investing and financing activities resulted in net cash outflows, leading to a **$2.8 million** decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $114,328 | $51,542 | | **Net cash used for investing activities** | $(68,177) | $(60,150) | | **Net cash provided by (used for) financing activities** | $(48,951) | $12,352 | | **Net (decrease) increase in cash** | $(2,800) | $3,744 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the **$342.3 million** CSI Compressco acquisition, **$1.5 billion** in remaining performance obligations, a **$72.5 million** sales tax contingency, and **$10.0 million** in share repurchases - On April 1, 2024, the Company completed the acquisition of CSI Compressco LP for total consideration of **$342.3 million**, resulting in **$109.9 million** of goodwill[29](index=29&type=chunk)[30](index=30&type=chunk) - As of March 31, 2025, the company had **$1.5 billion** of remaining performance obligations related to its Contract Services segment, with **$631.0 million** expected to be recognized in the remainder of 2025[39](index=39&type=chunk) - The company accrued an additional **$1.6 million** for a sales tax contingency during the quarter, bringing the total accrued liability to **$72.5 million** as of March 31, 2025[85](index=85&type=chunk) - In March 2025, the company repurchased **270,000** shares of common stock for approximately **$10.0 million** under its share repurchase program[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting **53%** revenue growth and **34.4%** fleet horsepower increase, driven by the CSI acquisition, alongside liquidity and non-GAAP measures [Operational Highlights](index=30&type=section&id=Operational%20Highlights) Operational capacity expanded significantly, with fleet horsepower increasing **34.4%** to **4.4 million HP** and revenue-generating horsepower growing **30.4%** Operational Data Comparison (at period end) | Metric | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Fleet horsepower** | 4,422,914 | 3,290,971 | 34.4% | | **Revenue-generating horsepower** | 4,284,103 | 3,285,592 | 30.4% | | **Fleet utilization** | 96.9% | 99.8% | (3.0%) | - The increase in horsepower was primarily attributable to the **1.2 million** horsepower acquired from the CSI Acquisition and organic growth through new compression unit purchases[107](index=107&type=chunk) [Financial Results of Operations](index=31&type=section&id=Financial%20Results%20of%20Operations) Total revenues surged **53.0%** to **$329.6 million** in Q1 2025, but net income remained flat at **$31.0 million** due to higher interest expense and asset sale losses Financial Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $329,642 | $215,492 | 53.0% | | **Income from operations** | $89,186 | $60,158 | 48.3% | | **Interest expense** | $(47,224) | $(39,740) | 18.8% | | **Net income** | $31,036 | $30,232 | 2.7% | - The decrease in gain on derivatives was due to the designation of the interest rate swap as a cash flow hedge effective January 1, 2025, causing fair value changes to be recorded in other comprehensive income instead of earnings[117](index=117&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity stood at **$321.2 million** as of March 31, 2025, with Q1 2025 capital expenditures totaling **$94.7 million** and a **$0.45** per share dividend declared - As of March 31, 2025, the company had approximately **$321.2 million** of liquidity, consisting of **$2.0 million** in cash and **$319.3 million** available under its ABL Facility[119](index=119&type=chunk) Capital Expenditures (in millions) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Growth Capital Expenditures | $56.0 | $52.2 | | Other Capital Expenditures | $22.3 | $7.2 | | Maintenance Capital Expenditures | $16.4 | $10.6 | - On April 23, 2025, the Board declared a cash dividend of **$0.45** per share for Q1 2025[125](index=125&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show strong performance, with Adjusted EBITDA increasing to **$177.7 million** and Free Cash Flow rising to **$47.2 million** in Q1 2025 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | $31,036 | $30,232 | | Interest expense | 47,224 | 39,740 | | Income tax expense | 10,524 | 9,875 | | Depreciation and amortization | 70,529 | 46,944 | | Gain on derivatives | — | (19,757) | | Equity compensation expense | 6,978 | 2,848 | | Transaction expenses | 1,786 | 7,880 | | Loss on sale of assets | 9,211 | — | | **Adjusted EBITDA** | **$177,664** | **$117,762** | Discretionary and Free Cash Flow (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $114,328 | $51,542 | | **Discretionary cash flow** | $116,084 | $71,925 | | **Free cash flow** | $47,219 | $12,524 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risks include interest rate, counterparty, concentration, and commodity price risks, with a **1.0%** interest rate increase potentially raising annual expense by **$4.8 million** - The company's primary interest rate risk is from its ABL Facility. A **1.0%** increase in the average interest rate would have resulted in an estimated **$4.8 million** increase in ABL-related interest expense for Q1 2025[162](index=162&type=chunk)[163](index=163&type=chunk) - For Q1 2025, the company's four largest customers accounted for approximately **31%** of its recurring revenues[167](index=167&type=chunk) - The company has no direct exposure to commodity prices as it does not take title to natural gas or oil, but demand for its services is dependent on continued production, which is influenced by commodity prices[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[169](index=169&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[170](index=170&type=chunk) PART II [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect ordinary course legal matters to materially affect its financial position, referencing the sales tax contingency - Management does not expect the resolution of ordinary course legal matters to have a material adverse effect on the company's financial statements[173](index=173&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[174](index=174&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **270,000** common shares for **$10.0 million**, with **$25.0 million** remaining under the repurchase program Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | March 1-31, 2025 | 270,000 | $36.87 | $25,040 | [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[178](index=178&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - During Q1 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[180](index=180&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, agreements, and CEO/CFO certifications - The report includes a list of exhibits filed, such as the Certificate of Incorporation, Bylaws, various agreements, and CEO/CFO certifications[181](index=181&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $330 million, up approximately 7% sequentially [22] - Adjusted EBITDA for the quarter was just under $178 million, up 5% from Q4 2024 [24] - The company achieved an all-time low leverage of 3.7 times [14][29] - A quarterly dividend of $0.45 per share was announced, representing a 10% increase over the prior quarter [14] Business Line Data and Key Metrics Changes - In the Contract Services segment, monthly dollar revenue generating horsepower increased from $21.97 to $22.48 [22] - Adjusted gross margin percentage for Contract Services increased to approximately 68%, up a full percentage point from the previous quarter [22] - The Other Services segment saw revenues of $40.7 million, a 39% sequential increase [24] Market Data and Key Metrics Changes - The Permian Basin's oil production grew by about 2% in 2024, while marketed natural gas production grew by 12% [7] - The EIA projects a meaningful increase in Permian natural gas production in 2025 [8] Company Strategy and Development Direction - The company is focused on expanding its large horsepower compression services, which are critical for maintaining production volumes [6][10] - Kodiak is committed to a strategy of recontracting existing contracts and increasing operational efficiency [20][30] - The company plans to continue investing in new unit growth and technology advancements, including industrial artificial intelligence [27][56] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on the outlook for U.S. natural gas growth despite recent volatility in oil prices and economic concerns [6][20] - The company believes that the fundamentals for natural gas compression remain strong, with significant demand expected from LNG exports and power generation [10][12] - Management expressed confidence in achieving their 2025 guidance and maintaining stable cash flows [30][31] Other Important Information - The company has successfully redeployed previously idle assets and divested non-core small horsepower units [14] - Kodiak's fleet utilization remains high at 97%, with 99% utilization of large horsepower equipment [10] Q&A Session Summary Question: What are the remaining unknowns for 2025 that might influence results? - Management highlighted recontracting strategy and expense management as key factors influencing results [37][38] Question: Is there a difference in outsourcing demand between midstream and upstream customers? - Management noted that both upstream and midstream customers may prefer outsourcing to reduce capital expenditures [40] Question: What macro backdrop is assumed for the growth outlook? - Management expressed confidence in continued gas production growth in the Permian Basin, even in a flat oil price environment [46] Question: How is the company balancing share buybacks with leverage targets? - Management confirmed a focus on achieving a leverage target of 3.5 times while also considering share repurchases [48][50] Question: What cost management strategies have contributed to higher margins? - Management mentioned the implementation of AI for condition-based maintenance and repositioning the fleet as key strategies [52][54] Question: How does the company view the labor market challenges in the Permian? - Management emphasized the importance of training and development to address labor challenges [57] Question: How is the company positioned for potential M&A opportunities? - Management indicated openness to opportunistic bolt-on acquisitions, especially if asset valuations decline [71][72] Question: How has customer behavior evolved in today's environment? - Management noted that customers are more consolidated with better balance sheets, making them more resilient in downturns [78] Question: What factors could lead to a loss of pricing power in the industry? - Management stated that a significant reduction in utilization would be necessary for pricing softness to occur [80][82]