Kodiak Gas Services(US:KGS)2025-05-07 21:40Financial Performance - Net income attributable to common shareholders for Q1 2025 was $30.4 million, up from $19.1 million in Q4 2024 and $30.2 million in Q1 2024[2]. - Total revenues for Q1 2025 were $329.6 million, a 6.5% increase from $309.5 million in Q4 2024 and a 53.0% increase from $215.5 million in Q1 2024[11]. - Net income attributable to common shareholders for Q1 2025 was $30,411,000, compared to $19,083,000 in Q1 2024, representing a 59.3% increase[30]. - Earnings per share attributable to common shareholders increased to $0.34 in Q1 2025 from $0.21 in Q1 2024, reflecting a 61.9% growth[30]. - Net income for the three months ended March 31, 2025, was $31,036,000, compared to $19,600,000 for the same period in 2024, reflecting a significant increase[36]. Revenue Segments - Contract Services segment revenue was $289.0 million, a 3.1% sequential increase, with an adjusted gross margin percentage of 67.7%[8][11]. - Other Services segment revenue surged by 38.8% sequentially to $40.7 million, with an adjusted gross margin percentage of 13.4%[9][11]. - Total revenues for the Contract Services segment reached $288,956,000, compared to $280,211,000 in the previous year, indicating a growth of 2.5%[38]. - The Other Services segment saw total revenues increase to $40,686,000, up from $29,308,000 year-over-year, reflecting a growth of 38.5%[39]. EBITDA and Margins - Record quarterly adjusted EBITDA reached $177.7 million, with an adjusted EBITDA percentage of 53.9%[7][11]. - Adjusted EBITDA for the same period was $177,664,000, up from $169,072,000 year-over-year, with an adjusted EBITDA margin of 53.9%[36]. - Adjusted gross margin for the Contract Services segment was $195,721,000, with an adjusted gross margin percentage of 67.7%, compared to 66.7% in the prior year[38]. - Gross margin for the Contract Services segment improved to $125,192,000, with a gross margin percentage of 43.3%, up from 41.6% in the prior year[38]. Cash Flow and Expenses - Operating expenses for Q1 2025 totaled $240,456,000, slightly down from $240,473,000 in Q1 2024[30]. - Net cash provided by operating activities for Q1 2025 was $114,328,000, significantly higher than $51,542,000 in Q1 2024[34]. - Discretionary cash flow for the three months ended March 31, 2025, was $116,084,000, compared to $107,690,000 in the same period last year[41]. - Free cash flow decreased to $47,219,000 from $56,657,000 year-over-year, primarily due to increased capital expenditures[41]. - The company reported a net cash provided by operating activities of $114,328,000, slightly down from $118,485,000 in the previous year[41]. Debt and Capital Expenditures - Total debt outstanding was $2.6 billion as of March 31, 2025, with a credit agreement leverage ratio of 3.7x[10]. - Long-term debt as of March 31, 2025, was $2,588,329,000, up from $2,581,909,000 at the end of 2024[32]. - Growth capital expenditures for 2025 are projected between $180 million and $205 million, with total growth and other capital expenditures expected to be between $240 million and $270 million[17]. Shareholder Returns - The company repurchased approximately $10 million of common stock at an average price of $36.87 and increased the quarterly dividend by 10% to $0.45 per share[7][6]. Strategic Focus - The company plans to continue focusing on customer retention and growth strategies to enhance market position and financial results[27].