Kodiak Gas Services(KGS) - 2025 Q3 - Quarterly Results

Financial Performance - Generated record Contract Services segment revenues of $297.0 million, a 4.5% increase compared to $284.3 million in Q3 2024[6] - Reported net loss of $14.0 million, or $(0.17) per diluted share, while adjusted net income was $31.5 million, or $0.36 per adjusted diluted share[9] - Quarterly adjusted EBITDA of $174.7 million, with an adjusted EBITDA percentage of 54.1%[10][12] - Total revenues for the three months ended September 30, 2025, were $322.744 million, a slight decrease from $324.647 million in the same period of 2024[33] - Contract Services revenue increased to $296.970 million from $284.313 million year-over-year, reflecting a growth of approximately 4.5%[33] - Net loss attributable to common shareholders for Q3 2025 was $14.011 million, compared to a net income of $39.496 million in Q2 2025[33] - Adjusted EBITDA for the three months ended September 30, 2025, was $174,702,000, compared to $168,374,000 in 2024, showing a 3.9% increase[39] - Total revenues for the three months ended September 30, 2025, were $296,970,000, up from $284,313,000 in 2024, indicating a 4.5% growth[41] - Gross margin for the three months ended September 30, 2025, was $136,419,000, with a gross margin percentage of 45.9%, compared to 40.2% in 2024[41] - The company’s diluted earnings per share for the three months ended September 30, 2025, was $(0.17), compared to $(0.07) in 2024[38] Cash Flow and Liquidity - Discretionary cash flow for the quarter was $116.7 million, a 13.2% increase compared to Q3 2024[6] - Increased full-year 2025 discretionary cash flow guidance to a range of $450 to $470 million[6][18] - Free cash flow for the three months ended September 30, 2025, was $33,463,000, compared to $52,500,000 in 2024, reflecting a decrease of 36.3%[43] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $404,878,000, compared to $209,502,000 in 2024, reflecting a 93% increase[37] - Cash and cash equivalents decreased to $724,000 from $4.750 million, indicating a decline in liquidity[35] Debt and Financial Position - Total debt outstanding was $2.7 billion as of September 30, 2025, with $1.5 billion available on its ABL Facility[11] - Long-term debt increased to $2.609 billion from $2.582 billion, indicating a rise in financial leverage[35] - The company reported a significant increase in interest expense to $56.406 million in Q3 2025, up from $45.755 million in Q2 2025[33] Operational Changes - Successfully implemented a new ERP platform and divested Mexico operations to enhance liquidity[4] - The company anticipates continued integration of CSI Compressco LP into operations, which may impact future performance and capital expenditures[28] Other Financial Matters - Other Services segment revenue decreased by 36.1% to $25.8 million compared to Q3 2024[8] - The company reported a loss on disposal of business amounting to $33,349,000 for the three months ended September 30, 2025[39] - The company incurred transaction expenses of $1,523,000 for the three months ended September 30, 2025[39] - The company has a settlement offer with the Texas Comptroller's office for outstanding sales and use tax matters totaling $28,000,000[40]