Kodiak Gas Services(US:KGS)2026-02-25 22:04Financial Performance - Reported net income of $24.6 million, or $0.28 per diluted share, with adjusted net income of $35.3 million, or $0.40 per adjusted diluted share [6] - The company reported a net income of $81.588 million for the year ended December 31, 2025, compared to $50.334 million in 2024, marking a year-over-year increase of approximately 62% [36] - Adjusted net income attributable to common shareholders for the three months ended December 31, 2025, was $24.625 million, compared to a loss of $14.011 million in the same period of 2024 [36] - Basic earnings per share for the three months ended December 31, 2025, was $0.28, recovering from a loss of $0.17 in the previous year [36] - The company reported a diluted earnings per share of $0.89 for 2025, up from $0.56 in 2024, reflecting a growth of 58.9% [41] Revenue Growth - Total revenues for the year ended December 31, 2025, were $1,308.1 million, an increase from $1,159.3 million in 2024, representing a growth of approximately 12.8% [36] - Contract Services segment revenue reached $301.8 million in Q4 2025, a 7.7% increase from $280.2 million in Q4 2024 [10] - Total revenues for the Contract Services segment reached $301.81 million for the three months ended December 31, 2025, up from $296.97 million in the previous quarter, and $1.18 billion for the year ended December 31, 2025, compared to $1.03 billion in 2024 [46] - Total revenues for the Other Services segment increased to $31.06 million for the three months ended December 31, 2025, from $25.77 million in the previous quarter, and $126.83 million for the year ended December 31, 2025, compared to $125.14 million in 2024 [47] EBITDA and Cash Flow - Record quarterly adjusted EBITDA of $184.5 million, a 9.1% increase compared to Q4 2024 [6] - Full-year 2026 adjusted EBITDA expected to be in the range of $750 million to $780 million [21] - Adjusted EBITDA for 2025 reached $715,033 thousand, representing an increase of 17.4% compared to $609,550 thousand in 2024 [44] - Generated net cash provided by operating activities of $599.7 million, a 23.7% increase compared to 2024 [6] - Net cash provided by operating activities was $194.86 million for the three months ended December 31, 2025, compared to $113.38 million in the previous quarter, and $599.74 million for the year ended December 31, 2025, compared to $327.99 million in 2024 [48] - Free cash flow for the three months ended December 31, 2025, was $78.61 million, significantly up from $33.46 million in the previous quarter, and $229.58 million for the year ended December 31, 2025, compared to $122.32 million in 2024 [48] Expenses and Liabilities - Total operating expenses for the year ended December 31, 2025, were $968.1 million, compared to $909.9 million in 2024, reflecting an increase of approximately 6.4% [36] - Interest expense for the year ended December 31, 2025, was $198.370 million, slightly increasing from $197.144 million in 2024 [36] - Total liabilities rose from $3,061,516 thousand in 2024 to $3,110,621 thousand in 2025, an increase of 1.6% [38] - Total current liabilities increased from $319,369 thousand in 2024 to $385,942 thousand in 2025, an increase of 20.8% [38] Shareholder Returns - Returned over $263 million to shareholders through dividends and share repurchases in 2025 [8] - The company repurchased common shares worth $103,968 thousand in 2025, compared to $40,000 thousand in 2024, indicating a significant increase in share repurchase activity [40] Strategic Acquisitions - Announced acquisition of Distributed Power Solutions, LLC valued at approximately $675 million, expected to close in early April 2026 [13][14] - The company plans to pursue strategic acquisitions, including the pending acquisition of Distributed Power Solutions, LLC, to enhance operational capabilities and market position [32] Asset Management - The company experienced a long-lived asset impairment of $6.344 million for the year ended December 31, 2025, down from $9.921 million in 2024 [36] - The company incurred a long-lived asset impairment of $6,344 thousand in 2025, compared to $9,921 thousand in 2024, indicating a reduction of 36.5% [40] - Total assets decreased from $4,435,123 thousand in 2024 to $4,318,017 thousand in 2025, a decline of approximately 2.6% [38] Cash and Equivalents - Cash and cash equivalents decreased from $4,750 thousand at the end of 2024 to $3,179 thousand at the end of 2025, a decline of 33.1% [40] Other Financial Matters - The company incurred severance expenses of $2.12 million for the three months ended December 31, 2025, and $10.50 million for the year ended December 31, 2024, related to the CSI Acquisition [49] - The company received a settlement offer from the Texas Comptroller's office for outstanding sales and use tax matters, totaling $28.0 million in interest and penalties for all open periods [49]