$216.8 million in adjusted EBITDA is Kodiak Gas Services' (NYSE: KGS) second-quarter 2026 result, reported August 6, 2026 via 8-K filing, up 21.7% year over year and the company's highest quarterly figure on record. Annualizing that number yields roughly $867 million, above the midpoint of Kodiak's raised full-year adjusted EBITDA guidance of $830 million to $860 million, which means the back half already carries implied moderation. Discretionary cash flow of $163.3 million, also a company record, climbed 40.2% against the year-ago quarter.
Compression at 70% adjusted gross margin, 98.2% utilization
$315.1 million in Compression Infrastructure revenue led the quarter, a 7.4% gain from $293.5 million in Q2 2025. Adjusted gross margin reached $220.7 million, up 10.1%, for a 70.0% adjusted gross margin percentage. That marks the second consecutive quarter at that level. GAAP gross margin came to $147.6 million (46.8%), up 9.9% year over year. Fleet utilization for the segment was 98.2%, adding 100 basis points from the year-ago period.
Net income attributable to common shareholders was $52.0 million, or $0.53 per diluted share. A $3.3 million nonrecurring charge tied to the Distributed Power Solutions acquisition weighed on the reported figure. Stripping it out, adjusted net income was $54.3 million, or $0.55 per adjusted diluted share.
Segment revenue, Q2 2026 vs. Q2 2025
| Segment | Q2 2026 | Q2 2025 | YoY |
|---|---|---|---|
| Compression Infrastructure | $315.1M | $293.5M | +7.4% |
| Power Infrastructure | $32.9M | n/a | First full quarter |
| Other Services | $43.1M | $29.3M | +47.1% |
| Segment total | $391.1M |
Power Infrastructure, created following the April 1, 2026 acquisition of Distributed Power Solutions (DPS), recorded $32.9 million in its first full reported quarter. Gross margin was $15.7 million; adjusted gross margin was $21.2 million. Other Services revenue rose 47.1% to $43.1 million, though segment gross margin fell 32.3% to $4.9 million from $7.2 million.
Balance sheet: 3.2x leverage, $1.7 billion in liquidity
Total debt stood at $2.8 billion as of June 30, 2026. The credit agreement leverage ratio was 3.2x for the quarter, 3.1x on a net-cash basis. The company held $1.7 billion in total liquidity, including $1.6 billion available on the ABL Facility.
Power Infrastructure: one gigawatt on order through 2030
Kodiak secured a multi-year gas turbine supply agreement covering up to one gigawatt of generation capacity, with deliveries scheduled through 2030. Power Infrastructure fleet utilization in the quarter was 89.6%. President and CEO Mickey McKee described a path to more than two gigawatts of power generation capacity by decade's end. The company also reduced the midpoint of Power Infrastructure segment growth capital expenditure guidance to reflect updated timing expectations for future delivery down payments.