KGS Kodiak Gas Services, Inc.

Overview and Growth

In fiscal 2025, Kodiak Gas Services, Inc. recorded $1.31B of revenue, net income of $80.52M, and an operating cash inflow of $599.74M. Revenue of $1.31B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $1.16B in fiscal 2024, revenue recorded a 12.8% year-over-year increase. The company reported diluted EPS of $0.89, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.56 in fiscal 2024, the current result was 58.9% higher. The revenue-to-assets relationship was 0.3x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $828.17M as gross profit before recognizing operating expenses and other items. Gross profit represented 63.3% of revenue, showing how much of the top line remained after direct costs. Operations produced $340.01M of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 26.0%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $80.52M for the fiscal year. Net margin was 6.2%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $113.47M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 8.7%, relating income before taxes directly to revenue. The company recognized $31.88M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 28.1%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $4.32B, supported by $3.11B of liabilities and $1.21B of shareholder equity. At period end, current assets of $323.14M compared with current liabilities of $385.94M, defining the company’s short-term resource position. The current ratio was 0.84x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Cash and equivalents totaled $3.18M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 0.8%, excluding receivables and other current assets. Borrowings totaled $2.56B, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 2.12x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 59.2%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 72.0%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 0.1%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 2.6% lower than fiscal 2024 assets of $4.44B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $599.74M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 7.45x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $315.47M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 52.6% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $284.27M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 21.7% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 6.6%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.