# Kodiak Gas Services, Inc. (KGS)

Informational only - not investment advice.

CIK: 0001767042
SIC: 4922 Natural Gas Transmission
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4922 Natural Gas Transmission](/industry/4922/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1767042
Filing source: https://www.sec.gov/Archives/edgar/data/1767042/000176704226000012/kgs-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001767042-26-000012 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001767042.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,308,100,000 USD | 2025 | verified |
| Net income | 80,521,000 USD | 2025 | verified |
| Assets | 4,318,017,000 USD | 2025 | verified |
| Free cash flow | 284,268,000 USD | 2025 | computed |
| Net margin | 6.16% | 2025 | computed |
| Operating margin | 25.99% | 2025 | computed |
| Revenue YoY | +12.83% | 2025 | computed |
| ROE | 6.67% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | KGS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.2% | 18.0% | 12 | 9 |
| Revenue growth | 12.8% | 13.8% | 38 | 9 |
| FCF margin | 21.7% | 8.4% | 75 | 9 |
| ROE | 6.7% | 15.1% | 14 | 8 |
| ROA | 1.9% | 4.4% | 12 | 9 |
| Liabilities / equity | 2.58 | 2.18 | 71 | 8 |
| Current ratio | 0.84 | 0.69 | 62 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4922 Natural Gas Transmission, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1308100000 | USD | 2025 | 2026-02-26 |
| Net income | 80521000 | USD | 2025 | 2026-02-26 |
| Assets | 4318017000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001767042.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Revenue | 606,375,000 | 707,913,000 | 850,381,000 | 1,159,311,000 | 1,308,100,000 |
| Net income | 180,963,000 | 106,265,000 | 20,066,000 | 49,895,000 | 80,521,000 |
| Operating income | 188,955,000 | 222,091,000 | 244,110,000 | 249,450,000 | 340,010,000 |
| Diluted EPS | 3.07 | 1.80 | 0.29 | 0.56 | 0.89 |
| Operating cash flow | 249,978,000 | 219,846,000 | 266,326,000 | 327,987,000 | 599,740,000 |
| Capital expenditures | 201,934,000 | 259,349,000 | 219,795,000 | 336,956,000 | 315,472,000 |
| Dividends paid | 0.00 | 0.00 | 29,793,000 | 133,886,000 | 159,557,000 |
| Share buybacks |  | 0.00 | 0.00 | 40,000,000 | 103,968,000 |
| Assets | 3,011,599,000 | 3,205,540,000 | 3,244,106,000 | 4,435,123,000 | 4,318,017,000 |
| Liabilities |  | 2,976,447,000 | 2,101,453,000 | 3,061,516,000 | 3,110,621,000 |
| Stockholders' equity | 960,071,000 | 229,093,000 | 1,142,653,000 | 1,373,607,000 | 1,207,396,000 |
| Cash and cash equivalents |  | 20,431,000 | 5,562,000 | 4,750,000 | 3,179,000 |
| Free cash flow | 48,044,000 | -39,503,000 | 46,531,000 | -8,969,000 | 284,268,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Net margin | 29.84% | 15.01% | 2.36% | 4.30% | 6.16% |
| Operating margin | 31.16% | 31.37% | 28.71% | 21.52% | 25.99% |
| Return on equity | 18.85% | 46.39% | 1.76% | 3.63% | 6.67% |
| Return on assets | 6.01% | 3.32% | 0.62% | 1.12% | 1.86% |
| Liabilities / equity |  | 12.99 | 1.84 | 2.23 | 2.58 |
| Current ratio |  | 1.08 | 1.10 | 1.20 | 0.84 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001767042.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q2 | 2023-06-30 |  |  | 0.30 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 17,517,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 230,983,000 |  | 0.28 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 225,980,000 | -6,874,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 215,492,000 | 30,232,000 | 0.39 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 309,653,000 | 6,228,000 | 0.06 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 324,647,000 | -5,648,000 | -0.07 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 309,519,000 | 19,083,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 329,642,000 | 30,411,000 | 0.33 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 322,843,000 | 39,496,000 | 0.43 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 322,744,000 | -14,011,000 | -0.17 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 332,871,000 | 24,625,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 345,759,000 | 17,805,000 | 0.20 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 391,120,000 | 51,971,000 | 0.53 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from KGS's latest 10-K: [/company/KGS/business/](/company/KGS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from KGS's latest 10-K: [/company/KGS/risk-factors/](/company/KGS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1767042/000176704226000055/kgs-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-07
Report date: 2026-06-30

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations is based on, and should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Report. The following discussion includes forward-looking statements that involve certain risks and uncertainties. For further information on items that could impact our future operating performance or financial condition, see the sections entitled “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and “Cautionary Note Regarding Forward-Looking Statements” in this Report. We assume no obligation to update any of these forward-looking statements, except as required by law. Unless otherwise indicated or the context otherwise requires, the historical financial information in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects only the historical financial results of Kodiak Gas Services, Inc. and its consolidated subsidiaries and references to the “Company,” “we,” “our,” or “us” are to Kodiak Gas Services, Inc. and its consolidated subsidiaries.

Overview

We are a leading provider and operator of large horsepower contract compression infrastructure in the U.S., supporting the critical movement and processing of natural gas across key production regions. Following the acquisition of Distributed Power Solutions, LLC (“DPS”) on April 1, 2026, we expanded our platform beyond compression to include distributed and behind-the-meter power generation solutions, including the provision of power generation equipment and related services. In connection with the acquisition, effective as of June 30, 2026, we established a new Power Infrastructure segment to represent our distributed power generation operations, while certain ancillary services associated with the compression and power businesses that are similar in nature to our existing service offerings continue to be included within Other Services. In addition, we renamed our Contract Services segment as Compression Infrastructure to better align with our expanded energy infrastructure platform.

As a result, we now manage our business through three operating segments: Compression Infrastructure, Power Infrastructure and Other Services. We believe this expanded segmentation will provide our investors with additional information to better understand our performance. Concurrent with the change in reportable segments, we revised our prior period financial information to be consistent with the current period presentation. There was no impact on the Company’s previously reported consolidated financial position, results of operations or cash flows. See Note 16. Segments for further information.

Our Compression Infrastructure segment and related services are critical to our customers’ ability to reliably produce, gather and transport natural gas and oil. We are a market leader in the Permian Basin, which is the largest producing natural gas and oil basin in the U.S. We operate our large horsepower compression units primarily under fixed-revenue contracts with many upstream and midstream customers. Our compression assets have long useful lives consistent with the expected production lives of the key regions where we operate. We believe our customer-centric business model positions us as the preferred contract compression operator for our customers and creates long-standing relationships. We strategically invest in the training, development and retention of our highly skilled and dedicated employees and believe their expertise and commitment to excellence enhances and differentiates our business model. Furthermore, we maintain an intense focus on being one of the most sustainable and responsible operators of contract compression infrastructure.

Our Power Infrastructure segment provides distributed and behind-the-meter power generation solutions, including the provision of power generation equipment and associated capacity, together with related services such as delivery, installation, operation and maintenance. These solutions are designed to support both temporary and long-term power needs across a diverse range of end markets, including oil and gas, utilities, data centers, industrial and commercial customers. Power Infrastructure arrangements are typically structured to include fixed monthly payments and service-based components and may range from short-term deployments to multi-year agreements, depending on customer requirements.

Our Other Services segment consists of a broad range of services that support our customers’ operations, including station construction, maintenance, overhaul, freight and crane services, installation and other ancillary services, as well as certain services associated with our power generation operations that are similar in nature to our historical service offerings.

27

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Recent Developments

Issuance of Common Stock

On May 13, 2026, the Company completed an underwritten public offering of 10.6 million shares of its common stock at a public offering price of $71.00 per share. The underwriters exercised their option to purchase an additional 1.6 million shares, which was fully exercised on May 14, 2026. The offering, including the sale of the option shares, closed on May 15, 2026. The Company received aggregate net proceeds of approximately $836.1 million, after deducting underwriting discounts and offering expenses.

Acquisition of Distributed Power Solutions

On April 1, 2026, we completed the previously announced acquisition of DPS, a leading provider of turnkey distributed power generation solutions and behind‑the‑meter power generation solutions. The total consideration consisted of $587.3 million of cash, reflecting adjustments for certain additional power generation assets purchased prior to closing, indebtedness and working capital, and 2.4 million shares of the Company’s common stock, par value $0.01 per share with an estimated fair value of $139.0 million based on the Company’s closing stock price of $57.90 per share, on April 1, 2026. For more information about the acquisition of DPS, please see the Company’s Current Report on Form 8-K filed with the SEC on April 1, 2026.

Operational Highlights

The following table summarizes certain horsepower, unit count and horsepower utilization percentages for our compression fleet for the periods presented.

[[GREPCENT_TABLE]]
[["","Compression Infrastructure","","Power Infrastructure"],["","As of June 30,","","Percentage Change","","As of June 30,","","Percentage Change"],["","2026","","2025","","","","2026","","2025"],["Fleet capacity (hp / MW) (1)","4,495,394 hp","","4,419,884 hp","","1.7","%","","405 MW","","\u2014","","","n/m"],["Revenue-generating (hp / MW) (2)","4,413,451 hp","","4,296,978 hp","","2.7","%","","363 MW","","\u2014","","","n/m"],["Fleet units","4,623","","4,881","","(5.3)","%","","149","","\u2014","","","n/m"],["Revenue-generating units","4,452","","4,514","","(1.4)","%","","129","","\u2014","","","n/m"],["Output per revenue-generating unit (3)","991 hp","","952 hp","","4.1","%","","3 MW","","\u2014","","","n/m"],["Fleet utilization (4)","98.2","%","","97.2","%","","1.0","%","","89.6","%","","\u2014","%","","n/m"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(1)","Fleet capacity includes (x) revenue-generating and (y) idle horsepower or megawatts, respectively, which is comprised of units that do not have a signed contract or are not subject to a firm commitment from our customers and therefore are not currently generating revenue."],["(2)","Revenue-generating power includes horsepower and megawatts units, respectively, that are operating under contract and generating revenue and units which are available to be deployed and for which we have a signed contract or are subject to a firm commitment from our customer."],["(3)","Calculated as (i) revenue-generating horsepower or megawatts, respectively, divided by (ii) revenue-generating units at period end."],["(4)","Fleet utilization is calculated as (i) revenue-generating horsepower or megawatts, respectively, divided by (ii) fleet horsepower or megawatts, respectively."]]
[[/GREPCENT_TABLE]]

Horsepower

As of June 30, 2026, fleet horsepower increased 1.7% and revenue generating horsepower increased 2.7% compared to the prior year period. These increases were driven by a combination of organic growth and strategic asset acquisition, including the acquisition of large compression assets from a prominent oil and gas producer in the Permian Basin in March 2026. This strategic purchase enhanced our fleet’s capacity and operational efficiency. Additionally, the reduction of idle equipment during the period contributed to a more robust and productive fleet profile. These improvements were partially offset by the divestiture and retirement of certain non-core assets during the period, reflecting our ongoing commitment to fleet optimization. The 4.1% increase in revenue-generating horsepower per revenue-generating compression unit was primarily a result of deploying these new large horsepower units.

28

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Megawatts

On June 30, 2026, revenue-generating megawatts per revenue-generating power unit was 3.0 megawatts. Fleet utilization on June 30, 2026 was 89.6%. We had no revenue-generating megawatts per revenue-generated power unit prior to the DPS Acquisition on April 1, 2026.

Financial Results of Operations

Three Months Ended June 30, 2026, compared to the Three Months Ended June 30, 2025

The following table presents selected financial and operating information for the periods presented:

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","June 30,","","% Change"],["(in thousands)","2026","","2025"],["Revenues:"],["Compression Infrastructure","$","315,125","","","$","293,534","","","7.4","%"],["Power Infrastructure","32,891","","","\u2014","","","n/m"],["Other Services","43,104","","","29,309","","","47.1","%"],["Total revenues","391,120","","","322,843","","","21.1","%"],["Operating expenses:"],["Cost of operations (exclusive of depreciation and amortization shown below):"],["Compression Infrastructure","94,435","","","93,137","","","1.4","%"],["Power Infrastructure","11,686","","","\u2014","","","n/m"],["Other Services","38,235","","","22,114","","","72.9","%"],["Depreciation and amortization","78,650","","","66,135","","","18.9","%"],["Selling, general and administrative","40,918","","","35,121","","","16.5","%"],["Loss on sale of assets","2,959","","","6,606","","","(55.2)","%"],["Total operating expenses","266,883","","","223,113","","","19.6","%"],["Income from operations","124,237","","","99,730","","","24.6","%"],["Other expenses:"],["Interest expense","(50,061)","","","(45,755)","","","9.4","%"],["Other expense, net","(939)","","","(546)","","","72.0","%"],["Total other expenses, net","(51,000)","","","(46,301)","","","10.1","%"],["Income before income taxes","73,237","","","53,429","","","37.1","%"],["Income tax expense","21,093","","","13,445","","","56.9","%"],["Net income","52,144","","","39,984","","","30.4","%"],["Less: Net income attributable to noncontrolling interests","173","","","488","","","(64.5)","%"],["Net income attributable to common shareholders","$","51,971","","","$","39,496","","","31.6","%"]]
[[/GREPCENT_TABLE]]

Revenues and Sources of Income

Compression Infrastructure

Compression Infrastructure revenues increased $21.6 million, or 7.4%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This was primarily due to a $23.4 million increase in revenue resulting from pricing increases and an increase in revenue-generating horsepower. This increase was partially offset by a decrease of $1.8 million related to gas treating and cooling services.

29

Tab

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1767042/000176704226000012/kgs-20251231.htm
Complete FY 2025 MD&A: /company/KGS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-26
Report date: 2025-12-31

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations is based on, and should be read in conjunction with, our consolidated financial statements and related notes hereto included under Part II, Item 8.—Financial Statements and Supplementary Data in this Annual Report. The following discussion includes forward-looking statements that involve certain risks and uncertainties. For further information on items that could impact our future operating performance or financial condition, see the sections titled “Risk Factors” and “Disclosure Regarding Forward-Looking Statements” elsewhere in this Annual Report. We assume no obligation to update any of these forward-looking statements, except as required by law.

The following discussion includes forward-looking statements that involve certain risks and uncertainties. For further information on items that could impact our future operating performance or financial condition, See Part I “Disclosure Regarding Forward-Looking Statements” and Part I, Item 1A “Risk Factors”. We assume no obligation to update any of these forward-looking statements, except as required by law. Unless otherwise indicated or the context otherwise requires, the historical financial information in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects only the historical financial results of Kodiak Gas Services, Inc. and its consolidated subsidiaries and references to the “Company,” “we,” “our,” or “us” are to Kodiak Gas Services, Inc. and its consolidated subsidiaries.

This section primarily discusses 2025 and 2024 items and comparisons between these years. Discussion and analysis of our operating highlights and financial results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 are included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations 2024 Operational Highlights, Financial Results of Operations, Liquidity and Capital Resources, and Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Overview

We are a leading provider and operator of large horsepower contract compression infrastructure in the U.S., supporting the critical movement and processing of natural gas across key production regions. Our Contract Services and related services are critical to our customers’ ability to reliably produce, gather and transport natural gas and oil. We are a market leader in the Permian Basin, which is the largest producing natural gas and oil basin in the U.S. We operate our large horsepower compression units primarily under fixed-revenue contracts with many upstream and midstream customers. Our

36

Table of Contents

compression assets have long useful lives consistent with the expected production lives of the key regions where we operate. We believe our customer-centric business model positions us as the preferred contract compression operator for our customers and creates long-standing relationships. We strategically invest in the training, development, and retention of our highly skilled and dedicated employees and believe their expertise and commitment to excellence enhances and differentiates our business model. Furthermore, we maintain an intense focus on being one of the most sustainable and responsible operators of contract compression infrastructure.

We manage our business through two operating segments: Contract Services and Other Services. Contract Services consists of operating Company-owned and customer-owned compression, and gas treating and cooling infrastructure, pursuant to fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consists of a broad range of contract services to support ancillary needs of our customers, including station construction, customer-owned compressor maintenance and overhaul, freight and crane charges and other time and material-based offerings. Our Other Services offerings are often cross-sold with Contract Services.

Trends and Outlook

Within our Contract Services segment, we provide contract compression infrastructure for customers in the oil and gas industry. Our assets are specifically primarily utilized in natural gas compression applications in the Permian Basin, Eagle Ford Shale and other active U.S. hydrocarbon production regions. Our customers are dependent on these applications to produce, process and transport natural gas and oil. Our assets are central to meeting growing global natural gas and oil demand. Furthermore, the long-life nature of our assets and our fixed-revenue contracts help to protect our business from the impact of industry and broader macroeconomic cycles.

Unconventional resources, large-scale centralized gathering systems and multi-well pad operations require more compression horsepower than conventional resources, driving demand for our large horsepower compression units. Upstream and midstream companies have increasingly prioritized capital discipline and return of capital to stockholders. We believe that many customers prefer to outsource their compression infrastructure needs in an effort to reduce capital expenditures outside of their core business and benefit from our technical skills and expertise.

In recent years, the U.S natural gas and oil industry has faced ongoing uncertainty and evolving expectations from regulators, investors, and other stakeholders related to sustainability and operational efficiency. Some energy companies, including some of our customers, have announced initiatives aimed at reducing GHG emissions and improving environmental performance. A number of our customers are implementing electric compression infrastructure, and we are well positioned to support them in these efforts. As stakeholder priorities and the regulatory landscape continue to evolve under the current U.S. presidential administration, the U.S. natural gas and oil industry is expected to remain subject to varying levels of change and uncertainty.

Approximately 82.8% of our existing compression assets are strategically deployed in the Permian Basin and Eagle Ford Shale, which are two of the most significant crude oil and associated gas basins in the U.S. We believe these two regions possess some of the largest and lowest-cost unconventional resource bases in the U.S. Additionally, there are significant U.S. LNG export projects in development, and overall, LNG export capacity is expected to meaningfully grow over the next decade, in particular along the U.S. Gulf Coast. We expect this growth in Gulf Coast LNG export capacity to translate into continued Permian Basin and Eagle Ford Shale natural gas production growth, requiring substantial additional compression horsepower. We believe the U.S. will play an increasingly important role in global energy security as the world continues to require reliable, affordable and sustainable natural gas and oil production to support increasing global energy demand.

See “Business—Compression Industry” for more information regarding natural gas compression industry trends. Ultimately, the extent to which our business will be impacted by the factors described above, as well as future developments beyond our control, cannot be predicted with reasonable certainty. However, we continue to believe in the long-term demand for our Contract Services given the necessity of compression in gathering, processing and production of natural gas and centralized gas lift of oil.

Recent Developments

One Big Beautiful Bill Act of 2025

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), was enacted into law in the United States. The OBBBA introduces significant changes to U.S. tax law, including full expensing of qualified capital expenditures, full expensing of domestic research and development expenditures, changes to the business interest limitation, and modifications to the international tax framework. During the year ended December 31, 2025, the Company included the impact of the OBBBA, which materially reduced current income tax expense for the year, primarily driven by the permanent reinstatement of full

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expensing of qualified capital expenditures and changes to the business interest limitation, with no material impact to the effective tax rate.

U.S. Trade Policy and Recent Executive Orders

Proposed changes and the announcement related to the U.S. global trade policy, along with potential international retaliatory measures, have resulted in volatility in global markets and uncertainty around short- and long-term economic impacts in the United States, including concerns over potential tariff impacts for the cost of goods, inflation, recession and slowing economic growth. Although these developments did not materially impact our results, we are continuing to actively monitor and evaluate the potential impacts of these measures, including the imposition of tariffs, on our business and operations, as well as opportunities to mitigate their related impacts. There are risks that increased tariffs could, among other things, create new trade barriers that disrupt supply chains, raise costs, and weaken consumer confidence; however, it is not currently possible to predict the impact, if any, of any changes or proposed changes to the U.S. global trade policy, or any international retaliatory measures, on our financial condition, results of operations and cash flows.

We are also monitoring and evaluating the potential impact of various executive orders issued by the U.S. government, including the executive orders entitled “Reducing Anti-Competitive Regulatory Barriers” and “Zero-Based Regulatory Budgeting to Unleash American Energy,” on our business, including potential impacts to our financial condition, results of operations and cash flows.

Pending Acquisition of Distributed Power Solutions

On February 5, 2026, the Company entered into a purchase agreement to acquire DPS, a provider of distributed power solutions in an equity and cash transaction valued at approximately $675.0 million at the time of signing per the terms of the purchase agreement, subject to adjustment in accordance with the purchase agreement. Per the terms of the purchase agreement, the purchase price includes $575.0 million in cash, subject to adjustment in accordance with the purchase agreement, and the issuance of 2,401,278 shares, representing approximately $100.0 million of the Company’s common stock based on the volume weighted average price of the Company’s stock price for the five days prior to February 5, 2026 of $41.64 to the sellers. The obligations of each of the parties to consummate the transactions contemplated by the purchase agreement are subject to customary conditions. The Company has agreed to pay to the sellers a termination fee of $37.1 million in the event the purchase agreement is terminated under certain circumstances.

Senior Notes Offerings

On September 5, 2025, Kodiak Services completed a private offering of $600.0 million in 6.500% senior unsecured notes due 2033 and $600.0 million in 6.750% senior unsecured notes due 2035, both issued at par and guaranteed on a senior unsecured basis by the Company and certain subsidiaries. Subsequently, Kodiak Services completed private offerings of an additional $170.0 million in 6.500% senior unsecured notes due 2033 and an additional $30.0 million in 6.750% senior unsecured notes due 2035, both of which were issued at a premium to par. The proceeds from both offerings were used to repay a portion of the outstanding indebtedness under the revolving asset-based loan credit facility (“ABL Facility”), which was amended in September in connection with the issuance of the notes to, and among other things, reduce tota

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/KGS/mda/fy2025/
All MD&A years: /company/KGS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/KGS/mda/fy2024/): filed 2025-03-07; accession 0001767042-25-000010 (https://www.sec.gov/Archives/edgar/data/1767042/000176704225000010/kgs-20241231.htm)
- [FY 2023 MD&A](/company/KGS/mda/fy2023/): filed 2024-03-07; accession 0001767042-24-000011 (https://www.sec.gov/Archives/edgar/data/1767042/000176704224000011/kgs-20231231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4922 Natural Gas Transmission) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/KGS.md · JSON record: /company/KGS.json · verified financials: /company/KGS/financials.json / /company/KGS/financials.csv · machine TOC for the whole site: /llms.txt