NYSE$KGS

Kodiak Gas Services Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kodiak Gas Services reported record quarterly Adjusted EBITDA and Free Cash Flow.

Kodiak Gas Services announced third quarter 2024 financial results, featuring record quarterly Adjusted EBITDA of $168.4 million and Free Cash Flow of $52.5 million. The company raised full-year 2024 Adjusted EBITDA guidance to a range of $600 to $610 million and provided an early outlook on 2025 Adjusted EBITDA.

  • Contract Services segment revenue was $284.3 million with Adjusted Gross Margin Percentage of 66.0%.
  • Net loss of $6.2 million included a $9.9 million long-lived asset impairment, a $10.4 million loss on asset sales and a $20.3 million non-cash, mark-to-market loss on interest rate hedges.
  • Fleet utilization ended the third quarter at 96.4%, a sequential increase of 2.1%.
  • The company repurchased one million shares for $25 million.

Headline financials

Total Revenue

$325M

Previous: $231M+40.6%
EPS

-$0.07

Previous: $0.28-125.0%
Fleet Utilization

96.4%

Previous: 99.9%-3.5%
Adj EBITDA Margin

51.9%

No prior period
Contract Services Adj GM %

66.0%

No prior period
Other Services Adj GM %

19.0%

No prior period
Discretionary Cash Flow

$103M

No prior period
Fleet Horsepower

4.4M

No prior period
Rev-Gen Horsepower

4.3M

No prior period
Fleet Compression Units

5.3K

No prior period
Rev-Gen Compression Units

4.8K

No prior period
HP per Rev-Gen Unit

895

No prior period
Capital Expenditures

-$264M

Previous: -$146M-81.2%
Free Cash Flow

-$269M

Previous: -$124M-117.6%
Net Income

-$5.65M

Previous: $21.8M-125.9%
Operating Income

$66.1M

Previous: $61M+8.4%
Gross Profit

$122M

Previous: $80.6M+51.2%
Cash & Equivalents

$7.43M

Previous: $6.13M+21.3%
Total Assets

$4.49B

Previous: $3.24B+38.5%
Stock-Based Comp

$3.91M

Previous: $2.54M+53.5%

Revenue & EPS history

Kodiak Gas Services · Revenue · Quarterly

$325M

Q3 2024+40.6%vs Q3 2023
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

Kodiak Gas Services · $231M total across 2 segments · Q3 2023

  • Contract Services
    $187M
  • Other Services
    $44.3M

Forward guidance

Kodiak is providing revised guidance for the full year 2024 and an early outlook on 2025 Adjusted EBITDA.

Tailwinds

  • Full-year 2024 Adjusted EBITDA is expected to be between $600 million and $610 million.
  • Contract Services revenues are projected to be between $1,020 million and $1,040 million.
  • Contract Services Adjusted Gross Margin Percentage is expected to be between 64% and 66%.
  • Other Services revenues are projected to be between $125 million and $135 million.
  • Other Services Adjusted Gross Margin Percentage is expected to be between 14% and 17%.

Headwinds

  • Growth capital expenditures are projected to be between $210 million and $230 million.
  • Maintenance capital expenditures are projected to be between $60 million and $70 million.
  • Discretionary Cash Flow is expected to be between $365 million and $385 million.
  • Adjusted EBITDA guidance cannot be reconciled to net income (loss) without unreasonable efforts.
  • Discretionary Cash Flow guidance assumes no change to Secured Overnight Financing Rate futures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-0.2%

Avg return

30 days after

71%

12 / 17 earnings

Positive

+8.3%

Q1 2026

Best reaction

-15.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.3%+5.5%-4.9%
Q4 2025+4.0%-1.2%+7.1%
Q3 2025-6.6%-6.0%+1.3%
Q1 2025+3.9%+6.7%+8.4%
Q4 2024-15.0%-13.0%-22.9%
Q3 2024+6.3%+11.7%+26.7%
Q2 2024-9.6%-9.2%-9.1%
Q1 2024+1.0%-3.1%-8.2%
Q4 2023-6.1%-4.6%+5.1%
Q3 2022+5.1%+7.9%+9.2%
Q4 2021+5.1%+7.9%+9.2%
Q3 2023-0.5%+3.7%+7.2%
Q2 2022+1.3%-1.2%-7.0%
Q2 2023+1.3%-1.2%-7.0%
Q1 2022+1.3%-1.2%-7.0%
Q4 2022+1.3%-1.2%-7.0%
Q1 2023+1.3%+5.4%-4.5%

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