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USA Compression (USAC) Up 6.4% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for USA Compression Partners (USAC - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is USA Compression due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
USA Compression Q4 Earnings Match Estimates, Revenues Rise Y/Y
USA Compression Partners reported a fourth-quarter adjusted net profit of 28 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter's adjusted net profit of 18 cents per common unit, driven by a year-over-year increase in average monthly revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $252.5 million, improving 2.7% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by $1 million. This growth was due to a 3.9% increase in contract operations and a 3.4% rise in related-party revenues.
Adjusted EBITDA decreased 0.6% to $154.5 million, which missed our estimate of $156.2 million.
USA Compression’s distributable cash flow increased to $103.2 million from $96.3 million in the prior-year quarter. The company reported a net income worth $27.8 million compared with $25.4 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $139.5 million in the fourth quarter, up from the prior-year quarter’s $130.2 million.
Adjusted gross operating margin of 66.8% marked a decrease from the year-ago period’s 68.4%.
The company’s revenue-generating capacity declined slightly year over year to 3.58 million horsepower. However, the figure exceeded our estimate of 3.57 million horsepower.
Further, the average monthly revenue per horsepower rose to $21.69 from $20.85 in the fourth quarter of 2024. The figure was lower than our estimate of $21.91.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.5%, which was in line with the prior-year quarter’s level.
DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $103.2 million (providing 1.36x distribution coverage), up 7.2% from the year-ago level.Notably, on Oct. 16, 2025, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution paid on Nov. 7, 2025, to its common unitholders of record as of Oct. 27.
Notably, on Jan. 15, 2026, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the fourth quarter. The distribution was paid on Feb. 6, 2026, to its common unitholders of record as of Jan. 26.
The company reported $175.9 million in costs and expenses, up 2.7% from $171.4 million in the year-ago quarter. It spent $40 million on growth capex. Maintenance capex amounted to $7.8 million.
As of Dec. 31, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
Guidance
USA Compression expects its full-year 2026 adjusted EBITDA to be between $770 million and $800 million. This Zacks Rank #2 (Buy) company also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.6% due to these changes.
VGM Scores
Currently, USA Compression has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, USA Compression has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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USA Compression (USAC) Up 6.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for USA Compression Partners (USAC - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is USA Compression due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
USA Compression Q4 Earnings Match Estimates, Revenues Rise Y/Y
USA Compression Partners reported a fourth-quarter adjusted net profit of 28 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter's adjusted net profit of 18 cents per common unit, driven by a year-over-year increase in average monthly revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $252.5 million, improving 2.7% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by $1 million. This growth was due to a 3.9% increase in contract operations and a 3.4% rise in related-party revenues.
Adjusted EBITDA decreased 0.6% to $154.5 million, which missed our estimate of $156.2 million.
USA Compression’s distributable cash flow increased to $103.2 million from $96.3 million in the prior-year quarter. The company reported a net income worth $27.8 million compared with $25.4 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $139.5 million in the fourth quarter, up from the prior-year quarter’s $130.2 million.
Adjusted gross operating margin of 66.8% marked a decrease from the year-ago period’s 68.4%.
The company’s revenue-generating capacity declined slightly year over year to 3.58 million horsepower. However, the figure exceeded our estimate of 3.57 million horsepower.
Further, the average monthly revenue per horsepower rose to $21.69 from $20.85 in the fourth quarter of 2024. The figure was lower than our estimate of $21.91.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94.5%, which was in line with the prior-year quarter’s level.
DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $103.2 million (providing 1.36x distribution coverage), up 7.2% from the year-ago level.Notably, on Oct. 16, 2025, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution paid on Nov. 7, 2025, to its common unitholders of record as of Oct. 27.
Notably, on Jan. 15, 2026, USA Compression declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the fourth quarter. The distribution was paid on Feb. 6, 2026, to its common unitholders of record as of Jan. 26.
The company reported $175.9 million in costs and expenses, up 2.7% from $171.4 million in the year-ago quarter. It spent $40 million on growth capex. Maintenance capex amounted to $7.8 million.
As of Dec. 31, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
Guidance
USA Compression expects its full-year 2026 adjusted EBITDA to be between $770 million and $800 million. This Zacks Rank #2 (Buy) company also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.6% due to these changes.
VGM Scores
Currently, USA Compression has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, USA Compression has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.