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Why Is USA Compression (USAC) Up 3.3% Since Last Earnings Report?
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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 3.3% in that time frame, outperforming the S&P 500.
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 the latest earnings report in order to get a better handle on the important drivers.
USA Compression Q1 Earnings Meet Estimates, Revenues Beat, Both Up Y/Y
USA Compression Partners reported first-quarter 2026 adjusted net profit of 27 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter’s net profit of 18 cents per common unit, driven by a year-over-year increase in revenue-generating capacity and the contribution from the J-W Power acquisition.
The largest independent provider of natural gas compression services generated revenues of $331.3 million, improving 35.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 13.3%. This growth was aided by higher contract operations revenues and the inclusion of J-W Power’s results following the Jan. 12, 2026, acquisition.
Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 26.1% to $188.6 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $130.8 million from $88.7 million in the year-ago period. The company reported net income of $38.3 million compared with $20.5 million in the year-ago quarter.
USAC reported net operating cash flow of $86.1 million in the first quarter, up from the prior-year quarter’s $54.7 million.
USAC’s Operational Performance
The company’s revenue-generating capacity increased year over year to 4.44 million horsepower from 3.56 million horsepower, primarily reflecting the J-W Power acquisition. Moreover, the figure exceeded our estimate of 3.58 million horsepower.
Adjusted gross operating margin of 64.4% marked a decrease from the year-ago period’s 66.7%. Further, the average monthly revenue per horsepower rose to $22.73 from $21.06 in the first quarter of 2025. However, the figure missed our estimate of $25.01 million average monthly revenue per horsepower.
USA Compression’s average quarterly horsepower utilization rate was 91.9%, down from the year-ago quarter’s 94.4%.
DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $130.8 million, providing 1.72x distribution coverage, up from the year-ago level of 1.44x.
The company reported $239.9 million in costs and expenses, up from $175.8 million in the year-ago quarter. It spent $26.4 million on growth capex. Maintenance capex amounted to $9.2 million.
As of March 31, 2026, USA Compression had net long-term debt of $3 billion. The partnership had $497.8 million of remaining unused availability under its revolving credit facility.
Guidance
USA Compression reaffirmed its full-year 2026 outlook. This company expects adjusted EBITDA to be between $770 million and $800 million. It 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?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, USA Compression has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
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 this revision indicates a downward shift. It's no surprise USA Compression has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
USA Compression belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, Nov Inc. (NOV - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Nov Inc. reported revenues of $2.05 billion in the last reported quarter, representing a year-over-year change of -2.4%. EPS of $0.15 for the same period compares with $0.19 a year ago.
For the current quarter, Nov Inc. is expected to post earnings of $0.17 per share, indicating a change of -41.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -14% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nov Inc.. Also, the stock has a VGM Score of B.
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Why Is USA Compression (USAC) Up 3.3% Since Last Earnings Report?
A month has gone by since the last earnings report for USA Compression Partners (USAC - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
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 the latest earnings report in order to get a better handle on the important drivers.
USA Compression Q1 Earnings Meet Estimates, Revenues Beat, Both Up Y/Y
USA Compression Partners reported first-quarter 2026 adjusted net profit of 27 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter’s net profit of 18 cents per common unit, driven by a year-over-year increase in revenue-generating capacity and the contribution from the J-W Power acquisition.
The largest independent provider of natural gas compression services generated revenues of $331.3 million, improving 35.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 13.3%. This growth was aided by higher contract operations revenues and the inclusion of J-W Power’s results following the Jan. 12, 2026, acquisition.
Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 26.1% to $188.6 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $130.8 million from $88.7 million in the year-ago period. The company reported net income of $38.3 million compared with $20.5 million in the year-ago quarter.
USAC reported net operating cash flow of $86.1 million in the first quarter, up from the prior-year quarter’s $54.7 million.
USAC’s Operational Performance
The company’s revenue-generating capacity increased year over year to 4.44 million horsepower from 3.56 million horsepower, primarily reflecting the J-W Power acquisition. Moreover, the figure exceeded our estimate of 3.58 million horsepower.
Adjusted gross operating margin of 64.4% marked a decrease from the year-ago period’s 66.7%. Further, the average monthly revenue per horsepower rose to $22.73 from $21.06 in the first quarter of 2025. However, the figure missed our estimate of $25.01 million average monthly revenue per horsepower.
USA Compression’s average quarterly horsepower utilization rate was 91.9%, down from the year-ago quarter’s 94.4%.
DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $130.8 million, providing 1.72x distribution coverage, up from the year-ago level of 1.44x.
The company reported $239.9 million in costs and expenses, up from $175.8 million in the year-ago quarter. It spent $26.4 million on growth capex. Maintenance capex amounted to $9.2 million.
As of March 31, 2026, USA Compression had net long-term debt of $3 billion. The partnership had $497.8 million of remaining unused availability under its revolving credit facility.
Guidance
USA Compression reaffirmed its full-year 2026 outlook. This company expects adjusted EBITDA to be between $770 million and $800 million. It 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?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, USA Compression has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
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 this revision indicates a downward shift. It's no surprise USA Compression has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
USA Compression belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, Nov Inc. (NOV - Free Report) , has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Nov Inc. reported revenues of $2.05 billion in the last reported quarter, representing a year-over-year change of -2.4%. EPS of $0.15 for the same period compares with $0.19 a year ago.
For the current quarter, Nov Inc. is expected to post earnings of $0.17 per share, indicating a change of -41.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -14% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nov Inc.. Also, the stock has a VGM Score of B.