USA Compression Partners, LP (USAC) reported fourth‑quarter 2025 revenue of $252.5 million, up 2.7% year‑over‑year from $245.9 million in Q4 2024 and beating consensus estimates of $251.58 million by $0.92 million. The revenue lift was driven by robust demand for core compression services, while a modest decline in legacy segments offset the growth.
Adjusted EBITDA for the quarter was $154.5 million, a decline of $1.0 million from $155.5 million in Q4 2024. The slight margin compression reflects higher operating costs and a shift toward lower‑margin segments; adjusted gross margin fell to 66.8% from 69.3% in Q3 2025.
GAAP earnings per share were $0.22, missing the consensus estimate of $0.28 by $0.06, whereas adjusted EPS of $0.28 matched expectations. The GAAP miss was largely due to higher depreciation and amortization charges and a one‑time restructuring expense related to the integration of J‑W Power.
Distributable cash flow reached a record $103.2 million, up 7% year‑over‑year from $96.3 million. The increase was driven by a 94.7% utilization rate across the 3.9 million‑horsepower fleet and an average revenue per horsepower of $21.69, up from $21.46 in the prior quarter.
The J‑W Power acquisition, closed in January 2026, added approximately 0.8 million active horsepower and contributed $0.28 million to adjusted EBITDA, reinforcing USAC’s scale and market presence.
USAC’s 2026 guidance remains unchanged: adjusted EBITDA of $770 million to $800 million and distributable cash flow of $480 million to $510 million, reflecting confidence in continued demand and the benefits of the J‑W integration.
President and CEO Clint Green said, "I want to congratulate our entire team on an exceptional year of value creation in 2025. Our operations and commercial teams continued to deliver for customers day in and day out, while our back‑office teams successfully navigated the transition to a shared‑services model." He added that the J‑W Power acquisition would broaden customer relationships and enhance the company’s ability to service growing demand.
Market reaction was mixed; some analysts noted the GAAP EPS miss tempered enthusiasm, while the strong revenue beat and forward guidance were viewed positively. Pre‑market trading saw a slight dip of 1.99% and a rise of 1.50% in other reports.
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