USA Compression Partners (USAC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached a record $331.3 million, up 35% year-over-year, driven by the J-W Power acquisition and strong operational execution.

• Net income increased to $38.3 million, nearly doubling year-over-year, with adjusted EBITDA at $188.6 million, up 26% from Q1 2025.

• Completed the J-W Power acquisition, adding over 0.8 million active horsepower and expanding fleet and manufacturing capabilities.

• Distribution coverage ratio improved to 1.72x, supporting sustainable distributions.

• Integration of J-W Power and ERP system completed, supporting streamlined operations and reporting.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $188.6 million, up from $149.5 million in Q1 2025.

• Distributable cash flow for Q1 2026 was $130.8 million, with a coverage ratio of 1.72x.

• Leverage ratio improved to 3.74x in Q1 2026.

• Average revenue per horsepower hit an all-time high of $22.73, up 8% year-over-year.

• Total fleet horsepower at quarter-end was 4.931 million, up by 1.037 million from the prior quarter due to the J-W acquisition.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance is $770–800 million, with distributable cash flow guidance of $480–510 million.

• Maintenance capital guidance is $60–70 million, and expansion capital $230–250 million.

• Nearly fully contracted for 2026, with advanced orders placed to ensure manufacturing utilization for several years.

• Management expects operating cash flow and credit facility to cover debt service, capex, and distributions for the next 12 months.

• Targeting a 3.75x debt to EBITDA ratio, achieved in Q1 but expected to rise in Q2 before trending lower by year-end.