USA Compression Partners

USAC Q1 2025 Earnings

Reported May 6, 2025 at 6:55 AM ET · SEC Source

Q1 25 EPS

$0.14

MISS 40.98%

Est. $0.24

Q1 25 Revenue

$245.2M

BEAT +0.16%

Est. $244.8M

vs S&P Since Q1 25

-17.4%

TRAILING MARKET

USAC +13.8% vs S&P +31.2%

Market Reaction

Did USAC Beat Earnings? Q1 2025 Results

USA Compression Partners delivered a mixed first quarter for 2025, with revenue clearing expectations while earnings fell well short. The partnership reported revenue of $245.23 million, a 7.0% increase from the year-ago period and just ahead of the … Read more USA Compression Partners delivered a mixed first quarter for 2025, with revenue clearing expectations while earnings fell well short. The partnership reported revenue of $245.23 million, a 7.0% increase from the year-ago period and just ahead of the $244.84 million consensus estimate, but earnings per unit of $0.14 missed the $0.24 analyst estimate by 40.98%, weighed down primarily by a surge in depreciation and amortization to $70.39 million from $63.25 million a year earlier, alongside a $3.65 million asset impairment charge with no prior-year equivalent. Adjusted EBITDA rose to $149.51 million and Distributable Cash Flow reached $88.69 million, supporting a healthy 1.44x coverage ratio, a reassuring signal for income-focused investors drawn to high-yield partnership units. The company held its quarterly distribution at $0.53 per unit and reaffirmed full-year 2025 guidance, projecting Adjusted EBITDA of $590 million to $610 million and Distributable Cash Flow of $350 million to $370 million, supported by roughly 39,800 horsepower on order expected to enter service in the second half of 2025.

Key Takeaways

  • Record average revenue per revenue-generating horsepower per month of $21.06, up from $19.96 in Q1 2024
  • Average revenue-generating horsepower increased to 3.56 million from 3.47 million year-over-year
  • Strong contract compression service market conditions
  • Adjusted gross margin percentage of 66.7% for Q1 2025
24/7 Wall St

USAC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

USAC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“USA Compression's first-quarter results represented another quarter of solid financial and operational performance. The contract compression service market remains strong as evidenced by another record average revenue per-horsepower of $21.06, which drove year-over-year increases in revenues, Adjusted EBITDA, and Distributable Cash Flow.”

— Clint Green, Q1 2025 Earnings Press Release