USA Compression Partners LP
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
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 $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 <a href="https://247wallst.com/investing/2025/04/20/investors-are-buying-high-yield-stocks-hand-over-fist-5-favorites-that-yield-7-and-more/">high-yield partnership units</a>. 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.
- 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
“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.”
USA Compression Partners CEO, on the earnings call
Forward Guidance & Outlook
USA Compression confirmed its full-year 2025 guidance: Adjusted EBITDA of $590 million to $610 million, Distributable Cash Flow of $350 million to $370 million, expansion capital expenditures of $120 million to $140 million (including approximately $21 million of other business support capital), and maintenance capital expenditures of $38 million to $42 million. The Partnership has approximately 39,800 large horsepower on order for delivery within the next 12 months, with units expected to begin service in the back half of 2025.
USAC YoY Financials
USAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.