The J-W acquisition is driving strong revenue and cash flow growth, with DCF coverage at 1.72x providing ample cushion for the $2.10/unit annualized distribution. The confirmed 2026 guidance implies ~$1.9B in full-year revenue at the midpoint, suggesting continued momentum. Monitor the S-3 selling unitholder overhang (18.2M units) but the fundamental trajectory is clearly positive.
Price Chart
Executive Summary
USA Compression Partners reported Q1 2026 results with total revenue of $331.3M (up 35.1% YoY) and net income of $38.3M (up 86.9% YoY), driven by the J-W Power Acquisition which added over 0.8M active horsepower. The company confirmed its full-year 2026 Adjusted EBITDA guidance of $770M-$800M and Distributable Cash Flow guidance of $480M-$510M. The S-3 shelf filed 25 days ago for a selling unitholder to resell common units received in the J-W acquisition adds a modest overhang but does not change the fundamentally positive earnings trajectory.
Key Financial Metrics
Key Facts
- Total revenue of $331.3M for Q1 2026, up 35.1% from $245.2M in Q1 2025
- Net income of $38.3M, up 86.9% from $20.5M in Q1 2025
- Adjusted EBITDA of $188.6M, up 26.1% from $149.5M in Q1 2025
- Distributable Cash Flow of $130.8M, up 47.5% from $88.7M in Q1 2025
- Distributable Cash Flow Coverage Ratio improved to 1.72x from 1.44x in Q1 2025
- Confirmed full-year 2026 Adjusted EBITDA guidance of $770M-$800M and DCF guidance of $480M-$510M
- J-W Power Acquisition closed Jan 12, 2026, adding ~0.8M active horsepower; combined fleet ~4.4M active horsepower
- Average revenue per revenue-generating horsepower per month rose to $22.73 from $21.06 YoY
- Average revenue-generating horsepower grew to 4.44M from 3.56M YoY
- Quarterly distribution maintained at $0.525 per common unit ($2.10 annualized)
Financial Impact
Revenue up 35.1% YoY to $331.3M; net income up 86.9% to $38.3M; Adjusted EBITDA up 26.1% to $188.6M; DCF up 47.5% to $130.8M; DCF coverage ratio improved to 1.72x
Risk Factors
- Horsepower utilization declined to 91.9% from 94.4% YoY, potentially indicating softening demand
- S-3 shelf registration allows Westerman Ltd. to resell up to 18.2M common units, creating potential overhang
- Long-term debt increased to $2.98B from $2.52B at year-end 2025 due to J-W acquisition financing
- Integration risks from the J-W Power Acquisition and shared services model with Energy Transfer
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001522727-26-000042 |
| Document: usac-20260505.htm | 0001522727-26-000042 |
| Document: 0001522727-26-000042-index-headers.html | 0001522727-26-000042 |
| Document: 0001522727-26-000042-index.html | 0001522727-26-000042 |
| Document: 0001522727-26-000042.txt | 0001522727-26-000042 |
| 8-K Data (Synthetic) | 0001522727-26-000042 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 21, 2026 10w ago | EFFECT | $26.97 $26.67 | ▼ −1.11% | ▼ −3.67% | $25.42 (−5.75%) |
Jul 6, 2026 12w ago | 8-K | $25.51 $26.16 | ▲ +2.55% | ▲ +3.11% | $25.42 (−0.35%) |
Jun 22, 2026 14w ago | 8-K | $26.26 $26.76 | ▲ +1.90% | ▲ +0.74% | $25.42 (−3.20%) |
May 27, 2026 18w ago | 8-K | $28.72 $26.34 | ▼ −8.29% | ▼ −5.14% | $25.42 (−11.49%) |
May 5, 2026 21w ago | 8-K | $27.35 $28.48 | ▲ +4.13% | ▼ −0.82% | $25.42 (−7.06%) |
May 1, 2026 22w ago | 3 | $27.75 $27.85 | ▲ +0.36% | ▼ −4.92% | $25.42 (−8.40%) |
Apr 27, 2026 22w ago | EFFECT | $26.78 $29.09 | ▲ +8.63% | ▲ +3.67% | $25.42 (−5.08%) |
Apr 10, 2026 25w ago | S-3 | $27.00 $27.43 | ▲ +1.57% | ▼ −6.15% | $25.42 (−5.87%) |
Feb 25, 2026 31w ago | 8-K | $27.07 $27.92 | ▲ +3.12% | ▲ +9.52% | $25.42 (−6.11%) |
US Market Status
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