USA Compression Partners (USAC) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenues of $245.2 million, up 7% year-over-year, driven by strong pricing, high utilization, and increased demand for compression services.

• Adjusted EBITDA rose 7.3% to $149.5 million, with distributable cash flow at $88.7 million and a coverage ratio of 1.44x.

• Net income declined 13% year-over-year to $20.5 million, primarily due to higher depreciation, amortization, and a $3.6 million asset impairment.

• Completed transition of IT and HR shared services, promoted Chris Wauson to COO, and Moody's upgraded debt ratings.

• Declared a cash distribution of $0.525 per common unit and $24.375 per preferred unit, unchanged from prior periods.

Financial highlights

• Revenue per average horsepower reached a record $21.06, up 6% year-over-year, with average utilization at 94.4%.

• Operating income was $69.4 million; adjusted gross margin was nearly 67%.

• Net cash from operating activities was $54.7 million; cash interest expense, net, was $45.1 million.

• Maintenance capital expenditures were $10.9 million; expansion capex was $22.2 million in Q1 2025.

• DCF coverage ratio was 1.44x for Q1 2025.

Outlook and guidance

• Maintains 2025 Adjusted EBITDA guidance of $590–$610 million and DCF of $350–$370 million.

• Expansion capital expected at $120–$140 million, maintenance capital at $38–$42 million for 2025.

• Orders placed for 40,000 horsepower to be delivered in the second half of 2025.

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

• Ongoing RFPs and strong interest for 2026, with market consolidation supporting stability.