Usa Compression (USAC)
NYSE:USAC
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USA Compression
(NYSE:USAC)
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Rating:69Neutral
Price Target:
$29.00
â–²(4.73% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by strong operating performance and cash generation, tempered by meaningful leverage/negative equity balance-sheet risk. Technicals are supportive with an established uptrend, while valuation is mixed due to a high dividend yield offset by an elevated P/E. Earnings call guidance was positive but included notable execution and capex risks tied to the JW acquisition.
Positive Factors
Cash generation quality
Consistently positive operating cash flow and free cash flow across years indicate durable cash conversion. Cash from operations exceeds net income, supporting higher maintenance/expansion capex, distributions, and debt paydown capacity, which strengthens long-term financial resilience.
Negative Factors
Elevated leverage / negative equity
Negative equity in 2025 and historically high leverage constrain financial flexibility and increase refinancing and covenant sensitivity. Material interest expense and reliance on credit markets mean adverse rate moves or capital-market stress could limit investment capacity and raise long-term funding risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation quality
Consistently positive operating cash flow and free cash flow across years indicate durable cash conversion. Cash from operations exceeds net income, supporting higher maintenance/expansion capex, distributions, and debt paydown capacity, which strengthens long-term financial resilience.
Read all positive factors
USA Compression (USAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend Yield9.11%
Average Volume (3M)224.13K
Price to Earnings (P/E)24.9
Beta (1Y)0.57
Revenue Growth6.66%
EPS Growth43.66%
CountryUS
Employees854
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding144,972,350
10 Day Avg. Volume154,807
30 Day Avg. Volume224,125
Financial Highlights & Ratios
PEG Ratio1.38
Price to Book (P/B)-24.69
Price to Sales (P/S)2.78
P/FCF Ratio10.03
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue5.88
Enterprise Value/Gross Profit9.84
Enterprise Value/Ebitda9.68
Forecast
1Y Price Target
$29.50Price Target Upside6.54% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.46
Revenue Forecast (FY)$1.30B
USA Compression Business Overview & Revenue Model
Company Description
USA Compression Partners, LP, a growth-oriented Delaware limited partnership that provides natural gas compression services in terms of total compression fleet horsepower. The company offers compression services to oil companies and independent pr...
How the Company Makes Money
USA Compression generates revenue primarily through the rental of its compression equipment and services. The company operates a large fleet of compression units, which are leased to customers under long-term contracts, providing a steady stream o...
USA Compression Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial performance in 2025 — record adjusted EBITDA and DCF, high utilization (>94%), all-time high pricing, and improved liquidity — while outlining an accretive strategic acquisition (JW Power) that expands scale, geographic reach, and manufacturing optionality. Key challenges were clearly acknowledged: prolonged equipment lead times (>120 weeks) and possible equipment price inflation, near-term margin dilution from the acquired assets, integration and one-time costs, significant idle horsepower to evaluate, and a material near-term increase in capex to support growth. Management provided explicit guidance and targets (pro forma 2026 adjusted EBITDA $770M–$800M; DCF $480M–$510M; $10M–$20M run-rate synergies by 2027) and reaffirmed steps to improve leverage and liquidity.Positive Updates
Record Financial Performance
Full-year adjusted EBITDA of $613,800,000 and distributable cash flow (DCF) of $385,700,000, both company records; Q4 net income of $27.8M, operating income of $76.6M, and net cash provided by operating activities of $139.5M. DCF finished above recently increased guidance.
Negative Updates
Lengthening Lead Times and Equipment Supply Risk
Lead times for new equipment have increased to over 120 weeks (over two years), primarily driven by engine (Caterpillar) demand for distributed generation. Management expects potential equipment price increases later in the year, creating planning and cost risk for 2027 and beyond.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance
Full-year adjusted EBITDA of $613,800,000 and distributable cash flow (DCF) of $385,700,000, both company records; Q4 net income of $27.8M, operating income of $76.6M, and net cash provided by operating activities of $139.5M. DCF finished above recently increased guidance.
Read all positive updates
Company Guidance
For 2026, including the full-year contribution from the JW acquisition, management guided adjusted EBITDA of $770–800 million and distributable cash flow (DCF) of $480–510 million, with maintenance capital expenditure of $60–70 million and expansion capital of $230–250 million (which includes just over 100,000–105,000 new horsepower — ~2% growth of the active fleet — with ~50% already contracted, plus roughly $40 million of other capital for vehicles, tools and technology); they expect near‑term leverage to improve to ~3.75x debt/EBITDA (from 4.0x at Q4) — about a quarter‑turn improvement over 12 months — and forecast $10–20 million of annual run‑rate synergies by 2027, while noting ~200,000 idle horsepower acquired (≈50,000 readily deployable) and ~10,000 HP already contracted for 2027 manufacturing capacity; other relevant metrics cited on the call included Q4 pricing of $21.69/HP (+1% sequential, +4% YoY), average active horsepower ~3.579 million, total fleet ~3.9 million, average utilization 94.5%, 2025 adjusted EBITDA $613.8 million, 2025 DCF $385.7 million, TRIR 0.39, borrowing costs improved ~50 basis points, ABL capacity ~$500 million plus a $300 million accordion, and normalized distribution coverage of ~1.55x (targeting >1.6x next year).USA Compression Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
32
Negative
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 998.10M | 950.45M | 846.18M | 704.60M | 632.64M |
| Gross Profit | 384.48M | 641.72M | 565.20M | 473.90M | 441.85M |
| EBITDA | 602.95M | 567.49M | 489.60M | 408.98M | 382.17M |
| Net Income | 111.32M | 99.58M | 68.27M | 30.32M | 10.28M |
Balance Sheet | |||||
| Total Assets | 2.62B | 2.75B | 2.74B | 2.67B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 8.56M | 14.00K | 11.00K | 35.00K | 0.00 |
| Total Debt | 2.55B | 2.52B | 2.35B | 2.13B | 2.00B |
| Total Liabilities | 2.73B | 2.72B | 2.55B | 2.30B | 2.19B |
| Stockholders Equity | -112.50M | 27.76M | 183.05M | 361.01M | 578.42M |
Cash Flow | |||||
| Free Cash Flow | 276.99M | 136.48M | 33.36M | 126.37M | 220.21M |
| Operating Cash Flow | 394.26M | 341.33M | 271.88M | 260.59M | 265.43M |
| Investing Cash Flow | -114.96M | -202.01M | -232.65M | -129.94M | -39.19M |
| Financing Cash Flow | -270.75M | -139.32M | -39.26M | -130.61M | -226.24M |
USA Compression Technical Analysis
Positive
27.69
Price Trends
27.23
Positive
25.47
Positive
24.09
Positive
Market Momentum
0.14
Positive
50.54
Neutral
60.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USAC, the sentiment is Positive. The current price of 27.69 is below the 20-day moving average (MA) of 27.94, above the 50-day MA of 27.23, and above the 200-day MA of 24.09, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USAC.
USA Compression Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.28B | 9.70 | 22.73% | 3.08% | 31.94% | 64.74% | |
74 Outperform | $5.18B | 40.03 | 6.27% | 4.86% | 19.43% | 164.71% | |
70 Outperform | $481.10M | 21.17 | 7.43% | 0.63% | 9.53% | 15.48% | |
69 Neutral | $4.01B | 24.95 | -178.66% | 9.11% | 6.66% | 43.66% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $4.41B | 20.22 | 7.25% | 1.78% | -12.05% | -46.45% | |
60 Neutral | $4.18B | 69.65 | 6.45% | 1.07% | 92.33% | 116.22% |
* Energy Sector Average
USAC
USA Compression
27.69
5.94
27.32%
AROC
Archrock
35.87
13.79
62.49%
NGS
Natural Gas Services Group
38.22
19.90
108.59%
SEI
Solaris Energy Infrastructure
61.01
43.77
253.89%
LBRT
Liberty Energy
27.20
16.50
154.28%
KGS
Kodiak Gas Services, Inc.
60.38
29.44
95.14%
USA Compression Corporate Events
Business Operations and Strategy
USA Compression Highlights Investor Outreach at JPM Finance Conference
Positive
Feb 25, 2026
USA Compression Partners, LP said members of its senior management team would attend the J.P. Morgan Global Leveraged Finance Conference on March 2 and 3, where they plan to hold a series of meetings with investors. Presentation materials used in ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
USA Compression Completes Transformative J-W Power Acquisition
Positive
Jan 14, 2026
On January 12, 2026, USA Compression Partners, LP closed its previously announced acquisition of J-W Power Company in a transaction valued at approximately $860 million, funded with about $430 million in cash drawn from its revolving credit facili...
Business Operations and Strategy
USA Compression to Attend December Energy Conferences
Neutral
Dec 4, 2025
USA Compression Partners, LP announced that its senior management will participate in the Mizuho Power, Energy Infrastructure Conference on December 8 and the Wells Fargo 24th Annual Energy Power Symposium on December 9. During these events, the...
Business Operations and StrategyM&A Transactions
USA Compression Announces Strategic Acquisition of J-W Power
Positive
Dec 1, 2025
On November 29, 2025, USA Compression Partners, LP announced a strategic acquisition of J-W Power Company for approximately $860 million, expected to close in the first quarter of 2026. This acquisition is set to expand USA Compression’s fle...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.