Shares of USA Compression Partners, LP (NYSE: USAC) slipped in early trading on Tuesday after the company reported fourth-quarter 2025 results and outlined its full-year 2026 outlook. USAC units were down modestly in mid-morning trade.
USAC last traded near recent levels, reflecting a roughly 52-week range of about $21.59 to $28.79. Over the past year the stock has shown modest net change within that band.
Fourth-Quarter 2025 Results
USA Compression reported record total revenues of $252.5 million for the quarter ended Dec. 31, 2025, up from $245.9 million in the year-ago period. Net income rose to $27.8 million from $25.4 million a year earlier. Net cash provided by operating activities increased to $139.5 million versus $130.2 million in Q4 2024.
Adjusted EBITDA for the quarter was $154.5 million, slightly below the prior year’s $155.5 million. Distributable cash flow rose to $103.2 million from $96.3 million in Q4 2024, while the distributable cash flow coverage ratio narrowed to 1.36x from 1.56x. The quarterly cash distribution was maintained at $0.525 per common unit, consistent with the prior year period.
Operational metrics showed average revenue-generating horsepower of approximately 3.58 million, slightly above the prior year, and horsepower utilization remained near 94.5%, broadly unchanged year-over-year. Average revenue per horsepower per month increased to $21.69 from $20.85.
Full-Year 2025 and 2026 Outlook
For the full year ended Dec. 31, 2025, USA Compression reported total revenues of $998.1 million, up from $950.4 million in 2024, with net income of $111.3 million versus $99.6 million a year earlier. Adjusted EBITDA rose to $613.8 million compared with $584.3 million in 2024, and distributable cash flow increased to $385.7 million from $355.3 million in the prior year.
Management provided a full-year 2026 outlook with adjusted EBITDA of $770 million to $800 million and distributable cash flow of $480 million to $510 million. Expansion and maintenance capital expenditures for 2026 were also outlined.
Sector and Macro Context
USAC operates in the energy services sector, specifically natural gas compression. The shares trade with a relatively high dividend yield and are sensitive to energy activity and broader risk-asset flows. More broadly, software and energy services segments have faced pressure this year from tightening credit conditions and macroeconomic concerns that have weighed on capital-intensive sectors.