GET DAILY SIGNALSUSA Compression Partners (USAC) Delivers Record Revenue in Q3 2026
Key Takeaways
- Total revenue climbed roughly 43% year over year to $357.2 million, surpassing consensus estimates and reaching a record level.
- GAAP (generally accepted accounting principles) earnings per common unit were $0.33, up from $0.26 a year earlier and beating estimates by about $0.03.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 23.1% to $197.3 million, while distributable cash flow increased 22.4% to $127.1 million.
- Distribution coverage improved to 1.67x, up from 1.61x, supporting the quarterly distribution of $0.525 per common unit.
- Management narrowed full-year Adjusted EBITDA guidance to $770 million–$780 million and tightened distributable cash flow guidance to $495 million–$505 million.
- Average fleet utilization rose to 92.1%, and total fleet horsepower reached approximately 5 million as the J-W Power integration advanced.
- For more detail on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, be sure to explore these dedicated pages.
- To discover fresh market ideas, explore Trending AI Robots and see how automated signals can complement your research.
Earnings Context and Why It Matters
USA Compression Partners is one of the nation's largest independent providers of natural gas compression services, operating as a master limited partnership (MLP) that pays quarterly distributions to unitholders. Its results offer a real-time read on midstream infrastructure demand, natural gas volumes, and producer capital spending. The third quarter of 2026 follows the January 2026 acquisition of J-W Power Company, a transformative deal that roughly doubled the fleet's scale. Investors are watching how quickly integration synergies materialize, whether utilization and pricing hold up amid higher fuel and lubricant costs, and whether distributable cash flow remains sufficient to sustain and grow distributions. This report provides a key checkpoint on all three fronts.
Reported Results
USA Compression Partners reported third-quarter 2026 total revenue of $357.2 million, up approximately 43% from $250.3 million in the prior-year period and above the consensus estimate of about $348.1 million. Contract operations revenue of approximately $308 million was driven by acquired horsepower and higher average revenue per revenue-generating horsepower. GAAP earnings were $0.33 per common unit, up from $0.26 a year earlier and ahead of estimates.
Net income was $47.3 million, with operating income of $102.2 million and net cash provided by operating activities of $117.7 million. Adjusted EBITDA rose 23.1% to $197.3 million, while distributable cash flow increased 22.4% to $127.1 million, lifting distribution coverage to 1.67x. Average revenue per revenue-generating horsepower was $23.14 per month, up about 1% sequentially and 8% year over year, while average utilization improved to 92.1%. Adjusted gross margin was 62.2%, down modestly from the prior quarter on commodity-linked cost pressures and a higher mix of parts and service revenue. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
The headline beat on revenue and earnings was tempered by a more cautious guidance revision, creating a mixed picture for investors. While record revenue, higher utilization, and improved distribution coverage underscored the resilience of the contract compression business, management attributed its narrowed Adjusted EBITDA and distributable cash flow ranges to higher commodity-linked operating costs, softer retail parts and service activity, and strategic shifts in manufacturing cash sales. Sentiment entering the report was already cautious after prior periods of elevated costs. The market's response will likely hinge on whether investors weigh the top-line momentum and strong distribution coverage more heavily than the reduced full-year profit outlook.
Forward Outlook and Key Factors to Monitor
Management signaled that near-term growth should remain consistent but measured, with meaningful natural gas demand acceleration expected to build toward late 2027 and into 2028. The company pointed to an aggregate new unit order book of roughly $500 million through 2029, and noted that more than 60% of new horsepower scheduled for 2027 delivery is already contracted, including about 90% of first-half deliveries.
Investors should monitor several factors in the quarters ahead. Commodity-linked costs, particularly fuel and lubricant oil, remain a key swing factor for margins, though management expects contract escalators to begin passing some of those costs through over time. Utilization, pricing per horsepower, and the pace of J-W Power synergy realization will also be important signals of underlying demand. On the balance sheet, leverage of 3.78x remains near the stated 3.75x target, and the September issuance of $600 million of 6.750% senior notes due 2035 provided additional liquidity while management stays patient on its March 2029 maturities. Distribution sustainability and coverage will remain central to the investment case, given the partnership's emphasis on a durable payout alongside disciplined capital allocation. From what I see, these elements point to steady but disciplined execution ahead.
Exploring Tickeron’s AI Screener for Deeper Insights
In my own analysis process, I frequently turn to Tickeron’s AI Screener to filter opportunities across sectors and compare names like USAC against peers using technical patterns, fundamentals, and AI signals. It helps surface ideas efficiently without replacing core fundamental work, and I find it particularly useful when tracking midstream names amid shifting utilization and cost trends. This tool has become a regular part of how I cross-check sector momentum and identify related names worth watching.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for USAC turns positive, indicating new upward trend
USAC saw its Momentum Indicator move above the 0 level on October 28, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 95 similar instances where the indicator turned positive. In 63 of the 95 cases, the stock moved higher in the following days. The odds of a move higher are at 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where USAC's RSI Indicator exited the oversold zone, 13 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for USAC just turned positive on October 20, 2026. Looking at past instances where USAC's MACD turned positive, the stock continued to rise in 30 of 49 cases over the following month. The odds of a continued upward trend are 61%.
Following a +0.72% 3-day Advance, the price is estimated to grow further. Considering data from situations where USAC advanced for three days, in 203 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 70 cases where USAC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 50%.
The 50-day moving average for USAC moved below the 200-day moving average on October 15, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where USAC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
The Aroon Indicator for USAC entered a downward trend on October 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 12 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. USAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 72 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: USAC's P/B Ratio (12.522) is very high in comparison to the industry average of (1.645). P/E Ratio (23.178) is within average values for comparable stocks, (-30.155). Projected Growth (PEG Ratio) (1.080) is also within normal values, averaging (1.687). Dividend Yield (0.085) settles around the average of (0.038) among similar stocks. USAC's P/S Ratio (2.979) is slightly higher than the industry average of (1.663).
The Tickeron PE Growth Rating for this company is 78 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of compression services
Industry OilfieldServicesEquipment