A month has gone by since the last earnings report for USA Compression Partners (USAC). Shares have added about 1.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is USA Compression due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for USA Compression Partners, LP before we dive into how investors and analysts have reacted as of late.
USA Compression Q3 Earnings Beat Estimates, Revenues Rise Y/Y
USA Compression Partners reported a third-quarter adjusted net profit of 26 cents per common unit, which beat the Zacks Consensus Estimate of 22 cents. The metric improved from the year-ago quarter's adjusted net profit of 13 cents per common unit on the back of increased average revenue per horsepower.
The largest independent provider of natural gas compression services generated revenues of $250.3 million, improving 4.3% from the year-ago quarter’s level and beating the Zacks Consensus Estimate of $247 million. This growth was due to a 3.4% increase in contract operations and a 23.4% rise in related-party revenues.
Adjusted EBITDA increased 10% to $160.3 million, which surpassed our estimate of $146.8 million.
USAC’s distributable cash flow increased to $103.8 million from $86.6 million in the prior-year quarter. The company reported a net income worth $34.5 million compared with $19.3 million in the year-ago quarter.
The oil and gas equipment and services company reported net operating cash flow of $75.9 million in the third quarter, up from the prior-year quarter’s $48.5 million.
Adjusted gross operating margin of 69.3% marked an increase from the year-ago period’s 65.9%.
The company’s revenue-generating capacity declined slightly year over year to 3.6 million horsepower. However, the figure was in line with our estimate.
Further, the average monthly revenue per horsepower rose to $21.46 from $20.60 in the third quarter of 2024. The figure was above our estimate of $21.42.
Meanwhile, USA Compression’s average quarterly horsepower utilization rate was 94%, slightly down from 94.6% a year ago.
DCF, Cost, Capex & Balance Sheet
USAC’s distributable cash flow available to limited partners totaled $103.8 million (providing 1.61X distribution coverage), up 15.5% from the year-ago level.
Notably, on Oct. 16, 2025, USAC declared cash distribution of 52.5 cents per unit ($2.10 on an annualized basis) in the third quarter. The distribution paid on Nov. 7, 2025, to its common unitholders of record as of Oct. 27.
The company reported $166.3 million in costs and expenses, down 4.1% from the year-ago quarter’s $173.5 million. It spent $37.3 million on growth capex. Maintenance capex amounted to $9 million.
As of Sept. 30, 2025, Dallas, TX-based this oil and gas equipment and services company had a net long-term debt of $2.5 billion.
Guidance
USA Compression expects its full-year 2025 adjusted EBITDA to be between $610 million and $620 million. This company also expects distributable cash flow to range from $370 million to $380 million, expansion capital expenditures to be between $115 million and $125 million, and maintenance capital expenditures to total in the band of $38 million to $42 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 12.5% due to these changes.
VGM Scores
At this time, USA Compression has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise USA Compression has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
USA Compression belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry. Another stock from the same industry, Nov Inc. (NOV), has gained 6.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Nov Inc. reported revenues of $2.18 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $0.11 for the same period compares with $0.33 a year ago.
For the current quarter, Nov Inc. is expected to post earnings of $0.25 per share, indicating a change of -39% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nov Inc.. Also, the stock has a VGM Score of B.
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USA Compression Partners, LP (USAC): Free Stock Analysis Report NOV Inc. (NOV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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