USA Compression 2025 Q2 Earnings Revenue Up 6.3%, Net Income Down 8.6%

USA Compression reported its fiscal 2025 Q2 earnings on August 6, 2025. The results showed a 6.3% year-over-year revenue increase, but net income declined by 8.6%. The company maintained its quarterly cash distribution at $0.525 per unit.

Revenue
USA Compression's total revenue for Q2 2025 reached $250.13 million, a 6.3% increase compared to $235.31 million in Q2 2024. The growth was primarily driven by the contract operations segment, which contributed $227.28 million to the total. The parts and service segment added $6.51 million, while the related party segment brought in $16.34 million. This performance highlights the company's strong operational footprint across oil and gas basins.

Earnings/Net Income
Despite the revenue increase, the company’s net income fell to $28.56 million for Q2 2025, a 8.6% decrease from $31.24 million in Q2 2024. Earnings per share also dipped by 4.3%, reaching $0.22 per share compared to $0.23 in the same period last year.

Price Action
In the days following the earnings report, USAC shares demonstrated mixed performance. The stock edged up 1.49% on the latest trading day, but declined 0.96% during the most recent full trading week, and 2.69% month-to-date.

Post-Earnings Price Action Review
The historical strategy of buying USAC shares after a revenue increase and holding for 30 days has shown strong returns. Over the past three years, it achieved a 74.62% return, outperforming the benchmark by 25.22%. The strategy also demonstrated solid risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.71. This suggests that positive earnings momentum can be effectively capitalized on in the market.

CEO Commentary
Clint Green, President and CEO of USA Compression, emphasized the strong demand for the company's services in both oil and gas producing basins. He noted a 5% increase in average revenue per revenue-generating horsepower to $21.31 and a maintained cash distribution of $0.525 per common unit. Green also highlighted the Partnership’s Distributable Cash Flow Coverage of 1.40x, indicating financial stability.

Guidance
USA Compression confirmed its full-year 2025 outlook, maintaining its cash distribution of $0.525 per common unit for the second quarter, which is consistent with the previous year. However, the company did not provide specific guidance for full-year Adjusted EBITDA or revenue.

Additional News
USA Compression announced a $0.525 per common unit cash distribution for Q2 2025, in line with the prior year. The distribution is set for August 8, 2025, to unitholders of record as of July 28. The company reported record average revenue per revenue-generating horsepower of $21.31 and a fleet horsepower of 3.858 million as of June 30, 2025. Additionally, the Partnership converted 100,000 Series A Preferred Units into 4,997,126 common units in June 2025. The Partnership remained compliant with all covenants under its $1.6 billion revolving credit facility and had $770.6 million in outstanding borrowings as of June 30. The company also announced plans to host a conference call on August 6, 2025, to discuss Q2 2025 results in detail.