| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 25.8x | 17.8x | Around median | |
Growth | 90 | 19.9% | 7.1% | Top tier | |
Quality | 73 | 11.9% | 4.5% | Top tier | |
Safety | 34 | 4.4x | 2.6x | Bottom tier | |
Capital Return | 16 | — | 2.12% | Bottom tier | |
Momentum | 65 | 7.3% | 2.9% | Around median | |
Sentiment | 88 | 3 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
USA Compression Partners, LP operates as a provider of natural gas compression services under operating contracts across the United States, generating most of its revenue from leasing and operating its compressor fleet for customers. Following the addition of J-W, the revenue model expanded to include compression equipment manufacturing, parts, and aftermarket services; J-W's facilities also gave the company in-house capacity to assemble between 100,000 and 125,000 horsepower annually, with other facilities used to add 20,000 to 60,000 horsepower annually when needed.
In fiscal Q2 2026, revenue reached $342.1 million, up 37% from $250.1 million in the corresponding period, while net income was $45.7 million and operating income was $100.4 million. Contract operations accounted for $304.9 million, or approximately 89% of total revenue, after growing 34%, while parts and services added $22.1 million due to manufacturing and aftermarket activities associated with J-W. Adjusted gross margin was 63.5%, while cash flow from operating activities reached $145.7 million.
The company ended fiscal Q2 2026 with a fleet of approximately 4.95 million horsepower, average operating horsepower of approximately 4.45 million, and a utilization rate of 92%. Average monthly revenue per revenue-generating horsepower rose to $22.84, up 7% year over year and 0.5% from the previous quarter. Expansion capital expenditures were $46.8 million, compared with $16.9 million in maintenance capital expenditures.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average target of $29.5 and a narrow range of $29 to $30. The average target is approximately 3% below the 52-week range high of $30.55 and approximately 35% above its low of $21.85, reflecting a valuation that balances revenue growth and extended contracting against margin pressure, lubricant costs, and capital expenditures.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The company primarily relies on natural gas compression operations under operating contracts, and this business generated $304.9 million in fiscal Q2 2026. This represented approximately 89% of total revenue of $342.1 million. The J-W platform added manufacturing, parts, and aftermarket service activities, which generated $22.1 million during the same quarter.
Revenue reached $342.1 million, up 37% from $250.1 million in the corresponding period, while net income reached $45.7 million. Operating income was $100.4 million, and cash flow from operating activities was $145.7 million. Adjusted gross margin was 63.5%, with a fleet utilization rate of 92%.
J-W added approximately 850,000 operating horsepower and expanded the company's customer base and geographic reach. Its facilities can manufacture between 100,000 and 125,000 horsepower annually, with the ability to add 20,000 to 60,000 through other facilities. The in-house capacity allows the company to order the engine first and defer purchasing the compressor and remaining components until approximately 30 to 40 weeks before manufacturing. The company is using this flexibility to support its plan to add more than 500,000 horsepower by 2030.
By the August 4, 2026 call, customers had contracted for approximately 50% of the new units scheduled for delivery in 2027. They had also contracted for a mid-teens percentage of the units planned for 2028. Management said request-for-quotation activity remained strong despite increased unit downtime in fiscal Q2 2026. These commitments support a plan for average annual growth of approximately 2.5% in new horsepower through 2029.
Management maintained its adjusted earnings before interest, taxes, depreciation, and amortization range of $770 million to $800 million and its distributable cash flow range of $480 million to $510 million. It set maintenance capital expenditures at between $60 million and $70 million and expansion capital expenditures at between $230 million and $250 million. Leverage was 3.72 times at the end of fiscal Q2 2026, compared with a near-term target of 3.75 times. Management prioritizes funding annual horsepower growth of approximately 2.5% while maintaining distributions and a disciplined leverage profile.
The second half of fiscal 2026 carries additional lubricant costs of approximately $1 million per month, without a direct pass-through mechanism in contracts. The manufacturing and aftermarket service mix associated with J-W has also reduced margins compared with the historical average for contract compression services. Fiscal Q2 2026 saw an increase in unit downtime, while the price increases available for idle units weakened. Engine lead times of up to 200 weeks add planning risk to an expansion spending program of between $230 million and $250 million.
