USA Compression Partners, LP Q1 FY2026 earnings call

• Safety: In 2025, combined TRIR finished at 0.39, a 50% reduction from 2024 and well below BLS industry average for 12 consecutive years.
• JW Power integration: Kicked off integration when horsepower lead times extended, customer discussions commenced, combined operations organization integrated and new reporting structure established by early March.
• ERP system integration: Integration of legacy USA compression data into new ERP system completed on February 1st.
• Order situation: Contracted over 90% of 2026 horsepower, more than double 2025 new horsepower deployed; small horsepower class utilization up nearly 10% year over year.
• Engine lead times: Certain new engine lead times tripled from 50 weeks to approx 150 weeks; able to acquire engines with optionality for internal or resale use; engine costs represent 25 - 40% of total SCID cost with fraction as deposit.
• Manufacturing capabilities: Diversity of manufactured compression products supports competitive pricing and adaptation to market; 2028 orders nearly entirely weighted to large 3600 series engines with optionality for sale.

For Q1 2026, average revenue per horsepower was $22.73, a 5% sequential quarter increase and 8% year - over - year increase. Average active horsepower ended at 4.438 million. Adjusted gross margins came in at 64.4%. Net income was $38.3 million, operating income was $91.4 million, net cash provided by operating activities was $86.1 million, and cash interest expense net was $47.1 million. Leverage ratio at the end of the fourth quarter was 3.74 times. Total fleet horsepower at the end of the quarter was approximately 4.931 million horsepower, adding approximately 1.037 million horsepower compared to the prior quarter. Average utilization for the first quarter was 91.9%. Expansion capital expenditures in Q1 were $26.4 million, and maintenance capital expenditures were $9.2 million.

• Full - year adjusted EBITDA range: $770 to $800 million.
• Distributable cash flow range: $480 to $510 million.
• Maintenance capital range: $60 to $70 million.
• Expansion capital range: $230 to $250 million.
• 2026: Nearly fully contracted for horsepower; placing advance orders for manufacturing complex.
• Leverage: Near - term target to maintain 3.75 times debt to EBITDA, made progress in Q1, anticipate Q2 leverage to tick higher with new horsepower delivery, trend back lower by year - end.

• Engine lead times: Prolonged engine lead times pose challenges for near - term business continuity and long - term planning.
• Oil prices: If oil prices remain at current levels, increase in lubricant costs likely to show up in second half as contracts renew.
• Market shift: Unexpected contract compression market shift could lead to downside exposure if engines need to be divested.

Q: Nate Pendleton with Texas Capital asked how Q1 compared to internal expectations following JW integration and decision to keep guidance.

A: Clint said in line with where they thought, working through operational changes and excited about year - end and future.

Q: Jim Rosen with Raymond James asked about lead times, customer and competitor planning.

A: Clint said lead times stretched quickly, customers and competitors dealing with it, capital program now a three - year outlook; Chris Watson said managing inflation by driving efficiencies and addressing cost on contract renewals.

Q: Eli Johnson with JP Morgan asked about outlook for new unit procurement cadence.

A: Clint said sticking to 100,000 - ish horsepower growth year over year, Chris Paulson said utilization reflective of bringing in horsepower and potential to improve, revenue growth continuing with CPI - U support and constructive conversations with customers.

Q: Doug Irwin with Citi asked about synergy opportunities with JW Power and role in meeting demand by 2030.

A: Clint said expecting to find synergy opportunities, Chris said feeling good about forecast, well - situated in certain basins like permian and gulf coast.

Q: Selman Apkel with Stiple asked about acceleration of business due to U.S. as preferred supplier and lead times.

A: Clint said U.S. natural gas demand to go up with more LNG facilities, lead times driven by natural gas driven generators and CAT not expanding 3600 series manufacturing in near future, starting to look at other engine manufacturers as options