The quarter beat on revenue but missed on per-share earnings. Revenue reached $391.1 million versus published consensus of roughly $385.6 million, while adjusted diluted EPS was $0.55 versus about $0.75 expected. The EPS shortfall was amplified by the DPS acquisition and equity offering: diluted shares rose to 96.8 million from 87.5 million in the prior quarter. (Financial Highlights; Adjusted net income reconciliation)
| Metric | Q2 2026 actual | Prior quarter / year-ago | Published expectation |
|---|---|---|---|
| Revenue | $391.1M | $345.8M / $322.8M | ~$385.6M |
| Adjusted diluted EPS | $0.55 | $0.59 / $0.43 | ~$0.75 |
| Adjusted EBITDA | $216.8M | $190.1M / $178.2M | — |
| Adjusted EBITDA margin | 55.4% | 55.0% / 55.2% | — |
| Discretionary cash flow | $163.3M | $126.5M / $116.4M | — |
| Free cash flow | $(87.5)M | $37.0M / $70.3M | — |
Core compression delivered the strongest part of the report. Compression Infrastructure revenue rose 7.4% year over year to $315.1 million, utilization improved to 98.2%, and adjusted gross margin held at 70.0%, versus 68.3% a year earlier. That supports the underlying operating story, even though the margin was slightly below the prior quarter's 70.6%. (Segment results — Compression Infrastructure; Fleet statistics)
Power Infrastructure arrived at meaningful scale, but the economics are not yet fully proven. The acquired business contributed $32.9 million of revenue and $21.2 million of adjusted gross margin at a 64.5% margin, with 89.6% fleet utilization in its first full quarter. However, the quarter also required $134.4 million of Power Infrastructure growth capital spending, helping push free cash flow negative. (Segment results — Power Infrastructure; Cash Flow / Capital expenditures)
Guidance improved, but the increase is incremental rather than a major reset. Full-year adjusted EBITDA guidance rose to $830 million-$860 million from the prior $820 million-$860 million range, while discretionary cash flow increased to $570 million-$600 million from $520 million-$570 million. The higher cash-flow outlook is the clearest upgrade, but total growth capital spending also moved higher at the midpoint, to roughly $715 million from $710 million previously. (Full-Year 2026 Guidance)
The net read is mixed: better operating momentum and guidance, offset by a clear per-share miss and heavy investment. Compression is performing ahead of its prior-year baseline, and the new power platform is producing substantial revenue immediately after the DPS acquisition. But relative to expectations, the adjusted EPS miss matters, while negative free cash flow and sharply higher capital intensity leave investors needing proof that the power expansion will convert into durable cash returns. (Financial Highlights; Cash Flow statement; Full-Year 2026 Guidance)
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