- Record Financial Performance Full-year 2025 adjusted EBITDA reached $613.8M, with distributable cash flow of $385.7M, reflecting strong operational execution.
- JW Power Acquisition Synergies Anticipated $10-20M annual synergies by 2027, enhancing margins and operational efficiency post-acquisition.
- 2026 Guidance Projected adjusted EBITDA of $770-800M and distributable cash flow of $480-510M, with $230-250M allocated for expansion capital, including 100,000 new horsepower.
- Capital Allocation Strategy 2026 maintenance capital of $60-70M and expansion capital of $230-250M, targeting 1.6x+ distribution coverage ratio and 3.75x leverage ratio.
- Operational Enhancements $10-20M annual cost savings from JW acquisition synergies and $230-250M expansion CapEx for telemetry upgrades to improve fleet efficiency.
Operational Highlights
The company recently closed the JW Power acquisition, expanding its reach across the US. The acquisition is expected to bring in approximately $10-20 million in annual run-rate synergies by 2027, leading to improvements in operating margins and G&A. The company is working to optimize route management, inventory, contracts, and operational structures to realize these synergies, as stated by Christopher Wauson, Chief Operating Officer.
Guidance and Outlook
The company provided guidance for 2026, forecasting adjusted EBITDA of $770-800 million and distributable cash flow of $480-510 million. Maintenance capital is forecasted to be $60-70 million, and expansion capital is forecasted to be $230-250 million, including approximately 100,000 new horsepower and panel upgrades for improved telemetry practices. The company's leverage ratio at the end of the fourth quarter was 4.0x, and it is targeting a leverage ratio of 3.75x in the near term.
Valuation and Metrics
With a P/E Ratio of 28.82 and an EV/EBITDA of 5.28, the company's valuation metrics indicate a premium for its growth prospects. The Dividend Yield is 8.1%, which is attractive for income-seeking investors. The company's ROIC is 12.15%, indicating a decent return on invested capital. The Net Debt / EBITDA ratio is currently at 0.0, suggesting a healthy debt profile.
Growth Strategy
The company is focused on growing its business, with plans to add approximately 100,000 new horsepower in 2026. The majority of the horsepower will be delivered in the back half of the year, with some trickling in in Q3. The company is also investing in panel upgrades, unit upgrades, and dashboards to improve efficiency and reduce site visits, as explained by Christopher Wauson.