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Segments

12 Months Ended

Dec. 31, 2025

Segments

Segments

28. Segments

We manage our business segments primarily based on the type of product or service provided. We have two segments that we operate within the U.S.: contract operations and aftermarket services. Our contract operations segment primarily provides natural gas compression services to meet specific customer requirements. Our aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

Our CODM is our President & Chief Executive Officer. Our CODM evaluates the performance of our segments and allocates resources primarily based on adjusted gross margin, defined as revenue less cost of sales, exclusive of depreciation and amortization, which are key components of segment operations. Adjusted gross margin is the primary measure used by our CODM to evaluate segment performance because it focuses on the current performance of segment operations and excludes the impact of the prior historical costs of assets acquired or constructed that are utilized in those operations, the indirect costs associated with our SG&A activities, our financing methods and income taxes. Our CODM considers adjusted gross margin forecast to actual results and period over period financial variances in conjunction with product and customer service metrics and market trends when assessing segment performance and deciding how to allocate resources.

Summarized financial information for our reporting segments is shown below:

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Contract		​ ​ ​	Aftermarket		​ ​ ​	​	​
(in thousands)	​ ​ ​	Operations		​ ​ ​	Services		​ ​ ​	Total
2025		​	​		​	​		​	​
Revenue(1)	​	$	1,272,081	​	$	217,737	​	$	1,489,818
Cost of sales, exclusive of depreciation and amortization	​	​	343,136	​	​	166,289	​	​	509,425
Adjusted gross margin	​		928,945	​		51,448	​		980,393
​	​	​	​	​	​	​	​	​	​
2024	​		​	​		​	​		​
Revenue(1)	​	$	980,405	​	$	177,186	​	$	1,157,591
Cost of sales, exclusive of depreciation and amortization	​	​	323,052	​	​	135,449	​	​	458,501
Adjusted gross margin	​		657,353	​		41,737	​		699,090
​	​	​	​	​	​	​	​	​	​
2023	​		​	​		​	​		​
Revenue(1)	​	$	809,439	​	$	180,898	​	$	990,337
Cost of sales, exclusive of depreciation and amortization	​	​	306,748	​	​	142,271	​	​	449,019
Adjusted gross margin	​		502,691	​		38,627	​		541,318

(1) Segment revenue includes only sales to external customers.

​

The following table reconciles gross margin to adjusted gross margin, its most directly comparable to GAAP measure:

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
(in thousands)	​	2025		​ ​ ​	2024		​ ​ ​	2023
Total revenues	​	$	1,489,818	​	$	1,157,591	​	$	990,337
Cost of sales, exclusive of depreciation and amortization	​		(509,425)	​		(458,501)	​		(449,019)
Depreciation and amortization	​		(256,761)	​		(193,194)	​		(166,241)
Gross margin	​		723,632	​		505,896	​		375,077
Depreciation and amortization	​	​	256,761	​	​	193,194	​	​	166,241
Adjusted gross margin	​	$	980,393	​	$	699,090	​	$	541,318

The following table reconciles total adjusted gross margin to income before income taxes:

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
(in thousands)	​	2025		​ ​ ​	2024		​ ​ ​	2023
Adjusted gross margin	​	$	980,393	​	$	699,090	​	$	541,318
Less:	​		​	​		​	​		​
Selling, general and administrative	​		147,806	​		139,121	​		116,639
Depreciation and amortization	​		256,761	​		193,194	​		166,241
Long-lived and other asset impairment	​		18,290	​		10,681	​		12,041
Restructuring charges	​	​	1,605	​	​	—	​	​	1,775
Debt extinguishment loss	​	​	890	​	​	3,181	​	​	—
Interest expense	​		165,340	​		123,610	​		111,488
Transaction-related costs	​	​	12,705	​	​	13,249	​	​	—
Gain on sale of assets, net	​	​	(47,081)	​	​	(17,887)	​	​	(10,199)
Other expense, net	​		439	​		1,561	​		1,086
Income before income taxes	​	$	423,638	​	$	232,380	​	$	142,247

​

The following table reconciles capital expenditures by segment to total capital expenditures:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
(in thousands)	​	2025		​ ​ ​	2024		​ ​ ​	2023
Contract operations	​	$	489,960	​	$	353,785	​	$	294,315
Aftermarket services	​		6,726	​		3,277	​		3,300
Segment capital expenditures	​		496,686	​		357,062	​		297,615
Other (1)	​		5,779	​		1,970	​		1,017
Total capital expenditures	​	$	502,465	​	$	359,032	​	$	298,632

(1) Corporate–related items.

​

The following table reconciles total assets by segment to total assets per the consolidated balance sheets:

​

​	​	​	​	​	​	​
​	​ ​ ​	December 31,
(in thousands)	​ ​ ​	2025		​	2024
Contract operations assets	​	$	4,141,714	​	$	3,677,056
Aftermarket services assets	​		71,811	​		57,642
Segment assets	​	​	4,213,525	​	​	3,734,698
Other assets (1)	​	​	127,911	​	​	81,639
Assets of discontinued operations	​	​	7,868	​	​	7,868
Total assets	​	$	4,349,304	​	$	3,824,205

(1) Corporate–related items and our investments in unconsolidated affiliates.

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The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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