v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
4. Revenue Recognition
The Company generates revenue from compression and power infrastructure solutions and related services. Revenue is recognized in accordance with either Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, or ASC Topic 842, Leases, depending on the nature of the arrangement.
ASC 606 – Revenue from Contracts with Customers
Revenues within the Compression Infrastructure and Other Services segments are recognized under ASC 606. The Company provides integrated equipment and services under customer contracts, which are generally accounted for as a single performance obligation comprised of a stand-ready series of services.
ASC 842 – Leases
Revenue within the Power Infrastructure segment is primarily derived from arrangements that provide customers with the right to use power generation equipment and is accounted for under ASC 842. These arrangements are generally classified as operating leases, and lease revenue is recognized on a straight-line basis over the contractual term, which typically ranges from several months to multiple years.
Certain Power Infrastructure arrangements also include services such as delivery, installation, operation, maintenance and other support activities. To the extent such services are determined to be distinct from the lease component, they are accounted for separately under ASC 606 within the Other Services segment.
Judgment is required in evaluating customer arrangements, including determining whether an arrangement contains a lease, identifying lease and non-lease components and assessing whether non-lease services are distinct. For arrangements accounted for under ASC 606, the Company also evaluates whether the promised goods and services represent a single performance obligation, including a stand-ready series of services, or multiple performance obligations. For certain qualifying arrangements, the Company has elected the practical expedient to not separate lease and non-lease components and account for the combined component under the applicable guidance based on the predominant component.
The following table disaggregates the Company’s revenue by type and timing of provision of services or transfer of goods:
Three Months EndedSix Months Ended
June 30,June 30,
(in thousands)
2026202520262025
ASC 606
Services provided over time:
Compression Infrastructure$315,125 $293,534 $622,110 $582,490 
Other Services18,191 2,367 33,663 19,883 
Total services provided over time333,316 295,901 655,773 602,373 
Services provided or goods transferred at a point in time:
Other Services24,913 26,942 48,215 50,112 
Total services provided or goods transferred at a point in time24,913 26,942 48,215 50,112 
ASC 842
Equipment rental provided over time:
Power Infrastructure32,891 — 32,891 — 
Total revenue$391,120 $322,843 $736,879 $652,485 
Contract Assets and Liabilities
Contract assets and contract liabilities presented below relate only to contracts accounted for under ASC 606 and do not include balances associated with lease arrangements accounted for under ASC 842, which are primarily included within the Power Infrastructure segment.
The Company recognizes a contract asset when it has transferred goods or services to a customer but its right to consideration is conditional on something other than the passage of time. Contract assets are reclassified to trade receivables when the right to consideration becomes unconditional. The Company had contract assets of $11.3 million and $5.2 million as of June 30, 2026, and December 31, 2025, respectively. As of January 1, 2026 and 2025, the beginning balances for contract assets were $5.2 million and $7.6 million, respectively.
The Company records contract liabilities when consideration is received or is contractually due in advance of transferring goods or services to the customer. The Company’s contract liabilities were $89.6 million and $94.5 million as of June 30, 2026, and December 31, 2025, respectively. As of January 1, 2026, and 2025, the beginning balances for contract liabilities were $94.5 million and $73.1 million, all of which was recognized as revenue in the six months ended June 30, 2026, and 2025, respectively.
Performance Obligations
The remaining performance obligations disclosure applies only to revenues accounted for under ASC 606 and does not include amounts related to lease arrangements accounted for under ASC 842, which are primarily associated with the Company’s Power Infrastructure segment.
As of June 30, 2026, we had $2.6 billion of remaining performance obligations related to our Compression Infrastructure segment.
The Company expects to recognize these remaining performance obligations as follows:
(in thousands)Remainder of
2026		2027202820292030ThereafterTotal
Remaining performance obligations$563,624 $761,122 $436,242 $199,853 $141,356 $541,048 $2,643,245 
As of June 30, 2026, the aggregate amount of transaction price allocated to unsatisfied performance obligations related to the Company’s revenue for the Other Services segment is $18.9 million, of which $17.0 million is expected to be recognized by December 31, 2026, and the remaining will be recognized in 2027.
The Company has a Power Infrastructure lease and service agreement with a customer for (i) the lease of power generation equipment and (ii) the operation and maintenance services for the equipment. The initial lease term ends on April 1, 2028 with options to renew for up to an additional 12 years with payments based on a fixed monthly fee, a portion of which is escalated annually based on the CPI index. Rental revenues under the initial term of this agreement are recognized on a straight-line basis and would be $13.7 million, $27.4 million, and $6.9 million for the remainder of the year ending December 31, 2026 and the years ending December 31, 2027 and 2028, respectively.