Archrock Inc
NYSE:AROC

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Archrock Inc
NYSE:AROC
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Price: 25.41 USD 0.67% Market Closed
Market Cap: 4.5B USD

Archrock Inc
Investor Relations

Archrock Inc., a cornerstone in the energy infrastructure space, stands out in the niche of natural gas compression. As one of the leading providers of natural gas contract compression services in the United States, Archrock bridges the essential gap between wellhead production and the pipeline transport of natural gas. The company’s operations are pivotal for ensuring that natural gas — a key energy source — travels efficiently from production sites to processing facilities and end consumers. By delivering compression systems that boost gas pressure to the required levels for pipeline transport, Archrock plays a crucial role in unlocking the value of natural gas, transforming it from a raw resource into a market-ready commodity.

At the heart of Archrock’s success is its robust business model, predominantly revolving around long-term service contracts. These contracts provide steady, predictable revenue streams and underpin their financial stability. By offering a comprehensive suite of services — from equipment leasing and maintenance to technical expertise and operational support — Archrock ensures that their customers’ compression needs are reliably met while minimizing downtime. The company’s ability to manage these critical operations while maintaining a focus on operational efficiency and customer service cements its standing in the gas compression market. Seamlessly blending technological innovation with service excellence, Archrock has established a business that is as essential as it is enduring in the ever-evolving energy landscape.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 29, 2025
AI Summary
Q3 2025

Strong Q3 Results: Archrock reported robust performance, with adjusted EPS up 50% and adjusted EBITDA up over 46% year-over-year.

Margin Expansion: Contract operations gross margin reached 70.4%, and adjusted gross margin rose to 73%, supported by strong pricing, cost control, and a $9.9 million tax credit.

Raised Guidance: Full-year 2025 adjusted EBITDA guidance was increased to $835–$850 million, reflecting continued business outperformance.

Capital Returns: Dividend per share increased 20% year-over-year, and $159 million was returned to shareholders through dividends and buybacks in the first three quarters.

Utilization & Backlog: Fleet utilization stayed high at 96%, with strong contracted backlog and continued booking into 2026.

CapEx Update: 2026 growth CapEx is expected to be at least $250 million, funded by operations and asset sales.

Share Repurchase: Board approved a $100 million increase to share buyback authorization, totaling $130 million in capacity as of October.

Key Financials
Net Income
$71 million
Adjusted Net Income
$73 million
Adjusted EPS
$0.42
Adjusted EBITDA
$221 million
Contract Operations Revenue
$326 million
Aftermarket Services Revenue
$56 million
Adjusted Gross Margin
73%
Contract Operations Gross Margin
70.4%
Aftermarket Services Gross Margin
23%
Fleet Utilization
96%
Dividend Per Share (Quarterly)
$0.21
Dividend Coverage
3.7x
Cash Available for Dividend
$136 million
Total Debt
$2.6 billion
Leverage Ratio
3.1x
Available Liquidity
$728 million
Share Repurchases (Q3 2025)
1.1 million shares for $25 million (avg. price $23.18)
Total Capital Returned to Shareholders (YTD 2025)
$159 million
Operating Horsepower
4.7 million
Organic Horsepower Growth (Q3 2025)
56,000 horsepower
Growth CapEx (2026 guidance)
$250 million minimum
Growth CapEx (2025 guidance)
$345–$355 million
Maintenance CapEx (2025 guidance)
$110–$115 million
Other CapEx (2025 guidance)
$35–$40 million
Asset Sale Proceeds (YTD 2025)
$114 million
Average Compressor Time on Location
more than 6 years
Earnings Call Recording
Other Earnings Calls

Management

Mr. D. Bradley Childers J.D.
President, CEO & Director
No Bio Available
Mr. Douglas S. Aron
Senior VP & CFO
No Bio Available
Mr. Eric W. Thode
Senior Vice President of Operations
No Bio Available
Ms. Stephanie C. Hildebrandt J.D.
Senior VP, General Counsel & Secretary
No Bio Available
Mr. Jason G. Ingersoll
Senior Vice President of Sales & Operations Support
No Bio Available
Ms. Donna A. Henderson
VP & Chief Accounting Officer
No Bio Available
Ms. Elspeth A. Inglis
Senior VP & Chief Human Resources Officer
No Bio Available
Ms. Megan Elizabeth Repine
Vice President of Investor Relations
No Bio Available

Contacts

Address
TEXAS
Houston
9807 Katy Fwy Ste 100
Contacts
+12818368000.0
www.archrock.com