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Archrock Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Financial Guidance

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  • Archrock, Inc. reported Q4 2025 revenue of $377.1 million and full-year 2025 revenue of $1,489.8 million, representing significant increases over 2024 figures.
  • Full-year 2025 net income reached $322.3 million with EPS of $1.83, compared to $172.2 million and $1.05 respectively in 2024.
  • Adjusted net income for 2025 totaled $332.7 million with adjusted EPS of $1.90, up from $185.2 million and $1.13 in the prior year.
  • Adjusted EBITDA for the full year 2025 was $900.9 million, exceeding the guidance midpoint of $835 million to $850 million.
  • The company declared a Q4 2025 quarterly dividend of $0.22 per share, a 16% increase from the prior year, resulting in a dividend coverage ratio of 4.9x.
  • Archrock returned $211.8 million to shareholders via dividends and share repurchases in 2025, a rise of over 70% compared to $123.7 million in 2024.
  • Contract operations segment revenue grew 14% to $327.1 million in Q4 2025, with adjusted gross margin percentage reaching 78%.
  • Aftermarket services segment revenue increased to $50.0 million in Q4 2025, with adjusted gross margin percentage at 24%.
  • Total operating horsepower stood at 4.6 million at year-end 2025, an 8% increase from 2024, with fleet utilization at 95.5%.
  • Long-term debt was $2.4 billion as of December 31, 2025, with a leverage ratio of 2.69x, down from 3.3x in 2024.
  • On January 21, 2026, Archrock completed a private offering of $800 million in senior notes due 2034 to repay borrowings under its revolving credit facility.
  • The company approved an additional $100 million to its share repurchase program, bringing available capacity to $117.7 million as of year-end 2025.
  • Full-year 2026 guidance includes adjusted EBITDA of $865 million to $915 million and growth capital expenditures of $250 million to $275 million.
  • Management expects U.S. natural gas production to hit record levels in 2026, driving demand for high-horsepower compression services and AI data center power needs.
  • Discrete items contributing to 2025 results included a $22.9 million tax audit benefit and $31.6 million in net gains from asset sales.
  • Archrock completed two accretive acquisitions in 2025 while selling 325,000 horsepower of assets for $192 million to redeploy into new build investments.