Form 8-K

8-K — Archrock, Inc.

Accession: 0001389050-26-000015

Filed: 2026-05-06

Period: 2026-05-05

CIK: 0001389050

SIC: 4922 (NATURAL GAS TRANSMISSION)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — aroc-20260505x8k.htm (Primary)

EX-99.1 (aroc-20260505xex99d1.htm)

GRAPHIC (aroc-20260505xex99d1001.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: aroc-20260505x8k.htm · Sequence: 1

Archrock, Inc._May 5, 2026

0001389050false00013890502026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 5, 2026

Commission File Number 001-33666

Archrock, Inc.

(Exact name of registrant as specified in its charter)

Delaware

74-3204509

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)

9807 Katy Freeway, Suite 100, Houston, TX 77024

(Address of principal executive offices, zip code)

(281) 836-8000

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value per share

AROC

New York Stock Exchange

NYSE Texas

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On May 5, 2026, Archrock, Inc. (“Archrock”) issued a press release announcing its results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1

Press release dated May 5, 2026, announcing Archrock, Inc.’s results of operations for the quarter ended March 31, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ARCHROCK, INC.

By:

/s/ Douglas S. Aron

Douglas S. Aron

Senior Vice President and Chief Financial Officer

May 6, 2026

EX-99.1

Filename: aroc-20260505xex99d1.htm · Sequence: 2

Exhibit 99.1

Archrock Reports First Quarter 2026 Results

HOUSTON, May 5, 2026 - Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the first quarter 2026.

First Quarter 2026 Highlights

●Revenue for the first quarter of 2026 was $373.8 million compared to $347.2 million in the first quarter of 2025.

●Net income for the first quarter of 2026 was $73.8 million and EPS was $0.41, an increase of approximately 4.1% and 2.5%, respectively, compared to $70.9 million and $0.40, respectively, in the first quarter of 2025.

●Adjusted net income (a non-GAAP measure defined below) for the first quarter of 2026 was $74.4 million and adjusted EPS (a non-GAAP measure defined below) was $0.42, compared to $74.5 million and $0.42, respectively, in the first quarter of 2025.

●Adjusted EBITDA (a non-GAAP measure defined below) for the first quarter of 2026 was $221.0 million compared to $197.8 million in the first quarter of 2025.

●Declared a quarterly dividend of $0.22 per common share for the first quarter of 2026, approximately 16% higher compared to the first quarter of 2025, resulting in dividend coverage of 3.5x.

●Returned $44.3 million to stockholders through dividends and share repurchases during the first quarter of 2026 compared to $34.4 million during the first quarter of 2025.

Management Commentary and Outlook

“Archrock is off to a strong start for 2026, generating meaningful earnings per share, free cash flow and increased shareholder returns during the first quarter, bolstered by a growing order book that continues to support our longer-term outlook,” said Brad Childers, Archrock’s President and Chief Executive Officer. “Our contract operations fleet has delivered full utilization over a multi-year period, and profitability continues to benefit from strong execution and the rollout of additional large and electric motor drive horsepower supporting critical midstream infrastructure. Additionally, we continued to high-grade our fleet with the sale of non-strategic compressor units totaling approximately 40,000 horsepower. First quarter underlying business performance exceeded our basis for guidance, though SG&A expense came in higher. We remain on pace to achieve our full-year 2026 Adjusted EBITDA guidance range of between $865 million and $915 million, which we expect will translate into meaningful free cash flow generation for the year.

“As the buildout of U.S. midstream infrastructure continues to support expected growth in LNG exports and rising power demand from data centers, the strategic importance of U.S. energy is further underscored by ongoing geopolitical uncertainty. We are focused on growing our profitable platform by maximizing customer service and operational reliability, accelerating adoption of the technologies we continue to deploy, and leveraging our balance sheet through returns-based capital allocation that provides flexibility for organic and inorganic growth while increasing shareholder returns,” concluded Childers.

First Quarter 2026 Financial Results

Archrock’s first quarter 2026 net income of $73.8 million included a non-cash long-lived and other asset impairment of $5.3 million and transaction-related costs totaling $0.6 million. Archrock’s first quarter 2025 net income of $70.9 million included transaction-related costs totaling $3.9 million, a non-cash long-lived and other asset impairment of $1.0 million, and restructuring charges of $0.7 million.

Adjusted EBITDA for the first quarter of 2026 and 2025 included $10.1 million and $7.3 million, respectively, in net gains primarily related to the sale of compression and other assets.

Selling, general and administrative expenses for the first quarter of 2026 were $45.2 million, compared to $37.2 million in the first quarter of 2025. The increase was primarily due to a $4.1 million increase in long-term cash-settled incentive compensation expense as a result of an increase in our stock price; and a $3.7 million acceleration of expense recognition for long-term incentive compensation pursuant to an executive retention agreement, which is not expected to recur in the remaining quarters of the year.

Contract Operations

For the first quarter of 2026, contract operations segment revenue totaled $330.9 million, an increase of 10% compared to $300.4 million in the first quarter of 2025. Total operating horsepower at the end of the first quarter of 2026 was 4.5 million compared to 4.3 million at the end of the first quarter of 2025. Archrock maintained full fleet utilization during the first quarter of 2026, ending at 95%.

Adjusted gross margin for the first quarter of 2026 was $237.6 million, up 13% from $210.6 million in the first quarter of 2025. Adjusted gross margin percentage for the first quarter of 2026 was 72%, compared to 70% in the first quarter of 2025.

Aftermarket Services

For the first quarter of 2026, aftermarket services segment revenue totaled $42.9 million, compared to $46.8 million in the first quarter of 2025, primarily reflecting lower service activity and a seasonal slowdown. Adjusted gross margin for the first quarter of 2026 was $9.8 million, compared to $11.5 million in the first quarter of 2025. Adjusted gross margin percentage for the first quarter of 2026 was 23%, compared to 25% for the first quarter of 2025.

Balance Sheet

Long-term debt was $2.4 billion and our available liquidity totaled $1.4 billion at March 31, 2026. Our leverage ratio was 2.6x as of March 31, 2026, down from 3.2x as of March 31, 2025.

On January 21, 2026, we completed a private offering of $800 million aggregate principal amount of 6.000% senior notes due 2034 and received net proceeds of $789.4 million after deducting issuance costs. The net proceeds were used to repay borrowings under our $1.5 billion asset-based revolving credit facility due May 2028 (the “Credit Facility”).

On April 1, 2026, we repurchased our $800.0 million of 6.250% senior notes due April 2028 (the “2028 Notes”). The 2028 Notes were redeemed at 100% of their $800.0 million aggregate principal amount plus accrued and unpaid interest of approximately $25.0 million with borrowings under the Credit Facility. We recorded a debt extinguishment gain of $0.7 million related to unamortized debt premium during the second quarter of 2026, partially offset by unamortized issuance costs.

Shareholder Returns

Quarterly Dividend

Our Board of Directors recently declared a quarterly dividend of $0.22 per share of common stock, or $0.88 per share on an annualized basis. Dividend coverage in the first quarter of 2026 was 3.5x. The first quarter 2026 dividend will be paid on May 19, 2026 to stockholders of record at the close of business on May 12, 2026.

Share Repurchase Program

During the first quarter of 2026, we repurchased 170,952 shares of common stock at an average price of $25.87 per share, for an aggregate of approximately $4.4 million. The share repurchase program had an available capacity of $113.2 million as of March 31, 2026.

Since April 2023 and through March 31, 2026, we have repurchased 4,632,263 shares of common stock at an average price of $20.91 per share for an aggregate of $96.9 million.

Summary Metrics

(in thousands, except percentages and ratios)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net income

73,794

116,772

70,850

Adjusted net income (1)

74,372

118,253

74,484

Adjusted EBITDA (1)

220,993

269,447

197,845

Contract operations revenue

330,880

327,088

300,397

Contract operations adjusted gross margin

237,609

256,613

210,598

Contract operations adjusted gross margin percentage (2)

Aftermarket services revenue

42,887

49,985

46,766

Aftermarket services adjusted gross margin

9,814

11,954

11,509

Aftermarket services adjusted gross margin percentage

Selling, general, and administrative

45,231

36,679

37,207

Net cash provided by operating activities

185,853

214,477

115,628

Cash available for dividend(1)

134,067

188,866

132,247

Cash available for dividend coverage (3)

3.5

4.9

3.9

Adjusted free cash flow (1)

91,902

199,962

(48,403)

Adjusted free cash flow after dividend (1)

51,995

163,086

(82,588)

Total available horsepower (at period end) (4)

4,765

4,788

4,461

Total operating horsepower (at period end) (5)

4,528

4,571

4,283

Horsepower utilization spot (at period end) (6)

95.0

95.5

96.0

(1) Management believes adjusted net income, adjusted EBITDA, cash available for dividend, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

(2) Contract operations adjusted gross margin percentage for the fourth quarter of 2025 was 78%, which included a $22.9 million cash net benefit related to prior-period sales and use tax audit settlements. Excluding this benefit, adjusted gross margin percentage for the fourth quarter of 2025 was 71.5%.

(3) Defined as cash available for dividend divided by dividends declared for the period.

(4) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.

(5) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.

(6) Defined as total operating horsepower divided by total available horsepower at period end.

Conference Call Details

Archrock will host a conference call on May 6, 2026, to discuss first quarter 2026 financial results. The call will begin at 8:30 a.m. Eastern Time.

To listen to the call via a live webcast, please visit Archrock’s website at www.archrock.com. The call will also be available by dialing 1 (800) 715-9871 in the United States or 1 (646) 307-1963 for international calls. The access code is 4749623.

A replay of the webcast will be available on Archrock’s website for 90 days following the event.

The company may from time to time publish additional materials for investors at the same website address.

*****

Adjusted net income, a non-GAAP measure, is defined as net income excluding restructuring charges, transaction-related costs and debt extinguishment loss adjusted for income taxes. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted net income, and a reconciliation of basic and diluted earnings per common share, the most directly comparable GAAP measure, to adjusted basic and diluted earnings per share, appear below.

Adjusted EBITDA, a non-GAAP measure, is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted EBITDA, and a reconciliation of our full year 2026 net income to adjusted EBITDA guidance, appear below.

Adjusted gross margin, a non-GAAP measure, is defined as total revenue less cost of sales, excluding depreciation and amortization. Adjusted gross margin percentage, a non-GAAP measure, is defined as adjusted gross margin divided by revenue. A reconciliation of net income to adjusted gross margin, and a reconciliation of gross margin, the most directly comparable GAAP measure, to adjusted gross margin and adjusted gross margin percentage, appear below.

Cash available for dividend, a non-GAAP measure, is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, long-lived and other asset impairment, unrealized change in fair value of investment in unconsolidated affiliate, restructuring charges, debt extinguishment loss, transaction-related costs, non-cash stock-based compensation expense, amortization of capitalized implementation costs and other items, less maintenance capital expenditures, other capital expenditures, cash taxes and cash interest expense. Reconciliations of net income and net cash provided by operating activities, the most directly comparable GAAP measures, to cash available for dividend, and a reconciliation of our full year 2026 net income to cash available for dividend guidance, appear below.

Adjusted free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash used in investing activities. A reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to adjusted free cash flow, appears below.

Adjusted free cash flow after dividend, a non-GAAP measure, is defined as net cash provided by operating activities plus net cash used in investing activities less dividends paid to stockholders. A reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to adjusted free cash flow after dividend, appears below.

About Archrock

Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, visit www.archrock.com.

Forward-Looking Statements

All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Archrock. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to Archrock’s results of operations or of financial condition; fundamentals of Archrock’s industry, including the attractiveness of returns and valuation, stability of cash flows, demand dynamics and overall outlook, and Archrock’s ability to realize the benefits thereof; Archrock’s expectations regarding future economic, geopolitical and market conditions and trends; Archrock’s operational and financial strategies, including planned growth, coverage and leverage reduction strategies, Archrock’s ability to successfully effect those strategies, and the expected results therefrom; Archrock’s financial and operational outlook; demand and growth opportunities for Archrock’s services; structural and process improvement initiatives, the expected timing thereof, Archrock’s ability to successfully effect those initiatives and the expected results therefrom; the operational and financial synergies provided by Archrock’s size; statements regarding Archrock’s dividend policy.

While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: risks related to macroeconomic conditions, including an increase in inflation and trade tensions; pandemics and other public health crises; ongoing international conflicts and tensions; risks related to our operations; competitive pressures; risks of acquisitions or mergers to reduce our ability to make distributions to our common stockholders; inability to make acquisitions on economically acceptable terms; inability to achieve the expected benefits of the acquisition of Natural Gas Compression Systems, Inc. and NGCSE, Inc. (collectively, “NGCS”) and difficulties integrating NGCS; risks related to our sustainability initiatives; uncertainty to pay dividends in the future; risks related to a substantial amount of debt and our debt agreements; inability to access the capital and credit markets or borrow on affordable terms to obtain additional capital; inability to fund purchases of additional compression equipment; vulnerability to interest rate increases and fluctuations; erosion of the financial condition of our customers; risks related to the loss of our most significant customers; uncertainty of the renewals for our contract operations service agreements; risks related to losing management or operational personnel; dependence on particular suppliers and vulnerability to product shortages and price increases; information technology and cybersecurity risks; tax-related risks; legal and regulatory risks, including climate-related and environmental, social and governance risks.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2025, Archrock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and as set forth from time to time in Archrock’s filings with the Securities and Exchange Commission. These filings are available online at www.sec.gov and www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine

VP of Investor Relations

281-836-8360

investor.relations@archrock.com

Archrock, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Revenue:

Contract operations

330,880

327,088

300,397

Aftermarket services

42,887

49,985

46,766

Total revenue

373,767

377,073

347,163

Cost of sales, exclusive of depreciation and amortization

Contract operations

93,271

70,475

89,799

Aftermarket services

33,073

38,031

35,257

Total cost of sales, exclusive of depreciation and amortization

126,344

108,506

125,056

Selling, general and administrative

45,231

36,679

37,207

Depreciation and amortization

69,734

68,872

57,620

Long-lived and other asset impairment

5,259

1,795

972

Restructuring charges

136

108

665

Debt extinguishment loss

—

890

—

Interest expense

39,510

42,227

37,741

Transaction-related costs

596

876

3,935

Gain on sale of assets, net

(10,116)

(31,614)

(7,335)

Other income, net

(605)

(20)

(684)

Income before income taxes

97,678

148,754

91,986

Provision for income taxes

23,404

31,851

21,136

Income before equity in net loss of unconsolidated affiliate

74,274

116,903

70,850

Equity in net loss of unconsolidated affiliate

480

131

—

Net income

73,794

116,772

70,850

Basic and diluted earnings per common share (1)

0.41

0.67

0.40

Weighted-average common shares outstanding:

Basic

174,084

174,105

174,014

Diluted

174,496

174,458

174,371

(1) Basic and diluted earnings per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted earnings per common share.

Archrock, Inc.

Unaudited Supplemental Information

(in thousands, except percentages, per share amounts and ratios)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Revenue:

Contract operations

330,880

327,088

300,397

Aftermarket services

42,887

49,985

46,766

Total revenue

373,767

377,073

347,163

Adjusted gross margin:

Contract operations

237,609

256,613

210,598

Aftermarket services

9,814

11,954

11,509

Total adjusted gross margin (1)

247,423

268,567

222,107

Adjusted gross margin percentage:

Contract operations (2)

Aftermarket services

Total adjusted gross margin percentage (1)

Selling, general and administrative

45,231

36,679

37,207

% of revenue

Adjusted EBITDA (1)

220,993

269,447

197,845

% of revenue

Capital expenditures

113,484

87,798

168,140

Proceeds from sale of property, equipment and other assets

(21,301)

(78,283)

(2,904)

Net capital expenditures

92,183

9,515

165,236

Total available horsepower (at period end) (3)

4,765

4,788

4,461

Total operating horsepower (at period end) (4)

4,528

4,571

4,283

Average operating horsepower

4,553

4,634

4,254

Horsepower utilization:

Spot (at period end) (5)

95.0

95.5

96.0

Average (5)

95.3

95.7

96.0

Dividend declared for the period per share

0.220

0.190

Dividend declared for the period to all stockholders

38,729

38,703

33,758

Cash available for dividend coverage (6)

3.5

4.9

3.9

Adjusted free cash flow (1)

91,902

199,962

(48,403)

Adjusted free cash flow after dividend (1)

51,995

163,086

(82,588)

(1) Management believes adjusted gross margin, adjusted EBITDA, adjusted gross margin percentage, adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

(3) Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.

(4) Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.

(5) Defined as total operating horsepower divided by total available horsepower at period end (spot) or over time (average).

(6) Defined as cash available for dividend divided by dividends declared for the period.

March 31,

December 31,

March 31,

2026

2025

Balance Sheet

Long-term debt (1)

2,379,028

2,410,893

2,297,767

Total equity

1,518,002

1,491,479

1,349,983

(1) Carrying values are shown net of unamortized premium and deferred financing costs.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Income to Adjusted Net Income and Earnings Per Share to Adjusted Earnings Per Share

(in thousands, except per share amounts)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net income

73,794

116,772

70,850

Restructuring charges

136

108

665

Transaction-related costs

596

876

3,935

Debt extinguishment loss

—

890

—

Tax effect of adjustments (1)

(154)

(394)

(966)

Adjusted net income (2)

74,372

118,253

74,484

Weighted-average common shares outstanding:

Basic

174,084

174,105

174,014

Diluted

174,496

174,458

174,371

Basic and diluted earnings per common share (3)

0.41

0.67

0.40

Restructuring charges per share

0.00

Transaction-related costs per share

0.01

0.03

Debt extinguishment loss per share

—

0.01

—

Tax effect of adjustments per share

(0.00)

(0.01)

Adjusted basic and diluted earnings per common share (2)

0.42

0.69

0.42

(1) Represents an estimated tax effect of restructuring charges, transaction-related costs and debt extinguishment loss based on the federal statutory tax rate of 21%.

(2) Management believes adjusted net income and adjusted earnings per share provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review our current period operating performance, comparability measure and performance measure for period-to-period comparisons without burdened earnings and earnings per share for non-recurring transactional costs.

(3) Basic and diluted earnings per common share is computed using the two-class method to determine the net income per share for each class of common stock and participating security (restricted stock and stock-settled restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents) according to dividends declared and participation rights in undistributed earnings. Accordingly, we have excluded net income attributable to participating securities from our calculation of basic and diluted earnings per common share.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Income to Adjusted EBITDA and Adjusted Gross Margin

(in thousands)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net income

73,794

116,772

70,850

Depreciation and amortization

69,734

68,872

57,620

Long-lived and other asset impairment

5,259

1,795

972

Unrealized change in fair value of investment in unconsolidated affiliate

—

Restructuring charges

136

108

665

Debt extinguishment loss

—

890

—

Interest expense

39,510

42,227

37,741

Transaction-related costs

596

876

3,935

Stock-based compensation expense

6,811

4,671

4,027

Amortization of capitalized implementation costs

1,030

904

762

Indemnification expense, net

239

325

137

Provision for income taxes

23,404

31,851

21,136

Equity in net loss of unconsolidated affiliate

480

131

—

Adjusted EBITDA (1)

220,993

269,447

197,845

Selling, general and administrative

45,231

36,679

37,207

Stock-based compensation expense

(6,811)

(4,671)

(4,027)

Amortization of capitalized implementation costs

(1,030)

(904)

(762)

Unrealized change in fair value of investment in unconsolidated affiliate

—

(25)

—

Indemnification expense, net

(239)

(325)

(137)

Gain on sale of assets, net

(10,116)

(31,614)

(7,335)

Other income, net

(605)

(20)

(684)

Adjusted gross margin (1)

247,423

268,567

222,107

(1) Management believes adjusted EBITDA and adjusted gross margin provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Gross Margin and Gross Margin Percentage to

Adjusted Gross Margin and Adjusted Gross Margin Percentage

(in thousands)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Total revenues

373,767

377,073

347,163

Cost of sales, exclusive of depreciation and amortization

(126,344)

(108,506)

(125,056)

Depreciation and amortization

(69,734)

(68,872)

(57,620)

Gross margin and gross margin percentage

177,689

48%

199,695

53%

164,487

47%

Depreciation and amortization

69,734

68,872

57,620

Adjusted gross margin and adjusted gross margin percentage (1)

247,423

66%

268,567

71%

222,107

64%

(1) Management believes adjusted gross margin and adjusted gross margin percentage provide useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend

(in thousands)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net income

73,794

116,772

70,850

Depreciation and amortization

69,734

68,872

57,620

Long-lived and other asset impairment

5,259

1,795

972

Unrealized change in fair value of investment in unconsolidated affiliate

—

Restructuring charges

136

108

665

Debt extinguishment loss

—

890

—

Interest expense

39,510

42,227

37,741

Transaction-related costs

596

876

3,935

Stock-based compensation expense

6,811

4,671

4,027

Amortization of capitalized implementation costs

1,030

904

762

Indemnification expense, net

239

325

137

Provision for income taxes

23,404

31,851

21,136

Equity in net loss of unconsolidated affiliate

480

131

—

Adjusted EBITDA (1)

220,993

269,447

197,845

Less: Maintenance capital expenditures

(34,047)

(25,906)

(22,753)

Less: Other capital expenditures

(14,523)

(13,189)

(6,019)

Less: Cash tax payment

(70)

(345)

(92)

Less: Cash interest expense

(38,286)

(41,141)

(36,734)

Cash available for dividend (2)

134,067

188,866

132,247

(1) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.

(2) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Cash Provided by Operating Activities to Cash Available for Dividend

(in thousands)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net cash provided by operating activities

185,853

214,477

115,628

Inventory write-downs

(93)

(121)

(188)

Benefit from (provision for) credit losses

(640)

(156)

Gain on sale of assets, net

10,116

31,614

7,335

Current income tax benefit

959

1,522

1,182

Cash tax payment

(70)

(345)

(92)

Amortization of operating lease ROU assets

(1,156)

(1,206)

(1,204)

Amortization of contract costs

(4,923)

(5,008)

(5,889)

Deferred revenue recognized in earnings

6,260

9,387

3,746

Indemnification expense, net

239

325

137

Cash restructuring charges

136

359

665

Cash transaction-related costs

596

876

3,935

Time-based cash or equity settled units settled as equity

(2,713)

—

(1,756)

Changes in assets and liabilities

(12,591)

(23,279)

37,676

Maintenance capital expenditures

(34,047)

(25,906)

(22,753)

Other capital expenditures

(14,523)

(13,189)

(6,019)

Cash available for dividend (1)

134,067

188,866

132,247

(1) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Cash Provided By Operating Activities to Adjusted Free Cash Flow

and Adjusted Free Cash Flow After Dividend

(in thousands)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Net cash provided by operating activities

185,853

214,477

115,628

Net cash used in investing activities

(93,951)

(14,515)

(164,031)

Adjusted free cash flow (1)

91,902

199,962

(48,403)

Dividends paid to stockholders

(39,907)

(36,876)

(34,185)

Adjusted free cash flow after dividend (1)

51,995

163,086

(82,588)

(1) Management believes adjusted free cash flow and adjusted free cash flow after dividend provide useful information to investors because these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide a more complete understanding of our performance than GAAP results alone. Management uses these non-GAAP measures as supplemental measures to review current period operating performance, comparability measures and performance measures for period-to-period comparisons.

Archrock, Inc.

Unaudited Supplemental Information

Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Dividend Guidance

(in thousands)

Annual Guidance Range

2026

Low

High

Net income (1)

306,000

356,000

Interest expense

145,000

Provision for income taxes

113,000

Depreciation and amortization

281,000

Restructuring charges

500

Stock-based compensation expense

15,500

Amortization of capitalized implementation costs

4,000

Adjusted EBITDA (2) (3)

865,000

915,000

Less: Maintenance capital expenditures

(125,000)

(135,000)

Less: Other capital expenditures

(25,000)

(35,000)

Less: Cash tax expense

(3,000)

Less: Cash interest expense

(140,000)

Cash available for dividend (4) (5)

572,000

602,000

(1) 2026 annual guidance for net income does not include the impact of long-lived and other asset impairment because due to its nature, it cannot be accurately forecasted. Long-lived and other asset impairment does not impact Adjusted EBITDA or cash available for dividend, however it is a reconciling item between these measures and net income. Long-lived and other asset impairment for the years 2025 and 2024 was $18.3 million and $10.7 million, respectively.

(2) Reflects an estimate of expenses to be incurred related to the TOPS and NGCS acquisitions.

(3) Management believes adjusted EBITDA provides useful information to investors because this non-GAAP measure, when viewed with our GAAP results and accompanying reconciliations, provides a more complete understanding of our performance than GAAP results alone. Management uses this non-GAAP measure as a supplemental measure to review current period operating performance, comparability measure and performance measure for period-to-period comparisons.

(4) Management uses cash available for dividend as a supplemental performance measure to compute the coverage ratio of estimated cash flows to planned dividends.

(5) A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate cash provided by operating activities, including changes in assets and liabilities, are not estimable at this time. Changes in assets and liabilities were $(58.9) million and $(25.8) million for the years 2025 and 2024, respectively.

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Document and Entity Information

May 05, 2026

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