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

HOUSTON, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the fourth quarter and full year 2025.

Fourth Quarter and Full Year 2025 Highlights

Full Year 2025 Adjusted EBITDA Exceeds Guidance Midpoint

Net income for the fourth quarter of 2025 was $116.8 million, and adjusted EBITDA was $269.4 million, driving net income for the full year 2025 to $322.3 million and adjusted EBITDA to $900.9 million. Underlying business performance exceeded expectations in the fourth quarter 2025; results further benefited from discrete items, including: (1) a $22.9 million cash net benefit related to prior period sales and use tax audit settlements and credits, recorded in cost of sales, exclusive of depreciation and amortization, and (2) $31.6 million of net gains from the sale of compression and other assets completed at year-end. These items were not included in the 2025 annual guidance provided with our third quarter 2025 earnings release. Excluding these impacts, full-year 2025 adjusted EBITDA would have been $846.4 million, compared to our most recent adjusted EBITDA guidance range of $835 million to $850 million. 1

Management Commentary and Outlook

“Archrock finished 2025 strong, reporting adjusted EBITDA above the midpoint of guidance, after raising our outlook twice during the year—underscoring the strength of our natural-gas-driven strategy and the dedication of our team,” said Brad Childers, Archrock’s President and Chief Executive Officer.

“During 2025, we grew our active horsepower by 8% compared to 2024, delivered our fifth consecutive quarter of contract operations adjusted gross margin above 70%, and increased AMS adjusted gross margin dollars by 23%. We also reduced our leverage ratio to 2.7x from 3.3x at year-end 2024 and returned $212 million to shareholders through dividends and share repurchases—up more than 70% year over year. These results were achieved while completing our second accretive acquisition in 18 months and executing asset sales of 325,000 horsepower for $192 million, which we redeployed into high-return new build investments as we continue to high-grade and standardize our fleet.

“Looking ahead to 2026, U.S. natural gas production is expected to reach record levels for the sixth consecutive year. Against this backdrop, we expect continued steady demand for our natural gas compression services—particularly in the large-horsepower and electric-motor-drive segments where we strategically focus our capital.

“We plan approximately $250 million to $275 million of growth capex in 2026 to support our customers’ expansion plans, which will also drive substantial free cash flow generation. Our year-opening dividend increase of 16% over our fourth quarter 2024 dividend level still leaves significant capacity for additional shareholder returns in the future as we continue to execute our returns-based capital allocation strategy.

“As we look forward, we are leveraging our high-quality portfolio, financial strength and flexibility and innovative technology to profitably capture market opportunities presented by sustained natural gas demand growth driven by LNG exports and the accelerating power needs of AI data centers,” concluded Childers.

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Contract Operations

For the fourth quarter of 2025, contract operations segment revenue totaled $327.1 million, an increase of 14% compared to $286.5 million in the fourth quarter of 2024. Total operating horsepower at the end of the fourth quarter of 2025 was 4.6 million compared to 4.2 million at the end of the fourth quarter of 2024. In the fourth quarter of 2025, Archrock sold approximately 123,000 total horsepower of which approximately 84,000 was active, for cash proceeds totaling $78 million. Archrock maintained full fleet utilization during the fourth quarter of 2025, ending at 95.5%.

Adjusted gross margin for the fourth quarter of 2025 was $256.6 million, up 28% from $200.2 million in the fourth quarter of 2024. Adjusted gross margin percentage for the fourth quarter of 2025 was 78%, compared to 70% in the fourth quarter of 2024. Excluding the aforementioned $22.9 million cash net benefit related to prior period sales and use tax audit settlements and credits during the fourth quarter of 2025, adjusted gross margin percentage for the fourth quarter of 2025 was 71.5%.

Aftermarket Services

For the fourth quarter of 2025, aftermarket services segment revenue totaled $50.0 million, compared to $40.0 million in the fourth quarter of 2024. Adjusted gross margin for the fourth quarter of 2025 was $12.0 million, compared to $9.1 million in the fourth quarter of 2024. Adjusted gross margin percentage for the fourth quarter of 2025 was 24%, compared to 23% for the fourth quarter of 2024.

Balance Sheet

Long-term debt was $2.4 billion and our available liquidity totaled $579 million at December 31, 2025. Our leverage ratio was 2.69x as of December 31, 2025, down from 3.3x as of December 31, 2024.

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.

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 for the year ended December 31, 2025. Dividend coverage in the fourth quarter of 2025 was 4.9x. The fourth quarter 2025 dividend was paid on February 18, 2026 to stockholders of record at the close of business on February 10, 2026.

Share Repurchase Program

During the fourth quarter of 2025, we repurchased 647,480 shares of common stock at an average price of $24.44 per share, for an aggregate of approximately $15.8 million. Since April 2023 and through December 31, 2025, we have repurchased 4,461,311 shares of common stock at an average price of $20.72 per share for an aggregate of $92.4 million.

In the fourth quarter of 2025, the Board of Directors approved an increase in the Company’s share repurchase program by an additional $100 million through December 31, 2026, resulting in available capacity of $117.7 million as of December 31, 2025.

2026 Annual Guidance

The full year 2026 guidance below incorporates the fourth quarter divestiture of certain compression assets totaling 123,000 horsepower, including 84,000 operating horsepower; these assets generated estimated annualized EBITDA of approximately $12 million.

(in thousands, except percentages and ratios)

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Summary Metrics

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Conference Call Details

Archrock will host a conference call on February 25, 2026, to discuss fourth quarter and full year 2025 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; the expected benefits of the NGCS acquisition, including its expected accretion and the expected impact on Archrock’s leverage ratio; and plans and objectives of management for future operations.

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: inability to achieve the expected benefits of the NGCS acquisition and difficulties in integrating NGCS; risks of acquisitions or mergers, including the NGCS acquisition, to reduce our ability to make distributions to our common stockholders; 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; inability to make acquisitions on economically acceptable terms; 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 quarters ended March 31, 2025, June 30, 2025 and September 30, 2025 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

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