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Archrock: Archrock's Strong 2025 Performance Sets Stage for Continued Growth

Archrock reported a robust financial performance for 2025, with net income reaching $322 million and adjusted EBITDA totaling $901 million. The company's adjusted EPS increased by 68% compared to 2024, driven by outstanding performance in its contract operations segment, which delivered adjusted gross margins of approximately 78%. Earnings per share (EPS) came in at $0.69, significantly beating estimates of $0.4. The company's strong execution and high demand for its compression fleet resulted in a fleet utilization rate of 95.5% for the fifth consecutive quarter.

AROC

USD 35.03

3.95%

A-Score: 5.6/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Adjusted EPS & EBITDA Growth 68% increase in adjusted EPS and 51% rise in adjusted EBITDA year-over-year ($901 million) in 2025.
  • Fleet Utilization Maintained 95.5% full utilization for the fifth consecutive quarter, with 4.6 million operating horsepower at year-end.
  • Shareholder Returns Returned $212 million to shareholders in 2025 via dividends and buybacks, a 70% increase from 2024.
  • Capital Deployment $192 million reinvested in high-return new builds from asset sales, supporting 2026 growth CapEx of $250–275 million.
  • 2026 EBITDA Guidance Outlined $865–915 million adjusted EBITDA, reflecting near-peak performance with 20–30% electric motor drive adoption and extended Caterpillar lead times (110–120 weeks).

Operational Highlights

Archrock's contract operations segment was the key driver of the company's success, with the fleet remaining fully utilized and a significant increase in operating horsepower to 4.6 million. The Aftermarket Services segment also delivered consistent margin performance, with adjusted gross margin percentage remaining above 20%. As noted by the management, "our strategy is grounded in the role natural gas continues to play as a critical component of the global energy mix," which is expected to continue driving demand for the company's services.

Capital Allocation and Guidance

Archrock returned $212 million to shareholders through dividends and share repurchases in 2025, representing a 70% increase year-over-year. The company expects to continue its disciplined approach to capital allocation, with growth CapEx expected to be between $250 million and $275 million in 2026. For the full year 2026, Archrock guided to adjusted EBITDA of $865 million to $915 million, representing a continued strong performance.

Valuation and Outlook

Using the current price, the stock trades at a P/E Ratio of 18.92 and an EV/EBITDA of 7.27. With analysts estimating revenue growth of 5.6% for the next year, the company's strong track record of execution and favorable industry tailwinds are expected to continue driving performance. The dividend yield stands at 2.37%, providing a relatively attractive return for income investors. Overall, Archrock's strong financial performance and guidance suggest that the company is well-positioned for continued growth and value creation.

Archrock's A-Score