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It has been about a month since the last earnings report for Archrock Inc. (AROC - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Archrock Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Archrock Misses Q2 Earnings & Revenue Estimates on AMS Weakness

Archrock reported second-quarter 2026 adjusted earnings of 38 cents per share, down 2.6% from 39 cents per share a year earlier. The bottom line missed the Zacks Consensus Estimate of 46 cents by 17.4%.

Revenues of $371.2 million declined 3.1% from $383.2 million a year ago. The top line missed the consensus mark of $390.4 million by 4.9%.

The weak quarterly results were primarily due to softness in aftermarket services (AMS), which offset solid contract operations performance.

Period-end horsepower utilization remained high at 94.4%, while contract operations adjusted gross margin percentage improved from the year-ago period.

AROC's Contract Operations Remain Resilient

Contract operations revenues rose 3.4% to $329.3 million from $318.3 million. The increase reflected higher rates, an additional month of contribution from the NGCS acquisition and revenues from horsepower additions, partly offset by active horsepower sales used to high-grade the fleet.

Contract operations adjusted gross margin increased 5.6% to $234.6 million, while the adjusted gross margin percentage rose to 71% from 70%. Total operating horsepower ended the quarter at 4.5 million compared with 4.7 million a year earlier, with the decline largely driven by the sale of approximately 165,000 non-strategic operating horsepower.

Archrock's Aftermarket Services Lose Momentum

Aftermarket services revenues fell 35.2% to $42 million from $64.8 million in the second quarter of 2025. The decline was due to lower parts sales, the absence of non-recurring overhauled-engine sales that benefited the prior-year quarter and reduced demand for major maintenance activity.

The adjusted gross margin for the segment declined 33.6% to $9.9 million from $14.9 million. However, the adjusted gross margin percentage improved to 24% from 23%, reflecting disciplined execution and a focus on higher-quality, higher-margin work.

AROC's Margin Gains Offset Some Cost Pressure

Total adjusted gross margin increased to $244.5 million from $237.1 million a year ago. The adjusted gross margin percentage expanded to 66% from 62%, helped by the stronger profitability of contract operations and the improved margin rate in aftermarket services.

Selling, general and administrative expenses rose 9.4% to $39.6 million from $36.2 million. Higher long-term incentive compensation, primarily driven by the stock price increase, was a key factor. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) remained flat at $212.6 million compared with $212.7 million in the prior-year quarter.

Archrock Generates Solid Cash Flow

Net cash provided by operating activities was $160.8 million in the quarter. The adjusted free cash flow totaled $67 million, while adjusted free cash flow after dividends was $28.4 million. The total capital expenditure was $98 million.

AROC Raises Dividend

The board raised the quarterly dividend by around 10% to 23 cents per share from 21 cents a year earlier. Dividend coverage was 3.1X, supporting the company's continued emphasis on shareholder returns alongside growth investment.

Archrock Maintains Balance Sheet Flexibility

As of June 30, 2026, AROC’s long-term debt was $2.35 billion, while the leverage ratio improved to 2.6X from 3.3X a year ago. Available liquidity totaled $631 million at the quarter-end.

During the quarter, Archrock redeemed $800 million of 6.25% senior notes due 2028 using borrowings under its revolving credit facility. The company ended June with $113.2 million in remaining share repurchase authorization and did not repurchase shares during the quarter.

AROC Tightens 2026 EBITDA Guidance

Archrock tightened its 2026 adjusted EBITDA guidance to $865-$885 million from $865-$915 million. The revision reflects higher contract compression make-ready costs, anticipated second-half lube oil cost pressure, softer aftermarket services demand and higher selling, general and administrative costs tied to long-term incentive compensation.

The company maintained 2026 growth capital spending guidance of $250-$275 million and expects the total capital expenditure to be between $400 million and $445 million. Archrock introduced cumulative growth capital guidance of $1.4 to $1.6 billion for 2027 to 2030, aimed at adding 1 million horsepower to meet expected demand. The company signed an eight-year agreement with a strategic customer covering approximately 665,000 horsepower, with a two-year extension option.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -9.93% due to these changes.

VGM ScoresAt this time, Archrock Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Archrock Inc. has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerArchrock Inc. is part of the Zacks Oil and Gas - Field Services industry. Over the past month, FMC Technologies (FTI - Free Report) , a stock from the same industry, has gained 15%. The company reported its results for the quarter ended June 2026 more than a month ago.

FMC Technologies reported revenues of $2.76 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $0.91 for the same period compares with $0.68 a year ago.

For the current quarter, FMC Technologies is expected to post earnings of $0.89 per share, indicating a change of +18.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for FMC Technologies. Also, the stock has a VGM Score of A.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Archrock Inc. (AROC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Archrock Inc. currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.

Of the nine recommendations that derive the current ABR, six are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 66.7% and 22.2% of all recommendations.

Brokerage Recommendation Trends for AROC

Check price target & stock forecast for Archrock Inc. here>>>

The ABR suggests buying Archrock Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is AROC Worth Investing In?Looking at the earnings estimate revisions for Archrock Inc., the Zacks Consensus Estimate for the current year has declined 9.3% over the past month to $1.73.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Archrock Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Archrock Inc with a grain of salt.

Deutsche Bank AG purchased a new position in shares of Archrock, Inc. (NYSE:AROC – Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 191,424 shares of the energy company’s stock, valued at approximately $7,793,000. Deutsche Bank AG owned 0.11% of Archrock as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Royal Bank of Canada boosted its holdings in Archrock by 0.7% in the 1st quarter. Royal Bank of Canada now owns 95,866 shares of the energy company’s stock valued at $2,514,000 after purchasing an additional 667 shares in the last quarter. Jones Financial Companies Lllp increased its position in Archrock by 217.9% during the 1st quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company’s stock worth $35,000 after purchasing an additional 902 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Archrock by 482.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company’s stock worth $67,000 after buying an additional 2,236 shares in the last quarter. First Trust Advisors LP raised its stake in shares of Archrock by 24.6% during the 2nd quarter. First Trust Advisors LP now owns 279,100 shares of the energy company’s stock worth $6,930,000 after buying an additional 55,059 shares in the last quarter. Finally, Daiwa Securities Group Inc. lifted its holdings in shares of Archrock by 19.8% in the 2nd quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company’s stock valued at $241,000 after buying an additional 1,600 shares during the period. 95.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes AROC has been the topic of a number of analyst reports. Stifel Nicolaus set a $41.00 price target on Archrock in a research note on Thursday, May 7th. Mizuho increased their price objective on Archrock from $38.00 to $40.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 3rd. Raymond James Financial reissued an “outperform” rating and issued a $46.00 target price on shares of Archrock in a report on Thursday, May 7th. Wells Fargo & Company decreased their target price on shares of Archrock from $43.00 to $40.00 and set an “overweight” rating on the stock in a research report on Thursday, August 6th. Finally, Evercore set a $40.00 price target on shares of Archrock in a research note on Monday, August 17th. Nine research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $42.29.

View Our Latest Stock Report on AROC Archrock Price Performance Shares of NYSE:AROC opened at $31.78 on Monday. The business’s 50 day simple moving average is $36.43 and its 200-day simple moving average is $35.79. The firm has a market capitalization of $5.57 billion, a price-to-earnings ratio of 17.09, a price-to-earnings-growth ratio of 1.47 and a beta of 0.86. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.39 and a quick ratio of 0.94. Archrock, Inc. has a 12 month low of $22.88 and a 12 month high of $42.23.

Archrock (NYSE:AROC – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.07). Archrock had a return on equity of 22.22% and a net margin of 21.84%.The firm had revenue of $371.24 million during the quarter, compared to analyst estimates of $393.19 million. During the same quarter in the prior year, the company earned $0.39 EPS. The business’s revenue was down 3.1% on a year-over-year basis. As a group, equities analysts forecast that Archrock, Inc. will post 1.81 earnings per share for the current fiscal year.

Archrock Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, August 11th. Shareholders of record on Tuesday, August 4th were given a dividend of $0.23 per share. The ex-dividend date was Tuesday, August 4th. This is a positive change from Archrock’s previous quarterly dividend of $0.22. This represents a $0.92 dividend on an annualized basis and a yield of 2.9%. Archrock’s dividend payout ratio (DPR) is presently 49.46%.

Archrock Company Profile (Free Report)

Archrock, Inc is a Houston‐based provider of natural gas compression services and equipment to the oil and gas industry in North America. Founded in 2004, the company supplies both short‐term rentals and long‐term contracts for compression solutions, serving upstream and midstream producers. Archrock’s offerings include engineered compression systems, aftermarket parts, maintenance and field services designed to optimize wellhead and pipeline operations.

The company’s core business activities focus on the design, manufacture, rental and sale of gas compression equipment.

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Key Takeaways Archrock sees U.S. gas demand rising from 116.2 billion cubic feet per day in 2025 to 143.3 by 2030.Archrock exited Q226 at 94.4% spot utilization, with an eight-year deal covering 665,000 horsepower.AROC trades at 3.8X forward 12-month sales per share; 2026 EBITDA guidance is $865-$885 million. Archrock, Inc. (AROC - Free Report) is positioned to benefit from rising demand for natural gas compression, with high utilization and long-term customer commitments supporting its growth runway.

The harder question is price. AROC trades at a premium while current-fiscal-year earnings per share growth is projected to decline and debt, cost pressures and execution risks remain meaningful.

Archrock's Gas Demand Backdrop Supports ExpansionManagement expects natural gas demand tied to liquefied natural gas exports to rise from about 20 billion cubic feet per day in 2026 to 35 billion by 2030. Rising power demand, Permian takeaway capacity and higher gas-to-oil ratios should increase the compression required to move growing volumes.

Kodiak Gas Services, Inc. (KGS - Free Report) is a large-horsepower contract compression provider serving major U.S. producing basins. USA Compression Partners, LP (USAC - Free Report) focuses on midstream compression for gathering, processing and transportation applications. Both give context on compression-industry demand.

Key Natural Gas Demand DriversArchrock sees rising U.S. natural gas consumption as a key long-term driver of demand for compression services. The company projects U.S. natural gas demand increasing from 116.2 billion cubic feet per day in 2025 to 143.3 billion cubic feet per day by 2030.

LNG exports account for the largest expected increase at 16.1 billion cubic feet per day, while power generation for AI data centers contributes 9.8 billion and pipeline exports add 1.2 billion. This expansion in gas demand should support higher production and transportation requirements, creating a favorable backdrop for Archrock’s compression operations.

Image Source: Archrock

AROC's Utilization and Contracts Add VisibilityAROC exited the second quarter of 2026 with 94.4% spot utilization, 4.52 million operating horsepower and a Contract Operations adjusted gross margin of 71%. High utilization supports asset productivity as customer demand remains healthy.

Visibility improved with an eight-year agreement covering about 665,000 horsepower, plus a two-year extension option. Archrock expects roughly one million horsepower of additions from 2027 through 2030, supported by $1.4 billion to $1.6 billion of cumulative growth capital.

Archrock's Cash Flow Funds Growth and ReturnsSecond-quarter operating cash flow reached $160.8 million, while adjusted free cash flow was $67 million. Total capital expenditures were $98 million, showing that the business can fund a sizable investment program while still generating cash.

Archrock raised its quarterly dividend about 10% year over year to 23 cents per share, with 3.1X coverage. Management plans to return 25% to 35% of operating cash flow through dividend growth and opportunistic repurchases, alongside organic expansion.

AROC's Premium Valuation Raises the HurdleValuation is the clearest restraint. AROC trades at 3.8X forward 12-month sales per share versus 1.5X for the Zacks sub-industry and above its five-year median of 2.8X.

That premium looks harder to defend when projected earnings per share growth for the current fiscal year is -4.7%. Shares have risen 24.1% year to date, raising the hurdle for earnings and cash-flow execution.

Archrock's Debt and Execution Risks Merit PatienceLong-term debt was about $2.3 billion at June 30, although leverage improved to 2.6X from 3.3X a year earlier. Variable-rate debt of $865.6 million at a 5.4% weighted-average rate leaves some sensitivity to financing costs.

Execution also matters as engine lead times remain just under 200 weeks. Higher make-ready and lube-oil costs, softer aftermarket demand and increased incentive compensation prompted management to tighten 2026 adjusted EBITDA guidance to $865-$885 million from $865-$915 million.

AROC's Ratings Favor Selectivity Over UrgencyAROC's structural demand case remains intact, but the setup favors selectivity. High utilization, long contracts and cash generation support expansion, while the premium valuation, slower near-term earnings growth and execution risks argue against chasing the stock.

AROC currently carries a Zacks Rank #4 (Sell). Under the Zacks framework, that rank signals caution over one to three months and takes priority over favorable Zacks Style Scores.

The stock has a Growth Score of B, Momentum Score of B and VGM Score of B, but a Value Score of C. The mix favors growth and momentum over value. For new investors, patience for a better valuation or improving earnings-estimate trends appears more consistent with the risk-reward balance.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Archrock's Q2 2026 revenues declined 3.1% as weaker aftermarket services offset growth in contract operations.Archrock's contract operations revenues rose 3.4%, while the adjusted gross margin increased 5.6%.Archrock tightened its 2026 EBITDA guidance as softer services demand and higher costs weigh on the outlook. Archrock, Inc. (AROC - Free Report) reported second-quarter 2026 adjusted earnings of 38 cents per share, down 2.6% from 39 cents per share a year earlier. The bottom line missed the Zacks Consensus Estimate of 46 cents by 17.4%.

Revenues of $371.2 million declined 3.1% from $383.2 million a year ago. The top line missed the consensus mark of $390.4 million by 4.9%.

The weak quarterly results were primarily due to softness in aftermarket services (AMS), which offset solid contract operations performance.

Period-end horsepower utilization remained high at 94.4%, while contract operations adjusted gross margin percentage improved from the year-ago period.

AROC's Contract Operations Remain ResilientContract operations revenues rose 3.4% to $329.3 million from $318.3 million. The increase reflected higher rates, an additional month of contribution from the NGCS acquisition and revenues from horsepower additions, partly offset by active horsepower sales used to high-grade the fleet.

Contract operations adjusted gross margin increased 5.6% to $234.6 million, while the adjusted gross margin percentage rose to 71% from 70%. Total operating horsepower ended the quarter at 4.5 million compared with 4.7 million a year earlier, with the decline largely driven by the sale of approximately 165,000 non-strategic operating horsepower.

Archrock's Aftermarket Services Lose MomentumAftermarket services revenues fell 35.2% to $42 million from $64.8 million in the second quarter of 2025. The decline was due to lower parts sales, the absence of non-recurring overhauled-engine sales that benefited the prior-year quarter and reduced demand for major maintenance activity.

The adjusted gross margin for the segment declined 33.6% to $9.9 million from $14.9 million. However, the adjusted gross margin percentage improved to 24% from 23%, reflecting disciplined execution and a focus on higher-quality, higher-margin work.

AROC's Margin Gains Offset Some Cost PressureTotal adjusted gross margin increased to $244.5 million from $237.1 million a year ago. The adjusted gross margin percentage expanded to 66% from 62%, helped by the stronger profitability of contract operations and the improved margin rate in aftermarket services.

Selling, general and administrative expenses rose 9.4% to $39.6 million from $36.2 million. Higher long-term incentive compensation, primarily driven by the stock price increase, was a key factor. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) remained flat at $212.6 million compared with $212.7 million in the prior-year quarter.

Archrock Generates Solid Cash FlowNet cash provided by operating activities was $160.8 million in the quarter. The adjusted free cash flow totaled $67 million, while adjusted free cash flow after dividends was $28.4 million. The total capital expenditure was$98.0 million.

AROC Raises DividendThe board raised the quarterly dividend around 10% to 23 cents per share from 21 cents a year earlier. Dividend coverage was 3.1X, supporting the company's continued emphasis on shareholder returns alongside growth investment.

Archrock Maintains Balance Sheet FlexibilityAs of June 30, 2026, AROC’s long-term debt was $2.35 billion, while the leverage ratio improved to 2.6X from 3.3X a year ago. Available liquidity totaled $631 million at the quarter-end.

During the quarter, Archrock redeemed $800 million of 6.25% senior notes due 2028 using borrowings under its revolving credit facility. The company ended June with $113.2 million in remaining share repurchase authorization and did not repurchase shares during the quarter.

AROC Tightens 2026 EBITDA GuidanceArchrock tightened its 2026 adjusted EBITDA guidance to $865-$885 million from $865-$915 million. The revision reflects higher contract compression make-ready costs, anticipated second-half lube oil cost pressure, softer aftermarket services demand and higher selling, general and administrative costs tied to long-term incentive compensation.

The company maintained 2026 growth capital spending guidance of $250-$275 million and expects the total capital expenditure between $400 million and $445 million. Archrock introduced cumulative growth capital guidance of $1.4-$1.6 billion for 2027-2030, aimed at adding 1 million horsepower to meet expected demand. The company signed an eight-year agreement with a strategic customer covering approximately 665,000 horsepower, with a two-year extension option.

AROC’s Zacks Rank & Stocks to ConsiderArchrock currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are PBF Energy Inc. (PBF - Free Report) , Valero Energy Corporation (VLO - Free Report) and Cactus, Inc. (WHD - Free Report) . PBF sports a Zacks Rank #1 (Strong Buy), and VLO and WHD carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05.

As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.

Valero reported second-quarter 2026 adjusted earnings of $12.54 per share, which beat the Zacks Consensus Estimate of $9.87.

As of June 30, 2026, VLO had total debt of $9.10 billion, and cash and cash equivalents of $7.87 billion.

Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents.

As of June 30, 2026, WHD had cash and cash equivalents of $365 million.

Oil’s Outlook Looks Ugly—That’s Why These 3 Energy Plays MatterArchrock NYSE: AROC reported second-quarter 2026 results marked by high contract-operations utilization, strong margins and continued free-cash-flow generation, while narrowing its full-year adjusted EBITDA outlook to account for near-term cost pressures and customer maintenance deferrals.

The company posted net income and adjusted net income of $67 million for the quarter, with adjusted earnings per share of $0.38. Adjusted EBITDA was $213 million, essentially flat from a year earlier, Chief Financial Officer Mohit Singh said. Higher adjusted gross-margin dollars in contract operations were offset by lower Aftermarket Services gross-margin dollars and higher selling, general and administrative expense.

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3 Oil & Gas Gear Makers With Triple-Digit EPS Growth ForecastsPresident and CEO Brad Childers described the quarter as “outstanding,” citing healthy customer demand, high utilization, low unit-stop activity and a recently signed long-term agreement with an existing strategic customer covering approximately 665,000 horsepower for midstream applications.

Contract Operations Remain Strong Contract Operations revenue rose 3% year over year to $329 million. Singh said higher rates, an additional month of contribution from the NGCS acquisition and revenue from added horsepower supported the increase. Those factors were partly offset by sales of active horsepower as Archrock continued to high-grade its fleet.

Contract Operations adjusted gross margin reached 71%, compared with 70% in the prior-year quarter. Fleet utilization stood at 94.4%, marking the company’s seventh consecutive quarter with adjusted gross margin above 70%.

Archrock ended the quarter with 4.5 million operating horsepower, compared with 4.7 million a year earlier. Childers said the primary reason for the year-over-year decline was the sale of about 165,000 non-strategic operating horsepower. Excluding active asset sales, operating horsepower was down roughly 7,500 sequentially.

The 665,000-horsepower customer agreement includes an eight-year base term and a two-year extension option. Childers said longer contract terms could become more common as large-horsepower units remain at customer locations for longer periods. He said large horsepower has an average duration on location of about eight years, while all horsepower averages about six years.

Archrock said Caterpillar engine lead times remain extended at just under 200 weeks, with Childers putting current equipment lead times at about 195 weeks. He said the company sees no indication that the lengthy lead times will ease, adding that packager floor space has also tightened, although Archrock has not faced challenges getting required equipment through shops.

Aftermarket Activity Declines as Customers Defer Maintenance Aftermarket Services revenue fell to $42 million from $65 million in the second quarter of 2025. The decline reflected lower parts sales and reduced demand for major maintenance work, as some customers deferred maintenance to keep equipment running amid higher crude oil prices, Singh said. The prior-year comparison also included elevated parts sales and non-recurring sales of overhauled engines.

Despite lower revenue, Aftermarket Services adjusted gross margin improved to 24% from 23% a year earlier, which management attributed to disciplined execution and a focus on higher-quality, higher-margin work.

Childers said maintenance demand has been deferred rather than eliminated. “The equipment is going to require the maintenance,” he said during the question-and-answer session, adding that Archrock expects the work to return, though the segment remains difficult to forecast.

Guidance Narrowed Despite Continued Demand Expectations Archrock narrowed its 2026 adjusted EBITDA guidance range to $865 million to $885 million, from its previous outlook of $865 million to $915 million. The revised outlook reflects near-term lube-oil and make-ready cost pressure, customer maintenance deferrals in Aftermarket Services, and higher long-term incentive compensation associated with the company’s rising stock price.

Childers said the adjustment does not reflect a change in demand fundamentals. For the second half, Archrock expects additional horsepower deliveries, pricing opportunities, potential Aftermarket Services recovery and internal cost-mitigation initiatives to support results. Contract Operations margins are expected to remain around 70% in the back half of the year despite anticipated lube-oil and make-ready costs.

Management also said it is seeing increased activity in the Permian Basin as additional export capacity begins to come online. However, Childers noted that Archrock’s recent bookings remain diversified, with less than half coming from the Permian and about half from other producing regions.

Capital Plan Targets Growth Through 2030 Archrock reaffirmed 2026 total capital expenditures of approximately $400 million to $445 million, including $250 million to $275 million of growth capital, $125 million to $135 million of maintenance capital, and $25 million to $35 million of other capital expenditures. Second-quarter capital expenditures totaled $98 million, including $51 million of growth capital and $39 million of maintenance capital.

The company introduced a longer-term framework calling for approximately $1.4 billion to $1.6 billion of cumulative growth capital spending from 2027 through 2030. Archrock expects to add about 1 million horsepower over that period, with investment focused predominantly on large-horsepower and electric-motor-drive compression equipment.

Childers said the forecast incorporates normalized inflation for new equipment but does not assume sharp price increases from original equipment manufacturers or packagers. The company expects to prioritize organic growth investments while returning 25% to 35% of operating cash flow to shareholders through dividend growth and opportunistic share repurchases.

Archrock generated $67 million of adjusted free cash flow during the quarter and $28 million of adjusted free cash flow after dividends. The board increased the quarterly dividend to $0.23 per share from $0.22 per share, representing the company’s fifth dividend increase in two years. Dividend coverage was 3.1 times in the quarter.

Long-term debt totaled $2.3 billion at June 30, while leverage stood at 2.6 times, down from 3.3 times a year earlier. The company said it had $631 million of available liquidity after redeeming $800 million of 6.25% senior notes due in 2028 using its revolving credit facility. Archrock said its first debt maturity is now in 2032.

As of quarter-end, the company had $113.2 million remaining under its share-repurchase authorization. Since the program began in April 2023, Archrock has repurchased about 4.6 million shares at an average price of $20.91 per share, totaling $96.9 million.

About Archrock (NYSE:AROC)Archrock, Inc is a Houston‐based provider of natural gas compression services and equipment to the oil and gas industry in North America. Founded in 2004, the company supplies both short‐term rentals and long‐term contracts for compression solutions, serving upstream and midstream producers. Archrock's offerings include engineered compression systems, aftermarket parts, maintenance and field services designed to optimize wellhead and pipeline operations.

The company's core business activities focus on the design, manufacture, rental and sale of gas compression equipment.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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HOUSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today reported results for the second quarter 2026.

Second Quarter 2026 Highlights

Revenue for the second quarter of 2026 was $371.2 million compared to $383.2 million in the second quarter of 2025.Net income for the second quarter of 2026 was $66.7 million and EPS was $0.38 compared to $63.4 million and $0.36, respectively, in the second quarter of 2025.Adjusted net income (a non-GAAP measure defined below) for the second quarter of 2026 was $66.5 million and adjusted EPS (a non-GAAP measure defined below) was $0.38, compared to $68.4 million and $0.39, respectively, in the second quarter of 2025.Adjusted EBITDA (a non-GAAP measure defined below) for the second quarter of 2026 was $212.6 million compared to $212.7 million in the second quarter of 2025.Signed a long-term agreement with an existing strategic customer covering approximately 665,000 horsepower, for an eight-year base term with a two-year extension option.Declared a quarterly dividend of $0.23 per common share for the second quarter of 2026, approximately 10% higher compared to the second quarter of 2025, resulting in dividend coverage of 3.1x.Leverage ratio of 2.6x as of June 30, 2026, down from 3.3x as of June 30, 2025.Introduced multi-year growth capital expenditure guidance of $1.4 billion to $1.6 billion cumulatively from 2027 through 2030.Tightening full-year 2026 Adjusted EBITDA guidance to a range of $865 million to $885 million compared to prior guidance of $865 million to $915 million. Management Commentary and Outlook

“The compression market outlook remains highly constructive, driven by durable natural gas demand and a structurally tight compression market continuing to support our expectations for robust long-term growth,” said Brad Childers, Archrock’s President and Chief Executive Officer. “Our Contract Compression business continues to perform at a high level, supported by strong utilization, outstanding profitability and a healthy order book. This demand outlook supports reaffirming 2026 growth capital expenditures of $250 million to $275 million and a multi-year growth capital investment opportunity ranging from $1.4 billion to $1.6 billion cumulatively from 2027 through 2030.

“We are tightening our full-year adjusted EBITDA guidance to primarily reflect near-term costs, including lube oil and timing impacts. This does not reflect a change in demand fundamentals. We remain confident in the strength of our core business and long-term outlook.

“We are focused on maximizing customer service and operational reliability, supporting critical midstream infrastructure tied to long-term growth in LNG exports and power demand, and maintaining a disciplined, returns-based approach to capital allocation. Our continued dividend increases, including five increases over the past two years, reflect our strong confidence in the durability of our long-term cash flow projections. Archrock has sector-leading balance sheet strength and a growing free cash flow profile, which position us well to support our customers’ long-term natural gas infrastructure needs while continuing to create peer-leading and durable shareholder value,” concluded Childers.

Second Quarter 2026 Financial Results

Archrock’s second quarter 2026 net income of $66.7 million included a non-cash long-lived and other asset impairment of $4.9 million. Archrock’s second quarter 2025 net income of $63.4 million included a non-cash long-lived and other asset impairment of $10.8 million and transaction-related costs totaling $6.1 million.

Adjusted EBITDA for the second quarter of 2026 and 2025 included $0.3 million and $4.3 million, respectively, in net gains primarily related to the sale of compression and other assets. Also included in Adjusted EBITDA for the second quarter of 2026 was a debt extinguishment gain of $0.7 million related to the redemption of all outstanding 6.250% senior notes due 2028 on April 1, 2026 (the “2028 Notes”).

Contract Operations

For the second quarter of 2026, contract operations segment revenue totaled $329.3 million, an increase of 3% compared to $318.3 million in the second quarter of 2025. Total operating horsepower at the end of the second quarter of 2026 was 4.5 million compared to 4.7 million at the end of the second quarter of 2025, reflecting period-end fleet utilization of 94.4% and the sale of approximately 165,000 non-strategic operating horsepower since the prior-year period.

Adjusted gross margin for the second quarter of 2026 was $234.6 million, up 6% from $222.2 million in the second quarter of 2025. Adjusted gross margin percentage for the second quarter of 2026 was 71%, compared to 70% in the second quarter of 2025.

Aftermarket Services

For the second quarter of 2026, aftermarket services segment revenue totaled $42.0 million, compared to $64.8 million in the second quarter of 2025, primarily reflecting lower parts sales due to the absence of non-recurring sales of overhauled engines that benefited the prior-year quarter and reduced customer demand for major maintenance service activity, which did not experience the typical mid-year seasonal uptick. Adjusted gross margin for the second quarter of 2026 was $9.9 million, compared to $14.9 million in the second quarter of 2025. Adjusted gross margin percentage for the second quarter of 2026 was 24%, compared to 23% for the second quarter of 2025.

Balance Sheet

Long-term debt was $2.3 billion, and our available liquidity totaled $631 million at June 30, 2026. Our leverage ratio was 2.6x as of June 30, 2026, down from 3.3x as of June 30, 2025.

On April 1, 2026, we repurchased our 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 our $1.5 billion asset-based revolving credit facility due May 2028. 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 $0.23 per share of common stock, or $0.92 per share on an annualized basis, approximately 10% higher compared to the second quarter of 2025. Dividend coverage in the second quarter of 2026 was 3.1x. The second quarter 2026 dividend will be paid on August 11, 2026 to stockholders of record at the close of business on August 4, 2026.

Share Repurchase Program

We did not repurchase any outstanding shares during the second quarter of 2026. The share repurchase program had an available capacity of $113.2 million as of June 30, 2026.

Since the inception of the Share Repurchase Program in April 2023 and through June 30, 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.

2026 Annual Guidance

Archrock is providing updated annual guidance as listed below. The updated 2026 Adjusted EBITDA guidance primarily reflects changes in certain assumptions, including an increase in contract compression make-ready costs to put idle equipment back to work, anticipated second-half lube oil cost pressure, reduced customer demand for aftermarket services, which did not experience the typical mid-year seasonal uptick, and higher SG&A expense due to higher long-term incentive compensation primarily driven by stock price increases. All figures are in thousands, except percentages and ratios:

  Full Year 2026 Guidance    Low  High Net income(1) (2) $290,750 $310,750 Adjusted EBITDA(3)  865,000  885,000 Cash available for dividend(4) (5)  566,000  566,000         Segment       Contract operations revenue $1,325,000 $1,335,000 Contract operations adjusted gross margin percentage(3)  71.0% 71.5%Aftermarket services revenue $175,000 $185,000 Aftermarket services adjusted gross margin percentage(3)  21.5% 22.0%        Selling, general and administrative $153,000 $150,000         Capital expenditures       Growth capital expenditures $250,000 $275,000 Maintenance capital expenditures  125,000  135,000 Other capital expenditures  25,000  35,000  ________________________________
(1)   2026 annual guidance for net income includes $10.1 million of long-lived and other asset impairment as of June 30, 2026, but 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 incurred related to the acquisitions of Total Operations and Production Services, LLC (“TOPS”) and Natural Gas Compression Systems, Inc. and NGCSE, Inc. (“NGCS”).
(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.

Summary Metrics
(in thousands, except percentages and ratios)

  Three Months Ended   June 30, March 31, June 30,   2026 2026 2025 Net income $66,720 $73,794 $63,420  Adjusted net income(1) $66,535 $74,372 $68,374  Adjusted EBITDA(1) $212,626 $220,993 $212,678             Contract operations revenue $329,260 $330,880 $318,327  Contract operations adjusted gross margin $234,588 $237,609 $222,175  Contract operations adjusted gross margin percentage  71% 72% 70 %           Aftermarket services revenue $41,978 $42,887 $64,825  Aftermarket services adjusted gross margin $9,924 $9,814 $14,939  Aftermarket services adjusted gross margin percentage  24% 23% 23 %           Selling, general, and administrative $39,641 $45,231 $36,244             Net cash provided by operating activities $160,782 $185,853 $127,471  Cash available for dividend(1) $127,184 $134,067 $125,055  Cash available for dividend coverage(2)  3.1x 3.5x 3.4 x           Adjusted free cash flow(1) (3) $66,990 $91,902 $(250,195) Adjusted free cash flow after dividend(1) (3) $28,366 $51,995 $(283,815)            Total available horsepower (at period end)(4)  4,784  4,765  4,843  Total operating horsepower (at period end)(5)  4,516  4,528  4,651  Horsepower utilization spot (at period end)(6)  94.4% 95.0% 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)   Defined as cash available for dividend divided by dividends declared for the period.
(3)   Reflects $296.6 million cash paid in the NGCS acquisition, net of cash acquired, during the three months ended June 30, 2025.
(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 August 5, 2026, to discuss second 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 (833) 461-5787 in the United States or 1 (585) 542-9983 for international calls. The meeting ID is 670342078.

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 gain 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, restructuring charges, debt extinguishment gain, 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, restructuring charges, debt extinguishment gain, 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 Reports on Form 10-Q 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
[email protected]

 Archrock, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)  Three Months Ended June 30, March 31, June 30, 2026 2026 2025Revenue:        Contract operations$329,260  $330,880  $318,327 Aftermarket services 41,978   42,887   64,825 Total revenue 371,238   373,767   383,152          Cost of sales, exclusive of depreciation and amortization        Contract operations 94,672   93,271   96,152 Aftermarket services 32,054   33,073   49,886 Total cost of sales, exclusive of depreciation and amortization 126,726   126,344   146,038          Selling, general and administrative 39,641   45,231   36,244 Depreciation and amortization 71,478   69,734   63,139 Long-lived and other asset impairment 4,881   5,259   10,847 Restructuring charges 125   136   144 Debt extinguishment gain (687)  —   — Interest expense 37,016   39,510   41,711 Transaction-related costs 328   596   6,127 Gain on sale of assets, net (297)  (10,116)  (4,297)Other income, net (967)  (605)  (2,841)Income before income taxes 92,994   97,678   86,040 Provision for income taxes 25,821   23,404   22,433 Income before equity in net loss of unconsolidated affiliate 67,173   74,274   63,607 Equity in net loss of unconsolidated affiliate 453   480   187 Net income$66,720  $73,794  $63,420          Basic and diluted earnings per common share(1)$0.38  $0.41  $0.36          Weighted-average common shares outstanding:        Basic 174,410   174,084   175,007 Diluted 174,744   174,496   175,264  ________________________________
(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   June 30, March 31, June 30,   2026 2026 2025 Revenue:          Contract operations $329,260  $330,880  $318,327  Aftermarket services  41,978   42,887   64,825  Total revenue $371,238  $373,767  $383,152             Adjusted gross margin:          Contract operations $234,588  $237,609  $222,175  Aftermarket services  9,924   9,814   14,939  Total adjusted gross margin(1) $244,512  $247,423  $237,114             Adjusted gross margin percentage:          Contract operations  71 % 72 % 70 %Aftermarket services  24 % 23 % 23 %Total adjusted gross margin percentage(1)  66 % 66 % 62 %           Selling, general and administrative $39,641  $45,231  $36,244  % of revenue  11 % 12 % 9 %           Adjusted EBITDA(1) $212,626  $220,993  $212,678  % of revenue  57 % 59 % 56 %           Capital expenditures $97,964  $113,484  $111,462  Proceeds from sale of property, equipment and other assets  (4,062)  (21,301)  (28,589) Net capital expenditures $93,902  $92,183  $82,873             Total available horsepower (at period end)(2)  4,784   4,765   4,843  Total operating horsepower (at period end)(3)  4,516   4,528   4,651  Average operating horsepower  4,514   4,553   4,467  Horsepower utilization:          Spot (at period end)(4)  94.4 % 95.0 % 96.0 %Average(4)  94.4 % 95.3 % 96.0 %           Dividend declared for the period per share $0.230  $0.220  $0.210  Dividend declared for the period to all stockholders $40,471  $38,729  $37,155  Cash available for dividend coverage(5)  3.1 x 3.5 x 3.4 x           Adjusted free cash flow(1) (6) $66,990  $91,902  $(250,195) Adjusted free cash flow after dividend(1) (6) $28,366  $51,995  $(283,815)  ________________________________
(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.
(2)   Defined as idle and operating horsepower and includes new compressor units completed by a third-party manufacturer that have been delivered to us.
(3)   Defined as horsepower that is operating under contract and horsepower that is idle but under contract and generating revenue such as standby revenue.
(4)   Defined as total operating horsepower divided by total available horsepower at period end (spot) or over time (average).
(5)   Defined as cash available for dividend divided by dividends declared for the period.
(6)   Reflects $296.6 million cash paid in the NGCS acquisition, net of cash acquired, during the three months ended June 30, 2025.

  June 30, March 31, June 30,  2026 2026 2025Balance Sheet         Long-term debt(1) $2,347,810 $2,379,028 $2,613,082Total equity  1,552,105  1,518,002  1,408,440 ________________________________
(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 June 30, March 31, June 30, 2026 2026 2025Net income$66,720  $73,794  $63,420 Restructuring charges 125   136   144 Transaction-related costs 328   596   6,127 Debt extinguishment gain (687)  —   — Tax effect of adjustments(1) 49   (154)  (1,317)Adjusted net income(2)$66,535  $74,372  $68,374          Weighted-average common shares outstanding:        Basic 174,410   174,084   175,007 Diluted 174,744   174,496   175,264          Basic and diluted earnings per common share(3)$0.38  $0.41  $0.36          Restructuring charges per share$0.00  $0.00  $0.00 Transaction-related costs per share 0.01   0.01   0.04 Debt extinguishment gain per share (0.01)  —   — Tax effect of adjustments per share 0.00   (0.00)  (0.01)Adjusted basic and diluted earnings per common share(2)$0.38  $0.42  $0.39  ________________________________
(1)   Represents an estimated tax effect of restructuring charges, transaction-related costs and debt extinguishment gain 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  June 30, March 31, June 30,  2026 2026 2025Net income $66,720  $73,794  $63,420 Depreciation and amortization  71,478   69,734   63,139 Long-lived and other asset impairment  4,881   5,259   10,847 Restructuring charges  125   136   144 Debt extinguishment gain  (687)  —   — Interest expense  37,016   39,510   41,711 Transaction-related costs  328   596   6,127 Stock-based compensation expense  5,507   6,811   4,085 Amortization of capitalized implementation costs  1,015   1,030   818 Indemnification (income) expense, net  (31)  239   (233)Provision for income taxes  25,821   23,404   22,433 Equity in net loss of unconsolidated affiliate  453   480   187 Adjusted EBITDA(1)  212,626   220,993   212,678 Selling, general and administrative  39,641   45,231   36,244 Stock-based compensation expense  (5,507)  (6,811)  (4,085)Amortization of capitalized implementation costs  (1,015)  (1,030)  (818)Indemnification income (expense), net  31   (239)  233 Gain on sale of assets, net  (297)  (10,116)  (4,297)Other income, net  (967)  (605)  (2,841)Adjusted gross margin(1) $244,512  $247,423  $237,114  ________________________________
(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  June 30, March 31, June 30,  2026 2026 2025Total revenues $371,238   $373,767   $383,152  Cost of sales, exclusive of depreciation and amortization  (126,726)   (126,344)   (146,038) Depreciation and amortization  (71,478)   (69,734)   (63,139) Gross margin and gross margin percentage  173,034 47%  177,689 48%  173,975 45%Depreciation and amortization  71,478    69,734    63,139  Adjusted gross margin and adjusted gross margin percentage(1) $244,512 66% $247,423 66% $237,114 62% ________________________________
(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  June 30, March 31, June 30,  2026 2026 2025Net income $66,720  $73,794  $63,420 Depreciation and amortization  71,478   69,734   63,139 Long-lived and other asset impairment  4,881   5,259   10,847 Restructuring charges  125   136   144 Debt extinguishment gain  (687)  —   — Interest expense  37,016   39,510   41,711 Transaction-related costs  328   596   6,127 Stock-based compensation expense  5,507   6,811   4,085 Amortization of capitalized implementation costs  1,015   1,030   818 Indemnification (income) expense, net  (31)  239   (233)Provision for income taxes  25,821   23,404   22,433 Equity in net loss of unconsolidated affiliate  453   480   187 Adjusted EBITDA(1)  212,626   220,993   212,678 Less: Maintenance capital expenditures  (39,413)  (34,047)  (32,413)Less: Other capital expenditures  (7,612)  (14,523)  (11,707)Less: Cash tax payment  (2,829)  (70)  (2,853)Less: Cash interest expense  (35,588)  (38,286)  (40,650)Cash available for dividend(2) $127,184  $134,067  $125,055  ________________________________
(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   June 30,  March 31,  June 30,      2026    2026    2025Net cash provided by operating activities $ 160,782  $ 185,853  $ 127,471 Inventory write-downs   (70)   (93)   (280)Benefit from (provision for) credit losses   (109)   24    (71)Gain on sale of assets, net   297    10,116    4,297 Current income tax benefit   995    959    2,155 Cash tax payment   (2,829)   (70)   (2,853)Amortization of operating lease ROU assets   (1,225)   (1,156)   (1,080)Amortization of contract costs   (4,864)   (4,923)   (5,615)Deferred revenue recognized in earnings   5,096    6,260    4,039 Indemnification (income) expense, net   (31)   239    (233)Cash restructuring charges   125    136    144 Cash transaction-related costs   328    596    6,127 Time-based cash or equity settled units settled as equity   —    (2,713)   — Changes in assets and liabilities   15,714    (12,591)   35,074 Maintenance capital expenditures   (39,413)   (34,047)   (32,413)Other capital expenditures   (7,612)   (14,523)   (11,707)Cash available for dividend (1) $ 127,184  $ 134,067  $ 125,055  ________________________________
(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  June 30, March 31, June 30,  2026 2026 2025Net cash provided by operating activities $160,782  $185,853  $127,471 Net cash used in investing activities(1)  (93,792)  (93,951)  (377,666)Adjusted free cash flow(1) (2)  66,990   91,902   (250,195)Dividends paid to stockholders  (38,624)  (39,907)  (33,620)Adjusted free cash flow after dividend(1) (2) $28,366  $51,995  $(283,815) ________________________________
(1)   Reflects $296.6 million cash paid in the NGCS acquisition, net of cash acquired, during the three months ended June 30, 2025.
(2)   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 HighNet income(1) $290,750  $310,750 Interest expense  150,000   150,000 Provision for income taxes  103,000   103,000 Depreciation and amortization  283,000   283,000 Restructuring charges  250   250 Stock-based compensation expense  22,000   22,000 Long-lived and other asset impairment  10,100   10,100 Amortization of capitalized implementation costs  4,000   4,000 Debt extinguishment gain  (700)  (700)Transaction-related costs(2)  1,400   1,400 Equity in net loss of unconsolidated affiliate  1,000   1,000 Indemnification income, net  200   200 Adjusted EBITDA(2) (3)  865,000   885,000 Less: Maintenance capital expenditures  125,000   135,000 Less: Other capital expenditures  25,000   35,000 Less: Cash tax expense  4,000   4,000 Less: Cash interest expense  145,000   145,000 Cash available for dividend(4) (5) $566,000  $566,000  ________________________________
(1)   2026 annual guidance for net income includes $10.1 million of long-lived and other asset impairment as of June 30, 2026, but 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.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Archrock Inc. (AROC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Archrock Inc. currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.

Of the nine recommendations that derive the current ABR, six are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 66.7% and 22.2% of all recommendations.

Brokerage Recommendation Trends for AROC

Check price target & stock forecast for Archrock Inc. here>>>

The ABR suggests buying Archrock Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is AROC a Good Investment?Looking at the earnings estimate revisions for Archrock Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.9.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archrock Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Archrock Inc.

July 23, 2026 17:29 ET  | Source: Archrock

HOUSTON, July 23, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced that its Board of Directors has declared an increased quarterly dividend of $0.23 per share of common stock, or $0.92 per share on an annualized basis. The second quarter 2026 dividend will be paid on August 11, 2026, to all stockholders of record on August 4, 2026.

The second quarter 2026 dividend per share amount represents an increase of approximately 5 percent over the Archrock first quarter 2026 dividend level and an increase of approximately 10 percent over the Archrock second quarter 2025 dividend level.

“This dividend increase, our fifth in the last two years, reflects our confidence in the durable demand outlook for natural gas compression and Archrock’s long-term growth. Backed by a strong balance sheet and growing cash flow, we remain focused on investing in profitable growth and returning cash to shareholders,” said Brad Childers, Archrock’s President and Chief Executive Officer.

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 the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.

Forward-Looking Statements

This press release contains forward-looking statements, which include statements about Archrock’s future financial performance and dividends. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal 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.

For information, contact:

Megan Repine
Vice President, Investor Relations
(281) 836-8360
[email protected]

On July 21, 2026, Archrock Inc (AROC) shares rose 3.4% today, bringing the current price to $38.29. Over the past 52 weeks, the stock has fluctuated between a l

July 15, 2026 06:30 ET  | Source: Archrock

HOUSTON, July 15, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) (“Archrock”) will host a conference call on Wednesday, August 5, 2026, to discuss its second quarter 2026 financial and operating results. The call will begin at 8:30 a.m. Eastern Time. Archrock will release its second quarter 2026 earnings report prior to the conference call.

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 (833) 461-5787 in the United States, or 1 (585) 542-9983 for international calls. The meeting ID is 670 342 078. A replay of the webcast will be available for 90 days on Archrock’s website shortly after the call.

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 the Company embodies its purpose, WE POWER A CLEANER AMERICATM, visit www.archrock.com.

SOURCE: Archrock, Inc.

For information, contact:

Megan Repine
Vice President, Investor Relations
(281) 836-8360
[email protected]

Archrock Inc. (AROC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this natural gas compression services business have returned +10.8% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has lost 8.2% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Archrock Inc. is expected to post earnings of $0.46 per share, indicating a change of +18% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.3% over the last 30 days.

The consensus earnings estimate of $1.9 for the current fiscal year indicates no change from the prior year. This estimate has changed -2.4% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.29 indicates a change of +20.2% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has changed +3.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archrock Inc..

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Archrock Inc., the consensus sales estimate for the current quarter of $390.4 million indicates a year-over-year change of +1.9%. For the current and next fiscal years, $1.55 billion and $1.64 billion estimates indicate +4.2% and +5.6% changes, respectively.

Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.

Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.

Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider HF Sinclair?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. HF Sinclair (DINO - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $3.71 a share, just 29 days from its upcoming earnings release on July 28, 2026.

DINO has an Earnings ESP figure of +8.46%, which, as explained above, is calculated by taking the percentage difference between the $3.71 Most Accurate Estimate and the Zacks Consensus Estimate of $3.42. HF Sinclair is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DINO is just one of a large group of Oils and Energy stocks with a positive ESP figure. Archrock Inc. (AROC - Free Report) is another qualifying stock you may want to consider.

Slated to report earnings on August 3, 2026, Archrock Inc. holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.51 a share 35 days from its next quarterly update.

For Archrock Inc., the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.46 is +10.07%.

Because both stocks hold a positive Earnings ESP, DINO and AROC could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

In the latest trading session, Archrock Inc. (AROC - Free Report) closed at $39.06, marking a +2.57% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.

The natural gas compression services business's shares have seen an increase of 2.23% over the last month, surpassing the Oils-Energy sector's loss of 7.14% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Archrock Inc. will be of great interest to investors. On that day, Archrock Inc. is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 20.51%. Our most recent consensus estimate is calling for quarterly revenue of $390.4 million, up 1.89% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.95 per share and revenue of $1.55 billion. These totals would mark changes of +2.63% and +4.19%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Archrock Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Archrock Inc. is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Archrock Inc. is currently exchanging hands at a Forward P/E ratio of 19.53. For comparison, its industry has an average Forward P/E of 21.21, which means Archrock Inc. is trading at a discount to the group.

It is also worth noting that AROC currently has a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Field Services was holding an average PEG ratio of 2.13 at yesterday's closing price.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 176, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

April 30, 2026 17:12 ET  | Source: Archrock

HOUSTON, April 30, 2026 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock” or the “Company”) today announced that its Board of Directors has declared a quarterly dividend of $0.22 per share of common stock, or $0.88 per share on an annualized basis. The first quarter 2026 dividend will be paid on May 19, 2026, to all stockholders of record on May 12, 2026.

The first quarter 2026 dividend is consistent with Archrock’s fourth quarter 2025 dividend level and represents an increase of approximately 16 percent over the Archrock first quarter 2025 dividend level.    

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 the Company embodies its purpose, WE POWER A CLEANER AMERICATM, visit www.archrock.com.

Forward-Looking Statements

This press release contains forward-looking statements, which include statements about Archrock’s future financial performance and dividends. These statements are not guarantees of future performance or actions. Forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Archrock expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in Archrock’s Annual Report on Form 10-K for the fiscal year ended December 31, 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.

For information, contact:

Megan Repine
Vice President, Investor Relations
(281) 836-8360
[email protected]

We have reached the middle of the first-quarter earnings season, with most of the energy giants having already reported results. Since the energy business environment was favorable in the March quarter, thanks to high commodity prices, backed by the Iran war, APA Corporation (APA - Free Report) , Archrock, Inc. (AROC - Free Report) and Devon Energy Corp. (DVN - Free Report) are likely to report better-than-expected earnings.

How Oil Prices Behaved in Q1To have an idea of how oil prices behaved in the March quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for January, February and March of this year were $60.04 per barrel, $64.51 per barrel and $91.38 per barrel, respectively, per EIA data. Commodity prices were $60.89 per barrel, $60.06 per barrel and $57.97 per barrel, respectively, in October, November and December of 2025, according to the EIA. Investors should note that a more favorable crude pricing environment is likely to have aided the exploration and production businesses.

The favorable commodity prices are likely to have aided production volumes, which is expected to have backed the demand for transportation pipelines of the midstream energy players.

How to Pick the Right Stocks?Given the backdrop, it is by no means an easy task for investors to arrive at picks that have the potential to deliver better-than-expected earnings from the vast universe of energy stocks.

While there is no fool-proof method of picking outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks that have high chances of delivering a surprise in their upcoming earnings announcement. Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.

The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Our ChoicesAPA Corporation, a leading producer of oil and natural gas, is likely to have benefited from a favorable commodity pricing scenario.

APA has an Earnings ESP of +14.52% and currently carries a Zacks Rank #2. It is scheduled to release first-quarter results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is a well-known name in the natural gas compression business and is likely to have capitalized on the demand for growing clean energy. The firm is scheduled to report earnings on May 6, has an Earnings ESP of +5.00% and a Zacks Rank of 3.

Devon Energy is a leading producer of oil and natural gas. The company is likely to have gained from favorable oil prices.  The firm, scheduled to release first-quarter earnings on May 5, has an Earnings ESP of +3.23% and a Zacks Rank #2.

HOUSTON, May 05, 2026 (GLOBE NEWSWIRE) -- 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 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)  72% 78% 70 %           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  23% 24% 25 %           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)  3.5x 4.9x 3.9 x           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
[email protected]

 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 2025Revenue:        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    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)  72 %   78 %   70 %Aftermarket services  23 %   24 %   25 %Total adjusted gross margin percentage (1)  66 %   71 %   64 %           Selling, general and administrative $45,231  $36,679  $37,207  % of revenue  12 %   10 %   11 %           Adjusted EBITDA (1) $220,993  $269,447  $197,845  % of revenue  59 %   71 %   57 %           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  $0.220  $0.190  Dividend declared for the period to all stockholders $38,729  $38,703  $33,758  Cash available for dividend coverage (6)  3.5 x 4.9 x 3.9 x           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.
(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 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 2025Balance Sheet         Long-term debt (1) $2,379,028 $2,410,893 $2,297,767Total 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 2025Net 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  $0.00  $0.00 Transaction-related costs per share 0.01   0.01   0.03 Debt extinguishment loss per share —   0.01   — Tax effect of adjustments per share (0.00)  (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 2025Net 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  —   25   — 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 2025Total 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 2025Net 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  —   25   — 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 2025Net cash provided by operating activities $185,853  $214,477  $115,628 Inventory write-downs  (93)  (121)  (188)Benefit from (provision for) credit losses  24   (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 2025Net 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 HighNet income (1) $306,000  $356,000 Interest expense  145,000   145,000 Provision for income taxes  113,000   113,000 Depreciation and amortization  281,000   281,000 Restructuring charges  500   500 Stock-based compensation expense  15,500   15,500 Amortization of capitalized implementation costs  4,000   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)  (3,000)Less: Cash interest expense  (140,000)  (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.

Archrock, Inc. (AROC) Q1 2026 Earnings Call Transcript

Archrock Inc. (AROC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this natural gas compression services business have returned +1.4% over the past month versus the Zacks S&P 500 composite's +8.6% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has gained 4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Archrock Inc. is expected to post earnings of $0.47 per share, indicating a change of +20.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.95 points to a change of +2.6% from the prior year. Over the last 30 days, this estimate has changed -2.8%.

For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +13.3% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has changed -1.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Archrock Inc. is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Archrock Inc., the consensus sales estimate of $390.4 million for the current quarter points to a year-over-year change of +1.9%. The $1.55 billion and $1.64 billion estimates for the current and next fiscal years indicate changes of +4.2% and +5.6%, respectively.

Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.

Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.

Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

On May 18, 2026, Archrock Inc AROC shares rose 3.2% to $38.62. This price movement is notable within the context of its 52-week range, which has seen a low of $21.17 and a high of $40.12. Over the past year, AROC has experienced a remarkable performance with a 56.4% increase, contributing to a year-to-date rise of 50.3%.

GF Value™ verdict: AROC is currently priced at $38.62, which is 42.0% above its GF Value™ estimate of $27.19.GF Score™ of 84/100 indicates a strong overall performance in key financial metrics.Notable signal: Insider activity shows that insiders sold $9.6 million worth of shares in the last three months, with no buying activity reported. Is AROC Overvalued or Undervalued? According to the GF Value™, Archrock Inc AROC is currently overvalued, trading at $38.62 while the estimated fair value sits at $27.19. This represents a significant 42.0% margin of overvaluation, suggesting investors may be paying a premium for the stock compared to its intrinsic worth. The GF Valuation label indicates that AROC is significantly overvalued, raising concerns about the potential for a price correction. Investors should be cautious as a stock trading above its fair value generally presents a higher risk profile.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This methodology underscores the importance of assessing whether the stock price reflects its underlying value accurately. Given the current valuation, there may be limited upside potential for new investors entering the stock at this price point.

How Does AROC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.0x 26.2x Forward P/E 20.6x N/A Currently, Archrock Inc's P/E ratio (TTM) stands at 21.0x, which is 20% below its 5-year median P/E of 26.2x. The forward P/E of 20.6x indicates a slight optimistic outlook, but the current P/E suggests that the stock is trading below its historical valuation levels. This analysis generally concurs with the GF Value™ verdict, reinforcing the notion that AROC may be overvalued relative to its historical performance.

What Does AROC's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The GF Score™ for Archrock Inc AROC is 84/100, indicating a strong overall performance but with areas of concern. The strongest aspects of AROC's score are its Profitability and Growth metrics, both rated at 8/10, suggesting robust operational efficiency and potential for future expansion. However, the Financial Strength score of 4/10 raises red flags regarding the company's balance sheet health, which could impact its ability to weather downturns.

What Are Insiders Doing with AROC Stock? In the last three months, insider activity has shown a notable trend, with insiders selling approximately $9.6 million worth of shares and no buying activity reported. This selling pattern may suggest a lack of confidence among insiders in the stock's potential for further appreciation. Typically, insider selling can indicate that those closest to the company believe the stock is currently overvalued or that they are taking profits based on favorable price movements.

What This Means for Investors Based on the analysis of GF Value™, Archrock Inc AROC is currently overvalued. The significant disparity between its market price and intrinsic value, along with concerning insider activity, suggests that potential investors may want to tread carefully before entering the stock at its current valuation.

For the complete analysis, visit the Archrock Inc AROC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AROC's GF Score™?

AROC's GF Score™ is 84/100, indicating a strong overall performance based on key financial metrics.

Is AROC overvalued or undervalued?

AROC is currently overvalued, trading at a significant premium compared to its GF Value™ estimate of $27.19.

What is AROC's P/E ratio?

The P/E ratio for AROC is 21.0x, which is below its 5-year median of 26.2x, indicating it is trading at a lower valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

On May 28, 2026, Archrock Inc AROC shares fell 4.9% to a current price of $34.60. The stock has experienced significant volatility, trading within a 52-week range of $21.17 to $40.12. The recent decline is part of a broader trend, with shares down 6.2% over the past week and 8.4% over the last month.

GF Value™ verdict: Current price of $34.60 is 27.1% above the GF Value™ of $27.22.GF Score™ of 84/100 indicates a strong overall ranking.Notable signal: Insiders have sold $12.2 million worth of shares in the last three months, with no purchases reported. Is AROC Overvalued or Undervalued? The current price of Archrock Inc AROC at $34.60 is significantly above the GF Value™, which is estimated at $27.22. This indicates that the stock is 27.1% overvalued, suggesting that there may be limited upside potential in the short term. The GF Valuation label categorizes AROC as "Modestly Overvalued," which reflects the risk of a potential price correction if market sentiments shift or if the company fails to deliver strong performance in the near future.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. With a margin of safety not present, investors may need to be cautious if considering an entry point at the current price level.

How Does AROC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.8x 26.2x Forward P/E 18.5x N/A Currently, AROC's P/E (TTM) of 18.8x is 28% below its 5-year median P/E of 26.2x. This suggests that the stock is trading below its historical valuation levels, which may appear contradictory to the GF Value™ assessment of modest overvaluation. The P/E analysis aligns with the notion that AROC could be undervalued based on its earnings potential, yet the stark difference between the current price and GF Value™ raises concerns regarding future performance and market expectations.

What Does AROC's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 8/10 Growth 8/10 Valuation 5/10 Momentum 9/10 Archrock Inc's GF Score™ of 84/100 indicates a strong position in terms of profitability, growth, and momentum, with ratings of 8/10 and 9/10, respectively. However, the financial strength score of 4/10 highlights potential weaknesses in the company's balance sheet or cash flow management. The valuation score of 5/10 suggests that while the stock may not be excessively overvalued, it is also not a standout opportunity in terms of price relative to its intrinsic value. This mixed score profile presents both strengths and areas of caution for investors.

What Are Insiders Doing with AROC Stock? In the past three months, insiders at Archrock Inc have sold a total of $12.2 million worth of shares, with no reported buying activity. The trend of insider selling may raise concerns about the company's outlook from those who are closest to its operations. This pattern could suggest that insiders may not be confident about the stock's near-term performance or that they are taking profits following a substantial increase in the stock price over the past year.

What This Means for Investors Based on the current valuation metrics and GF Value™ assessment, Archrock Inc AROC appears to be overvalued at this time. The significant gap between the current price and GF Value™ indicates that investors may face risks if they enter positions at this elevated price level.

For the complete analysis, visit the Archrock Inc AROC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AROC's GF Score™?

AROC's GF Score™ is 84/100, indicating a strong overall ranking based on various key financial metrics.

Is AROC overvalued or undervalued?

AROC is considered overvalued based on its GF Value™ of $27.22 compared to its current price of $34.60.

What is AROC's P/E ratio?

AROC's P/E (TTM) is 18.8x, which is 28% below its 5-year median P/E of 26.2x, suggesting it is trading below historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Archrock Inc. (AROC - Free Report) .

Archrock Inc. currently has an average brokerage recommendation (ABR) of 1.40, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.40 approximates between Strong Buy and Buy.

Of the 10 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70% and 20% of all recommendations.

Brokerage Recommendation Trends for AROC

Check price target & stock forecast for Archrock Inc. here>>>

The ABR suggests buying Archrock Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is AROC Worth Investing In?Looking at the earnings estimate revisions for Archrock Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.95.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Archrock Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Archrock Inc.

Archrock Inc. (AROC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this natural gas compression services business have returned -3%, compared to the Zacks S&P 500 composite's -1.6% change. During this period, the Zacks Oil and Gas - Field Services industry, which Archrock Inc. falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Archrock Inc. is expected to post earnings of $0.47 per share for the current quarter, representing a year-over-year change of +20.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.95 points to a change of +2.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +13.3% from what Archrock Inc. is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Archrock Inc. is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Archrock Inc., the consensus sales estimate for the current quarter of $390.4 million indicates a year-over-year change of +1.9%. For the current and next fiscal years, $1.55 billion and $1.64 billion estimates indicate +4.2% and +5.6% changes, respectively.

Last Reported Results and Surprise HistoryArchrock Inc. reported revenues of $373.77 million in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $0.42 for the same period compares with $0.42 a year ago.

Compared to the Zacks Consensus Estimate of $376.69 million, the reported revenues represent a surprise of -0.78%. The EPS surprise was -10.64%.

Over the last four quarters, Archrock Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Archrock Inc. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Archrock Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.