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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.