Archrock (AROC) Q4 2025 earnings summary

Executive summary

• Achieved significant growth in 2025, with adjusted EBITDA reaching $901 million, exceeding guidance midpoint after two upward revisions and supported by operational improvements and asset sale gains.

• Net income for 2025 was $322.3 million, with adjusted EPS up 68% year-over-year.

• Returned $212 million to shareholders via dividends and buybacks, a 70%+ increase year-over-year.

• Maintained high fleet utilization (95%+) for 11 consecutive quarters, reflecting robust demand and operational excellence.

• Completed a second accretive acquisition in 18 months and executed $192 million in asset sales, redeploying proceeds into high-return investments.

Financial highlights

• Q4 2025 net income: $117 million; full-year net income: $322.3 million.

• Q4 adjusted EBITDA: $269 million; full-year adjusted EBITDA: $901 million (or $846 million excluding one-time items).

• Q4 contract operations revenue: $327 million; aftermarket services revenue: $50 million.

• Q4 contract operations adjusted gross margin: 78% (71.5% underlying, with 6.5% from prior period tax settlements/credits).

• Year-end total debt: $2.41 billion; available liquidity: $579 million.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $865–$915 million (midpoint $890 million); net income guidance: $306–$356 million.

• 2026 growth CapEx: $250–$275 million; maintenance CapEx: $125–$135 million.

• Cash available for dividend in 2026 projected at $572–$602 million.

• Expect to add ~170,000 horsepower in 2026, with 60% delivered in H1.

• Dividend increased to $0.22/share in Q4 2025, up 16% year-over-year.