| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 371.24 | 0.7% | 3.1% |
| Total Income | 371.24 | 0.7% | 3.1% |
| Expenditure | 278.70 | 0.8% | 6.3% |
| PBT | 92.99 | 4.8% | 8.1% |
| Net Profit | 66.72 | 9.6% | 5.2% |
| OPM | — | ||
| NPM | 17.97% | 1.77pp | 1.42pp |
| EPS | 0.38 | 7.3% | 5.6% |
Archrock Reports Q2 2026 Results
05 Aug 2026 · 5 Aug, 3:38 pm
Summary
Archrock, Inc. reported second quarter 2026 results with revenue of $371.2 million, down slightly year-over-year from $383.2 million in Q2 2025. Net income increased to $66.7 million ($0.38 EPS) from $63.4 million ($0.36 EPS) in the prior year quarter, while Adjusted EBITDA remained stable at $212.6 million. The company highlighted a 3% increase in contract operations revenue and a 6% rise in contract operations adjusted gross margin, alongside a 10% increase in its quarterly dividend. Management expressed a constructive outlook for the compression market, driven by natural gas demand and a structurally tight market, reaffirming capital expenditure guidance and tightening full-year Adjusted EBITDA guidance.
Key Highlights
- 1
Revenue for the second quarter of 2026 was $371.2 million, a decrease compared to $383.2 million in the second quarter of 2025.
- 2
Net income for the second quarter of 2026 was $66.7 million, an increase from $63.4 million in the second quarter of 2025, with EPS at $0.38.
- 3
Adjusted EBITDA for the second quarter of 2026 was $212.6 million, largely flat compared to $212.7 million in the second quarter of 2025.
- 4
Contract operations segment revenue increased by 3% to $329.3 million in Q2 2026 compared to $318.3 million in Q2 2025.
- 5
Adjusted gross margin for contract operations increased by 6% to $234.6 million in Q2 2026 from $222.2 million in Q2 2025.
- 6
The company declared a quarterly dividend of $0.23 per common share for Q2 2026, approximately 10% higher than Q2 2025.
- 7
Leverage ratio improved to 2.6x as of June 30, 2026, down from 3.3x as of June 30, 2025.
Management Comments
Brad Childers
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. 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.
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