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Archrock Beats Q3 Earnings & Revenue Estimates, Both Up Y/Y
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Key Takeaways
Archrock's Q3 EPS of 42 cents beat estimates and rose from 28 cents a year earlier.
Revenues climbed to $382M, driven by solid performance in both operating segments.
Board expanded the share repurchase plan by $100M, extending it through 2026.
Archrock, Inc. (AROC - Free Report) reported third-quarter 2025 earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 41 cents. The bottom line improved from the year-ago quarter’s level of 28 cents.
Houston, TX-based oil and gas equipment and services company's total quarterly revenues of $382 million increased from $292 million reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $377 million.
The strong quarterly performance was driven by solid contributions from both operating segments. Record-high utilization and rising demand for the company’s equipment and services further strengthened its third-quarter results.
During the third quarter, the company repurchased 1,094,516 shares of common stock at an average price of $23.18 per share, for a total consideration of approximately $25.4 million. From April 2023 through Oct. 22, 2025, a total of 3,942,161 shares have been repurchased at an average price of $20.21 per share, amounting to $79.7 million.
Additionally, AROC’s board of directors approved a $100 million increase to the share repurchase program, extending it through Dec. 31, 2026. This brings the available repurchase capacity to $130.4 million as of Oct. 22, 2025.
Archrock operates through two business segments — Contract Operations and Aftermarket Services.
The Contract Operations segment reported revenues of $326.3 million in the third quarter compared with $245.4 million in the year-ago quarter.
Total operating horsepower at the end of the quarter was 4.7 million, up from 4.7 million in the prior-year quarter. The company’s utilization rate at the end of the third quarter of 2025 stood at 96%, up from 95% at the end of the prior-year quarter.
Revenues from the Aftermarket Services segment totaled $56.2 million compared with $46.7 million in the third quarter of 2024.
Archrock’s Costs and Expenses
The total cost of sales in the quarter amounted to $129.8 million, up from the year-ago period’s $114.2 million. Depreciation and amortization expenses amounted to $67.1 million in the quarter under review.
AROC’s Liquidity Position & Capital Expenditure
As of Sept. 30, 2025, the company had a long-term debt of $2.6 billion. The total available liquidity was $728 million as of the same date. Net capital expenditures amounted to $124 million in the third quarter.
AROC’s Dividend Payment
Archrock declared a quarterly dividend of 21 cents per share, approximately 20% higher than in the third quarter of 2024, resulting in a dividend coverage of 3.7x. The payment is scheduled for Nov. 4, 2025, to shareholders of record as of the same date.
AROC’s Guidance
The company expects a strong 2025 performance, projecting net income between $265.2 million and $280.2 million and adjusted EBITDA in the range of $835 million to $850 million. It also anticipates cash available for dividends to come in between $526 million and $531 million, reflecting a solid return potential for shareholders.
Archrock anticipates contract operations revenues to range from $1.27 billion to $1.28 billion, supported by a healthy adjusted gross margin of 71-71.5%. The aftermarket services business is also expected to remain robust, with revenues projected between $210 million and $220 million and an adjusted gross margin of 23-24%. Selling, general and administrative expenses are estimated to stay steady at around $148-$150 million, indicating continued cost discipline.
On the investment side, the company expects growth capital expenditures between $345 million and $355 million, while maintenance capital spending is set at $110-$115 million. Other capital expenditures are anticipated in the range of $35-$40 million, reflecting Archrock’s balanced approach toward expansion and operational efficiency.
While we have discussed AROC’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company (HAL - Free Report) , one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.
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Archrock Beats Q3 Earnings & Revenue Estimates, Both Up Y/Y
Key Takeaways
Archrock, Inc. (AROC - Free Report) reported third-quarter 2025 earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 41 cents. The bottom line improved from the year-ago quarter’s level of 28 cents.
Houston, TX-based oil and gas equipment and services company's total quarterly revenues of $382 million increased from $292 million reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $377 million.
The strong quarterly performance was driven by solid contributions from both operating segments. Record-high utilization and rising demand for the company’s equipment and services further strengthened its third-quarter results.
During the third quarter, the company repurchased 1,094,516 shares of common stock at an average price of $23.18 per share, for a total consideration of approximately $25.4 million. From April 2023 through Oct. 22, 2025, a total of 3,942,161 shares have been repurchased at an average price of $20.21 per share, amounting to $79.7 million.
Additionally, AROC’s board of directors approved a $100 million increase to the share repurchase program, extending it through Dec. 31, 2026. This brings the available repurchase capacity to $130.4 million as of Oct. 22, 2025.
Archrock, Inc. Price, Consensus and EPS Surprise
Archrock, Inc. price-consensus-eps-surprise-chart | Archrock, Inc. Quote
AROC’s Operational Performance
Archrock operates through two business segments — Contract Operations and Aftermarket Services.
The Contract Operations segment reported revenues of $326.3 million in the third quarter compared with $245.4 million in the year-ago quarter.
Total operating horsepower at the end of the quarter was 4.7 million, up from 4.7 million in the prior-year quarter. The company’s utilization rate at the end of the third quarter of 2025 stood at 96%, up from 95% at the end of the prior-year quarter.
Revenues from the Aftermarket Services segment totaled $56.2 million compared with $46.7 million in the third quarter of 2024.
Archrock’s Costs and Expenses
The total cost of sales in the quarter amounted to $129.8 million, up from the year-ago period’s $114.2 million. Depreciation and amortization expenses amounted to $67.1 million in the quarter under review.
AROC’s Liquidity Position & Capital Expenditure
As of Sept. 30, 2025, the company had a long-term debt of $2.6 billion. The total available liquidity was $728 million as of the same date. Net capital expenditures amounted to $124 million in the third quarter.
AROC’s Dividend Payment
Archrock declared a quarterly dividend of 21 cents per share, approximately 20% higher than in the third quarter of 2024, resulting in a dividend coverage of 3.7x. The payment is scheduled for Nov. 4, 2025, to shareholders of record as of the same date.
AROC’s Guidance
The company expects a strong 2025 performance, projecting net income between $265.2 million and $280.2 million and adjusted EBITDA in the range of $835 million to $850 million. It also anticipates cash available for dividends to come in between $526 million and $531 million, reflecting a solid return potential for shareholders.
Archrock anticipates contract operations revenues to range from $1.27 billion to $1.28 billion, supported by a healthy adjusted gross margin of 71-71.5%. The aftermarket services business is also expected to remain robust, with revenues projected between $210 million and $220 million and an adjusted gross margin of 23-24%. Selling, general and administrative expenses are estimated to stay steady at around $148-$150 million, indicating continued cost discipline.
On the investment side, the company expects growth capital expenditures between $345 million and $355 million, while maintenance capital spending is set at $110-$115 million. Other capital expenditures are anticipated in the range of $35-$40 million, reflecting Archrock’s balanced approach toward expansion and operational efficiency.
Currently, AROC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed AROC’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company (HAL - Free Report) , one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.