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Why Is Archrock Inc. (AROC) Up 5.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Archrock Inc. (AROC - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Archrock Inc. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Archrock, Inc. before we dive into how investors and analysts have reacted as of late.
Archrock Tops on Q4 Earnings & Revenues Estimates
Archrock reported reported fourth-quarter 2025 earnings per share of 69 cents, which beat the Zacks Consensus Estimate of 40 cents. The bottom line improved from the year-ago quarter’s level of 35 cents.
This Houston, TX-based oil and gas equipment and services company generated total quarterly revenues of $377 million, up from $326 million reported in the year-ago quarter. The figure met the Zacks Consensus Estimate.
The strong quarterly earnings were driven by solid contributions from both operating segments, reflecting robust demand for natural gas compression services.
Operational Performance
Archrock operates through two business segments: Contract Operations and Aftermarket Services.
The Contract Operations segment reported revenues of $327.1 million in the fourth quarter compared with $286.5 million in the year-ago quarter.
Total operating horsepower at the end of the quarter was 4.6 million, up from 4.2 million in the prior-year quarter. The company’s utilization rate at the end of the fourth quarter of 2025 stood at 95.5%, lower than 96.1% at the end of the prior-year quarter.
Revenues from the Aftermarket Services segment totaled $50 million compared with $40 million in the fourth quarter of 2024.
Costs and Expenses
The total cost of sales in the quarter amounted to $108.5 million, down from $117.1 million in the year-ago period. Depreciation and amortization expenses totaled $68.9 million in the quarter under review.
Liquidity Position & Capital Expenditure
As of Dec. 31, 2025, the company had a long-term debt of $2.4 billion. The total available liquidity was $579 million as of the same date. Net capital expenditures amounted to $9.5 million in the fourth quarter.
Dividend Payment
Archrock declared a quarterly dividend of 22 cents per share (88 cents on an annualized basis), representing a sequential increase of approximately 5%. This resulted in a dividend coverage of 4.9x in the quarter. The dividend was paid on Feb. 18, 2025.
Share Repurchase Details
During the fourth quarter, the company repurchased 647,480 shares of common stock at an average price of $24.44 per share for a total consideration of approximately $15.8 million. From April 2023 through Oct. 22, 2025, a total of 4,461,311 shares were repurchased at an average price of $20.72 per share. Archrock’s available repurchase capacity at the end of the fourth quarter stood at $117.7 million.
Guidance
The company expects a solid 2026 performance, projecting net income between $306 million and $356 million and adjusted EBITDA in the range of $865 million to $915 million. Archrock anticipates Contract Operations revenues for 2026 to range from $1.32 billion to $1.36 billion. The Aftermarket Services business is expected to generate revenues between $200 million and $220 million.
On the investment side, the company expects growth capital expenditures between $250 million and $275 million, while maintenance capital spending is projected at $125-$135 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Archrock Inc. has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Archrock Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Archrock Inc. belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, ProPetro Holding (PUMP - Free Report) , has gained 24.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
ProPetro reported revenues of $289.67 million in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $0.01 for the same period compares with -$0.01 a year ago.
For the current quarter, ProPetro is expected to post a loss of $0.10 per share, indicating a change of -211.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.1% over the last 30 days.
ProPetro has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Archrock Inc. (AROC) Up 5.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Archrock Inc. (AROC - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Archrock Inc. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Archrock, Inc. before we dive into how investors and analysts have reacted as of late.
Archrock Tops on Q4 Earnings & Revenues Estimates
Archrock reported reported fourth-quarter 2025 earnings per share of 69 cents, which beat the Zacks Consensus Estimate of 40 cents. The bottom line improved from the year-ago quarter’s level of 35 cents.
This Houston, TX-based oil and gas equipment and services company generated total quarterly revenues of $377 million, up from $326 million reported in the year-ago quarter. The figure met the Zacks Consensus Estimate.
The strong quarterly earnings were driven by solid contributions from both operating segments, reflecting robust demand for natural gas compression services.
Operational Performance
Archrock operates through two business segments: Contract Operations and Aftermarket Services.
The Contract Operations segment reported revenues of $327.1 million in the fourth quarter compared with $286.5 million in the year-ago quarter.
Total operating horsepower at the end of the quarter was 4.6 million, up from 4.2 million in the prior-year quarter. The company’s utilization rate at the end of the fourth quarter of 2025 stood at 95.5%, lower than 96.1% at the end of the prior-year quarter.
Revenues from the Aftermarket Services segment totaled $50 million compared with $40 million in the fourth quarter of 2024.
Costs and Expenses
The total cost of sales in the quarter amounted to $108.5 million, down from $117.1 million in the year-ago period. Depreciation and amortization expenses totaled $68.9 million in the quarter under review.
Liquidity Position & Capital Expenditure
As of Dec. 31, 2025, the company had a long-term debt of $2.4 billion. The total available liquidity was $579 million as of the same date. Net capital expenditures amounted to $9.5 million in the fourth quarter.
Dividend Payment
Archrock declared a quarterly dividend of 22 cents per share (88 cents on an annualized basis), representing a sequential increase of approximately 5%. This resulted in a dividend coverage of 4.9x in the quarter. The dividend was paid on Feb. 18, 2025.
Share Repurchase Details
During the fourth quarter, the company repurchased 647,480 shares of common stock at an average price of $24.44 per share for a total consideration of approximately $15.8 million. From April 2023 through Oct. 22, 2025, a total of 4,461,311 shares were repurchased at an average price of $20.72 per share. Archrock’s available repurchase capacity at the end of the fourth quarter stood at $117.7 million.
Guidance
The company expects a solid 2026 performance, projecting net income between $306 million and $356 million and adjusted EBITDA in the range of $865 million to $915 million. Archrock anticipates Contract Operations revenues for 2026 to range from $1.32 billion to $1.36 billion. The Aftermarket Services business is expected to generate revenues between $200 million and $220 million.
On the investment side, the company expects growth capital expenditures between $250 million and $275 million, while maintenance capital spending is projected at $125-$135 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Archrock Inc. has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Archrock Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Archrock Inc. belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, ProPetro Holding (PUMP - Free Report) , has gained 24.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
ProPetro reported revenues of $289.67 million in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $0.01 for the same period compares with -$0.01 a year ago.
For the current quarter, ProPetro is expected to post a loss of $0.10 per share, indicating a change of -211.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.1% over the last 30 days.
ProPetro has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.