Archrock (AROC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $370.8M vs. $382.4M YoY; net income rose to $84.5M from $71.2M and diluted EPS to $0.48 from $0.40.

• Adjusted EBITDA increased to $228.4M from $220.9M; adjusted net income was $84.7M and Adjusted EPS was $0.49.

• Bookings reached their highest quarterly level since Q2 2023 amid strong customer demand and a structurally tight compression market.

Financial highlights

• Contract operations revenue rose 1.5% YoY to $331.2M; aftermarket services revenue fell to $39.7M from $56.2M.

• Q3 adjusted gross margin was $247.8M vs. $252.6M; 9M adjusted gross margin increased to $739.7M from $711.8M.

• 9M revenue was $1.116B vs. $1.113B, and net income rose to $225.0M from $205.5M.

• Q3 operating cash flow was $158.8M; Adjusted free cash flow was $49.6M and $9.0M after dividends.

• Q3 CapEx was $117.9M: $78.4M growth, $33.3M maintenance and $6.2M other.

Outlook and guidance

• FY2026 Adjusted EBITDA guidance was reaffirmed at $865M–$885M; total CapEx guidance remained $400M–$445M.

• FY2026 CapEx includes $250M–$275M growth, $125M–$135M maintenance and $25M–$35M other capital, primarily new vehicles.

• 2027–2030 cumulative growth investment outlook remains $1.4B–$1.6B for ~1 million horsepower, primarily large-horsepower and electric-motor-drive compression.

• About 50,000 horsepower deliveries were expected in Q4 after ~125,000 year to date; some Q4 deliveries are expected to start work in Q1.