Archrock Q1 Revenue at $373.8M, Below Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy AROC?
Reports Q1 revenue $373.8M, consensus $378.53M. "Archrock is off to a strong start for 2026, generating meaningful earnings per share, free cash flow and increased shareholder returns during the first quarter, bolstered by a growing order book that continues to support our longer-term outlook," said Brad Childers, Archrock's CEO. "Our contract operations fleet has delivered full utilization over a multi-year period, and profitability continues to benefit from strong execution and the rollout of additional large and electric motor drive horsepower supporting critical midstream infrastructure. Additionally, we continued to high-grade our fleet with the sale of non-strategic compressor units totaling approximately 40,000 horsepower. First quarter underlying business performance exceeded our basis for guidance, though SG&A expense came in higher. We remain on pace to achieve our full-year 2026 adjusted EBITDA guidance range of between $865M-$915M, which we expect will translate into meaningful free cash flow generation for the year."
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Analyst Views on AROC
Wall Street analysts forecast AROC stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 38.100
Low
30.00
Averages
31.00
High
32.00
Current: 38.100
Low
30.00
Averages
31.00
High
32.00
About AROC
Archrock, Inc. is an energy infrastructure company with a primary focus on midstream natural gas compression. The Company is a provider of natural gas compression services to customers in the energy industry throughout the United States. It is a supplier of aftermarket services to customers that own compression equipment. Its segments include Contract Operations and Aftermarket Services. The Contract Operations business is comprised of its owned fleet of natural gas compression equipment that it uses to provide operations services to its customers. The Aftermarket Services business provides a full range of services to support the compression needs of its customers that own compression equipment, including operations, maintenance, overhaul and reconfiguration services and sales of parts and components. The Company provides comprehensive contract operations services, such as personnel, equipment, tools, materials and supplies to meet its customer's natural gas compression needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Archrock Q1 2026 Earnings Call Highlights
- Strong Quarterly Performance: Archrock reported an adjusted EPS of $0.42 and adjusted EBITDA of $221 million for Q1 2026, reflecting the company's ability to enhance profitability and capital returns amid strong customer demand.
- Asset Sales and Capital Allocation: The company generated $21 million in asset sale proceeds year-to-date by selling approximately 40,000 horsepower of non-strategic compression units, which will help fund newbuild projects and optimize its asset portfolio.
- High Utilization and Market Demand: Archrock's fleet maintained a high utilization rate of 95% during the quarter, particularly driven by increased demand for large horsepower and electric motor drive units, indicating sustained competitive strength in the market.
- Leadership Transition and Outlook: CFO Douglas Aron plans to retire by year-end, and management emphasized that despite a strong Q1 performance, they are keeping the 2026 adjusted EBITDA guidance range of $865 million to $915 million unchanged, reflecting uncertainty in future market conditions.
See More
Archrock Q1 Earnings Report Exceeds Expectations
- Performance Metrics: Archrock reported a Q1 non-GAAP EPS of $0.42, missing expectations by $0.06, while revenue reached $373.8 million, a 7.7% year-over-year increase, indicating heightened market competition pressures.
- Adjusted EBITDA Growth: The adjusted EBITDA for Q1 2026 was $221 million, reflecting a 12.3% increase from $197.8 million in Q1 2025, showcasing the company's ongoing improvements in operational efficiency and cost management.
- Dividend Increase: The company declared a quarterly dividend of $0.22 per share for Q1 2026, approximately 16% higher than the same period in 2025, resulting in a dividend coverage ratio of 3.5x, underscoring its commitment to shareholder returns and financial health.
- Future Outlook: Despite higher SG&A expenses, Archrock remains on track to achieve its full-year 2026 adjusted EBITDA guidance of between $865 million and $915 million, indicating strong cash flow generation capabilities amid rising natural gas demand and growth projections.
See More
Archrock Q1 Earnings Announcement Scheduled
- Earnings Announcement Schedule: Archrock (AROC) is set to announce its Q1 earnings on May 6 before market open, with a consensus EPS estimate of $0.48, reflecting a 14.3% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $378.53 million, representing a 9.0% year-over-year growth, which underscores the company's stable growth potential amid rising natural gas demand, further solidifying its market position.
- Historical Performance Review: Over the past two years, Archrock has beaten EPS estimates 63% of the time and revenue estimates 75% of the time, demonstrating reliability in financial performance and fostering market confidence.
- Forecast Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three downward revisions, indicating a cautious market outlook on the company's future performance.
See More
Archrock Declares 16% Increase in Quarterly Dividend
- Quarterly Dividend Announcement: Archrock has declared a quarterly dividend of $0.22 per share of common stock, translating to an annualized dividend of $0.88, demonstrating the company's ongoing commitment to shareholder returns.
- Dividend Payment Timeline: The first quarter 2026 dividend will be paid on May 19, 2026, to all stockholders of record on May 12, 2026, ensuring timely benefits for all shareholders.
- Dividend Growth Overview: This dividend level is consistent with the fourth quarter of 2025 and represents a 16% increase over the first quarter of 2025, reflecting the company's robust earnings growth.
- Company Background: Archrock focuses on midstream natural gas compression services, committed to safe and environmentally responsible natural gas production, compression, and transportation, solidifying its leading position in the U.S. energy sector.
See More
Temporary Ceasefire in Iran War Causes Oil Price Fluctuations
- Natural Gas Market Dependence: The Iran war highlighted the global energy system's heavy reliance on U.S. liquefied natural gas (LNG) exports, with projections indicating U.S. LNG exports will rise from 15.1 billion cubic feet per day in 2025 to 18.1 billion by 2027; Archrock has 85% of its 2026 production capacity contracted, underscoring its critical role in infrastructure.
- Shareholder Return Strategy: Ovintiv introduced a new shareholder return framework in 2026, committing to return at least 75% of free cash flow to shareholders and initiating a $3 billion share repurchase program; despite oil prices retreating due to the ceasefire, its high-margin operations in the Permian and Montney basins continue to generate substantial free cash flow.
- Refining Profit Margins: HF Sinclair, as a refiner, profits from both rising and falling oil prices, and with current oil prices dropping towards $90, refining profit margins are improving; its acquisition of Industrial Oils Unlimited has further strengthened its higher-margin specialty segment, demonstrating resilience amid market fluctuations.
- Market Reaction and Investor Sentiment: Following a more than 15% drop in oil prices post-ceasefire, investors began panic-selling oil stocks; while short-term market sentiment is volatile, long-term investors should focus on companies that were already well-positioned before the conflict to capitalize on future market opportunities.
See More
Energy Companies Seize New Opportunities Post-Iran Conflict
- U.S. LNG Export Growth: The EIA projects U.S. LNG exports will rise from 15.1 billion cubic feet per day in 2025 to 18.1 billion by 2027, with Archrock securing 85% of its 2026 production capacity contracted, ensuring a long-term revenue stream insulated from commodity price swings.
- Ovintiv's Shareholder Return Plan: Ovintiv announced a commitment to return at least 75% of free cash flow to shareholders in 2026, backed by a $3 billion share repurchase program, demonstrating its focus on enhancing shareholder value amid market uncertainties.
- HF Sinclair's Profit Model: HF Sinclair profits from refining operations with a capacity of 678,000 barrels per day, and as oil prices retreat to $90, refining margins are expected to improve, ensuring the company's competitiveness across varying market conditions.
- Shift in Market Focus on Energy Companies: The Iran conflict has deepened global reliance on U.S. LNG, prompting investors to focus on companies like Archrock, Ovintiv, and HF Sinclair, which are structurally positioned to benefit from the disruptions revealed by the conflict.
See More
Archrock Q1 2026 Earnings Call Highlights
- Strong Quarterly Performance: Archrock reported an adjusted EPS of $0.42 and adjusted EBITDA of $221 million for Q1 2026, reflecting the company's ability to enhance profitability and capital returns amid strong customer demand.
- Asset Sales and Capital Allocation: The company generated $21 million in asset sale proceeds year-to-date by selling approximately 40,000 horsepower of non-strategic compression units, which will help fund newbuild projects and optimize its asset portfolio.
- High Utilization and Market Demand: Archrock's fleet maintained a high utilization rate of 95% during the quarter, particularly driven by increased demand for large horsepower and electric motor drive units, indicating sustained competitive strength in the market.
- Leadership Transition and Outlook: CFO Douglas Aron plans to retire by year-end, and management emphasized that despite a strong Q1 performance, they are keeping the 2026 adjusted EBITDA guidance range of $865 million to $915 million unchanged, reflecting uncertainty in future market conditions.
See More
Archrock Q1 Earnings Report Exceeds Expectations
- Performance Metrics: Archrock reported a Q1 non-GAAP EPS of $0.42, missing expectations by $0.06, while revenue reached $373.8 million, a 7.7% year-over-year increase, indicating heightened market competition pressures.
- Adjusted EBITDA Growth: The adjusted EBITDA for Q1 2026 was $221 million, reflecting a 12.3% increase from $197.8 million in Q1 2025, showcasing the company's ongoing improvements in operational efficiency and cost management.
- Dividend Increase: The company declared a quarterly dividend of $0.22 per share for Q1 2026, approximately 16% higher than the same period in 2025, resulting in a dividend coverage ratio of 3.5x, underscoring its commitment to shareholder returns and financial health.
- Future Outlook: Despite higher SG&A expenses, Archrock remains on track to achieve its full-year 2026 adjusted EBITDA guidance of between $865 million and $915 million, indicating strong cash flow generation capabilities amid rising natural gas demand and growth projections.
See More
Archrock Q1 Earnings Announcement Scheduled
- Earnings Announcement Schedule: Archrock (AROC) is set to announce its Q1 earnings on May 6 before market open, with a consensus EPS estimate of $0.48, reflecting a 14.3% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $378.53 million, representing a 9.0% year-over-year growth, which underscores the company's stable growth potential amid rising natural gas demand, further solidifying its market position.
- Historical Performance Review: Over the past two years, Archrock has beaten EPS estimates 63% of the time and revenue estimates 75% of the time, demonstrating reliability in financial performance and fostering market confidence.
- Forecast Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three downward revisions, indicating a cautious market outlook on the company's future performance.
See More
Archrock Declares 16% Increase in Quarterly Dividend
- Quarterly Dividend Announcement: Archrock has declared a quarterly dividend of $0.22 per share of common stock, translating to an annualized dividend of $0.88, demonstrating the company's ongoing commitment to shareholder returns.
- Dividend Payment Timeline: The first quarter 2026 dividend will be paid on May 19, 2026, to all stockholders of record on May 12, 2026, ensuring timely benefits for all shareholders.
- Dividend Growth Overview: This dividend level is consistent with the fourth quarter of 2025 and represents a 16% increase over the first quarter of 2025, reflecting the company's robust earnings growth.
- Company Background: Archrock focuses on midstream natural gas compression services, committed to safe and environmentally responsible natural gas production, compression, and transportation, solidifying its leading position in the U.S. energy sector.
See More
Temporary Ceasefire in Iran War Causes Oil Price Fluctuations
- Natural Gas Market Dependence: The Iran war highlighted the global energy system's heavy reliance on U.S. liquefied natural gas (LNG) exports, with projections indicating U.S. LNG exports will rise from 15.1 billion cubic feet per day in 2025 to 18.1 billion by 2027; Archrock has 85% of its 2026 production capacity contracted, underscoring its critical role in infrastructure.
- Shareholder Return Strategy: Ovintiv introduced a new shareholder return framework in 2026, committing to return at least 75% of free cash flow to shareholders and initiating a $3 billion share repurchase program; despite oil prices retreating due to the ceasefire, its high-margin operations in the Permian and Montney basins continue to generate substantial free cash flow.
- Refining Profit Margins: HF Sinclair, as a refiner, profits from both rising and falling oil prices, and with current oil prices dropping towards $90, refining profit margins are improving; its acquisition of Industrial Oils Unlimited has further strengthened its higher-margin specialty segment, demonstrating resilience amid market fluctuations.
- Market Reaction and Investor Sentiment: Following a more than 15% drop in oil prices post-ceasefire, investors began panic-selling oil stocks; while short-term market sentiment is volatile, long-term investors should focus on companies that were already well-positioned before the conflict to capitalize on future market opportunities.
See More
Energy Companies Seize New Opportunities Post-Iran Conflict
- U.S. LNG Export Growth: The EIA projects U.S. LNG exports will rise from 15.1 billion cubic feet per day in 2025 to 18.1 billion by 2027, with Archrock securing 85% of its 2026 production capacity contracted, ensuring a long-term revenue stream insulated from commodity price swings.
- Ovintiv's Shareholder Return Plan: Ovintiv announced a commitment to return at least 75% of free cash flow to shareholders in 2026, backed by a $3 billion share repurchase program, demonstrating its focus on enhancing shareholder value amid market uncertainties.
- HF Sinclair's Profit Model: HF Sinclair profits from refining operations with a capacity of 678,000 barrels per day, and as oil prices retreat to $90, refining margins are expected to improve, ensuring the company's competitiveness across varying market conditions.
- Shift in Market Focus on Energy Companies: The Iran conflict has deepened global reliance on U.S. LNG, prompting investors to focus on companies like Archrock, Ovintiv, and HF Sinclair, which are structurally positioned to benefit from the disruptions revealed by the conflict.
See More
