Archrock Q1 revenue rises but misses estimates, EBITDA beats

Archrock

05/05/2026 21:42

Overview

U.S. gas compression firm's Q1 revenue rose yr/yr but missed analyst expectations

Q1 adjusted EBITDA increased and beat analyst expectations

Company raised quarterly dividend 16% yr/yr and repurchased $4.4 mln in shares

Outlook

Archrock maintains full-year 2026 Adjusted EBITDA guidance of $865 mln to $915 mln

Company expects meaningful free cash flow generation for 2026

Archrock sees continued strong demand from U.S. midstream infrastructure buildout and rising power demand

Result Drivers

CONTRACT OPERATIONS GROWTH - Q1 contract operations revenue rose 10% yr/yr, with higher operating horsepower and full fleet utilization supporting segment growth

HIGHER SG&A EXPENSES - SG&A expenses increased due to higher long-term incentive compensation, including a $3.7 mln non-recurring acceleration related to an executive retention agreement

ASSET SALES - Net gains from the sale of compression and other assets contributed $10.1 mln to Q1 adjusted EBITDA

Company press release: ID:nGNX5MWK29

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$373.8 mln
$379.52 mln (6 Analysts)
Q1 Net Income
$73.8 mln
Q1 Adjusted EBITDA
Beat
$221 mln
$216.59 mln (9 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Archrock Inc is $40.00, about 2.9% above its May 4 closing price of $38.87

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)