NatGas compression services provider Archrock Q3 revenue beats estimates, raises FY adj EBITDA guidance

Archrock

28/10/2025 20:37

Overview

Archrock Q3 2025 revenue of $382.4 mln beats analyst expectations

Adjusted EBITDA for Q3 2025 beats estimates, reaching $220.9 mln

Company increased share repurchase authorization by $100 mln

Outlook

Archrock raises full-year 2025 Adjusted EBITDA guidance to $835 mln-$850 mln

Company expects $250 mln in growth capex for 2026, led by the Permian basins

Archrock sees continued growth in U.S. natural gas infrastructure into 2026

Result Drivers

CONTRACT OPERATIONS - Revenue increased 33% to $326.3 mln, driven by fleet expansion and higher pricing

ASSET SALES AND TAX SETTLEMENTS - Adjusted EBITDA benefited from $9.9 mln in tax audit settlements and $3.8 mln in asset sales gains

HORSEPOWER EXPANSION - Total operating horsepower increased to 4.7 mln, supporting revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$382.4 mln
$378.24 mln (6 Analysts)
Q3 Net Income
$71.2 mln
Q3 Adjusted EBITDA
Beat
$220.9 mln
$209.76 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 $31.00, about 17.5% above its October 27 closing price of $25.57

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX5Cyjf5

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