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

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

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:

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