Archrock Reaffirms 2026 Adjusted EBITDA After Aftermarket Drop

The Tip Desk · November 3, 2026 · 3 min read

Net income was $84.5 million, or $0.48 a share, as aftermarket revenue fell to $39.7 million and full-year Adjusted EBITDA guidance stayed at $865 million to $885 million.

Archrock, Inc. (AROC) reported third-quarter 2026 net income of $84.5 million, or $0.48 a share, compared with $71.2 million, or $0.40 a share, a year earlier, as aftermarket services revenue fell and the company reaffirmed full-year 2026 Adjusted EBITDA guidance of $865 million to $885 million.

Total revenue was $370.8 million, down from $382.4 million in the third quarter of 2025. Adjusted EBITDA was $228.4 million, up from $220.9 million a year earlier.

The energy infrastructure company said net income included a non-cash long-lived and other asset impairment of $3.2 million. Adjusted EBITDA included $2.1 million of net gains primarily related to the sale of compression and other assets. A year earlier, Adjusted EBITDA also included a $9.9 million net benefit to contract operations cost of sales from sales and use tax audit settlements.

Contract operations, the core compression business, generated $331.2 million of revenue, up 1.5% from $326.3 million a year earlier. Adjusted gross margin in that segment was $238.7 million, or 72% of revenue, compared with $239.6 million, or 73%, a year earlier. Excluding the prior-year tax benefit, contract operations adjusted gross margin was $229.7 million, or 70%.

Aftermarket services revenue was $39.7 million, down from $56.2 million a year earlier, primarily reflecting reduced customer demand for major maintenance service activity and lower parts sales, the company said. Aftermarket adjusted gross margin was $9.1 million; the margin percentage held at 23%.

Total operating horsepower at period end was 4.5 million, down from 4.7 million a year earlier, reflecting period-end fleet utilization of 94.3% and the sale of approximately 112,000 non-strategic operating horsepower since the prior-year period.

President and Chief Executive Officer Brad Childers said the company achieved its strongest bookings quarter since the second quarter of 2023, including strong bookings in the Permian Basin, and that rising gas-to-oil ratios and additional takeaway capacity in the basin are supporting sustained compression requirements. He said customer maintenance deferrals affected aftermarket activity and higher lube oil prices created near-term cost pressure, and that the company is mitigating those headwinds through cost discipline and operating efficiencies.

Selling, general and administrative expense was $26.0 million, down from $39.6 million in the second quarter of 2026. Net cash provided by operating activities was $158.8 million. Adjusted free cash flow was $49.6 million, down from $113.8 million a year earlier.

Long-term debt was $2.3 billion, and available liquidity totaled $637 million at September 30, 2026. The leverage ratio was 2.5x as of September 30, 2026, down from 3.1x a year earlier.

The board declared a quarterly dividend of $0.23 a share, approximately 10% higher than the third quarter of 2025, with dividend coverage of 3.8x. No shares were repurchased in the third quarter; $113.2 million remained available under the share repurchase program as of September 30, 2026.

The company reaffirmed full-year 2026 Adjusted EBITDA guidance of $865 million to $885 million.