Archrock, Inc.
- Open
- 32.24
- Day high
- 32.74
- Day low
- 32.07
- Prev close
- 32.30
- Volume
- 171K
- Mkt cap
- $5.7B
- P/E (TTM)
- 17.4
- EPS (TTM)
- $1.86
- P/B
- 3.7
- P/S
- 3.8
- Yield
- 2.71%
- Per share
- $0.88
Archrock, Inc. (AROC) is a Energy company listed on NYSE. The stock is up 26% over the past year. Drillr has 1 published research article covering AROC.
Archrock, Inc. (AROC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AROC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.45 | $0.38 | -15.1% | $371M | -5.6% |
| May 6, 2026 | $0.47 | $0.42 | -10.6% | $374M | -1.2% |
| Feb 25, 2026 | $0.40 | $0.69 | +72.5% | $377M | -2.1% |
| Oct 28, 2025 | $0.41 | $0.42 | +2.4% | $382M | +1.2% |
| Apr 30, 2024 | $0.22 | $0.26 | +18.2% | $268M | +0.0% |
| Feb 20, 2024 | $0.21 | $0.21 | +0.0% | $260M | +2.2% |
| Nov 1, 2023 | $0.19 | $0.20 | +5.3% | $253M | +0.5% |
| May 2, 2023 | $0.12 | $0.10 | -16.7% | $230M | -3.9% |
| Feb 21, 2023 | $0.07 | $0.08 | +14.3% | $219M | +2.6% |
| Nov 2, 2022 | $0.04 | $0.10 | +150.0% | $214M | -0.5% |
| Aug 2, 2022 | $0.12 | $0.11 | -8.3% | $216M | +4.7% |
| Feb 22, 2022 | $0.07 | $0.09 | +28.6% | $195M | +1.0% |
AROC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | Singh Mohitofficer: SVP & CFO | Grant | 41,062 | — |
| May 19, 2026 | Ingersoll Jasonofficer: SENIOR VICE PRESIDENT | Sell | 33,000 | $38.19 |
| May 18, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Sell | 90,000 | $36.74 |
| May 18, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Sell | 35,000 | $38.30 |
| Mar 31, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Sell | 98,050 | $34.76 |
| Mar 31, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Sell | 71,500 | $35.61 |
| Mar 5, 2026 | Henderson Donna Aofficer: VP, CHIEF ACCOUNTING OFFICER | Sell | 10,413 | $36.74 |
| Feb 23, 2026 | CHILDERS D BRADLEYdirector, officer: PRESIDENT AND CEO | Tax | 96,077 | $27.85 |
| Feb 23, 2026 | Thode Eric Wofficer: SENIOR VICE PRESIDENT | Tax | 15,665 | $27.85 |
| Feb 23, 2026 | Hildebrandt Stephanie Cofficer: SVP, GENERAL COUNSEL | Tax | 22,975 | $27.85 |
| Feb 23, 2026 | Ingersoll Jasonofficer: SENIOR VICE PRESIDENT | Tax | 15,665 | $27.85 |
| Feb 23, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Tax | 35,507 | $27.85 |
| Feb 20, 2026 | Thode Eric Wofficer: SENIOR VICE PRESIDENT | Grant | 39,807 | — |
| Feb 20, 2026 | CHILDERS D BRADLEYdirector, officer: PRESIDENT AND CEO | Grant | 244,160 | — |
| Feb 20, 2026 | Aron Doug Sofficer: SR VICE PRESIDENT, CFO | Grant | 90,232 | — |
Source: AROC SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full AROC insider & 13F page →Archrock, Inc. company profile
Overview
Archrock, Inc. (NYSE:AROC) is a Houston-based energy infrastructure company that has been operating since 1990, originally founded as Exterran Holdings before changing its name in November 2015. The company serves as a critical component of the United States natural gas supply chain, providing compression services that enable the extraction, processing, and transportation of natural gas from wellheads to end users. Archrock has evolved from a diversified energy services company into a focused natural gas compression specialist, positioning itself as what management describes as a "late cycle participant" in the energy sector with minimal exposure to commodity price volatility.
Business
Archrock operates in the natural gas compression industry, which is essential infrastructure for the oil and gas sector. Natural gas compression is required because gas loses pressure as it travels through pipelines from production sites to processing facilities and ultimately to consumers. Compression equipment uses engines to power compressors that maintain adequate pressure levels, ensuring continuous gas flow through the pipeline network. The company operates through two primary business segments. The Contract Operations segment represents approximately 85-90% of total revenue and involves owning, installing, operating, and maintaining a fleet of natural gas compression equipment for customers under long-term contracts. This segment generated around $1.0 billion in revenue for 2024, with customers typically being oil and gas producers, midstream companies, and pipeline operators who need reliable compression services but prefer not to own and operate the equipment themselves. The Aftermarket Services segment accounts for roughly 10-15% of revenue and provides parts, maintenance, repair, and overhaul services to customers who own their compression equipment. This segment generated approximately $170 million in 2024 revenue. The aftermarket business serves as a complementary service offering that leverages Archrock's technical expertise and parts inventory to serve a broader customer base beyond its contract operations fleet. Archrock's fleet consists of approximately 4.2 million horsepower of compression equipment, with the majority being large horsepower units (typically 1,000+ horsepower) that serve midstream applications. The company has been strategically investing in electric motor drive compression, which uses electric motors instead of natural gas engines, representing about 30% of new capital expenditures as customers seek to reduce emissions and operating costs.
Revenue model
Archrock generates revenue primarily through long-term service contracts in its Contract Operations segment, where customers pay monthly fees based on horsepower capacity and utilization. The company's revenue model is similar to equipment leasing, with customers paying for compression services rather than purchasing equipment outright. Monthly revenue per horsepower has reached record levels of $23.54, reflecting the company's pricing power in a tight market. Contract terms typically range from 3-10 years with built-in pricing escalations and high renewal rates. The Aftermarket Services segment operates on a transactional basis, selling parts and providing maintenance services to third-party equipment owners. This creates a more variable revenue stream but generates higher margins on specialized parts and emergency repair services. Several factors influence Archrock's profitability margins. Positive margin drivers include the tight compression equipment market with 52+ week lead times, which supports pricing power and high fleet utilization rates currently at 96%. The company's focus on large horsepower midstream applications provides more stable, higher-margin contracts compared to smaller wellhead compression. Additionally, the shift toward electric motor drive compression offers operational efficiencies and attracts environmentally conscious customers willing to pay premium rates. Margin pressures come from equipment inflation, which has stabilized at 3-5% annually but still impacts new unit costs. Labor costs and supply chain constraints can affect both equipment availability and service margins. The company's margins are also sensitive to fleet utilization rates, as fixed costs remain constant regardless of equipment deployment levels. However, Archrock's late-cycle positioning means it experiences less volatility from commodity price swings compared to upstream oil and gas companies, as compression services remain necessary regardless of short-term production fluctuations.
Competitive moat
Archrock possesses a moderate economic moat built primarily on operational scale, customer relationships, and market positioning rather than proprietary technology. The company's moat stems from several factors: its large fleet of 4.2 million horsepower creates economies of scale in purchasing, maintenance, and operations that smaller competitors cannot match. The company has established long-term relationships with major oil and gas producers, midstream companies, and pipeline operators, with contracts averaging 3-10 years and high renewal rates. The compression services market exhibits high barriers to entry due to significant capital requirements, with new compression units costing $1-2 million each and requiring substantial working capital for parts inventory and maintenance operations. Current equipment lead times of 52+ weeks create a natural supply constraint that protects existing operators from rapid capacity additions. Archrock's technical expertise in compression operations, developed over three decades, provides operational advantages in equipment reliability and customer service. However, the moat faces several challenges. The compression equipment itself is not proprietary - engines and compressors are manufactured by third parties like Caterpillar and Ariel Corporation, meaning technological differentiation is limited. Competitive threats include larger diversified oilfield services companies that could enter the market with significant capital resources, as well as customers potentially bringing compression services in-house during favorable economic cycles. The rise of electric motor drive compression could also disrupt traditional gas-powered compression, though Archrock is actively investing in this transition. The regulatory environment around methane emissions could create both opportunities and challenges, potentially favoring companies with cleaner electric compression technology while imposing additional compliance costs on traditional operations. Overall, Archrock's moat is solid but not insurmountable, relying more on operational excellence and market positioning than fundamental technological advantages.
Risks & safety
Archrock demonstrates a moderate margin of safety with manageable debt levels but limited cash reserves and cyclical earnings volatility. • **Solvency Position**: Current ratio of 1.47x provides adequate short-term liquidity coverage, though cash position is minimal at $4.8 million. Debt-to-equity ratio of 1.71x indicates moderate leverage, with management targeting 3.0-3.5x EBITDA leverage ratio. • **Cash Flow Dynamics**: Operating cash flow of $430 million in 2024 provides solid coverage, but free cash flow turned negative at -$52.5 million in Q1 2025 due to heavy capital expenditures of $330-370 million annually for fleet expansion. • **Valuation Metrics**: Trading at 16.1x P/E ratio and 9.1x EV/EBITDA, representing reasonable but not deep value levels. Price-to-book ratio of 3.38x reflects asset-heavy business model with significant equipment investments. • **Dividend Coverage**: Quarterly dividend of $0.19 per share appears sustainable with management reporting 2.6x coverage ratio, though coverage could tighten during capital-intensive growth periods. • **Cyclical Risk**: Energy sector exposure creates earnings volatility risk, though management's "late cycle" positioning provides some insulation from commodity price swings.
Recent development
Over the past few years, Archrock has executed a strategic transformation focused on fleet optimization and technological advancement. The company completed its acquisition of TOPS (part of the broader energy services consolidation), adding 580,000 horsepower of young, high-quality assets that increased Permian Basin capacity by 30% and accelerated the company's electric motor drive compression capabilities. A key strategic pivot has been the emphasis on electric motor drive compression technology, with approximately 30% of new capital expenditures now dedicated to electric units compared to minimal investment just a few years ago. Management expects this percentage to grow to 40-50% of new build capital expenditures, positioning the company for the industry's electrification trend and stricter environmental regulations. The company has also made significant investments in emissions reduction and monitoring technology, including its investment in ECOTEC for methane emissions detection and the development of patent-pending methane capture technology. These initiatives align with increasing regulatory pressure and customer demand for cleaner operations. Geographically, Archrock has concentrated its growth strategy on the Permian Basin, which now represents approximately 60% of new equipment bookings. This focus reflects the basin's liquids-rich production profile and superior economics compared to dry gas plays. The company has also been "high-grading" its fleet by selling older, smaller horsepower units and reinvesting in larger, more efficient equipment that serves midstream applications with longer-term contracts. From a capital allocation perspective, Archrock has increased shareholder returns through dividend growth (15% increase in the most recent quarter) and share repurchases, while maintaining disciplined growth investment of $330-370 million annually in fleet expansion to capture market opportunities.
AROC company profile · for informational purposes only — not investment advice.
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