Archrock Inc

Archrock owns and operates natural gas compressors for customers across the US. Compression raises gas pressure so gas can flow from the well through gathering lines, processing plants and pipelines. Many producers, processors and pipeline operators outsource this work. Archrock focuses on midstream work, the stage between the well and end users: 60% of its operating fleet serves gathering and processing. The other 40% handles gas lift, which injects gas into oil wells to help push liquids up.

Contract operations is the core business. Archrock installs, runs and maintains its own compressors at customer sites for a fixed monthly fee, generally based on horsepower, while customers supply the fuel or electricity. First terms usually run 12 to 36 months (up to 60 for the largest units). After that, most contracts go month to month, and either side can end them on 30 days' notice. As of December 31, 2025, the fleet had 5,319 units, and 74% of operating horsepower came from units above 1,000 horsepower. The segment earned about $1.27 billion, or 85% of 2025 revenue of $1.49 billion.

Aftermarket services, the smaller segment, sells parts and does maintenance, overhaul and operating work for companies that own their compressors. It earned about $218 million, or 15% of revenue, and gives Archrock a way to cross-sell contract operations.

• In Q2 FY2026 (ended Jun 30, 2026), revenue was $371.2M, down 3.1% from a year earlier, and net income was $66.7M (+5.2%).
• For fiscal 2025, revenue was $1.49B (+28.7% year over year; +11.2% a year from FY2020 to FY2025) with a 21.6% net margin.

• Over FY2021–FY2025: $97.3M in buybacks and $527.4M in dividends.
• Regular dividend per share increased 3 years in a row.
• Regular dividends per share grew +6.6% a year over 5 years (FY2020–FY2025).
• Dividends took 43.9% of earnings and 118.4% of free cash flow in the latest fiscal year.
• Shares outstanding changed +13.8% from Oct 26, 2021 to Jul 29, 2026.

Rank among 1514 US companies

Market value at each year end

Archrock’s market value went from $968.7M at the end of 2018 to $5.59B on Oct 28, 2026, about 5.8 times as much; since the end of 2025 it is up 22%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 6 sales ($12.2M).

Large shareholders (13G filings)

ETFs with the most weight in AROC

1. Integrating NGCS may prove harder than expected. Archrock may not get the expected benefits from its NGCS acquisition and could struggle to combine the businesses. It warns that acquisition risks could reduce the cash it can pay out as dividends.
2. Open competition and short contracts. Archrock calls its business highly competitive and says new rivals face few barriers, which could cost it market share. After initial terms, contracts generally roll month to month and can end on 30 days' notice.
3. Accidents could cost more than insurance covers. Equipment failures can cause uncontrolled gas releases, fires and explosions, leading to injury, pollution or damage claims. Insurance may not cover everything, and Archrock is largely self-insured for workers' compensation and offshore property damage.
4. Less demand for oil and gas. Archrock's business depends on customers producing and moving natural gas and oil. A climate-related drop in demand for these fuels could reduce the need for its compression services.
5. Inflation and tariffs could squeeze profits. Higher wages and costs for parts, lube oil and imported steel could raise expenses, and Archrock may not be able to pass them on. Inflation can also strain customers, making bills harder to collect.
6. Wars can drive energy price swings. The war in Ukraine, the Israel-Hamas war and events in Venezuela have added to swings in oil and gas prices. Long-lasting disruption could hurt the global economy and Archrock's business.

• Sep 28, 2026 Executive or board change
• Aug 11, 2026 Investor presentation or announcement
• Aug 5, 2026 Quarterly results released
• Jun 25, 2026 Executive or board change; Investor presentation or announcement
• May 11, 2026 Investor presentation or announcement
• May 6, 2026 Quarterly results released
• May 4, 2026 Shareholder vote results
• Apr 1, 2026 Other company announcement
• Mar 26, 2026 Executive or board change; Investor presentation or announcement
• Feb 26, 2026 Other company announcement

Archrock pays a dividend and has raised it three years in a row. Dividends per share held at $0.58 from 2020 through 2022, then rose to $0.61 in 2023, $0.67 in 2024 and $0.80 in 2025, about 6.6% a year of growth since 2020. For 2025, dividends were 44% of earnings but 118% of free cash flow (cash left after capital spending), so they exceeded that cash. The yield was 2.76% as of October 28, 2026. Buybacks (share repurchases) totaled $70 million in 2025, yet the share count rose about 14% from October 2021 to July 2026.

The stock has fallen hard in downturns. It dropped about 62% in the 2020 COVID crash, between February 20 and March 23, 2020, and recovered by November 2020. In 2022 it fell about 38% from June to September, then recovered by February 2023. As a single stock tied to one industry, Archrock carries more risk than a diversified fund.