Archrock, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $382.4 million for the three months ended September 30, 2025, compared to $292.2 million for the same period in 2024. This represents a 31% increase year-over-year. For the nine months ended September 30, 2025, revenue totaled $1.11 billion, up from $831.2 million in the prior year, marking a 34% increase. The company's net income also saw substantial growth, rising to $71.2 million in Q3 2025 from $37.5 million in Q3 2024, and to $205.5 million for the nine-month period, compared to $112.5 million in the previous year.
The increase in revenue was primarily driven by the company's contract operations segment, which generated $326.3 million in Q3 2025, up from $245.4 million in Q3 2024. This growth was attributed to the acquisition of new compression units from the TOPS and NGCS acquisitions, as well as higher operating horsepower and rates. The aftermarket services segment also contributed, with revenue increasing to $56.2 million from $46.7 million in the same quarter last year. The overall adjusted gross margin improved to $252.6 million in Q3 2025, a 42% increase from $178.0 million in Q3 2024.
Archrock's operational metrics reflected a strong performance, with total available horsepower at 4,845, an increase from 4,418 a year earlier. The average operating horsepower also rose to 4,647, indicating improved utilization rates. The company reported a total of 1,094,516 shares repurchased under its share repurchase program during the third quarter, with an average price of $23.18 per share, contributing to a total repurchase cost of $25.4 million.
Strategically, Archrock has made significant acquisitions, including the NGCS acquisition completed on May 1, 2025, which added approximately 326,000 operating horsepower to its fleet. The company also completed the TOPS acquisition in August 2024, which further expanded its operational capacity. These acquisitions have been funded through a combination of cash, equity offerings, and borrowings under its credit facility, which was recently amended to increase its borrowing capacity to $1.5 billion.
Looking ahead, Archrock anticipates continued growth driven by increased demand for its services and the successful integration of its recent acquisitions. The company plans to invest between $490 million and $510 million in capital expenditures in 2025, focusing on both growth and maintenance capital expenditures. Archrock remains committed to returning capital to shareholders through dividends and share repurchases, with a quarterly dividend of $0.21 per share declared for November 2025. The company is also actively managing its debt, with plans to redeem $300 million of its 2027 Notes in November 2025, further strengthening its financial position.
About Archrock, Inc.
Archrock, Inc. is a U.S.-based energy infrastructure company specializing in midstream natural gas compression services. It operates two main segments: contract operations, providing compression equipment and services to energy producers and transporters, and aftermarket services, offering maintenance, overhaul, and parts sales. Archrock serves a broad customer base across major U.S. natural gas and crude oil regions, leveraging a large, standardized fleet and a fee-based business model focused on safety, reliability, and operational efficiency.
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