Archrock Reports 42% Revenue Growth to $383.2 Million in Q2 2025

Archrock, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $383.2 million for the three months ended June 30, 2025, compared to $270.5 million for the same period in 2024, marking a 42% increase. For the first half of 2025, revenue totaled $730.3 million, up from $539.0 million in the prior year, driven by strong performance in both contract operations and aftermarket services. Net income for the second quarter was $63.4 million, a substantial increase from $34.4 million in the previous year, while net income for the six-month period rose to $134.3 million from $75.0 million.

The company attributed its revenue growth to the integration of new compression units acquired through the recent TOPS and NGCS acquisitions, as well as increased rates and higher average operating horsepower. Contract operations revenue alone surged to $318.3 million in Q2 2025, up from $225.5 million in Q2 2024, while aftermarket services revenue increased to $64.8 million from $45.1 million. The adjusted gross margin also improved, reaching $237.1 million for the second quarter, a 52% increase compared to the same quarter last year.

Archrock's operational metrics reflected a robust expansion, with total available horsepower increasing to 4,843, up from 3,806 a year earlier. The company reported an average operating horsepower of 4,467 for the second quarter, indicating improved utilization rates. The workforce also expanded, with increased headcount resulting from the acquisitions, contributing to higher operational capacity and service capabilities.

In terms of strategic developments, Archrock completed the NGCS acquisition on May 1, 2025, for a total consideration of $351.5 million, which included both cash and stock. This acquisition added significant horsepower to its operations and is expected to enhance its service offerings in the Permian Basin. Additionally, the company amended its credit facility in May 2025, increasing its borrowing capacity from $1.1 billion to $1.5 billion, which provides greater financial flexibility for future growth initiatives.

Looking ahead, Archrock anticipates continued growth driven by strong demand in the energy sector and the successful integration of its recent acquisitions. The company plans to invest between $485 million and $520 million in capital expenditures for 2025, focusing on both growth and maintenance capital expenditures. Archrock remains optimistic about its operational performance and market position, supported by a solid financial foundation and strategic investments in its service capabilities.