Archrock, Inc. reported a total revenue of $373.8 million for the first quarter of 2026, marking a 7.7% increase from $347.2 million in the same period of 2025. The growth was primarily driven by a 10% rise in revenue from the contract operations segment, which generated $330.9 million compared to $300.4 million a year earlier. Net income for the quarter was $73.8 million, up from $70.9 million in the prior year, reflecting a favorable increase in adjusted gross margin and a decrease in transaction-related costs.
The company experienced notable changes in its financial metrics compared to the previous fiscal period. Adjusted gross margin rose to $247.4 million, a 11.4% increase from $222.1 million in the first quarter of 2025. This improvement was attributed to revenue growth that outpaced the increase in cost of sales, which rose to $126.3 million from $125.1 million. However, selling, general, and administrative expenses also increased significantly, totaling $45.2 million, up from $37.2 million, largely due to higher long-term incentive compensation expenses.
Strategically, Archrock completed the acquisition of Natural Gas Compression System, Inc. (NGCS) on May 1, 2025, which added approximately 326,000 horsepower to its operational capacity. This acquisition has been a key factor in the revenue growth observed in the contract operations segment. The company also executed a successful private offering of $800 million in senior notes due 2034, which was used to repay outstanding borrowings under its credit facility, enhancing its liquidity position.
Operationally, Archrock reported a total available horsepower of 4,765,000 at the end of the first quarter of 2026, with an average operating horsepower of 4,553,000. The company’s utilization rate remained stable at 95%. The workforce also saw an increase, with the employee headcount reflecting the integration of new personnel from the NGCS acquisition. The company continues to focus on expanding its market share in the U.S. energy sector, particularly in natural gas compression services.
Looking ahead, Archrock anticipates continued growth driven by increased demand for its services and the successful integration of recent acquisitions. The company plans to invest between $400 million and $445 million in capital expenditures throughout 2026, with a focus on both growth and maintenance capital expenditures. Management remains optimistic about the company’s ability to generate sufficient cash flows to meet its operational needs and return capital to shareholders through dividends and share repurchases.
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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