olivLaw · US equity research
Archrock, Inc. AROC
Natural Gas Transmission · SIC 4922 · Vertical: Natural Gas Transmission (SIC 4922)
Archrock is an energy infrastructure company focused on midstream natural gas compression, leasing and servicing compressor fleets for producers and pipeline operators in the U.S. Against a backdrop of sustained demand, the company introduced in 2026 growth capital guidance of 1.4-1.6 bn USD cumulatively for 2027-2030, which makes its trajectory worth following. Quarterly revenue was 371.2 mn USD, and full-year 2026 adjusted EBITDA guidance was narrowed to 865-885 mn USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Archrock, Inc. (AROC) stock was 28.61 USD (−9.03% on the day), with market capitalisation 5.0 bn USD, P/E 14.8 on diluted EPS of 1.94 USD over the last 12 months, dividend yield 3.08%, beta 1.12, 52-week range 23.04–41.95 USD. Latest reported quarter (Q3 2026): revenue of 370.8 m USD (−3.0% YoY), net income of 84.5 m USD (+18.6% YoY), diluted EPS 0.48 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.7
- weak (30–45)
- Bollinger (20, 2)
- 28.05 – 32.33
- in the lower half of the band · %B 0.13 · band width 14.2%
- SMA 50 / 200
- 30.83 / 34.21
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.06 / -0.12
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −5.0% | −1.1% | −3.9 pp | — |
| 3 months | −15.7% | −0.5% | −15.2 pp | — |
| 6 months | −26.8% | +4.4% | −31.2 pp | — |
| Year to date | +10.0% | +12.3% | −2.4 pp | — |
| 1 year | +12.7% | +13.5% | −0.8 pp | +12.1% |
| 3 years | +100.6% | +76.4% | +24.2 pp | +57.8% |
| 5 years | +228.1% | +63.7% | +164.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 326.4 m | 347.2 m | 383.2 m | 382.4 m | 377.1 m | 373.8 m | 371.2 m | 370.8 m |
| Cost of revenue | 117.1 m | 125.1 m | 146.0 m | 129.8 m | 108.5 m | 126.3 m | 126.7 m | 123.0 m |
| Gross profit | 151.2 m | 164.5 m | 174.0 m | 185.5 m | 199.7 m | 177.7 m | 173.0 m | 175.9 m |
| SG&A | 42.2 m | 37.2 m | 36.2 m | 37.7 m | 36.7 m | 45.2 m | 39.6 m | 26.0 m |
| Depreciation & amortisation | 58.1 m | 57.6 m | 63.1 m | 67.1 m | 68.9 m | 69.7 m | 71.5 m | 71.9 m |
| Interest expense | 38.2 m | 37.7 m | 41.7 m | 43.7 m | 42.2 m | 39.5 m | 37.0 m | 37.0 m |
| Pre-tax income | 78.4 m | 92.0 m | 86.0 m | 96.9 m | 148.8 m | 97.7 m | 93.0 m | 111.5 m |
| Income tax | 18.6 m | 21.1 m | 22.4 m | 25.4 m | 31.9 m | 23.4 m | 25.8 m | 26.7 m |
| Net income | 59.8 m | 70.9 m | 63.4 m | 71.2 m | 116.8 m | 73.8 m | 66.7 m | 84.5 m |
| Diluted EPS | 0.34 ≈ | 0.40 | 0.36 | 0.40 | 0.67 ≈ | 0.41 | 0.38 | 0.48 |
| Operating cash flow | 124.3 m | 115.6 m | 127.5 m ≈ | 164.5 m ≈ | 214.5 m | 185.9 m | 160.8 m ≈ | 158.8 m ≈ |
| Capex | 98.0 m | 168.1 m | 111.5 m ≈ | 135.1 m ≈ | 87.8 m | 113.5 m | 98.0 m ≈ | 117.9 m ≈ |
| Dividends paid | 30.7 m | 34.2 m | 33.6 m | 36.9 m | 36.9 m | 39.9 m | 38.6 m | 40.6 m |
| Share repurchases | 0 | 223.0 k | 28.8 m ≈ | 25.4 m ≈ | 15.8 m | 4.4 m | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 8 percentile of its own 25-quarter history (min 14.2, median 23.8, max 54.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 904.4 m | 965.5 m | 875.0 m | 781.5 m | 845.6 m | 990.3 m | 1.2 bn | 1.5 bn |
| Revenue YoY | +13.8% | +6.7% | −9.4% | −10.7% | +8.2% | +17.1% | +16.9% | +28.7% |
| Net income | 21.1 m | 97.3 m | -68.4 m | 28.2 m | 44.3 m | 105.0 m | 172.2 m | 322.3 m |
| Net income YoY | +11.1% | +362.1% | −170.3% | unavailable | +57.0% | +137.0% | +64.0% | +87.1% |
| Diluted EPS | unavailable | 0.70 | -0.46 | 0.18 | 0.28 | 0.67 | 1.05 | 1.83 |
| Diluted EPS YoY | unavailable | unavailable | −165.7% | unavailable | +55.6% | +139.3% | +56.7% | +74.3% |
| net % | 2.3% | 10.1% | -7.8% | 3.6% | 5.2% | 10.6% | 14.9% | 21.6% |
| Free cash flow | -93.2 m | -95.1 m | 195.0 m | 139.5 m | -36.4 m | 11.6 m | 70.6 m | 119.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.6 m USD
- Financial debt
- 2.4 bn USD
- Net debt
- 2.4 bn USD
- Equity
- 1.5 bn USD
- Total assets
- 4.3 bn USD
- Debt / equity
- 1.62x
- Current ratio
- 1.54x
- ROE
- 22.9%
- ROA
- 7.9%
- FCF margin
- 8.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 875.0 m | 781.5 m | 845.6 m | 990.3 m | 1.2 bn | 1.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 377.2 m | 358.9 m | 419.5 m | 449.0 m | 458.5 m | 509.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 497.8 m ≈ | 422.5 m ≈ | 261.8 m | 375.1 m | 505.9 m | 723.6 m | SEC (XBRL)· 26 Feb 2026verified |
| SG&A | 105.1 m | 107.2 m | 117.2 m | 116.6 m | 139.1 m | 147.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 193.1 m | 178.9 m | 164.3 m | 166.2 m | 193.2 m | 256.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Interest expense | 105.7 m | 108.1 m | 101.3 m | 111.5 m | 123.6 m | 165.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -86.0 m | 39.0 m | 60.6 m | 142.2 m | 232.4 m | 423.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -17.5 m | 10.7 m | 16.3 m | 37.2 m | 60.1 m | 100.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -68.4 m | 28.2 m | 44.3 m | 105.0 m | 172.2 m | 322.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -0.46 | 0.18 | 0.28 | 0.67 | 1.05 | 1.83 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 150.8 m | 151.8 m | 153.4 m | 154.3 m | 162.4 m | 174.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 0.58 | 0.58 | 0.58 | 0.61 | 0.67 | 0.80 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.1 m | 1.6 m | 1.6 m | 1.3 m | 4.4 m | 1.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 104.4 m | 104.9 m | 111.9 m | 119.7 m | 132.5 m | 142.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 63.7 m | 72.9 m | 84.6 m | 81.8 m | 89.7 m | 109.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 182.0 m | 186.6 m | 232.0 m | 213.2 m | 233.1 m | 304.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 2.4 bn | 2.2 bn | 2.2 bn | 2.3 bn | 3.3 bn | 3.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | — | — | — | 0 | 52.2 m | 125.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 61.5 m | 47.9 m | 37.1 m | 30.2 m | 98.3 m | 143.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 2.8 bn | 2.6 bn | 2.6 bn | 2.7 bn | 3.8 bn | 4.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 30.8 m | 38.9 m | 64.3 m | 61.0 m | 57.6 m | 43.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 1.7 bn | 1.5 bn | 1.5 bn | 1.6 bn | 2.2 bn | 2.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 111.7 m | 125.3 m | 148.6 m | 152.1 m | 188.6 m | 197.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 1.8 bn | 1.7 bn | 1.7 bn | 1.8 bn | 2.5 bn | 2.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 935.6 m | 891.4 m † | 860.7 m † | 871.0 m † | 1.3 bn † | 1.5 bn † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 335.3 m | 237.4 m | 203.5 m | 310.2 m | 429.6 m | 622.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 140.3 m | 97.9 m | 239.9 m | 298.6 m | 359.0 m | 502.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 195.0 m ≈ | 139.5 m ≈ | -36.4 m ≈ | 11.6 m ≈ | 70.6 m ≈ | 119.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -85.0 m | 16.1 m | -130.9 m | -232.5 m | -1.2 bn | -606.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -252.8 m | -253.0 m | -72.5 m | -77.9 m | 733.6 m | -18.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 88.8 m | 89.3 m | 90.3 m | 95.8 m | 110.4 m | 141.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 1.8 m | 2.5 m | 2.4 m | 8.9 m | 13.3 m | 70.2 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 77 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation71
- Balance sheet55
- Quality71
- Growth100
- Returns69
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 10.51 – 71.22 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)35.21 – 71.22 (Mid 48.13)WACC 7.8% · starting FCFF 421.3 m USD · terminal value share of EV 79%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -1.9%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E26.64 – 47.95 (Mid 36.44)10 companies used · median multiple 18.8x · quartiles 13.7x – 24.7xAM, DTM, EPD, ET, KMI, KNTK, TRGP, USAC, WES, WMB
- Dividend discount (DDM)10.51 – 14.14 (Mid 12.06)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 77/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 22.9% | 59 (vs peers) | 10% |
| FCF conversion · Quality | 88.6% | 84 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 20.8% | 100 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 87.0% | 100 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.5x | 55 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 14.8x | 67 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.0% | 75 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.5% | 50 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 51.5% | 98 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial55/100 · 1/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality71/100 · 2/3 factors with a value
- Returns69/100 · 2/2 factors with a value
- Valuation71/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Archrock, Inc. (AROC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.5 bn USD in 2025; YoY growth 28.7%; net margin 22.9%; ROE 22.6%.
The estimated value range is 26.64–47.95 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 36.44 USD, the price of 28.61 USD leaves a potential of 27.4% (value / price − 1) and a margin of safety of 21.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 77/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 88.6%
- Revenue CAGR 3Y: 20.8%
- EPS CAGR 3Y: 87.0%
- FCF yield: 6.0%
- Payout ratio (FCF): 51.5%
What contradicts it
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Natural Gas Transmission (SIC 4922) · same industry (4-digit SIC) · compared with 17 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WMBWilliams Companies, Inc. | 83.0 bn | 27.1 | 24.0% | 25.2% | +13.8% | +11% / +84% |
| EPDEnterprise Products Partners L.P. | 79.2 bn | 12.0 | — | 10.2% | −6.4% | +12% / +37% |
| KMIKinder Morgan, Inc. | 70.2 bn | 19.5 | 11.6% | 19.6% | +12.2% | +15% / +79% |
| ETEnergy Transfer LP | 67.0 bn | 12.7 | — | 4.9% | +3.5% | +16% / +40% |
| TRGPTarga Resources Corp. | 61.1 bn | 27.2 | 72.6% | 13.5% | +3.9% | +63% / +215% |
| WESWestern Midstream Partners, LP | 17.6 bn | 13.6 | — | 28.2% | +6.6% | +8% / +43% |
| DTMDT Midstream, Inc. | 12.0 bn | 25.5 | 9.9% | 35.4% | +26.7% | −3% / +105% |
| AMAntero Midstream Corporation | 9.4 bn | 14.0 | 31.6% | 53.4% | +7.4% | +10% / +49% |
| AROCArchrock, Inc. | 5.0 bn | 14.8 | 22.6% | 22.9% | +28.7% | +13% / +101% |
| KGSKodiak Gas Services, Inc. | 4.2 bn | 48.6 | 4.6% | 5.8% | +12.8% | +17% / +134% |
| USACUSA Compression Partners, LP | 3.5 bn | 22.3 | — | 12.4% | +5.0% | −3% / +3% |
| KNTKKinetik Holdings Inc. | 3.4 bn | 18.1 | — | 10.4% | +19.0% | +48% / +41% |
| NGLNGL Energy Partners LP | 1.9 bn | — | — | -3.8% | −9.0% | +58% / +258% |
| SMCSummit Midstream Corporation | 308.0 m | 9,397.5 | 0.1% | 0.0% | +30.8% | +15% / +40% |
| NGGNational Grid PLC | — | — | 8.6% | 15.8% | −7.4% | +12% / +29% |
| TGSGas Transporter Of The South Inc. | — | — | 18.1% | 30.3% | +23.7% | −26% / +67% |
| TRPTc Energy Corporation | — | — | 12.8% | 23.1% | +10.7% | +14% / +67% |
| TCPATranscanada Pipelines Ltd | — | — | 14.0% | 23.1% | +7.2% | −13% / unavailable |
1- and 3-year price returns: for AROC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 18.79 Total return -32% · Per year -32% | 33.06 Total return 19% · Per year 19% | 49.60 Total return 78% · Per year 78% |
| 3 years | 22.29 Total return -13% · Per year -5% | 43.73 Total return 65% · Per year 18% | 71.42 Total return 165% · Per year 38% |
| 5 years | 26.43 Total return 8% · Per year 2% | 57.83 Total return 126% · Per year 18% | 102.84 Total return 291% · Per year 31% |
- Exit P/E± 10.93
- Net margin± 7.65
- Annual revenue growth± 5.71
- Annual dilution± 0.64
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
In brief
Archrock is an energy infrastructure company focused on midstream natural gas compression, leasing and servicing compressor fleets for producers and pipeline operators in the U.S. Against a backdrop of sustained demand, the company introduced in 2026 growth capital guidance of 1.4-1.6 bn USD cumulatively for 2027-2030, which makes its trajectory worth following. Quarterly revenue was 371.2 mn USD, and full-year 2026 adjusted EBITDA guidance was narrowed to 865-885 mn USD.
SWOT
Strengths
- Leader in large horsepower compressor fleets, with a broad customer base and presence in most U.S. producing regions.
- Revenue largely based on fixed fees, which reduces direct exposure to commodity prices.
- Strengthened balance sheet indicators and a dividend comfortably covered by cash available for dividend.
Weaknesses
- Dependence of the aftermarket segment on customer demand and seasonality, which caused recent declines.
- Operating costs sensitive to lube oil prices and labor costs, which affect margins.
- Significant debt and dependence on capital market access to finance investment.
Opportunities
- Growing demand for natural gas linked to LNG exports, data center power and pipeline exports.
- Long-term contracts with existing customers, such as the strategic agreement announced in 2026, could support fleet growth.
- Acquisitions of assets or companies could expand the fleet if completed on acceptable economic terms.
Threats
- A fall in gas prices or production could reduce demand for compression.
- Intense competition and price cuts by rivals could affect contract renewals.
- Trade tariffs and inflation could raise the cost of equipment and parts.
Risks
- Acquisition and maintenance costsmedium
Rising costs for lube oil, parts and labor could reduce margins if they cannot be passed on to customers.
- Access to financingmedium
Growth investment depends on borrowing and capital markets; unfavorable conditions could limit expansion.
- Liability for operational incidentshigh
Equipment failures or leaks could generate large liabilities, and insurance does not cover all losses.
- Integration of acquisitionsmedium
Integrating NGCS and other acquisitions could face difficulties, affecting the expected results.
- Demand linked to the energy transitionlow
Faster adoption of renewable energy or electric compressors could reduce demand for gas-powered units.
Investment thesis
What would need to be true (bull case)
- Compression demand could keep rising if gas production and LNG exports stay at record levels, and the company's large horsepower fleet could benefit directly.
- The fixed-fee contract structure and a strengthened balance sheet could support the dividend and growth financing.
- Long-term contracts signed in 2026 could offer visibility on future revenue.
What would break the thesis
- The narrowed 2026 adjusted EBITDA guidance shows that short-term costs could weigh on results.
- The aftermarket segment declined in the second quarter, and weaker demand could persist.
- High debt and price competition could limit the company's ability to finance and renew contracts.
What to watch
- Delivery of adjusted EBITDA guidance and lube oil cost trendsQ3 2026
- Fleet utilization and contract operations revenue trajectoryQ3 2026
- Execution of 1.4-1.6 bn USD growth capital program for 2027-20302027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
The business
Archrock presents itself as an energy infrastructure company focused mainly on midstream natural gas compression, and, by total compression fleet horsepower, a premier provider of such services in the U.S. The company runs two segments: contract operations, covering design, ownership, installation and maintenance of its owned compression fleet, and aftermarket services, covering operations, overhaul and parts for compression equipment owned by customers. Services focus on midstream applications, with 60% of the operating fleet used in the gathering and processing stages.
Market context
The market remains competitive, with low barriers to entry, and large customers may build their own fleets or seek lower prices after consolidation. Pressures on labor, lube oil and imported equipment costs could affect margins in the coming period.
Competitive position
The company operates in a competitive market where larger rivals may have superior financial and technical resources and customers can build their own fleets. Archrock cites the size of its large horsepower fleet, its broad geographic footprint and its operating experience as advantages.
Consolidation in the oil and gas industry can create larger customers that use their purchasing power to demand price concessions, which could affect contract renewal terms.
- Kodiak Gas Services
A U.S. compression services provider cited as a source of competitive pressure in the company's materials; the sources available do not give its market share.
- Larger rivals with superior financial and technical resources
Companies named in the annual report risk factors may adopt more aggressive pricing strategies and adapt technology faster.
- New entrants into compression services
New businesses can enter the market with low barriers, and some competitors may expand or fabricate their own compressors.
- Customers operating their own fleets
Producers and operators that own their compressors are indirect competition, especially when consolidation increases their negotiating power.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Archrock’s (AROC) Compression Business Locks In Years Of GrowthYahoo Finance — News · 04 Sept 2026 · EN
The latest news item in our archive is from 04 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Regulation FD disclosure
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report28 Sept 2026Departure or appointment of officers
- Current report11 Aug 2026Regulation FD disclosure
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report25 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report11 May 2026Regulation FD disclosure
- Quarterly report06 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Archrock, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Archrock, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Archrock, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.