Archrock | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 371.24 M

Revenue: As of FY2026 Q2, the actual value is USD 371.24 M, missing the estimate of USD 394.95 M.

EPS: As of FY2026 Q2, the actual value is USD 0.38, missing the estimate of USD 0.45.

EBIT: As of FY2026 Q2, the actual value is USD 130.01 M.

Revenue

Total revenue for Archrock, Inc. was $371.2 million in the second quarter of 2026, compared to $383.2 million in the second quarter of 2025. Contract operations segment revenue increased to $329.3 million in Q2 2026, up from $318.3 million in Q2 2025. Aftermarket services segment revenue decreased to $42.0 million in Q2 2026, compared to $64.8 million in Q2 2025, primarily due to lower parts sales and reduced customer demand for major maintenance service activity.

Net Income

Net income for Archrock, Inc. was $66.7 million in Q2 2026, an increase from $63.4 million in Q2 2025.Adjusted net income was $66.5 million in Q2 2026, compared to $68.4 million in Q2 2025.

Adjusted EBITDA

Adjusted EBITDA for Archrock, Inc. was $212.6 million in Q2 2026, nearly flat compared to $212.7 million in Q2 2025.

Gross Margin

Contract operations adjusted gross margin increased to $234.6 million in Q2 2026, up 6% from $222.2 million in Q2 2025, with the adjusted gross margin percentage rising to 71% from 70%.Aftermarket services adjusted gross margin was $9.9 million in Q2 2026, down from $14.9 million in Q2 2025, while the adjusted gross margin percentage increased to 24% from 23%.

Operating Costs

Selling, general, and administrative expenses were $39.6 million in Q2 2026, compared to $36.2 million in Q2 2025.

Cash Flow

Net cash provided by operating activities was $160.8 million in Q2 2026, up from $127.5 million in Q2 2025.Cash available for dividend was $127.2 million in Q2 2026, compared to $125.1 million in Q2 2025.Adjusted free cash flow was $67.0 million in Q2 2026, significantly improved from - $250.2 million in Q2 2025.Adjusted free cash flow after dividend was $28.4 million in Q2 2026, compared to - $283.8 million in Q2 2025.

Balance Sheet & Leverage

Long-term debt stood at $2.3 billion as of June 30, 2026, down from $2.6 billion as of June 30, 2025.Available liquidity totaled $631 million as of June 30, 2026.The leverage ratio decreased to 2.6x as of June 30, 2026, from 3.3x as of June 30, 2025.

Operational Metrics

Total operating horsepower at the end of Q2 2026 was 4.5 million, down from 4.7 million at the end of Q2 2025, reflecting a period-end fleet utilization of 94.4%.Archrock, Inc. signed a long-term agreement with an existing strategic customer covering approximately 665,000 horsepower, with an eight-year base term and a two-year extension option.

Shareholder Returns

Archrock, Inc. declared a quarterly dividend of $0.23 per common share for Q2 2026, approximately 10% higher than Q2 2025, resulting in dividend coverage of 3.1x.

Outlook / Guidance

Archrock, Inc. tightened its full-year 2026 Adjusted EBITDA guidance to a range of $865 million to $885 million, primarily due to near-term costs. The company introduced multi-year growth capital expenditure guidance of $1.4 billion to $1.6 billion cumulatively from 2027 through 2030, while reaffirming $250 million to $275 million for 2026 growth capital expenditures. Full-year 2026 guidance includes contract operations revenue of $1,325 million to $1,335 million, aftermarket services revenue of $175 million to $185 million, and cash available for dividend projected at $566 million.