Archrock Q3 Revenue Falls as Net Income and Adjusted EBITDA Rise

Archrock Inc. posted lower revenue but higher net income and adjusted EBITDA for the third quarter, while reaffirming its 2026 adjusted EBITDA guidance of $865 million to $885 million.

Revenue for the three months ended Sept. 30 was $370.8 million, compared with $382.4 million a year earlier. Net income rose to $84.5 million from $71.2 million, while earnings per share increased to $0.48 from $0.40. Adjusted EBITDA, a non-GAAP measure, was $228.4 million, up from $220.9 million. Adjusted net income was $84.7 million, or $0.49 per share.

Archrock's business lines moved in different directions. Contract operations revenue increased 1.5% to $331.2 million from $326.3 million. Aftermarket services revenue fell to $39.7 million from $56.2 million as demand for major maintenance work and parts sales declined. Archrock provides natural gas compression and related services in the United States, including aftermarket support for compression equipment owners.

Adjusted EBITDA is an earnings measure that starts with earnings before interest, taxes, depreciation and amortization, then applies specified adjustments. Adjusted net income is also a non-GAAP measure.

President and CEO Brad Childers said, “We achieved our strongest bookings quarter since the second quarter of 2023.” He also cited strong bookings in the Permian Basin. Childers identified customer maintenance deferrals and higher lube oil prices as near-term headwinds.

At Sept. 30, fleet utilization was 94.3%, and operating horsepower totaled 4.537 million. Long-term debt stood at $2.3 billion, with $637 million in available liquidity. Archrock's leverage ratio was 2.5 times, down from 3.1 times at Sept. 30, 2025.

Archrock issued the results Monday, Nov. 2, at 4:15 p.m. ET. The company scheduled a conference call on the quarter for 8:30 a.m. ET Tuesday, Nov. 3 (13:30 UTC).