Archrock, Inc. reported outstanding financial results for the first quarter of 2025 on May 5, 2025, driven by solid execution and operational transformation. Net income for the quarter reached $70.9 million, a substantial increase from $40.5 million in Q1 2024.
Contract operations revenue grew 35% year-over-year to $300.4 million, with an adjusted gross margin of $210.6 million, up 45% from the prior year. The adjusted gross margin percentage for contract operations was 70%, reflecting strong profitability. Total operating horsepower increased to 4.3 million, maintaining a 96% utilization rate.
The company updated its full-year 2025 adjusted EBITDA guidance to a range of $790 million to $830 million, incorporating eight months of financial impact from the recently completed NGCS acquisition. This revised outlook reflects continued strong performance and strategic growth initiatives.
Archrock's Board of Directors approved an additional $50 million for its share repurchase program through April 27, 2026, bringing the available capacity to $65.2 million. The company repurchased approximately 977,000 shares totaling $22.7 million year-to-date through May 1, 2025, demonstrating a commitment to increasing shareholder returns.
The company's leverage ratio remained strong at 3.2x as of March 31, 2025, and it declared a quarterly dividend of $0.19 per share, with a robust dividend coverage of 3.9x. These results underscore Archrock's financial strength and disciplined capital allocation.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.