Archrock, Inc. reported outstanding financial results for the second quarter of 2025 on August 4, 2025. Net income for the quarter reached $63.4 million, a significant increase from $34.4 million in Q2 2024. Contract operations revenue grew 41% year-over-year to $318.3 million, with an adjusted gross margin of $222.2 million, up 52% from the prior year.
The company's adjusted gross margin percentage for contract operations was 70%, reflecting strong profitability. Total operating horsepower expanded to 4.7 million, an increase of 368,000 operating horsepower sequentially, maintaining a record utilization rate of 96% on its fleet.
Archrock raised its full-year 2025 adjusted EBITDA guidance to a range of $810 million to $850 million, reflecting continued outperformance and high confidence in its outlook. The company also announced a 2026 growth CapEx projection of 'not less than $250 million,' signaling sustained customer demand.
During the second quarter, Archrock repurchased 1,226,954 shares of common stock for approximately $28.8 million, with $58.9 million remaining under its share repurchase program. The Board of Directors also declared an increased quarterly dividend of $0.21 per share, an 11% sequential increase, with dividend coverage of 3.4x.
On August 1, 2025, Archrock completed the sale of 155 compressors, comprising approximately 47,000 active and idle non-strategic compression horsepower, to Flowco for $71.0 million in cash proceeds. This divestiture allows Archrock to reallocate capital from non-core assets to fund new build equipment and reduce net capital expenditures.
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