A month has gone by since the last earnings report for Archrock Inc. (AROC). Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Archrock Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Archrock Tops on Q3 Earnings & Revenues Estimates
Archrock reported third-quarter 2025 earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 41 cents. The bottom line improved from the year-ago quarter’s level of 28 cents.
Houston, TX-based oil and gas equipment and services company's total quarterly revenues of $382 million increased from $292 million reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $377 million.
The strong quarterly performance was driven by solid contributions from both operating segments. Record-high utilization and rising demand for the company’s equipment and services further strengthened its third-quarter results.
During the third quarter, the company repurchased 1,094,516 shares of common stock at an average price of $23.18 per share, for a total consideration of approximately $25.4 million. From April 2023 through Oct. 22, 2025, a total of 3,942,161 shares have been repurchased at an average price of $20.21 per share, amounting to $79.7 million.
Additionally, AROC’s board of directors approved a $100 million increase to the share repurchase program, extending it through Dec. 31, 2026. This brings the available repurchase capacity to $130.4 million as of Oct. 22, 2025.
AROC’s Operational Performance
Archrock operates through two business segments — Contract Operations and Aftermarket Services.
The Contract Operations segment reported revenues of $326.3 million in the third quarter compared with $245.4 million in the year-ago quarter.
Total operating horsepower at the end of the quarter was 4.7 million, up from 4.7 million in the prior-year quarter. The company’s utilization rate at the end of the third quarter of 2025 stood at 96%, up from 95% at the end of the prior-year quarter.
Revenues from the Aftermarket Services segment totaled $56.2 million compared with $46.7 million in the third quarter of 2024.
Archrock’s Costs and Expenses
The total cost of sales in the quarter amounted to $129.8 million, up from the year-ago period’s $114.2 million. Depreciation and amortization expenses amounted to $67.1 million in the quarter under review.
AROC’s Liquidity Position & Capital Expenditure
As of Sept. 30, 2025, the company had a long-term debt of $2.6 billion. The total available liquidity was $728 million as of the same date. Net capital expenditures amounted to $124 million in the third quarter.
AROC’s Dividend Payment
Archrock declared a quarterly dividend of 21 cents per share, approximately 20% higher than in the third quarter of 2024, resulting in a dividend coverage of 3.7x. The payment is scheduled for Nov. 4, 2025, to shareholders of record as of the same date.
AROC’s Guidance
The company expects a strong 2025 performance, projecting net income between $265.2 million and $280.2 million and adjusted EBITDA in the range of $835 million to $850 million. It also anticipates cash available for dividends to come in between $526 million and $531 million, reflecting a solid return potential for shareholders.
Archrock anticipates contract operations revenues to range from $1.27 billion to $1.28 billion, supported by a healthy adjusted gross margin of 71-71.5%. The aftermarket services business is also expected to remain robust, with revenues projected between $210 million and $220 million and an adjusted gross margin of 23-24%. Selling, general and administrative expenses are estimated to stay steady at around $148-$150 million, indicating continued cost discipline.
On the investment side, the company expects growth capital expenditures between $345 million and $355 million, while maintenance capital spending is set at $110-$115 million. Other capital expenditures are anticipated in the range of $35-$40 million, reflecting Archrock’s balanced approach toward expansion and operational efficiency.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.68% due to these changes.
VGM Scores
At this time, Archrock Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Archrock Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Archrock Inc. is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Baker Hughes (BKR), a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2025 more than a month ago.
Baker Hughes reported revenues of $7.01 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $0.68 for the same period compares with $0.67 a year ago.
For the current quarter, Baker Hughes is expected to post earnings of $0.67 per share, indicating a change of -4.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Baker Hughes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Archrock, Inc. (AROC): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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