Archrock Q1 revenue rises 7.6% to $373.8M, dividend up 16%
Archrock reported Q1 revenue of $373.8 million, up 7.6% year over year, net income rose to $73.8 million with EPS of $0.41, though adjusted EPS matched last year at $0.42. Adjusted EBITDA climbed to $221.0 million, while the quarterly dividend was raised 16% to $0.22 and leverage fell to 2.6x.
1. First-Quarter Financial Highlights
Archrock's first-quarter revenue climbed to $373.8 million, up from $347.2 million a year earlier, driving net income higher to $73.8 million (EPS $0.41). Adjusted EBITDA rose to $221.0 million, while adjusted EPS held steady at $0.42 compared with the prior year.
2. Operational Performance
Contract operations segment revenue increased 10% to $330.9 million, supporting 4.5 million operating horsepower with 95% fleet utilization. Adjusted gross margin expanded to 72%, up from 70% in Q1 2025, while aftermarket services revenue dipped to $42.9 million with a 23% margin.
3. Shareholder Returns
The Board declared a quarterly dividend of $0.22 per share, a 16% increase from Q1 2025, and returned $44.3 million to stockholders via dividends and share repurchases.
4. Balance Sheet and Financing
At March 31, long-term debt stood at $2.4 billion against $1.4 billion liquidity, reducing leverage to 2.6x from 3.2x. The company issued $800 million of 6.000% senior notes due 2034 and redeemed $800 million of notes due 2028 to optimize its capital structure.