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Archrock Q3 revenue falls and misses estimates; adjusted EBITDA rises

By Reuters News


Overview

  • U.S. natural gas compression firm's Q3 revenue declined and missed analyst expectations

  • Adjusted EBITDA rose year-over-year and beat analyst estimates

  • Company raised quarterly dividend by about 10% from prior year


Outlook

  • Archrock reaffirms 2026 adj EBITDA guidance of $865 mln to $885 mln

  • Company says demand fundamentals remain strong, supported by tight compression market and LNG export growth

  • Company expects near-term cost pressure from higher lube oil prices but is mitigating through efficiencies


Result Drivers

  • PERMIAN BOOKINGS - Co said strong bookings in the Permian Basin and higher gas-to-oil ratios supported sustained compression demand

  • AFTERMARKET WEAKNESS - Reduced customer demand for major maintenance service activity and lower parts sales weighed on aftermarket services revenue

  • COST DISCIPLINE - Co said it is using cost discipline and operating efficiencies to address higher input costs


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$370.80 mln

$385.95 mln (6 Analysts)

Q3 Net Income

$84.50 mln

Q3 Adjusted EBITDA

Beat

$228.40 mln

$218.79 mln (8 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Archrock, Inc. is $41.00, about 29.3% above its October 30 closing price of $31.70

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Nov 2 - US LNG exports hit second-highest monthly level on record as Europe demand surges

  • Nov 2 - Natural gas flows to Cheniere, Freeport LNG plants fall, LSEG data shows


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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