Archrock, Inc.

For Q2 2026, Archrock reported net income of $67 million, adjusted net income of $67 million, and adjusted EPS of $0.38. Adjusted EBITDA was $213 million, essentially flat year over year. Contract operations revenue was $329 million, up 3% year over year, and contract operations adjusted gross margin was 71% versus 70% a year ago. Aftermarket services revenue was $42 million versus $65 million a year ago, with adjusted gross margin at 24% versus 23%. The company generated $67 million of adjusted free cash flow and $28 million of adjusted free cash flow after dividends; total capex was $98 million, including $51 million of growth capex. Archrock ended the quarter with leverage of 2.6x, $631 million of available liquidity, and $2.3 billion of long-term debt. For 2026, management tightened adjusted EBITDA guidance to $865 million-$885 million from a prior range of $865 million-$915 million, reaffirmed total capex of approximately $400 million-$445 million, and kept growth capex at $250 million-$275 million.

Brad Childers framed the quarter as outstanding, emphasizing high utilization, strong profitability, significant free cash flow and continued dividend growth. He repeatedly pointed to structural demand drivers for compression: LNG growth, Permian takeaway additions and rising power demand tied to data centers and AI. His tone was confident and forward-looking, with the new long-term capex framework presented as evidence that Archrock expects a very strong demand cycle ahead.

Mohit Singh said Archrock generated $67 million of adjusted net income and $213 million of adjusted EBITDA, with contract operations revenue of $329 million and gross margin of 71%. He highlighted a strong balance sheet, including $2.3 billion of long-term debt, 2.6x leverage, $631 million of liquidity and positive outlooks from all 3 rating agencies after the company repurchased its $800 million 6.25% senior notes due April 2028. He also walked through 2026 capex of approximately $400 million-$445 million, with growth capex of $250 million-$275 million, maintenance capex of $125 million-$135 million and other capex of $25 million-$35 million, and noted $113.2 million of remaining buyback authorization.

Analysts focused on the logic behind the new long-term capital spending plan, the softer-than-expected AMS business, and the implications of long equipment lead times and packager capacity. Management said the capex disclosure timing reflected the market’s unusually long equipment lead times and its own need to book ahead, while also arguing the 2027-2030 demand outlook is set to rise sharply as LNG, Permian takeaway and power demand come online. On AMS, management said deferred maintenance is a 'pay us now or pay us later' issue and expects the work to return, while on lead times they said they see no indication of improvement and that packager space is tight but manageable.