Archrock, Inc 10-Q for FY2026 Q3

Archrock, Inc. (AROC)

10-Q 2026-11-03 For: 2026-09-30

Added on November 03, 2026

About this 10-Q

Archrock, Inc filed this 10-Q on November 3, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $370.81M; down 3.0% from $382.43M a year earlier
Net income: $84.47M; up 18.6% from net income of $71.25M a year earlier
Diluted EPS: $0.48; up 20.0% from $0.40 a year earlier

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Delaware	74-3204509
(State or other jurisdiction of incorporation or organization) or organization)	(I.R.S. Employer Identification No.)








Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, $0.01 par value per share	AROC	New York Stock Exchange
		NYSE Texas


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐



	Page
Glossary	3
Forward-Looking Statements	5

Part I. Financial Information
Item 1. Financial Statements (unaudited)	6
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Condensed Consolidated Statements of Equity	8
Condensed Consolidated Statements of Cash Flows	10
Notes to Unaudited Condensed Consolidated Financial Statements	11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3. Quantitative and Qualitative Disclosures About Market Risk	46
Item 4. Controls and Procedures	47

Part II. Other Information
Item 1. Legal Proceedings	47
Item 1A. Risk Factors	47
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3. Defaults Upon Senior Securities	48
Item 4. Mine Safety Disclosures	48
Item 5. Other Information	48
Item 6. Exhibits	49

Signatures	50



2020 Plan	2020 Stock Incentive Plan
2025 Form 10-K	Annual Report on Form 10-K for the year ended December 31, 2025
2027 Notes	$500.0 million of 6.875% senior notes due April 2027
2027 Notes Redemption	$300.0 million redemption of the 2027 Notes, completed in November 2025
2027 Notes Tender Offer	$200.0 million partial redemption of the 2027 Notes, completed in August 2024
2028 Notes	$800.0 million of 6.250% senior notes due April 2028
2028 Notes Redemption	$800.0 million redemption of the 2028 Notes, completed in April 2026
2032 Notes	$700.0 million of 6.625% senior notes due September 2032
2034 Notes	$800.0 million of 6.000% senior notes due February 2034
Amended and Restated Credit Agreement	Amended and Restated Credit Agreement, dated May 16, 2023, which amended and restated that Credit Agreement, dated as of March 30, 2017, and which governs the Credit Facility
Archrock, our, we, us	Archrock, Inc., individually and together with its wholly owned subsidiaries
ASU	Accounting Standards Update
CODM	Chief operating decision maker
ColdStream	ColdStream Energy Holdings, LLC
Credit Facility	$1.5 billion asset-based revolving credit facility due May 2028, as governed by the Amended and Restated Credit Agreement, as amended
ECOTEC	Ecotec International Holdings, LLC
ESPP	Employee Stock Purchase Plan
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FGC Holdco	FGC Holdco LLC, a subsidiary of ColdStream
Financial Statements	Condensed consolidated financial statements included in Part I Item 1 of this Quarterly Report on Form 10-Q
First Amendment to the Amended and Restated Credit Agreement	First Amendment to the Amended and Restated Credit Agreement, dated August 28, 2024, which amended the Amended and Restated Credit Agreement
Flowco	Flowco Holdings Inc.
Flowco Disposition	Transaction completed on August 1, 2025 pursuant to the asset purchase agreement, dated as of July 1, 2025, whereby Archrock sold certain contract operations customer service agreements, compressors, and other assets to Flowco
Form 10-Q	Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2026
GAAP	Accounting principles generally accepted in the U.S.
GHG	Greenhouse gases (carbon dioxide, methane and water vapor for example)
Hilcorp	Hilcorp Energy Company
Ionada	Ionada PLC
LIBOR	London Interbank Offered Rate
MaCH₄ NRS	Natural gas liquid recovery patented technology solution developed by ColdStream, capable of capturing natural gas liquids instead of burning them and simultaneously delivering lean, dry fuel gas to natural gas fired engines and equipment at compressor stations
NGCS	Natural Gas Compression System, Inc. (“NGCSI”), and NGCSE, Inc. (“NGCSE”)
NGCS Acquisition	Transaction completed on May 1, 2025 (“NGCS acquisition date”) pursuant to certain definitive agreements dated as of March 10, 2025, whereby Archrock acquired all of the issued and outstanding equity interests in NGCS, referred to as “NGCSI Merger Agreement” and “NGCSE Merger Agreement” (together, “Merger Agreements”)
OB3 Tax Law	Public Law No. 119-21, a comprehensive tax and spending reform bill signed into law on July 4, 2025 also known as the “One Big Beautiful Bill Act” or “OBBBA”
OTC	Over-the-counter, as related to aftermarket services parts and components

Pillar 2	A framework proposed by the Organization for Economic Co-operation and Development to implement a minimum global tax of 15% for companies with global revenues and profits above certain thresholds
SAFE	Simple agreement for future equity
SEC	U.S. Securities and Exchange Commission
Second Amendment to the Amended and Restated Credit Agreement	Second Amendment to the Amended and Restated Credit Agreement, dated May 16, 2025, which amended the Amended and Restated Credit Agreement
Securities Act	Securities Act of 1933, as amended
SG&A	Selling, general and administrative
Share Repurchase Program	Share repurchase program approved by our Board of Directors that allows us to repurchase outstanding common stock and retire shares repurchased for a designated amount and period of time
SOFR	Secured Overnight Financing Rate
Spin-off	Spin-off of our international contract operations, international aftermarket services and global fabrication businesses into a standalone public company operating as Exterran Corporation in November 2015. Exterran Corporation was subsequently acquired by Enerflex Ltd. (“Enerflex”) in October 2022. The separation and distribution agreement specifies our right to receive payments from Enerflex and our obligation to satisfy capital calls from Enerflex
Tax Cuts and Jobs Act	Public Law No. 115-97, a comprehensive tax reform bill signed into law on December 22, 2017
Third Amendment to the Amended and Restated Credit Agreement	Third Amendment to the Amended and Restated Credit Agreement, dated December 12, 2025, which amended the Amended and Restated Credit Agreement
TOPS	Total Operations and Production Services, LLC
TOPS Acquisition	Transaction completed on August 30, 2024 pursuant to that certain purchase and sale agreement, dated as of July 22, 2024, whereby Archrock acquired all of the issued and outstanding equity interests in TOPS
U.S.	United States of America
VIE	Variable interest entity
WACC	Weighted-average cost of capital


		September 30, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents		$	4,147		$	1,553
Accounts receivable, net of allowance of $777 and $1,205, respectively			178,154			142,327
Inventory			116,664			109,747
Tax refund receivable			—			41,479
Other current assets			9,653			9,057
Total current assets			308,618			304,163
Property, plant and equipment, net			3,764,906			3,658,089
Operating lease right-of-use assets			12,442			13,581
Goodwill			124,178			125,189
Intangible assets, net			132,063			143,947
Contract costs, net			40,555			38,959
Deferred tax assets			858			2,059
Other assets			84,204			55,449
Non-current assets of discontinued operations			7,868			7,868
Total assets		$	4,475,692		$	4,349,304

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable, trade		$	63,687		$	43,731
Accrued liabilities			139,384			145,024
Deferred revenue			8,522			8,391
Total current liabilities			211,593			197,146
Long-term debt			2,343,100			2,410,893
Operating lease liabilities			9,046			10,220
Deferred tax liabilities			269,355			198,309
Other liabilities			36,863			33,389
Non-current liabilities of discontinued operations			7,868			7,868
Total liabilities			2,877,825			2,857,825

Commitments and contingencies (Note 11)

Equity:
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued			—			—
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 185,182,119 and 184,746,759 shares issued, respectively			1,851			1,847
Additional paid-in capital			3,876,627			3,876,834
Accumulated deficit			(2,151,500)			(2,257,386)
Treasury stock: 9,831,608 and 9,877,754 common shares, at cost, respectively			(129,111)			(129,816)
Total equity			1,597,867			1,491,479
Total liabilities and equity		$	4,475,692		$	4,349,304


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Revenue:
Contract operations	$	331,155	$	326,269	$	991,295	$	944,993
Aftermarket services		39,656		56,161		124,521		167,752
Total revenue		370,811		382,430		1,115,816		1,112,745
Cost of sales, exclusive of depreciation and amortization
Contract operations		92,433		86,710		280,376		272,661
Aftermarket services		30,580		43,115		95,707		128,258
Total cost of sales, exclusive of depreciation and amortization		123,013		129,825		376,083		400,919
Selling, general and administrative		26,049		37,676		110,921		111,127
Depreciation and amortization		71,948		67,130		213,160		187,889
Long-lived and other asset impairment		3,217		4,676		13,357		16,495
Restructuring charges		—		688		261		1,497
Debt extinguishment gain		—		—		(687)		—
Interest expense		37,017		43,661		113,543		123,113
Transaction-related costs		270		1,767		1,194		11,829
Gain on sale of assets, net		(2,146)		(3,835)		(12,559)		(15,467)
Other (income) expense, net		(103)		3,984		(1,675)		459
Income before income taxes		111,546		96,858		302,218		274,884
Provision for income taxes		26,660		25,425		75,885		68,994
Income before equity in net loss of unconsolidated affiliate		84,886		71,433		226,333		205,890
Equity in net loss of unconsolidated affiliate		420		185		1,353		372
Net income	$	84,466	$	71,248	$	224,980	$	205,518

Basic and diluted earnings per common share	$	0.48	$	0.40	$	1.27	$	1.16

Weighted-average common shares outstanding:
Basic		174,526		174,619		174,341		174,549
Diluted		174,774		174,913		174,700		174,855


				Additional
	Common Stock			Paid-in		Accumulated		Treasury Stock
		Amount	Shares	Capital		Deficit			Amount	Shares	Total
Balance at June 30, 2025	$	1,858	185,783,778	$	3,892,168	$	(2,371,609)	$	(113,977)	(9,216,485)	$	1,408,440
Shares repurchased		—	—		—		—		(25,371)	(1,094,516)		(25,371)
Shares retired		(11)	(1,094,516)		(25,360)		—		25,371	1,094,516		—
Shares withheld related to net settlement of equity awards		—	—		—		—		(8)	(301)		(8)
Cash dividends ($0.210 per common share)		—	—		—		(36,921)		—	—		(36,921)
Shares issued under ESPP		—	18,247		403		—		—	—		403
Stock-based compensation, net of forfeitures		—	—		4,488		—		—	(8,395)		4,488
Net income		—	—		—		71,248		—	—		71,248
Balance at September 30, 2025	$	1,847	184,707,509	$	3,871,699	$	(2,337,282)	$	(113,985)	(9,225,181)	$	1,422,279

Balance at June 30, 2026	$	1,849	184,982,818	$	3,872,653	$	(2,195,403)	$	(126,994)	(9,765,857)	$	1,552,105
Shares withheld related to net settlement of equity awards		—	—		—		—		(2,117)	(55,955)		(2,117)
Cash dividends ($0.230 per common share)		—	—		—		(40,563)		—	—		(40,563)
Shares issued under ESPP		—	20,405		555		—		—	—		555
Stock-based compensation, net of forfeitures		2	178,896		3,419		—		—	(9,796)		3,421
Net income		—	—		—		84,466		—	—		84,466
Balance at September 30, 2026	$	1,851	185,182,119	$	3,876,627	$	(2,151,500)	$	(129,111)	(9,831,608)	$	1,597,867


(in thousands)	NGCSI		NGCSE		NGCS
Cash	$	1,671	$	188	$	1,859
Accounts receivable		4,960		47		5,007
Inventory		11,385		—		11,385
Other current assets		143		—		143
Property, plant and equipment		200,637		40,460		241,097
Operating lease right of use asset		138		—		138
Goodwill		50,955		21,616		72,571
Intangible assets		33,320		31,210		64,530
Other assets		385		—		385
Accounts payable, trade		(2,700)		(49)		(2,749)
Accrued liabilities		(1,833)		(171)		(2,004)
Operating lease liabilities		(138)		—		(138)
Deferred tax liabilities		(32,258)		(8,953)		(41,211)
Other liabilities		(1,575)		—		(1,575)
Purchase price	$	265,090	$	84,348	$	349,438


	Three Months Ended September 30, 2026						Nine Months Ended September 30, 2026
(dollars in thousands, except per share amounts)	Total Number of Shares		Average Price per Share		Total Cost of Shares		Total Number of Shares		Average Price per Share		Total Cost of Shares
Shares repurchased under the Share Repurchase Program		—	$	—	$	—		170,952	$	25.87	$	4,422
Shares withheld related to net settlement of equity awards		55,955		37.85		2,117		522,065		28.95		15,114
Total		55,955	$	37.85	$	2,117		693,017	$	28.19	$	19,536

	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
(dollars in thousands, except per share amounts)	Total Number of Shares		Average Price per Share		Total Cost of Shares		Total Number of Shares		Average Price per Share		Total Cost of Shares
Shares repurchased under the Share Repurchase Program		1,094,516	$	23.18	$	25,371		2,330,631	$	23.35	$	54,416
Shares withheld related to net settlement of equity awards		301		25.00		8		505,269		29.68		14,996
Total		1,094,817	$	23.18	$	25,379		2,835,900	$	24.48	$	69,412


	Dividends per
(dollars in thousands, except per share amounts)	Common Share		Dividends Paid
2026
Q3	$	0.230	$	40,563
Q2		0.220		38,624
Q1		0.220		39,907

2025
Q4	$	0.210	$	36,876
Q3		0.210		36,921
Q2		0.190		33,620
Q1		0.190		34,185


(in thousands)
Balance at beginning of period	$	1,205
Benefit from credit losses		(195)
Write-offs charged against allowance		(233)
Balance at end of period	$	777


		Contract		Aftermarket
(in thousands)		Operations		Services		Other ⁽¹⁾		Total
Three months ended September 30, 2025
Facility closure		$	—	$	—	$	688	$	688
Total restructuring charges		$	—	$	—	$	688	$	688

Nine Months Ended September 30, 2026
Facility closure		$	261	$	—	$	—	$	261
Total restructuring charges		$	261	$	—	$	—	$	261

Nine Months Ended September 30, 2025
Facility closure		$	520	$	—	$	977	$	1,497
Total restructuring charges		$	520	$	—	$	977	$	1,497


		Range		Weighted Average⁽¹⁾
Estimated net sale proceeds:
As of September 30, 2026		$0 - $375 per horsepower		$62 per horsepower
As of December 31, 2025		$0 - $241 per horsepower		$54 per horsepower


(in thousands)		2026			2027			2028			2029			2030			Thereafter ⁽¹⁾			Total
Remaining performance obligations		$	210,408		$	451,036		$	241,629		$	155,855		$	117,970		$	292,293		$	1,469,191


		Three Months Ended
		September 30,						Increase
(dollars in thousands)		2026			2025			(Decrease)
Revenue		$	331,155		$	326,269		1	%
Cost of sales, exclusive of depreciation and amortization			92,433			86,710		7	%
Adjusted gross margin		$	238,722		$	239,559		(0)	%
Adjusted gross margin percentage ⁽¹⁾			72	%		73	%	(1)	%



							Total number of		Approximate dollar
				Average			shares repurchased		value of shares
				price			as part of publicly		that may yet be
		Total number		paid per			announced plans		purchased under the
(dollars in thousands, except per share amounts)		of shares purchased ⁽¹⁾		share ⁽²⁾			or programs ⁽³⁾		plans or programs ⁽³⁾
July 1, 2026 — July 31, 2026		55,955		$	37.85		—		$	113,233
August 1, 2026 — August 31, 2026		—			—		—			113,233
September 1, 2026 — September 30, 2026		—			—		—			113,233
Total		55,955		$	37.85		—




3.1		Composite Certificate of Incorporation of Archrock, Inc., as amended as of November 3, 2015 (incorporated by reference to Exhibit 3.3 to Archrock Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015)
3.2		Fourth Amended and Restated Bylaws of Exterran Holdings, Inc., now Archrock, Inc. (incorporated by reference to Exhibit 3.1 of Archrock Inc.’s Current Report on Form 8-K filed on July 27, 2023)
10.1†		Severance Benefit Agreement, effective July 6, 2026, between Mohit Singh and Archrock, Inc. (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on June 25, 2026)
10.2†		Change of Control Agreement, effective July 6, 2026, between Mohit Singh and Archrock, Inc. (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed on June 25, 2026)
31.1*		Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.1*		Interactive data files (formatted in Inline XBRL) pursuant to Rule 405 of Regulation S-T
104.1*		Cover page interactive data file (formatted in Inline XBRL) pursuant to Rule 406 of Regulation S-T


	Archrock, Inc.

	By:	/s/ Mohit Singh
		Mohit Singh
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)

	By:	/s/ Donna A. Henderson
		Donna A. Henderson
		Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

		November 3, 2026


By:	/s/ D. Bradley Childers
	Name: D. Bradley Childers
	Title: President and Chief Executive Officer
	(Principal Executive Officer)


By:	/s/ Mohit Singh
	Name: Mohit Singh
	Title: Senior Vice President and Chief Financial Officer
	(Principal Financial Officer)