Archrock recorded revenue of $383.2mn in the second quarter of 2025, a notable increase from $270.5mn for the same period last year. Net profit reached $63.4mn, compared to $34.4mn twelve months earlier. This performance is based on the integration of Natural Gas Compression Systems, Inc. and NGCSE, Inc., completed on May 1, 2025, strengthening the group’s position in the North American natural gas compression market.
Operational expansion and margin growth
The contract operations segment generated revenue of $318.3mn, representing a 41% increase year-on-year. Adjusted gross margin also grew by 52%, reaching $222.2mn, reflecting ongoing improvement in profitability. Archrock now reports operational capacity of 4.7mn horsepower, compared to 3.6mn for the same period in 2024. The utilisation rate reached 96%, compared to 95% last year, reflecting strong demand, particularly in the contract compression segment.
The company also completed the sale of 155 non-strategic compressors, representing around 47,000 horsepower, for a total of $71mn. This transaction forms part of an asset portfolio optimisation strategy, enabling Archrock to focus its investments on high-yield areas.
Consolidated financial results and shareholder returns
Aftermarket services segment revenue reached $64.8mn, an increase from $45.1mn in the second quarter of 2024. The segment’s adjusted gross margin stood at 23%. Archrock reported long-term debt of $2.6bn as of June 30, 2025, and available liquidity of $675mn. The leverage ratio stood at 3.3x, impacted by the acquisition of NGCS.
The company paid a quarterly dividend of $0.21 per ordinary share, up 27% year-on-year. In the first half, total distributions to shareholders, including dividends and share buybacks, amounted to $96.9mn, compared to $53mn a year earlier. During the second quarter, Archrock repurchased 1,226,954 shares for a total of $28.8mn.
Revised 2025 outlook
Archrock has raised its annual outlook for 2025, now targeting adjusted EBITDA between $810mn and $850mn. Contract operations segment revenue is expected between $1.26bn and $1.28bn. The company anticipates increased investment expenditure between $340mn and $360mn, with maintenance investments ranging from $110mn to $120mn.
The outlook continues to be supported by demand in major US oil and gas basins, growth in liquefied natural gas exports, and rising needs for compression infrastructure. Archrock maintains a focus on disciplined capital management, cash flow generation, and asset portfolio optimisation.
