Archrock Reports First Quarter 2025 Results

Core Insights - Archrock, Inc. reported strong first quarter results for 2025, driven by operational transformation and high equipment utilization, with a leverage ratio of 3.2x [3][4][13] Financial Performance - First quarter 2025 revenue reached $347.2 million, a 29% increase from $268.5 million in the same period of 2024 [10] - Net income for the first quarter of 2025 was $70.9 million, compared to $40.5 million in the first quarter of 2024, with adjusted net income at $74.5 million [7][10] - Adjusted EBITDA for the first quarter of 2025 was $197.8 million, up from $131.0 million in the first quarter of 2024 [10][45] Segment Performance - Contract operations segment revenue increased by 35% to $300.4 million in the first quarter of 2025, with an adjusted gross margin of $210.6 million, representing a 45% increase [11] - Aftermarket services segment revenue was $46.8 million, slightly up from $45.4 million in the first quarter of 2024, with an adjusted gross margin of $11.5 million [12] Strategic Initiatives - The company announced the strategic acquisition of Natural Gas Compression Systems, Inc. (NGCS), which closed on May 1, 2025, enhancing its asset base and earnings potential [4][10] - Archrock's management emphasized a commitment to prudent capital allocation, with cash available for dividend coverage remaining over 3.0x [6][10] Shareholder Returns - A quarterly dividend of $0.19 per share was declared for the first quarter of 2025, approximately 15% higher than the previous year, resulting in a dividend coverage of 3.9x [10][14] - The Board of Directors approved an increase in the share repurchase program by an additional $50 million, bringing total capacity to $65.2 million [16][15] Guidance and Outlook - The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $790 million to $830 million, reflecting confidence in continued growth despite macroeconomic uncertainties [10][17]