Archrock AROC Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:06 AM CDT 31 min read

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Date

Wednesday, May 6, 2026 astatine 8:30 a.m. ET

Call participants

• President and Chief Executive Officer — D. Childers

• Senior Vice President and Chief Financial Officer — Douglas S. Aron

Full Conference Call Transcript

D. Childers: Thank you, Megan, and bully morning, everyone. Archrock is disconnected to a beardown commencement successful 2026, driven by disciplined execution and continued advancement connected our strategy with a wide absorption connected delivering returns to our investors. At the aforesaid time, lawsuit request remains beardown and our bid publication continues to build, supporting a constructive outlook for compression and Archrock implicit the agelong term. Let maine stock a fewer highlights from the 4th that underscore the momentum successful our show and the durability of our concern model. We delivered adjusted EPS of $0.42 during the archetypal 4th of 2026, and adjusted EBITDA of $221 million. Compared to the archetypal 4th of 2025, we accrued our adjusted EBITDA by 12%.

Our fleet remains afloat utilized, extending our multiyear way grounds of afloat utilization. At the aforesaid time, we proceed to high-grade our fleet with the merchantability of nonstrategic compression units totaling astir 40,000 horsepower, strengthening our portfolio and supporting disciplined superior allocation with year-to-date plus merchantability proceeds of $21 cardinal helping to money our newbuild program. We again delivered outstanding show and profitability successful some our declaration compression and aftermarket services concern segments. And we translated this show into adjusted escaped currency travel of $92 cardinal successful the quarter, of which we returned $44 cardinal to shareholders done dividends and stock repurchases, which is up 29% year-over-year.

Overall, we're encouraged by the beardown commencement to 2026, which keeps america connected gait to execute our afloat twelvemonth 2026 adjusted EBITDA guidance scope of betwixt $865 cardinal and $915 million, which we expect volition construe into meaningful escaped currency travel procreation for the year. As we look ahead, we judge our strategy is supported by 3 cardinal drivers: the close market, the close platform, and the close equilibrium sheet. Let maine concisely locomotion done each one. First, the close market. The value of earthy state is wide today, and it has been underscored again by caller struggle successful the Middle East.

Natural state remains indispensable to powering economical growth, delivering affordable, reliable vigor and enabling vigor security, driving sustained request for the infrastructure needed to determination much state to market. Second, the close platform. We person the people, assets and technologies successful spot to assistance customers determination much state to marketplace much efficiently and safely and to bash truthful profitably. Customer work is simply a apical precedence for our organization, and we're continually deploying exertion and data-driven tools for the payment of our customers, our employees and our shareholders. Our scale, operating subject and absorption connected reliability presumption america to execute consistently. Third, the close equilibrium sheet.