EarningsQ2 2026 Earnings Report
DE:54E Q2 2026 EPS Results
Actual EPS€0.34
Consensus EPS€0.40
Beat/MissMissed by -€0.06
One Year Ago EPS€0.32
DE:54E Q2 2026 Revenue Results
Actual Revenue€332.37M
Expected Revenue€352.02M
Beat/MissMissed by -€19.65M
YoY Revenue Growth-3.11%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
DE:54E Upcoming Earnings
Archrock's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:54E Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive operational and financial position: high utilization (94.4%), strong contract operations margins (71%), healthy free cash flow ($67M), improved leverage (2.6x), credit outlook upgrades, and a large multi‑year contract and long-term growth CapEx plan. Offsetting items include a sizable decline in aftermarket services revenue (~35% YoY), near-term cost pressures (lube oil and make-ready costs), supply-chain constraints with very long OEM lead times (~195–200 weeks) and a modest tightening of adjusted EBITDA guidance (top end reduced by $30M). On balance, the company emphasized durable demand, disciplined capital allocation, and the ability to return capital while investing for growth.Company Guidance
Large Multi-Year Contract Win
Signed a long-term agreement with an existing strategic customer covering ~665,000 horsepower for midstream applications with an 8-year base term plus a 2-year extension option — underscores customer demand and fleet value.
Long-Term Growth CapEx Plan Announced
Introduced plan to invest $1.4 billion to $1.6 billion of growth capital from 2027–2030 to add ~1 million horsepower; reaffirmed 2026 total CapEx of $400 million to $445 million with growth CapEx of $250 million to $275 million.
Disciplined Fleet Management
Sold ~165,000 nonstrategic operating horsepower year-over-year as part of high-grading, keeping net operating horsepower relatively flat sequentially (down ~7,500 hp excluding asset sales) while improving fleet quality.
Strong Profitability and Earnings
Reported adjusted EBITDA of $213 million and adjusted net income of $67 million in Q2 2026; adjusted EPS of $0.38. Adjusted EBITDA was essentially flat year-over-year, reflecting higher contract operations margin dollars offset by softer AMS activity and higher SG&A.
High Utilization and Robust Contract Margins
Contract operations utilization of 94.4% and adjusted gross margin of 71% in Q2 (seventh consecutive quarter above 70%), up from 70% year-over-year (≈+1 percentage point).
Revenue Growth in Core Contract Operations
Contract operations revenue of $329 million in Q2, up 3% year-over-year, helped by higher rates, an extra month contribution from the NGCS acquisition and horsepower additions.
Strong Free Cash Flow and Capital Returned
Adjusted free cash flow of $67 million in the quarter; returned $39 million to shareholders through dividends. Adjusted free cash flow after dividends was $28 million.
Dividend Increases and Shareholder Return Framework
Quarterly dividend increased to $0.23 per share from $0.22 (≈+10% year-over-year). Management announced a long-term returns framework targeting 25%–35% of operating cash flow returned to shareholders via dividends and opportunistic buybacks; $113.2 million of repurchase capacity remained at quarter end.
Improved Leverage and Balance Sheet Strength
Leverage ratio improved to 2.6x at quarter end from 3.3x a year ago. Long-term debt of $2.3 billion and available liquidity of $631 million. Repaid $800 million 6.25% senior notes due 2028 and cleared first debt maturity until 2032.
Credit Ratings and Positive Outlook
Moody's and S&P reaffirmed credit ratings and revised their outlooks to positive; company now has positive outlooks from all three rating agencies, reflecting consistent cash generation and financial strength.
DE:54E Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed