Archrock, Inc. (AROC) FY2025 10-K Annual Report
Archrock, Inc. (AROC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Archrock, Inc. FY2025 10-K Analysis
Business Overview
- • Core business: provider of midstream natural gas compression services and aftermarket support across U.S. energy industry
- • Increased focus on technology deployment: automation, telematics, remote monitoring to improve asset uptime, reduce emissions, and enhance field service efficiency
- • Strategic emphasis on large horsepower equipment; sold 325,000 horsepower units in 2025, 85% small horsepower, to optimize fleet for market trends
- • Fleet size 5,319 units totaling 4.8 million horsepower with 74% of horsepower from units >1,000 HP; average fleet age 10 years
- • Noteworthy safety performance: 2025 total recordable incident rate of 0.22, reflecting strong safety culture and operational discipline
Management Discussion & Analysis
- • Revenue $1.49B in 2025, up 29% from $1.16B in 2024, driven by contract operations (+30%) and aftermarket services (+23%)
- • Adjusted gross margin $980.4M (66% margin) in 2025 vs $699.1M (60% margin) in 2024; contract ops margin 73% vs 67%, aftermarket margin stable at 24%
- • Best segment: Contract operations revenue $1.27B, +30%, adjusted gross margin $929M, +41%; Worst: aftermarket services margin flat at 24% despite 23% revenue growth
- • Capital expenditures $458.4M in 2025 ($347.7M growth capex, $110.7M maintenance), planned $400-$445M for 2026; 2027 Notes redeemed $302.6M; share repurchase program active with $117.7M capacity
- • Outlook: US natural gas production growth ~1% in 2026-27, oil flat to -3%; demand drivers positive but risks include labor market, cost inflation, capital access, and energy transition pressures on gas compression demand
Risk Factors
- • Audit Committee oversees cybersecurity risk management program, chair certified in NACD Cyber Risk Oversight Program
- • Geopolitical exposure not disclosed; no specific macroeconomic threat identified in risk factors
- • Reliance on third-party vendors with ongoing monitoring of cybersecurity risk scores and contractual provisions for critical suppliers
- • No specific competitor or technology disruption risk detailed in filing's risk factors
- • Key-person dependency on Vice President of IT with 25+ years' experience managing cybersecurity and reporting directly to executive leadership
Archrock, Inc. FY2025 Key Financial MetricsXBRL
Revenue
$1.5B
▲ +28.7% YoY
Net Income
$322M
▲ +87.1% YoY
Gross Margin
48.6%
▲ +487bp YoY
Net Margin
21.6%
▲ +675bp YoY
ROE
21.6%
▲ +860bp YoY
Total Assets
$4.3B
▲ +13.7% YoY
EPS (Diluted)
$1.83
▲ +74.3% YoY
Operating Cash Flow
$622M
▲ +44.8% YoY
Source: XBRL data from Archrock, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.
Get deeper insights on Archrock, Inc.
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.