Archrock, Inc. announced record financial results for the fourth quarter and full year 2024 on February 24, 2025. For Q4 2024, net income was $59.8 million, a significant increase from $33.0 million in Q4 2023, with adjusted EPS of $0.35, surpassing analyst estimates of $0.31.
Full year 2024 net income reached $172.2 million, or $1.05 per share, on total revenue of $1.16 billion. The company's contract operations adjusted gross margin increased by 500 basis points, and adjusted EBITDA grew by over 30% year-over-year, demonstrating robust profitability and operational efficiency.
Archrock provided optimistic guidance for 2025, projecting adjusted EBITDA between $750 million and $790 million. The company also outlined a capital expenditure plan for 2025 totaling $485 million to $520 million, including $340 million to $360 million for growth CapEx, all underpinned by multi-year contracts.
The company maintained a strong balance sheet, ending 2024 with a leverage ratio of 3.3x, down from 3.5x in Q4 2023. Archrock returned $124 million in capital to shareholders during 2024 through dividends and share buybacks, reinforcing its commitment to shareholder value.
Contract operations revenue for Q4 2024 increased 34% to $286.5 million, with an adjusted gross margin percentage of 70%. Total operating horsepower stood at 4.2 million with 96% utilization, reflecting the successful integration of the TOPS acquisition and strong market demand.
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