Archrock Q4 2024 Earnings Report
Key Takeaways
Archrock reported strong Q4 2024 results, with revenue of $326.4 million and net income of $59.8 million. The company highlighted its increased contract operations adjusted gross margin, improved net income, and growth in adjusted EBITDA. Archrock also provided 2025 guidance, anticipating continued market opportunities from rising energy demand and natural gas requirements.
Revenue for Q4 2024 reached $326.4 million, up from $259.6 million in Q4 2023.
Net income for Q4 2024 was $59.8 million, with EPS at $0.34, compared to $33.0 million and $0.21 in Q4 2023.
Adjusted EBITDA for Q4 2024 was $183.8 million, compared to $120.3 million in Q4 2023.
The company declared a quarterly dividend of $0.19 per common share for Q4 2024, a 15% increase year-over-year.
Archrock
Archrock
Archrock Revenue by Segment
Forward Guidance
Archrock provided its 2025 annual guidance, projecting net income between $253 million and $293 million and adjusted EBITDA between $750 million and $790 million.
Positive Outlook
- Net income is expected to be between $253 million and $293 million.
- Adjusted EBITDA is projected to be between $750 million and $790 million.
- Contract operations revenue is anticipated to be between $1.2 billion and $1.235 billion.
- Contract operations adjusted gross margin percentage is expected to be between 68% and 71%.
- Cash available for dividend is projected to be between $456 million and $471 million.
Challenges Ahead
- Net income guidance does not include the impact of long-lived and other asset impairment due to its unpredictable nature.
- Guidance reflects estimates of expenses related to the TOPS Acquisition.
- A forward-looking estimate of cash provided by operating activities is not provided because certain items necessary to estimate it are not estimable at this time.
- Aftermarket services revenue is projected to be between $190 million and $210 million.
- Aftermarket services adjusted gross margin percentage is expected to be between 22% and 24%.