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Archrock Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 Guidance
AROCArchrock(AROC) GlobeNewswire·2025-02-24 23:06

Core Insights - Archrock reported a strong performance in Q4 2024, concluding a record-setting year with significant increases in utilization and profitability [3][4] - The company achieved a 500 basis point increase in contract operations adjusted gross margin, over 60% growth in net income, and more than 30% growth in adjusted EBITDA year-over-year [3][4] - Archrock returned 124milliontoshareholdersthroughdividendsandsharebuybackswhilemaintainingaleverageratioof3.3x[3][6]FinancialPerformance−Q42024netincomewas124 million to shareholders through dividends and share buybacks while maintaining a leverage ratio of 3.3x [3][6] Financial Performance - Q4 2024 net income was 59.8 million, up from 33.0millioninQ42023,withanEPSincreasefrom33.0 million in Q4 2023, with an EPS increase from 0.21 to 0.34[7][9]−TotalrevenueforQ42024was0.34 [7][9] - Total revenue for Q4 2024 was 326.4 million, compared to 259.6millioninQ42023,whilefull−yearrevenuereached259.6 million in Q4 2023, while full-year revenue reached 1,157.6 million, up from 990.3millionin2023[9][11]−AdjustedEBITDAforQ42024was990.3 million in 2023 [9][11] - Adjusted EBITDA for Q4 2024 was 183.8 million, compared to 120.3millioninQ42023,andforthefullyear,itwas120.3 million in Q4 2023, and for the full year, it was 595.4 million, up from 450.4millionin2023[9][12]SegmentPerformance−ContractoperationssegmentrevenueforQ42024was450.4 million in 2023 [9][12] Segment Performance - Contract operations segment revenue for Q4 2024 was 286.5 million, a 34% increase from 213.0millioninQ42023,withanadjustedgrossmarginof213.0 million in Q4 2023, with an adjusted gross margin of 200.2 million, up 46% [13] - Aftermarket services segment revenue for Q4 2024 was 40.0million,downfrom40.0 million, down from 46.6 million in Q4 2023, attributed to seasonal delays [14] - The adjusted gross margin percentage for contract operations improved to 70% in Q4 2024 from 64% in Q4 2023 [13] Balance Sheet and Capital Allocation - As of December 31, 2024, Archrock's long-term debt stood at 2.2billion,withavailableliquidityof2.2 billion, with available liquidity of 688 million and a leverage ratio of 3.3x, down from 3.5x a year earlier [15] - The company declared a quarterly dividend of 0.19pershareforQ42024,reflectinga150.19 per share for Q4 2024, reflecting a 15% increase year-over-year, with a dividend coverage ratio of 3.5x [16] - Archrock plans to invest in profitable growth, with guidance for 2025 indicating net income between 253 million and 293millionandadjustedEBITDAbetween293 million and adjusted EBITDA between 750 million and $790 million [17][18] Market Outlook - Archrock anticipates continued strong demand driven by rising energy needs, particularly for natural gas to support LNG exports and power generation [5][6] - The company has a large contracted backlog for 2025 and is already booking units for 2026 delivery, indicating sustained customer demand [5][6] - Management emphasizes the importance of high-quality assets and innovative technology in driving value for customers and shareholders [4][6]