Archrock Raises Quarterly Dividend 16% to $0.22 Per Share
Archrock, Inc., a natural gas contract compression services provider, declared a quarterly dividend of $0.22 per share for the fourth quarter of 2025, up from $0.19 in the prior-year period. The dividend was paid February 18, 2026.
Archrock, Inc. (NYSE: AROC), a natural gas contract compression services provider, declared a quarterly dividend of $0.22 per share for the fourth quarter of 2025, representing a 16% increase from the $0.19 per share paid in the fourth quarter of 2024. The dividend translates to $0.88 per share on an annualized basis. Read more dividend announcements.
The company achieved dividend coverage of 4.9x in the fourth quarter, reflecting strong cash generation relative to the payout. The dividend was paid on February 18, 2026 to shareholders of record as of February 10, 2026.
| Dividend Details | Information |
|---|---|
| Amount | $0.22 per share |
| Frequency | Quarterly |
| Record Date | February 10, 2026 |
| Payment Date | February 18, 2026 |
| Annualized Rate | $0.88 per share |
| Coverage Ratio | 4.9x |
Capital Returns Accelerate
Archrock returned $211.8 million to stockholders through dividends and share repurchases during 2025, compared to $123.7 million in 2024. The company repurchased 647,480 shares in the fourth quarter at an average price of $24.44 per share for an aggregate of approximately $15.8 million.
Since April 2023 through December 31, 2025, the company has repurchased 4.5 million shares at an average price of $20.72 per share for a total of $92.4 million. The board approved an additional $100 million for the share repurchase program in the fourth quarter, bringing available capacity to $117.7 million as of December 31, 2025.
Strong Fourth Quarter Performance
The Houston-based company reported net income of $116.8 million for the fourth quarter of 2025, or $0.67 per share, compared to $59.8 million and $0.34 per share in the fourth quarter of 2024. Revenue climbed to $377.1 million from $326.4 million in the prior-year period.
Adjusted EBITDA reached $269.4 million in the fourth quarter, up from $183.8 million a year earlier. For the full year 2025, adjusted EBITDA totaled $900.9 million compared to $595.4 million in 2024.
Fourth quarter results included a $22.9 million cash benefit from prior period sales and use tax audit settlements and credits, along with $31.6 million in net gains from asset sales. Excluding these items, full-year 2025 adjusted EBITDA would have been $846.4 million, above the company's guidance range of $835 million to $850 million.
Balance Sheet and Leverage
Long-term debt stood at $2.4 billion at December 31, 2025, with available liquidity of $579 million. The company's leverage ratio improved to 2.69x from 3.3x at December 31, 2024.
Archrock completed a private offering of $800 million in 6.000% senior notes due 2034 on January 21, 2026, receiving net proceeds of $789.4 million after issuance costs. The proceeds were used to repay borrowings under the company's $1.5 billion asset-based revolving credit facility.