Archrock, Inc. AROC
Archrock's Q2 2026 earnings miss ($0.38 vs. $0.46 consensus) and narrowed full-year EBITDA outlook—driven by Aftermarket Services weakness and customer maintenance deferrals—confirm that the gross margin compression from 60.4% in FY2024 to 48.6% in FY2025 is not yet stabilizing, despite FY2025 revenue growth of 28.7% and EPS up 75% to $1.84. The valuation is undeniably cheap at 17.4x P/E and 9.9x EV/EBITDA—roughly 52% and 78% below peer medians—and smart money fund count has risen to 55 with a mildly positive score of 0.035 as of 2026-06-30, but FCF of only $120M against $502M capex, $2.42B in total debt, and insider net selling of 263K shares over 24 months keep the risk/reward balanced rather than compelling.
With RSI at 34 and the stock trading below its 50-day MA of $36.57, technicals suggest near-term downside pressure before a clearer margin inflection; hold pending evidence that margins are bottoming.
What could go wrong
- Margin compression. Gross margin fell from 60.4% in FY2024 to 48.6% in FY2025, and Q2 2026's AMS weakness and customer maintenance deferrals suggest further pressure may persist.
- Capex-heavy model. FY2025 capex of $502M against FCF of only $120M leaves limited cushion, with total debt at $2.42B against equity of $1.49B.
- Aftermarket Services weakness. Q2 2026 earnings miss of $0.38 vs. $0.46 consensus was driven by AMS softness, and the company narrowed its full-year adjusted EBITDA outlook.
- Insider selling. Insiders net sold 263,453 shares worth $34.2M over 24 months, with multiple SVP sales in March–May 2026 at $34.76–$38.30 per share.
What would change my mind
Where this comes from: Zacks news article 2026-08-04 · FMP FY2025 + derived_metrics · derived_metrics FY2024–FY2025 · peer_relative. Orin's read on AROC; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All AROC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $451.1M | 0.0% of fund |
| Brasada Capital Management | $407.1M | 0.1% of fund |
| Earnest Partners | $388.4M | 1.4% of fund |
| Vanguard Capital Management | $309.7M | 0.0% of fund |
| State Street | $306.3M | 0.0% of fund |
| Invesco | $293.2M | 0.0% of fund |
75 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 88 Form 4 filings, net −$34.2M. Of the 50 on hand, 3 were open-market purchases and 10 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about AROC
Orin answers questions about AROC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 16.5× | — | 51.1× |
| EV/EBITDA | 9.6× | — | — |
| P/S | 3.57× | — | — |
| P/B | 3.4× | — | — |
18.7%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$42
$40 – $46 · +38% against today's price
- 15 buy or overweight
- 3 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| AROCArchrock, Inc. | $5B | 16.5× | 9.6× | 58.1% | 21.8% | 22% |
| LBLandBridge Company LLC | $6B | 36.5× | 45.9× | 92.4% | 20.5% | 14% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 54.8% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.