Archrock, Inc.
AROC Energy Oil & Gas Equipment & Services
Archrock, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.5 billion, up 28.7% from fiscal 2024. In the quarter to June 2026, revenue fell 3.11%, EPS grew 5.56%, free cash flow grew 50.0% and total debt fell 10.2%, each against the same quarter a year earlier. Dividend growth for ten consecutive years, revenue growth for three, operating cash flow growth for three.
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Archrock, Inc. (AROC) Altman Z-score
Archrock, Inc.'s Altman Z-score for fiscal 2025 is 1.02, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.02 | 0.32 |
| FY2024 | 0.70 | 0.51 |
| FY2023 | 0.18 | 0.54 |
| FY2022 | −0.36 | 0.10 |
| FY2021 | −0.46 | (0.03) |
| FY2020 | −0.43 | (0.34) |
| FY2019 | −0.09 | 0.29 |
| FY2018 | −0.38 | 0.23 |
| FY2017 | −0.61 | 0.00 |
| FY2016 | −0.61 | (0.11) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.02 | — | 0.03 | |
| Retained earnings / total assets | (0.52) | — | −0.73 | |
| EBIT / total assets | 0.13 | — | 0.42 | |
| Market value of equity / total liabilities | 1.59 | — | 0.95 | |
| Sales / total assets | 0.34 | — | 0.34 | |
| Altman Z-score | Distress zone | 1.02 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.12 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| WHD Cactus, Inc. compare | 6.3× |
| OII Oceaneering International, Inc. compare | 3.7× |
| TDW Tidewater Inc. compare | 2.6× |
| WFRD Weatherford International PLC compare | 2.5× |
| NOV NOV Inc. compare | 1.9× |
| LB LandBridge Company LLC compare | 1.8× |
| SEI Solaris Energy Infrastructure, Inc. compare | 1.6× |
| KGS Kodiak Gas Services, Inc. compare | 1.2× |
| AROC Archrock, Inc. | 1.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets