Stephen Ferazani's questions to Archrock Inc (AROC) leadership • Q4 2024
Question
Stephen Ferazani from Sidoti questioned the drivers behind the confident double-digit revenue growth guidance for the Aftermarket Services (AMS) segment and asked for justification of the higher maintenance and 'other' CapEx guidance for 2025.
Answer
President and CEO Brad Childers attributed AMS confidence to high overall market utilization, which drives demand for maintenance services, and a more profitable mix of services over parts. He explained higher maintenance CapEx is due to the timing of major overhauls for more and larger units. CFO Doug Aron added that some AMS work was postponed from Q4 2024 to early 2025 and confirmed 'other' CapEx is primarily for new vehicles.