FLOC · Flowco Holdings Inc.

Flowco Holdings Inc. reported strong first quarter 2026 results, with revenue of $209.5 million, up 6.2% sequentially and 8.9% year-over-year. The growth was driven by the Production Solutions segment, which saw a 10.0% sequential revenue increase to $140.2 million, benefiting from higher Surface Equipment revenue and the inclusion of one month of earnings from the Valiant Artificial Lift Solutions acquisition closed on March 2, 2026. The Natural Gas Technologies segment revenue was relatively flat at $69.4 million, with lower Vapor Recovery system sales partially offset by increased rentals and Natural Gas Systems sales. Adjusted EBITDA grew to $85.5 million, with a margin of 40.8%, down 125 basis points sequentially due to a revenue mix shift in Production Solutions. Net income was $27.5 million, down from $43.0 million in Q4 2025, primarily due to higher selling, general and administrative expenses ($36.5 million vs. $26.4 million) driven by incremental filing and legal expenses related to a Form S-3 filing and secondary equity offering, as well as increased depreciation and amortization from the acquisition. Diluted EPS was $0.23, compared to $0.41 in the prior quarter. The company generated strong cash flow, with net cash from operations of $78.7 million and free cash flow of $52.3 million. Management highlighted the successful integration of Valiant and expressed optimism about demand driven by energy security focus. The Board approved a 12.5% dividend increase to $0.09 per share. Liquidity remains robust with $387.5 million available under the revolving credit facility.