Shares of Flowco Holdings Inc. (NYSE: FLOC) are surging 5.47% in pre-market trading on Wednesday following the release of its impressive third-quarter 2025 financial results. The company, which provides production optimization and artificial lift solutions for the oil and gas industry, reported earnings that surpassed analysts' expectations.
Flowco reported adjusted earnings per share of $0.41 for the quarter ended September 30, significantly beating the mean expectation of $0.30 from eight analysts. While revenues came in at $176.9 million, slightly below the expected $189.86 million, the company demonstrated strong profitability and operational efficiency. The firm's net income rose to $34.3 million, up from $27.4 million in the previous quarter and $20.6 million a year earlier.
Investors are particularly encouraged by Flowco's improved Adjusted EBITDA of $76.8 million and an expanded Adjusted EBITDA margin of 43.4%, up from 39.6% in the previous quarter. The company also reported robust free cash flow generation of $42.8 million. CEO Joe Bob Edwards highlighted the company's shift towards its high-margin rental portfolio and successful integration of recently acquired assets, strengthening Flowco's position in electric-drive rental systems. Wall Street's median 12-month price target for Flowco stands at $27.50, representing a potential upside of about 41.5% from its last closing price, further fueling investor optimism.
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