HOUSTON--(BUSINESS WIRE)--November 05, 2025--
Flowco Holdings Inc. (NYSE: FLOC) ("Flowco" or the "Company"), a provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry, today announced financial results for the third quarter ended September 30, 2025.
Where presented, the financial results for 2024 represent periods (i) during which Flowco's operating subsidiary, Flowco MergeCo LLC ("Flowco LLC"), was a privately-owned limited liability company and (ii) prior to the completion of Flowco's initial public offering in January 2025. Historical financial information for the periods ended in 2024 reflects information for Flowco LLC, and historical financial information presented prior to June 20, 2024 reflects only the historical financial information of Estis Compression LLC ("Estis") as the accounting predecessor prior to the business combination of Estis, Flowco Production Solutions, LLC and Flogistix, LP and parent entities formed in connection with such business combination (the "2024 Business Combination").
Key Third Quarter 2025 Highlights
-- Revenues of $176.9 million, generating net income of $34.3 million and
Adjusted Net Income1 of $37.3 million
-- Adjusted EBITDA1 of $76.8 million
-- Adjusted EBITDA Margin1 of 43.4%
-- Net cash provided by operating activities of $82.5 million and Free Cash
Flow1 of $42.8 million
-- In October 2025, Flowco's Board of Directors declared a quarterly cash
dividend of $0.08 per share
-- Robust liquidity with approximately $518.3 million of availability under
our revolving credit facility as of October 31, 2025
Financial Summary
Three Months Ended
-----------------------------------------------
September 30, June 30, September 30,
2025 2025 2024
------------- -------- --------------
(in thousands)
Revenues $ 176,941 $193,215 $ 189,365
Net income 34,273 27,352 20,646
Adjusted
Net Income
(1) 37,301 32,998 31,179
Adjusted
EBITDA
(1) 76,803 76,488 74,017
--------- ------- ----------
Adjusted
EBITDA
Margin
(1) 43.4% 39.6% 39.1%
(1) Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, and Free
Cash Flow are non-GAAP financial measures. See definitions of these
measures and the reconciliation of GAAP to non-GAAP financial measures
outlined in the reconciliation tables accompanying this press
release.
Joe Bob Edwards, President and CEO, commented, "Flowco delivered another quarter of solid operational and financial execution, with incremental Adjusted EBITDA growth, continued margin expansion, and strong free cash flow generation. Since becoming a public company, we have achieved consecutive quarterly growth in Adjusted EBITDA while expanding margins, underscoring the resiliency of our financial model and the operating leverage we are realizing across the business. Our performance reflects a shift toward our high-margin rental portfolio, which is growing through targeted investment and incremental customer demand for high-pressure gas lift and vapor recovery systems. The integration of the assets from our recent transaction has progressed smoothly--driving improved profitability and strengthening our position in high-margin, electric-drive rental systems.
While the broader market faced headwinds in the third quarter, operators continued to prioritize production optimization and efficiency--investing in technologies that enhance reliability and returns--an approach that favors Flowco's differentiated, technology-driven solutions. As we enter the final quarter of 2025, we remain focused on disciplined capital deployment while evaluating opportunities to return capital to shareholders through dividends and share repurchases. We will continue to invest in product development, manufacturing efficiency, and operational automation to further strengthen our competitive position and expand the value we deliver to customers. Flowco remains well positioned to generate consistent results, strong cash flow, and compelling long-term value for our shareholders."
Segment Information
We report our results in two segments, Production Solutions and Natural Gas Technologies. Production Solutions includes the rental, sale and service associated with high pressure gas lift, conventional gas lift and plunger lift, including a range of digital solutions and other production related technologies. Natural Gas Technologies includes the design, manufacture, rental and sale of vapor recovery and natural gas systems. Corporate costs not directly related to either segment are categorized separately.
Segment Financial Information
Three Months Ended
--------------------------------------------
September 30, June 30, September
2025 2025 30, 2024
------------- -------- -----------
(in thousands)
Production
Solutions
Revenues $ 125,596 $128,245 $ 111,686
Adjusted
Segment
EBITDA (1) 55,260 53,343 47,421
--------- ------- -------
Adjusted
Segment
EBITDA Margin
(1) 44.0% 41.6% 42.5%
Natural Gas
Technologies
Revenues $ 51,345 $ 64,970 $ 77,679
Adjusted
Segment
EBITDA (1) 25,317 27,397 26,596
--------- ------- -------
Adjusted
Segment
EBITDA Margin
(1) 49.3% 42.2% 34.2%
Corporate
Revenues $ -- $ -- $ --
Adjusted
Segment
EBITDA (1) (3,774) (4,252) --
--------- ------- -------
Adjusted
Segment
EBITDA Margin
(1) nm nm nm
Total
Revenues $ 176,941 $193,215 $ 189,365
Adjusted
Segment
EBITDA (1) 76,803 76,488 74,017
--------- ------- -------
Adjusted
Segment
EBITDA Margin
(1) 43.4% 39.6% 39.1%
(1) Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin are
non-GAAP financial measures. See definitions of these measures and the
reconciliation of GAAP to non-GAAP financial measures outlined in the
reconciliation tables accompanying this release.
Production Solutions
Third quarter 2025 revenue for the Production Solutions segment decreased 2.1% from the second quarter of 2025, primarily due to a decrease in sales in the Downhole Components business unit. Adjusted Segment EBITDA increased 3.6% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin increasing 240 basis points. The increase in Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin resulted from favorable revenue mix, higher operating leverage and an increase in sales gross margin quarter over quarter.
Natural Gas Technologies
Third quarter 2025 revenue for the Natural Gas Technologies segment decreased 21.0% from the second quarter of 2025, primarily due to a decrease in sales in the Natural Gas Systems business unit. Adjusted Segment EBITDA decreased 7.6% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin increasing 714 basis points due to favorable revenue mix from rentals.
Corporate
Corporate Adjusted Segment EBITDA for the quarter ended September 30, 2025 was $(3.8) million, compared to $(4.3) million Corporate Adjusted Segment EBITDA in the quarter ended June 30, 2025.
Balance Sheet & Liquidity
As of October 31, 2025, the Company had outstanding borrowings under its senior secured revolving credit facility ("Credit Agreement") of $205.2 million and, with a current borrowing base of $723.5 million, had availability under the Credit Agreement of $518.3 million.
Dividend Declaration
On October 31, 2025, Flowco announced that its Board of Directors had declared a quarterly cash dividend of $0.08 per share of Class A common stock payable on November 26, 2025 to Class A common stockholders of record as of the close of business on November 14, 2025. Flowco MergeCo LLC, the Company's operating subsidiary, will make a corresponding distribution of $0.08 per unit to holders of its common units.
Conference Call and Webcast Information
Flowco will host a conference call on Wednesday, November 5, 2025, at 8:00 am Eastern Time to discuss third quarter 2025 results. The conference call can be accessed live over the phone by dialing 1-877-704-4453 (for the U.S.) or 1-201-389-0920 (for International). A telephonic replay of the conference call will be available two hours after the call and can be accessed by dialing 1-844-512-2921 (for the U.S.) or 1-412-317-6671 (for International). The passcode for the call and replay is 13756630. A live webcast of the conference call will also be available under the Investor Relations section of Flowco's website at ir.flowco-inc.com.
About Flowco
Flowco is a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. The company's products and services include a full range of equipment and technology solutions that enable oil and natural gas producers to efficiently and cost-effectively maximize the profitability and economic lifespan of their assets.
Forward-Looking Statements
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