Flowco Q4 revenue beats on higher Surface Equipment sales

Reuters02-26 19:07
Flowco Q4 revenue beats on higher Surface Equipment sales

Overview

  • Oil and gas solutions provider's Q4 revenue beat analyst expectations

  • Adjusted net income for Q4 beat analyst expectations

  • Company announced acquisition of Valiant Artificial Lift Solutions

Outlook

  • Flowco expects to close Valiant acquisition in March 2026

  • Company plans to use credit facility to fund Valiant acquisition

  • Flowco anticipates incremental growth from Valiant acquisition

Result Drivers

  • PRODUCTION SOLUTIONS - Revenue increased 1.5% from Q3 2025 due to higher Surface Equipment sales, with improved EBITDA margin from reduced SG&A expenses

  • NATURAL GAS TECHNOLOGIES - Revenue rose 35.9% from Q3 2025 driven by Vapor Recovery and Natural Gas Systems sales, though EBITDA margin decreased due to sales mix

  • ACQUISITION STRATEGY - Acquisition of Valiant Artificial Lift Solutions expected to expand market reach and enhance artificial lift capabilities

Company press release: ID:nBw40J7S3a

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$197.20 mln

$189.47 mln (6 Analysts)

Q4 Adjusted Net Income

Beat

$45.70 mln

$44.96 mln (4 Analysts)

Q4 Net Income

$43 mln

Q4 Adjusted EBITDA

Beat

$83.50 mln

$77.95 mln (7 Analysts)

Q4 Adjusted EBITDA Margin

42.40%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Flowco Holdings Inc is $28.00, about 25.7% above its February 25 closing price of $22.28

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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