Press Release: Flowco Holdings Inc. Reports First Quarter 2026 Results

Dow Jones05-06
HOUSTON--(BUSINESS WIRE)--May 06, 2026-- 

Flowco Holdings Inc. (NYSE: FLOC) ("Flowco" or the "Company"), a provider of production optimization, artificial lift and emissions management and monetization solutions for the oil and natural gas industry, today announced financial results for the first quarter ended March 31, 2026.

Key First Quarter 2026 Highlights

   --  Revenues of $209.5 million, generating net income of $27.5 million and 
      Adjusted Net Income1 of $35.7 million 
 
   --  Adjusted EBITDA1 of $85.5 million 
 
   --  Adjusted EBITDA Margin1 of 40.8% 
 
   --  Net cash provided by operating activities of $78.7 million and Free 
      Cash Flow1 of $52.3 million 
 
   --  Returned $16.5 million of cash to shareholders through share 
      repurchases 
 
   --  In May 2026, Flowco's Board of Directors approved a 12.5% increase to 
      the quarterly cash dividend to $0.09 per share 
 
   --  Robust liquidity with approximately $387.5 million of availability 
      under our revolving credit facility as of May 1, 2026 
 
   --  On March 2, 2026, Flowco closed on its previously announced acquisition 
      of Valiant Artificial Lift Solutions LLC ("Valiant") 

Financial Summary

 
                                     Three Months Ended 
                        -------------------------------------------- 
                         March 31,      December 31,     March 31, 
                            2026            2025            2025 
                        ------------  ----------------  ------------ 
                                       (in thousands) 
Revenues                $209,530      $    197,213      $192,350 
Net income                27,454            42,985        27,045 
Adjusted Net Income 
 (1)                      35,661            45,734        32,769 
Adjusted EBITDA (1)       85,534            83,545        74,901 
                         -------          --------       ------- 
Adjusted EBITDA Margin 
 (1)                        40.8%             42.4%         38.9% 
 
 
   (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 a strong first quarter, generating meaningful free cash flow and Adjusted EBITDA growth, while sustaining industry-leading margins through disciplined execution across both operating segments.

During the quarter, we successfully closed our acquisition of Valiant Artificial Lift Solutions, and we believe the integration is progressing well. We are encouraged by the early alignment across the organization and our expanded ability to support customers across a broader range of artificial lift solutions throughout the life of the well.

As we look ahead, a growing global focus on energy security is reinforcing the need for reliable, diversified sources of supply and highlighting the role of U.S. oil and natural gas production. As a North American-focused business, we have remained insulated from recent international market disruptions and are well positioned as this environment supports incremental activity across the region. We expect this dynamic to drive continued demand for production optimization and artificial lift solutions, as operators remain disciplined while prioritizing efficiency gains from existing production. This outlook supports our anticipated earnings growth profile through the remainder of the year and our ability to drive 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, electric submersible pump $(ESP)$, 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 
                        -------------------------------------------- 
                         March 31,      December 31,     March 31, 
                            2026            2025            2025 
                        ------------  ----------------  ------------ 
                                       (in thousands) 
Production Solutions 
Revenues                $140,163      $    127,442      $115,992 
Adjusted Segment 
 EBITDA (1)               61,469            57,477        50,590 
                         -------          --------       ------- 
Adjusted Segment 
 EBITDA Margin (1)          43.9%             45.1%         43.6% 
 
Natural Gas 
Technologies 
Revenues                $ 69,367      $     69,771      $ 76,358 
Adjusted Segment 
 EBITDA (1)               29,665            29,982        28,662 
                         -------          --------       ------- 
Adjusted Segment 
 EBITDA Margin (1)          42.8%             43.0%         37.5% 
 
Corporate 
Adjusted Segment 
 EBITDA (1)             $ (5,600)     $     (3,914)     $ (4,351) 
                         -------          --------       ------- 
Adjusted Segment 
EBITDA Margin (1)             nm                nm            nm 
 
Total 
Revenues                $209,530      $    197,213      $192,350 
Adjusted Segment 
 EBITDA (1)               85,534            83,545        74,901 
                         -------          --------       ------- 
Adjusted Segment 
 EBITDA Margin (1)          40.8%             42.4%         38.9% 
 
 
   (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

First quarter 2026 revenue and Adjusted Segment EBITDA for the Production Solutions segment increased 10.0% and 6.9%, respectively, from the fourth quarter of 2025, driven by higher Surface Equipment revenue and one month of earnings contribution from Valiant, which added an ESP offering to our Production Solutions segment. Adjusted Segment EBITDA margin decreased 125 basis points, reflecting a revenue mix shift.

Natural Gas Technologies

First quarter 2026 revenue for the Natural Gas Technologies segment decreased 0.6% from the fourth quarter of 2025, primarily due to lower Vapor Recovery system sales, partially offset by increased Vapor Recovery rentals and Natural Gas Systems sales. Adjusted Segment EBITDA decreased 1.1% quarter over quarter, while Adjusted Segment EBITDA Margin was effectively flat.

Corporate

Corporate Adjusted Segment EBITDA for the first quarter 2026 was $(5.6) million, compared to $(3.9) million for the fourth quarter of 2025. This decrease was driven primarily by incremental filing and legal expenses associated with our Form S-3 filing on February 4, 2026 and subsequent public secondary equity offering by selling stockholders.

Balance Sheet & Liquidity

As of May 1, 2026, the Company had outstanding borrowings under its senior secured revolving credit facility ("Credit Agreement") of $332.9 million and, with a current borrowing base of $721.6 million, had availability under the Credit Agreement of $387.5 million.

Dividend Declaration

On May 1, 2026, Flowco announced that its Board of Directors declared an increased quarterly cash dividend of $0.09 per share of Class A common stock, representing a 12.5% increase, payable on May 27, 2026 to Class A common stockholders of record as of the close of business on May 15, 2026. Flowco MergeCo LLC, the Company's operating subsidiary, will make a corresponding distribution of $0.09 per unit to holders of its common units.

Conference Call and Webcast Information

Flowco will host a conference call on Wednesday, May 6, 2026, at 8:00 a.m. Eastern Time to discuss first quarter 2026 results. The conference call can be accessed live over the phone by dialing 1-800-717-1738 (for the U.S.) or 1-646-307-1865 (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 1190872. 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 emissions management and monetization 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

The information in this press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These statements generally relate to future events or our future financial or operating performance, and include, but are not limited to: statements regarding guidance or estimates related to the Company's results of operations or financial condition; industry trends, customer demand and industry outlook, and effects on Flowco's operations; Flowco's strategies and plans, including matters relating to the Company's growth, capital expenditures, dividend policies, and leverage profile. When used in this press release, words such as "expect, " "project," "estimate," "believe," "anticipate," "intend," "plan," "seek," "forecast," "target," "predict," "may," "should," "would," "could," and "will," the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Flowco believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These risks and uncertainties are described further in our annual report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission. Flowco undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

 
 
 
 
                        Flowco Holdings Inc. 
           Condensed Consolidated Statement of Operations 
 
                                    Three Months Ended 
                       --------------------------------------------- 
                          March 31,     December 31,    March 31, 
                             2026           2025           2025 
                       ---------------  ------------  -------------- 
                         (in thousands except share and per share 
                                         amounts) 
Revenues: 
    Rentals            $   121,873      $   111,592   $    97,296 
    Sales                   87,657           85,621        95,054 
                        ----------       ----------    ---------- 
        Total 
         revenues          209,530          197,213       192,350 
    Operating 
    expenses: 
    Cost of rentals 
     (exclusive of 
     depreciation and 
     amortization 
     disclosed 
     separately 
     below)                 32,552           30,593        26,851 
    Cost of sales 
     (exclusive of 
     depreciation and 
     amortization 
     disclosed 
     separately 
     below)                 62,404           59,176        65,566 
    Selling, general 
     and 
     administrative 
     expenses               36,476           26,380        30,534 
    Depreciation and 
     amortization           41,495           38,601        34,119 
    (Gain) loss on 
     sale of 
     equipment                 310              487           (45) 
                        ----------       ----------    ---------- 
        Income from 
         operations         36,293           41,976        35,325 
    Other expenses: 
    Interest expense, 
     net                    (4,348)          (4,372)       (5,365) 
    Other expenses, 
     net                      (461)             219          (267) 
                        ----------       ----------    ---------- 
        Total other 
         expenses           (4,809)          (4,153)       (5,632) 
                        ----------       ----------    ---------- 
    Income before 
     provision for 
     income taxes           31,484           37,823        29,693 
    Provision for 
     income taxes           (4,030)           5,162        (2,648) 
                        ----------       ----------    ---------- 
        Net income          27,454           42,985        27,045 
    Net income 
     attributable to 
     redeemable 
     non-controlling 
     interests              20,012           25,747        20,873 
                        ----------       ----------    ---------- 
    Net income 
     attributable to 
     Flowco Holdings 
     Inc.              $     7,442      $    17,238   $     6,172 
                        ==========       ==========    ========== 
 
Earnings per share 
(1): 
    Basic              $      0.24      $      0.62   $      0.24 
    Diluted            $      0.23      $      0.41   $      0.24 
Weighted average 
shares outstanding 
(1): 
    Basic               31,620,520       28,766,587    25,721,620 
    Diluted             32,719,382       90,064,283    26,187,264 
 
 
   (1)   The calculations of basic and diluted earnings per share for the 
         three months ended March 31, 2025, have been calculated based solely 
         on the post-IPO period, as earnings per share is not meaningful for 
         the period from January 1, 2025 to January 15, 2025, due to the 
         different capital structure. 
 
 
 
 
 
 
                        Flowco Holdings Inc. 
                Condensed Consolidated Balance Sheets 
 
                                             As of 
                           ----------------------------------------- 
                                March 31,           December 31, 
                                   2026                 2025 
                           -------------------  -------------------- 
                           (in thousands except share and per share 
                                           amounts) 
Assets 
Current assets: 
    Cash and cash 
     equivalents           $            17,337  $            4,522 
    Accounts receivable, 
     net of allowances 
     for credit losses of 
     $1,284 and $1,079, 
     respectively                      146,068             100,465 
    Inventory                          185,972             149,590 
    Prepaid expenses and 
     other current 
     assets                              6,248               5,615 
                           ---  --------------      -------------- 
        Total current 
         assets                        355,625             260,192 
Property, plant and 
 equipment, net                        853,862             797,534 
Operating lease 
 right-of-use assets                    16,871              17,556 
Finance lease 
 right-of-use assets                    25,098              25,861 
Intangible assets, net                 315,992             273,437 
Goodwill                               305,248             249,692 
Deferred tax asset                      20,046              16,692 
Other assets                             5,092               5,387 
                           ---  --------------      -------------- 
        Total assets       $         1,897,834  $        1,646,351 
                           ===  ==============      ============== 
 
Liabilities, redeemable 
non-controlling 
interests and 
stockholders' equity 
Current liabilities: 
    Accounts payable       $            45,221  $           22,827 
    Accrued expenses                    31,658              26,909 
    Current portion of 
     operating lease 
     obligations                         8,354               8,004 
    Current portion of 
     finance lease 
     obligations                        13,010              12,895 
    Deferred revenue                    16,732               7,376 
                           ---  --------------      -------------- 
        Total current 
         liabilities                   114,975              78,011 
Long-term liabilities: 
    Long-term debt, net                327,991             167,819 
    Tax receivable 
     agreement liability                92,437              21,952 
    Operating lease 
     obligations, net of 
     current portion                     8,733               9,783 
    Finance lease 
     obligations, net of 
     current portion                     9,851              10,862 
                           ---  --------------      -------------- 
        Total long-term 
         liabilities                   439,012             210,416 
                           ---  --------------      -------------- 
        Total liabilities              553,987             288,427 
    Commitments and 
    contingencies 
                           ---  --------------      -------------- 
        Redeemable 
         non-controlling 
         interests                   1,007,625           1,129,298 
                           ---  --------------      -------------- 
Stockholders' equity: 
    Class A common stock, 
     $0.0001 par value -- 
     300,000,000 shares 
     authorized; 
     41,816,350 shares 
     issued and 
     outstanding as of 
     March 31, 2026; 
     300,000,000 shares 
     authorized; 
     25,721,620 shares 
     issued and 
     outstanding as of 
     December 31, 2025.                      4                   3 
    Class B common stock, 
     $0.0001 par value -- 
     150,000,000 shares 
     authorized; 
     48,521,254 shares 
     issued and 
     outstanding as of 
     March 31, 2026; 
     150,000,000 shares 
     authorized; 
     64,823,042 shares 
     issued and 
     outstanding as of 
     December 31, 2025.                      5                   6 
    Additional paid-in 
     capital                           336,213              69,279 
    Retained earnings                       --             159,338 
                           ---  --------------      -------------- 
        Total 
         stockholders' 
         equity to Flowco 
         Holdings Inc.                 336,222             228,626 
                           ---  --------------      -------------- 
Total liabilities, 
 redeemable 
 non-controlling 
 interests and 
 stockholders' equity      $         1,897,834  $        1,646,351 
                           ===  ==============      ============== 
 
 
 
 
 
 
                      Flowco Holdings Inc. 
         Condensed Consolidated Statements of Cash Flows 
 
                                           Three Months Ended 
                                                March 31, 
                                        ------------------------ 
                                           2026         2025 
                                        ----------  ------------ 
                                             (in thousands) 
Cash flows from operating activities 
    Net income                          $  27,454   $  27,045 
    Adjustments to reconcile net 
    income to net cash provided by 
    operating activities: 
        Depreciation and amortization      41,495      34,119 
        Provision for inventory 
         obsolescence                         404         603 
        Amortization of operating 
         right-of-use assets                2,542       2,052 
        Amortization of deferred 
         financing costs                      338         335 
        (Gain) loss on sale of 
         equipment                            310         (45) 
        Loss on debt extinguishment            --          -- 
        Gain on lease termination             (19)       (190) 
        Stock-based compensation            3,086       4,962 
        Provision for deferred income 
         taxes                              4,030       2,648 
        Allowance for credit losses           373         407 
    Changes in operating assets and 
    liabilities: 
        Accounts receivable               (15,385)    (14,355) 
        Inventory                          (1,302)     (6,380) 
        Prepaid expenses and other 
         current assets                       654         461 
        Other assets and liabilities          (43)         -- 
        Accounts payable - trade           15,948         401 
        Accrued expenses                   (3,897)     (6,943) 
        Deferred revenue                    5,021        (426) 
        Operating lease liabilities        (2,804)     (1,848) 
        Finance lease liabilities             503        (297) 
                                         --------    -------- 
Net cash provided by operating 
 activities                                78,708      42,549 
                                         --------    -------- 
Cash flows used in investing 
activities 
    Net cash paid in Valiant 
     acquisition                         (161,764)         -- 
    Additions to property, plant and 
     equipment                            (26,385)    (27,850) 
    Proceeds from sale of property, 
     plant and equipment                        4         206 
    Payment for capitalized patent 
     costs                                   (133)        (19) 
                                         --------    -------- 
Net cash used in investing activities    (188,278)    (27,663) 
                                         --------    -------- 
Cash flows used in financing 
activities 
    Issuance of Class A common stock 
     in IPO, net of underwriting 
     discount                                  --     461,803 
    Payment of offering costs                  --      (2,034) 
    Repurchase of Class A common stock    (16,516)         -- 
    Payments on long-term debt           (308,962)   (579,864) 
    Proceeds from long-term debt          469,134     124,962 
    Payments on finance lease 
     obligations                           (4,055)     (2,829) 
    Proceeds on finance lease 
     terminations                              --          37 
    Purchase of LLC Interests from 
     Continuing Equity Owners                  --     (20,876) 
    Payment of debt issuance costs             --         (13) 
    Payment of dividend equivalent 
     units                                     (2)         -- 
    Payment of tax withheld on 
    stock-based compensation                   --          -- 
    Distributions to members of Flowco 
     LLC                                  (14,842)         -- 
    Dividends paid to Flowco Holdings 
     Inc. shareholders                     (2,372)         -- 
                                         --------    -------- 
Net cash provided by (used in) 
 financing activities                     122,385     (18,814) 
                                         --------    -------- 
Net increase (decrease) in cash and 
 cash equivalents                          12,815      (3,928) 
Cash and cash equivalents 
Beginning of period                         4,522       4,615 
                                         --------    -------- 
End of period                           $  17,337   $     687 
                                         ========    ======== 
 
 
 
 

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company uses non-GAAP financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA and Free Cash Flow, as well as Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin, in this press release to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results provides management additional insight on the consolidated financial performance from period to period to project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our management and investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Similarly, Free Cash Flow does not represent our residual cash flow for discretionary expenditures, since the calculation of this measure does not reflect certain debt service requirements or certain other non-discretionary expenditures. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The Company urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business.

Adjusted Net Income

Adjusted Net Income is a non-GAAP measure that we define as net income (loss) adjusted to eliminate the impact of (i) transaction-related expenses, (ii) share-based compensation, (iii) loss on the sale of equipment, (iv) loss on debt payments and (v) changes to the value of our inventory. Adjusted Net Income is a supplemental non-GAAP financial measure used by management, our stockholders and others to provide visibility on the profitability and financial strength of the Company by excluding certain expenses related to non-recurring Company transactions.

Reconciliation from net income to Adjusted Net Income is set forth as follows:

 
                                 Three Months Ended 
                       --------------------------------------- 
                        March 31,    December      March 31, 
                           2026      31, 2025         2025 
                       -----------  -----------  ------------- 
                                   (in thousands) 
Net income             $    27,454  $    42,985  $   27,045 
Transaction-related 
 expenses (1)                4,811          705         493 
Share-based 
 compensation expense 
 (2)                         3,086        1,557       4,962 
Loss on sale of 
 equipment                     310          487         (45) 
Inventory valuation 
 adjustments (3)                --           --         314 
                           -------      -------      ------ 
Adjusted Net Income    $    35,661  $    45,734  $   32,769 
                           =======      =======      ====== 
 
 
   (1)   Represents the transaction-related expenses, non-capitalizable IPO 
         related costs and business combination expenses associated with the 
         Valiant acquisition, which were expensed as incurred and included in 
         the consolidated statements of operations. 
   (2)   Reflects non-cash compensation expense for equity-based awards to our 
         employees and non-employee directors for the periods presented. 
   (3)   Reflects non-cash adjustment related to inventory fair value step-up 
         from the 2024 Business Combination which has been included in cost of 
         sales. 
 
 
 

Adjusted EBITDA and Adjusted EBITDA margin

We define EBITDA as net income, adjusted to exclude interest expense, provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude (i) share-based compensation expense, (ii) transaction-related expenses and (iii) other non-cash and non-recurring expenses.

EBITDA and Adjusted EBITDA are key performance indicators we use in evaluating our operating performance and in making financial, operating and planning decisions. In particular, the exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA provides additional visibility on operating performance across reporting periods by removing the effect of non-cash and/or non-recurring expenses. Accordingly, we believe that this measure provides useful information to our stockholders and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Reconciliation from net income to EBITDA and Adjusted EBITDA are set forth as follows:

 
                                      Three Months Ended 
                          ------------------------------------------ 
                           March 31,    December 31,     March 31, 
                              2026          2025            2025 
                          -----------  --------------  ------------- 
                                        (in thousands) 
Net income                $    27,454  $      42,985   $   27,045 
Interest expense                4,348          4,372        5,365 
Income tax benefit 
 (provision)                    4,030         (5,162)       2,648 
Depreciation and 
 amortization                  41,495         38,601       34,119 
                              -------      ---------       ------ 
EBITDA                         77,327         80,796       69,177 
Transaction-related 
 expenses (1)                   4,811            705          493 
Share-based compensation 
 expense (2)                    3,086          1,557        4,962 
Loss on sale of 
 equipment                        310            487          (45) 
Inventory valuation 
 adjustments (3)                   --             --          314 
                              -------      ---------       ------ 
Adjusted EBITDA           $    85,534  $      83,545   $   74,901 
                              =======      =========       ====== 
 
 
   (1)   Represents the transaction-related expenses, non-capitalizable IPO 
         related costs and business combination expenses associated with the 
         Valiant acquisition, which were expensed as incurred and included in 
         the consolidated statements of operations. 
   (2)   Reflects non-cash compensation expense for equity-based awards to our 
         employees and non-employee directors for the periods presented. 
   (3)   Reflects non-cash adjustment related to inventory fair value step-up 
         from the 2024 Business Combination which has been included in cost of 
         sales. 
 
 

Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin

In addition to business segment profit or loss, our management also evaluates Adjusted Segment EBITDA, which is presented on a business unit level for purposes of allocating resources and evaluating operating and financial performance. As discussed above, the Company operates and manages its business units in the following two operating and reporting segments:

   --  Production Solutions: relates to rentals, sales and services related to 
      high pressure gas lift, electric submersible pump (ESP), conventional gas 
      lift and plunger lift. This segment includes rental, sales and service 
      revenues. 
 
   --  Natural Gas Technologies: relates to the design, manufacturing, rental, 
      sale and servicing of vapor recovery and natural gas systems. This 
      segment includes rental, sales and service revenues. 

We define Adjusted Segment EBITDA as segment net income, as adjusted in the same manner as defined for EBITDA and Adjusted EBITDA above. Reconciliation from segment net income, which includes direct segment costs but excludes corporate costs not directly related to either segment, to Adjusted Segment EBITDA is set forth as follows:

 
                                    Three Months Ended 
                          -------------------------------------- 
                          March 31,   December 31,    March 31, 
                             2026         2025           2025 
                          ---------  --------------  ----------- 
                                      (in thousands) 
Production Solutions 
Net income                $ 35,100   $      33,236   $ 29,032 
Interest expense               127             219         93 
Income tax benefit 
 (provision)                    29             (25)       211 
Depreciation and 
 amortization               25,899          22,832     19,614 
                           -------       ---------    ------- 
EBITDA                      61,155          56,262     48,950 
Transaction-related 
expenses (1)                    --             705         -- 
Share-based compensation 
 expense (2)                    --              --      1,280 
(Gain) loss on sale of 
 equipment                     314             510         46 
Inventory valuation 
 adjustments (3)                --              --        314 
                           -------       ---------    ------- 
Adjusted Segment EBITDA     61,469          57,477     50,590 
 
Natural Gas 
Technologies 
Net income                $ 13,895   $      14,037   $ 11,632 
Interest expense               186             207        202 
Income tax benefit 
 (provision)                     1              --        112 
Depreciation and 
 amortization               15,587          15,761     14,499 
                           -------       ---------    ------- 
EBITDA                      29,669          30,005     26,445 
Share-based compensation 
 expense (2)                    --              --      2,308 
(Gain) loss on sale of 
 equipment                      (4)            (23)       (91) 
                           -------       ---------    ------- 
Adjusted Segment EBITDA     29,665          29,982     28,662 
 
Corporate 
Net income                $(21,541)  $      (4,288)  $(13,619) 
Interest expense             4,035           3,946      5,070 
Income tax benefit 
 (provision)                 4,000          (5,137)     2,325 
Depreciation and 
 amortization                    9               8          6 
                           -------       ---------    ------- 
EBITDA                     (13,497)         (5,471)    (6,218) 
Transaction-related 
 expenses (1)                4,811              --        493 
Share-based compensation 
 expense (2)                 3,086           1,557      1,374 
                           -------       ---------    ------- 
Adjusted Segment EBITDA     (5,600)         (3,914)    (4,351) 
                           -------       ---------    ------- 
Total Adjusted EBITDA     $ 85,534   $      83,545   $ 74,901 
                           =======       =========    ======= 
 
 
   (1)   Represents the transaction-related expenses, non-capitalizable IPO 
         related costs and business combination expenses associated with the 
         Valiant acquisition, which were expensed as incurred and included in 
         the consolidated statements of operations. 
   (2)   Reflects non-cash compensation expense for equity-based awards to our 
         employees and non-employee directors for the periods presented. 
   (3)   Reflects non-cash adjustment related to inventory fair value step-up 
         from the 2024 Business Combination which has been included in cost of 
         sales. 
 

Free Cash Flow

Free Cash Flow is a non-GAAP measure that we define as cash flow provided by operating activities less additions to property, plant and equipment (which includes both maintenance and growth capital expenditures, but excludes asset acquisitions of a business, and excludes other business acquisitions and equity investments). Management believes this information is important to provide because it is used by management to evaluate the Company's operational performance and trends between periods and to manage our business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's results of ongoing operations. Free Cash Flow is not intended to replace GAAP financial measures. A reconciliation of net cash provided by operating activities to Free Cash Flow, as well as Free Cash Flow (Deficit) after net cash paid in acquisitions, is set forth as follows:

 
                                           Three Months Ended 
                                                March 31, 
                                         ----------------------- 
                                            2026        2025 
                                         ----------  ----------- 
                                             (in thousands) 
Net cash provided by operating 
 activities                              $  78,708   $ 42,549 
Additions to property, plant and 
 equipment                                 (26,385)   (27,850) 
                                          --------    ------- 
Free Cash Flow                              52,323     14,699 
Net cash paid in acquisitions             (161,764)        -- 
                                          --------    ------- 
Free Cash Flow (Deficit) after Net Cash 
 Paid in Acquisitions                    $(109,441)  $ 14,699 
                                          ========    ======= 
 
 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260505546575/en/

 
    CONTACT:    Investor Contact: 

Andrew Leonpacher | VP of Finance, Corporate Development, and Investor Relations

andrew.leonpacher@flowco-inc.com

(713) 997-4647

Media Contact:

Cheryl Brashear-White | VP of Marketing Communications

cheryl.white@flowco-inc.com

(405) 819-5290

 
 

(END) Dow Jones Newswires

May 06, 2026 06:00 ET (10:00 GMT)

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