Flowco (FLOC) investor relations material

Executive summary

• Achieved Q2 2026 revenue of $235.9 million, adjusted EBITDA of $93.9 million (39.8% margin), and free cash flow of $49.8 million, driven by strong execution, recurring rental revenue, and the Valiant acquisition.

• Net income for Q2 2026 was $30.9 million, with adjusted net income of $34.3 million.

• Over 50% of total revenue was generated by rentals, supporting recurring cash flow and revenue visibility.

• Valiant acquisition, completed in March 2026, expanded market reach, enhanced technology portfolio, and contributed to early cross-selling wins.

• Board approved a $0.14 per share special dividend and a $0.09 regular quarterly dividend for Class A shareholders.

Financial highlights

• Q2 2026 revenue was $235.9 million, up 22% year-over-year and 13% sequentially; adjusted EBITDA was $93.9 million, up 22% year-over-year.

• Production Solutions segment revenue was $171 million, with adjusted segment EBITDA of $71 million (41.6% margin); Natural Gas Technologies revenue was $65 million, with $28 million in adjusted segment EBITDA (42.7% margin).

• Free cash flow for Q2 2026 was $49.8 million, with net cash from operating activities at $95.2 million.

• Annualized adjusted return on capital employed was 21%.

• Liquidity remained robust with $446 million available under the revolving credit facility as of August 7, 2026.

Outlook and guidance

• Management expects continued strong demand in North America, driven by operators' focus on maximizing production and efficiency.

• Q3 Adjusted EBITDA guidance is $92 million–$98 million, reflecting ongoing cost pressures and variability in downhole components.

• Surface equipment expected to be flat quarter-over-quarter; Natural Gas Systems to see a slight uptick.

• Full-year capital outlook remains unchanged, supporting continued free cash flow generation.

• Sufficient liquidity and cash flow expected to support operations and capital needs for at least the next 12 months.