Flowco (FLOC) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, with Q4 revenue of $197.2M, net income of $43.0M, and Adjusted EBITDA of $83.5M at a 42.4% margin.

• Full-year 2025 revenues reached $759.7M, net income $131.7M, and Adjusted EBITDA $311.7M, reflecting consistent execution and growth across both segments.

• Free cash flow in Q4 was $63.2M, reducing leverage below pre-acquisition levels.

• Announced acquisition of Valiant Artificial Lift Solutions, expected to close in early March 2026, expanding artificial lift capabilities and addressable market.

• Declared a quarterly dividend of $0.08 per share in January 2026.

Financial highlights

• Q4 Adjusted Net Income was $45.7M; full-year Adjusted Net Income was $148.8M.

• Q4 Free Cash Flow was $63.2M; full-year Free Cash Flow was $167.1M.

• Rental revenue surpassed $110M for the first time in Q4.

• Adjusted EBITDA margin for Q4 was 42.4%, up from 39.7% in Q4 2024.

• Production Solutions Q4 revenue: $127M (+1.5% sequentially); Adjusted EBITDA: $57M (+4%).

• Natural Gas Technologies Q4 revenue: $70M (+36% sequentially); Adjusted EBITDA: $30M (+18.4%), with margin decline due to sales mix.

• Full-year CapEx (excluding M&A): $127M, mainly for rental fleet expansion.

Outlook and guidance

• Q1 2026 Adjusted EBITDA guidance: $82–$86M.

• Expect continued incremental growth in rental fleets and stable segment revenues, excluding Valiant.

• Anticipate higher free cash flow in 2026 with CapEx (excluding M&A) of ~$115M.

• Integration of Valiant expected to close in early March, contributing 10 months of earnings in 2026.

• Management confident in advancing production optimization strategy and delivering long-term value.