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

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

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