Flowco Holdings Inc
NYSE:FLOC
Flowco Holdings Inc
Flowco Holdings Inc is a US-based company operating in Energy Equipment & Services industry. The company is headquartered in Houston, Texas. The company went IPO on 2025-01-17. Flowco Holdings Inc is a provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. The Company’s products and services include a full range of equipment and technology solutions. Its principal products and services are organized into two business segments: Production Solutions, and Natural Gas Technologies. Its Production Solutions segment designs and delivers products and services that enable its customers to optimize oil and natural gas production rates. Its Natural Gas Technologies segment designs and manufactures products and provides services. Its core technologies include high pressure gas lift (HPGL), conventional gas lift, plunger lift, and vapor recovery unit (VRU) solutions. Its VRUs and other methane abatement solutions capture fugitive emissions of methane, which is a natural byproduct of oil production. The firm operates manufacturing and repair facilities in El Reno, Oklahoma, Houston, Texas, and others.
Flowco Holdings Inc is a US-based company operating in Energy Equipment & Services industry. The company is headquartered in Houston, Texas. The company went IPO on 2025-01-17. Flowco Holdings Inc is a provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. The Company’s products and services include a full range of equipment and technology solutions. Its principal products and services are organized into two business segments: Production Solutions, and Natural Gas Technologies. Its Production Solutions segment designs and delivers products and services that enable its customers to optimize oil and natural gas production rates. Its Natural Gas Technologies segment designs and manufactures products and provides services. Its core technologies include high pressure gas lift (HPGL), conventional gas lift, plunger lift, and vapor recovery unit (VRU) solutions. Its VRUs and other methane abatement solutions capture fugitive emissions of methane, which is a natural byproduct of oil production. The firm operates manufacturing and repair facilities in El Reno, Oklahoma, Houston, Texas, and others.
Adjusted EBITDA Beat: Flowco delivered adjusted EBITDA of $76.8 million, exceeding expectations and guidance, with a 382 basis point margin expansion quarter-over-quarter.
Revenue Decline: Total revenue fell 8% sequentially to $176.9 million, mainly due to lower product sales in both core segments.
Rental Revenue Growth: Rental revenue rose to $107 million from $102 million last quarter, now representing 60% of total revenue, driven by high-margin fleet expansion and the August asset acquisition.
Successful Integration: The integration of 155 acquired HPGL and VRU systems was completed smoothly, contributing positively to margins and customer relationships.
Strong Free Cash Flow: Flowco generated about $43 million in free cash flow (excluding acquisition capital), demonstrating cash flow durability.
Q4 Outlook: Management guides Q4 adjusted EBITDA of $76–80 million, expecting continued strength in rentals, a small seasonal slowdown in Production Solutions revenue, and a rebound in Natural Gas Technologies sales.
Capital Returns: The company declared a $0.08 per share dividend and repurchased $15 million of stock, highlighting a flexible and opportunistic approach to returning capital to shareholders.
