Flowco Holdings Inc Class A(FLOC)
$21.28+0.28 (+1.33%)
FLOC
Flowco Holdings Inc Class A earnings date
$21.28
At close:+0.28 (+1.33%)
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Flowco Holdings Inc Class A (FLOC) Q3 2026 Earnings Report
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FLOC Q3 2026 EPS Results
- Actual EPS
- $0.48
- Consensus EPS
- $0.37
- Beat/Miss
- Beat by +$0.11
- One Year Ago EPS
- $0.35
FLOC Q3 2026 Revenue Results
- Actual Revenue
- $258.62M
- Expected Revenue
- $243.90M
- Beat/Miss
- Beat by +$14.72M
- YoY Revenue Growth
- +46.16%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
FLOC Upcoming Earnings
Flowco Holdings Inc Class A's next earnings date is estimated for March 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
FLOC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Flowco reported record quarterly adjusted EBITDA and free cash flow, double-digit sequential growth, strong performance from both operating segments, successful cross-selling, international order momentum, a completed acquisition with expected EBITDA contribution, conservative leverage, and increased capital return flexibility. The primary challenges were seasonal fourth-quarter guidance below Q3, a temporary impact from accelerated equipment releases, a sequential margin decline in Natural Gas Technologies, longer engine lead times, and execution work associated with fleet integration.
Company Guidance
Flowco expects fourth quarter adjusted EBITDA to be in the range of $93 million-$99 million, with fourth quarter capital expenditures in line with the third quarter and the full-year capital spending outlook unchanged; 2027 capital expenditures are currently anticipated at similar or slightly lower levels relative to 2026, Lifting Solutions is expected to contribute approximately $23 million of adjusted EBITDA in 2027, and current stacked Surface Equipment system levels are expected to return by mid-2027, with a $1 million-$3 million Q4 impact from the accelerated releases. Free cash flow conversion from EBITDA is expected to stay in that 50% neighborhood, VRU CapEx next year is expected to be similar to what it is this year, and working capital is around $150 million-$200 million, with $5 million-$10 million potentially added for international opportunities. Following Lifting Solutions, revenue generated outside the United States is expected to be approximately 10% of total revenue; Flowco expects to deliver 20 ESP systems during Q4 of 2026, roughly 250 progressing cavity pumps into Venezuela during 2026, including over 100 pumps which are currently on order for delivery in Q4 2026, and 20 ESP systems from a major multinational operator with presence in Iraq.
- Record Quarterly Adjusted EBITDAQ3 adjusted EBITDA was approximately $104 million, the highest quarterly level since becoming a public company. Revenue increased 10% sequentially and adjusted EBITDA grew 11%, while the company maintained a 40% adjusted EBITDA margin.
- Strong Year-Over-Year GrowthThird-quarter revenue grew 46% year over year. Over the last four quarters, Flowco generated nearly a quarter billion dollars of free cash flow, representing 65% conversion of adjusted EBITDA into free cash flow.
- Record Free Cash Flow GenerationQ3 operating cash flow was approximately $103 million, with $31 million of growth and maintenance CapEx, resulting in approximately $72 million of free cash flow. This represented a quarterly record and 70% free cash flow conversion from adjusted EBITDA.
- Production Solutions Segment GrowthProduction Solutions revenue increased 5% sequentially to $179 million, while adjusted segment EBITDA grew approximately 10% to $78 million. Adjusted EBITDA margin increased 209 basis points sequentially, primarily due to a higher proportion of Surface Equipment revenue.
- Surface Equipment Rental PerformanceSurface Equipment was the primary driver of Production Solutions outperformance, supported by consistent rental fleet performance, the durability of the rental model, and the value of term contracts for compression units supporting gas lift applications.
- Natural Gas Technologies Segment GrowthNatural Gas Technologies revenue increased 23% sequentially to approximately $80 million, while adjusted segment EBITDA grew 11% to approximately $31 million. The segment delivered its highest quarterly adjusted EBITDA since the IPO, supported by continued vapor recovery rental growth and a particularly strong quarter in natural gas systems.
- Continued Vapor Recovery DemandThe vapor recovery rental business continued to expand as operators increasingly recognize the economic benefits of capturing and monetizing liquids-rich natural gas vapors. Additional takeaway capacity in the Permian and other key basins was identified as an enabler of this growth.
- High-Pressure Gas Lift Contract EconomicsThe take-or-pay nature of Flowco's contracts enabled the company to recognize the remaining value of certain contracts upon notice of return while freeing the systems for additional demand without incremental investment in new equipment.
- Successful ESP Commercial WinValiant's ESP offering exceeded expectations, and Flowco secured a significant ESP contract with a large independent operator by leveraging legacy relationships across multiple business units. Management expects the customer could become one of the company's largest ESP customers over time.
- Lifting Solutions Acquisition CompletedOn October 2, Flowco completed the acquisition of Lifting Solutions for $112 million, excluding potential contingent consideration, at an approximately 5x expected 2027 adjusted EBITDA purchase multiple. Lifting Solutions is expected to contribute approximately $23 million of adjusted EBITDA in 2027.
- Broader Artificial Lift PortfolioThe Lifting Solutions acquisition added continuous rod and progressing cavity pump technologies, broadening Flowco's artificial lift offering and strengthening its position in later-life well applications.
- Expanded International FootprintFollowing the Lifting Solutions transaction, revenue generated outside the United States is expected to represent approximately 10% of total revenue. Lifting Solutions provides offerings across 16 countries and is supported by 19 distributor relationships.
- Venezuela Order MomentumFlowco secured multiple orders in Venezuela and expects to deliver 20 ESP systems during Q4 2026, with increased demand extending into 2027. The company also secured orders for multiple sets of gas lift equipment and associated digital gauges. Through Lifting Solutions, Flowco expects to deliver roughly 250 progressing cavity pumps into Venezuela during 2026, including more than 100 pumps currently on order for Q4 delivery.
- Middle East Growth OpportunitiesFlowco secured orders for 20 ESP systems from a major multinational operator with a presence in Iraq. Lifting Solutions' existing operations in Oman are performing ahead of expectations, and management highlighted the company's expanded footprint in the Middle East.
- Strong Liquidity and Conservative LeverageAs of October 30, Flowco had approximately $356 million drawn under its credit facility against a $722 million borrowing base, leaving approximately $365 million of available capacity. Even after the Lifting Solutions acquisition, leverage remained below one times trailing 12-month EBITDA.
- Capital Spending DisciplineThe full-year capital spending outlook remained unchanged, with fourth-quarter CapEx expected to be in line with Q3. For 2027, management currently anticipates capital expenditures at similar or slightly lower levels relative to 2026, even with a full year of Valiant and the addition of Lifting Solutions.
- Expected Free Cash Flow ConversionManagement expects free cash flow conversion from EBITDA to remain in the 50% neighborhood. Working capital has been managed tightly, and the company expects only approximately $5 million-$10 million of additional working capital to service international opportunities.
- Increased Share Buyback AuthorizationThe board authorized a substantial increase in Flowco's share buyback authorization to $200 million. Management said the authorization provides flexibility to repurchase shares when the valuation is attractive relative to other capital allocation opportunities.
- Operational Efficiency InitiativeFlowco operates more than 4,500 systems across its Surface Equipment and vapor recovery fleets and is working to combine previously separate compression fleet operating practices, including maintenance schedules, technician processes, software, and preventative maintenance planning. Management believes this can drive operational improvements and potential margin enhancements.
- Production Optimization Software DevelopmentFlowco is collaborating across business units on production optimization software. Remote monitoring and adjustment of ESP and plunger lift applications, combined with production engineering capabilities such as nodal analysis, are intended to support a more comprehensive life-of-well management capability, with the effort continuing through 2027.
- Cross-Selling ProgressCross-selling of solutions acquired through Valiant and Lifting Solutions is occurring in the Permian, the Bakken, Canada, and Venezuela, with additional opportunities from the company's new Middle East footprint. Management said the ESP win with the large independent demonstrated the effectiveness of combining technical expertise and customer relationships while retaining the acquired businesses' entrepreneurial and technical focus.
- Robust U.S. and Canadian Market BackdropManagement stated that U.S. unconventional development and production remain robust, with U.S. oil production at approximately 14 million barrels per day and natural gas production at almost 114 BCF per day. In Canada, production growth from the Montney and Duvernay, increased multilateral drilling, sustained oil sands production, and expanded pipeline and export capacity were cited as drivers of future growth.
- Fourth-Quarter OutlookFlowco expects fourth-quarter adjusted EBITDA to be in the range of $93 million-$99 million. The outlook includes typical seasonal trends across both operating segments, the expanded geographic presence, and a full-quarter contribution from Lifting Solutions.
- Stable 2027 VRU Deployment ExpectationsManagement expects 2027 vapor recovery unit CapEx to be similar to 2026, describing demand as consistent and tied to new pad additions and the continued build-out of natural gas infrastructure.
- Selective M&A StrategyManagement described the M&A market as deep and robust but said Flowco remains highly selective. Potential acquisitions must fit the production optimization theme and complement a target geography or technology, with management emphasizing the importance of compatible entrepreneurial and management teams.
FLOC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 23, 2027 | 2026 (Q4) | 0.37- | 0.44 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 0.370.48 | 0.35 | 35.69% (+0.13) | |
| Aug 11, 2026 | 2026 (Q2) | 0.370.36 | 0.36 | -1.11% (-0.00) | |
| May 06, 2026 | 2026 (Q1) | 0.330.48 | 0.44 | 9.32% (+0.04) | |
| Feb 26, 2026 | 2025 (Q4) | 0.320.44 | 2.23 | -80.22% (-1.79) | |
| Nov 05, 2025 | 2025 (Q3) | 0.300.35 | 0.35 | 0.57% (+0.00) | |
| Aug 05, 2025 | 2025 (Q2) | 0.320.36 | 0.22 | 62.16% (+0.14) | |
| May 13, 2025 | 2025 (Q1) | 0.320.44 | 0.19 | 131.58% (+0.25) | |
| Mar 18, 2025 | 2024 (Q4) | 0.342.23 | 0.21 | 982.52% (+2.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
