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Flowco Holdings Inc Class A
(NYSE:FLOC)
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Rating:73Outperform
Price Target:
$25.00
▲(24.07% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by strong financial performance (notably cash flow strength and high operating margins) and a constructive earnings outlook with reiterated ~40% EBITDA margins and solid free cash flow. Technicals are supportive but somewhat extended near-term (high stochastic), while valuation is reasonable (P/E ~14.6 with a modest ~1.48% yield).
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable internal funding for fleet reinvestment, debt reduction, and shareholder returns. Consistent cash conversion (>50% EBITDA conversion recent quarters) supports capital allocation flexibility and resilience through commodity cycles.
Negative Factors
Net margin compression
Significant below‑the‑line margin normalization reduces net profitability despite strong EBITDA, indicating higher interest, tax, depreciation, or nonrecurring items. This weakens EPS resiliency and limits distributable earnings even if operational margins remain healthy.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable internal funding for fleet reinvestment, debt reduction, and shareholder returns. Consistent cash conversion (>50% EBITDA conversion recent quarters) supports capital allocation flexibility and resilience through commodity cycles.
Read all positive factors
Flowco Holdings Inc Class A (FLOC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.02B
Dividend Yield1.42%
Average Volume (3M)746.96K
Price to Earnings (P/E)14.4
Beta (1Y)0.89
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,281
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.61
Shares Outstanding41,824,160
10 Day Avg. Volume394,231
30 Day Avg. Volume746,963
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)2.21
Price to Sales (P/S)0.67
P/FCF Ratio3.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.00Price Target Upside53.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.54
Revenue Forecast (FY)$931.40M
Flowco Holdings Inc Class A Business Overview & Revenue Model
Company Description
Flowco Holdings Inc. functions as a parent company. Through its various subsidiary firms, it provides specialized expertise and solutions to the oil and natural gas sector, particularly focusing on improving operational output, aiding in well flui...
Flowco Holdings Inc Class A Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive performance: strong sequential revenue growth (+13%), high adjusted EBITDA (~$94M) and margins (~40%), $50M of free cash flow, successful integration and early outperformance of the Valiant acquisition, and a strengthened balance sheet with significant liquidity. Offsetting factors include margin compression in Production Solutions (-229 bps), continued lubricant, fuel and O&M inflation that will pressure near‑term margins, a modest decline in NGT revenue/EBITDA (-6%), and inherent variability in Downhole Components and VRU sales. Management has a clear plan to mitigate costs, pursue cross‑sell and platform synergies, and maintain capital discipline. On balance, the positive operational and financial momentum outweighs the near‑term cost headwinds and segment lumpiness.Positive Updates
Revenue Growth
Total revenue increased 13% sequentially to $236 million in Q2 2026, driven primarily by Production Solutions.
Negative Updates
Margin Pressure in Production Solutions
Adjusted segment EBITDA margin in Production Solutions decreased by 229 basis points quarter‑over‑quarter, driven by a revenue mix shift toward Downhole Components (including Valiant) and higher operating & maintenance expenses.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue increased 13% sequentially to $236 million in Q2 2026, driven primarily by Production Solutions.
Read all positive updates
Company Guidance
Flowco guided third‑quarter adjusted EBITDA of $92–98 million, reflecting Q2’s roughly $93.9 million (≈$94M) adjusted EBITDA on $236 million of revenue (up 13% sequential) and the expectation that lubricant/fuel and other O&M cost pressures will persist into Q3; the company reiterated top‑quartile adjusted EBITDA margins of about 40% and an unchanged full‑year capex outlook despite elevated Q2 investment of $45 million, while Q2 free cash flow was ~$50 million (with >50% EBITDA conversion the last five quarters) and annualized adjusted return on capital employed was ~18%; balance sheet metrics factored into the guide include ~$274 million of borrowings on a $722 million borrowing base with ~ $446 million of available capacity and leverage below 1x; management expects Surface Equipment to be roughly flat q/q, Natural Gas Technologies to tick up modestly, and Downhole Components (including Valiant) to remain more variable, and plans to mitigate cost pressures via disciplined cost management, fleet maintenance optimization, overtime reduction, fuel/lube sourcing actions, and AI‑driven condition‑based maintenance.Flowco Holdings Inc Class A Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 819.54M | 759.72M | 535.28M | 243.32M | 148.61M |
| Gross Profit | 132.65M | 268.33M | 179.99M | 94.72M | 56.93M |
| EBITDA | 319.62M | 304.42M | 208.95M | 121.75M | 78.72M |
| Net Income | 68.14M | 41.40M | 80.25M | 58.09M | 32.73M |
Balance Sheet | |||||
| Total Assets | 1.92B | 1.65B | 1.59B | 392.09M | 366.21M |
| Cash, Cash Equivalents and Short-Term Investments | 19.19M | 4.52M | 4.62M | 0.00 | 0.00 |
| Total Debt | 43.73M | 219.15M | 676.69M | 243.08M | 223.17M |
| Total Liabilities | 425.17M | 288.43M | 749.84M | 258.34M | 238.13M |
| Stockholders Equity | 365.15M | 228.63M | 839.11M | 133.75M | 128.08M |
Cash Flow | |||||
| Free Cash Flow | 207.92M | 167.08M | 88.70M | 38.35M | -40.40M |
| Operating Cash Flow | 343.58M | 294.37M | 179.38M | 81.86M | 66.56M |
| Investing Cash Flow | -370.22M | -199.75M | -94.43M | -42.67M | -106.93M |
| Financing Cash Flow | 36.54M | -94.71M | -80.33M | -39.19M | 40.37M |
Flowco Holdings Inc Class A Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.04B | 32.78 | 5.88% | ― | 15.03% | -69.48% | |
73 Outperform | $2.02B | 14.45 | 15.71% | 1.64% | ― | ― | |
69 Neutral | $2.01B | 101.67 | 1.37% | ― | -7.11% | -70.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $2.69B | 77.93 | 3.50% | 1.39% | -1.95% | -17.11% | |
56 Neutral | $1.43B | -103.10 | -1.49% | ― | -15.14% | 92.26% | |
50 Neutral | $928.83M | -2.16 | -56.47% | ― | -16.18% | -32.58% |
* Energy Sector Average
FLOC
Flowco Holdings Inc Class A
23.26
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44.61%
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-16.61%
Flowco Holdings Inc Class A Corporate Events
Dividends
Flowco Holdings Announces One-Time Special Cash Dividend
Positive
Aug 10, 2026
On August 10, 2026, Flowco Holdings Inc. announced that its board had approved a one-time special cash dividend of $0.14 per share for holders of its Class A common stock, payable on August 31, 2026 to shareholders of record as of August 21, 2026....
Business Operations and StrategyDividends
Flowco Holdings Declares Quarterly Cash Dividend on Shares
Positive
Jul 30, 2026
On July 30, 2026, Flowco Holdings Inc. announced that its Board of Directors had declared a quarterly cash dividend of $0.09 per share on its Class A common stock. The dividend will be paid on August 26, 2026 to shareholders of record as of the cl...
Business Operations and StrategyExecutive/Board Changes
Flowco Holdings Strengthens Board with Independent Director Appointment
Positive
Jul 30, 2026
On July 29, 2026, Flowco Holdings Inc. expanded its Board of Directors by appointing veteran energy and finance executive John R. Rutherford as an independent Class I director, with a term running through the 2029 annual meeting. His appointment a...
Business Operations and StrategyExecutive/Board Changes
Flowco Holdings Announces Upcoming Executive Leadership Change
Negative
Jul 29, 2026
On July 27, 2026, Flowco Holdings Inc. announced that Chad Roberts, its Executive Vice President, Production Solutions, notified the company of his intention to resign as an officer. His departure will be effective at the close of business on Augu...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Flowco Updates Q2 2026 Outlook at Investor Conference
Neutral
Jun 22, 2026
On June 22, 2026, Flowco Holdings Inc. posted an investor presentation for the J.P. Morgan Natural Resources Conference on its website, providing an update on its operational and financial outlook for the second quarter of 2026. The materials are ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.