Flowco (FLOC) investor relations material

Executive summary

• Achieved Q1 2026 revenue of $209.5 million, adjusted EBITDA of $85.5 million (40.8% margin), and adjusted net income of $35.7 million, reflecting strong rental growth and the Valiant acquisition.

• Closed the Valiant Artificial Lift Solutions acquisition in March 2026, expanding the Production Solutions segment and unlocking the ESP market.

• Returned $16.5 million to shareholders via repurchasing 780,000 shares and increased the quarterly dividend by 12.5% to $0.09 per share, effective May 2026.

• Demonstrated market leadership in production optimization and emissions management, with robust growth outlook and high-value technology offerings.

• Net income attributable to the company rose 21% to $7.4 million compared to Q1 2025.

Financial highlights

• Total revenue grew 9% year-over-year and 6% sequentially to $209.5 million, driven by rental growth and the Valiant acquisition.

• Adjusted EBITDA increased 14% year-over-year to $85.5 million, with a margin of 40.8%.

• Free cash flow reached $52.3 million, with $78.7 million in operating cash flow.

• Rental revenue increased 25% year-over-year to $121.9 million, providing high visibility and recurring cash flow.

• Capital expenditures totaled $26.4 million, primarily for fleet expansion and integration of acquisitions.

Outlook and guidance

• Forecasting adjusted EBITDA of $93–$97 million for Q2 2026, benefiting from a full quarter of Valiant contribution.

• Management anticipates continued demand for production optimization and artificial lift solutions, with robust liquidity and cash flow to support growth and capital expenditures.

• Ongoing focus on leveraging the Valiant acquisition for cross-selling and operational synergies.

• Expecting incremental rental demand for vapor recovery units and continued growth in surface equipment and ESP offerings.

• Capital outlook for 2026 remains unchanged, supporting meaningful free cash flow generation.