Flowco Holdings Inc. reported fourth‑quarter 2025 revenue of $197.2 million, a 6.0% year‑over‑year increase from $185.99 million in Q4 2024. The rise was driven by a 27% jump in Production Solutions rental revenue and a modest 5% growth in Natural Gas Technologies revenue, while sequentially the quarter grew 11% from Q3 2025.
Adjusted net income for the quarter was $43 million, translating to an adjusted earnings per share of $0.41. The figure surpassed consensus estimates of $0.40 (and $0.3116 in some reports) by $0.01, a beat of roughly 2.5%. The margin expansion was largely attributable to the company’s pricing power in its high‑margin rental fleet and disciplined cost management amid rising commodity costs.
Full‑year 2025 revenue reached $748.5 million, up 42% from $535.3 million in 2024. Adjusted net income for the year was $131.7 million, reflecting the company’s ability to scale its rental business while maintaining operating leverage. The year‑over‑year revenue growth was supported by strong demand for both production solutions and natural gas technologies, offset by a slight decline in legacy service revenue.
Adjusted EBITDA margin expanded to 42.4% in Q4 and 41.0% for the full year, the highest levels in the company’s history. The improvement was driven by a higher mix of rental contracts, which carry higher margins, and by pricing power that allowed Flowco to maintain profitability even as input costs rose. The company’s focus on expanding its rental fleet and integrating the pending Valiant acquisition is expected to sustain this margin trajectory.
Management guided for Q1 2026 adjusted EBITDA of $82 million to $86 million, a slight upward revision that signals confidence in continued demand for its rental and natural gas solutions. The guidance reflects the company’s belief that the integration of Valiant will add complementary assets and broaden its international footprint. Analysts noted that while the earnings beat was solid, some have revised their earnings estimates downward for the next quarter, tempering investor enthusiasm.
Investors remained cautious after the results, as analysts’ downward revisions to future earnings estimates and the company’s focus on strategic integration rather than immediate revenue growth dampened enthusiasm for a stronger market reaction.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.