Flowco Holdings Inc Class A (FLOC)
NYSE:FLOC
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Flowco Holdings Inc Class A
(NYSE:FLOC)
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Rating:72Outperform
Price Target:
$24.00
▲(10.34% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by strong financial performance (rapid revenue expansion, solid profitability, rising cash generation, and sharply improved leverage) and a positive earnings outlook with constructive guidance. Valuation is supportive with a moderate P/E and dividend, while technicals are only moderately favorable due to near-term weakness versus the 20-day average despite a better medium/long-term trend.
Positive Factors
Improving Cash Generation
Sustained, materially higher operating cash flow and rising free cash flow provide durable funding for capex, dividends, debt paydown and M&A. Strong cash conversion (OCF covering net income ~3.8x in 2025) supports capital allocation flexibility and lowers refinancing risk over the medium term.
Negative Factors
Mix-Driven Margin Pressure
A structural shift in sales vs rental mix can compress margins persistently if sales volumes remain a larger share of revenue. Given the company’s reliance on higher-margin rental and recurring businesses for profitability, sustained mix deterioration would pressure long-term margin sustainability and free cash flow generation.
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Positive Factors
Negative Factors
Improving Cash Generation
Sustained, materially higher operating cash flow and rising free cash flow provide durable funding for capex, dividends, debt paydown and M&A. Strong cash conversion (OCF covering net income ~3.8x in 2025) supports capital allocation flexibility and lowers refinancing risk over the medium term.
Read all positive factors
Flowco Holdings Inc Class A (FLOC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield1.32%
Average Volume (3M)745.68K
Price to Earnings (P/E)12.2
Beta (1Y)0.95
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,283
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.44
Shares Outstanding33,831,610
10 Day Avg. Volume673,815
30 Day Avg. Volume745,680
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 Cap1.12
Enterprise Value/Revenue3.07
Enterprise Value/Gross Profit9.04
Enterprise Value/Ebitda7.93
Forecast
1Y Price Target
$29.20Price Target Upside34.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.43
Revenue Forecast (FY)$911.69M
Flowco Holdings Inc Class A Business Overview & Revenue Model
Company Description
Flowco Holdings Inc. operates as a holding company. The Company, through its subsidiaries, specializes in production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry....
Flowco Holdings Inc Class A Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial story: strong fourth-quarter results (Adjusted EBITDA $83.5M), margin expansion, robust free cash flow, rental recurring revenue growth (rental revenue >$110M), and strategic expansion via the Valiant acquisition expected to add ~$52M of EBITDA and materially expand addressable market. Key challenges include margin compression in Natural Gas Technologies due to a sales mix shift, modestly higher corporate/public company costs, supply-chain/lead-time considerations for ESP products, and standard integration and regulatory risks tied to the Valiant transaction. Management provided constructive 1Q guidance and emphasized disciplined capital allocation and measured international expansion. On balance, positives (profitability, cash flow, strategic M&A, rental growth, conservative post-deal leverage) outweigh the identified risks and near-term headwinds.Positive Updates
Strong Adjusted EBITDA and Margin Performance
Fourth quarter Adjusted EBITDA of $83.5 million, exceeding expectations, with company-wide Adjusted EBITDA margin of 42.4% in Q4.
Negative Updates
Mix-Driven Margin Pressure in Natural Gas Technologies
Although Natural Gas Technologies revenue rose 36% sequentially, Adjusted segment EBITDA margin decreased by 634 basis points quarter-over-quarter due to a mix shift from higher-margin rentals to lower-margin sales (notably natural gas systems).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Margin Performance
Fourth quarter Adjusted EBITDA of $83.5 million, exceeding expectations, with company-wide Adjusted EBITDA margin of 42.4% in Q4.
Read all positive updates
Company Guidance
The company guided first-quarter Adjusted EBITDA of $82 million–$86 million (which includes roughly one month of Valiant contribution if the deal closes as expected in early March) and said 2026 capital spending (ex‑M&A) is targeted at approximately $115 million to support higher free cash flow; corporate expenses for 2026 are expected to be about $18 million–$20 million. Management reiterated production‑segment revenue and Natural Gas Technologies sales should be roughly consistent with Q4 levels, noted continued rental growth, and expects pro forma leverage after the ~ $200 million Valiant acquisition (≈$170M cash + ~1.5M shares; ~3.9x projected 2026 Adjusted EBITDA) to remain conservative below 1.0x with Valiant forecast to generate ~ $52 million of 2026 Adjusted EBITDA. As of Feb. 20, 2026, flowco had $142 million drawn on a $722 million borrowing base with ~$580 million available capacity, and recently declared a $0.08 per‑share quarterly dividend.Flowco Holdings Inc Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
76
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 759.72M | 535.28M | 243.32M | 148.61M |
| Gross Profit | 258.50M | 179.99M | 94.72M | 56.93M |
| EBITDA | 294.59M | 208.95M | 121.75M | 78.72M |
| Net Income | 41.40M | 80.25M | 58.09M | 32.73M |
Balance Sheet | ||||
| Total Assets | 1.65B | 1.59B | 392.09M | 366.21M |
| Cash, Cash Equivalents and Short-Term Investments | 4.52M | 4.62M | 0.00 | 0.00 |
| Total Debt | 219.15M | 676.69M | 243.08M | 223.17M |
| Total Liabilities | 288.43M | 749.84M | 258.34M | 238.13M |
| Stockholders Equity | 228.63M | 839.11M | 133.75M | 128.08M |
Cash Flow | ||||
| Free Cash Flow | 167.08M | 88.70M | 38.35M | -40.40M |
| Operating Cash Flow | 294.37M | 179.38M | 81.86M | 66.56M |
| Investing Cash Flow | -199.75M | -94.43M | -42.67M | -106.93M |
| Financing Cash Flow | -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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.08B | 12.21 | 43.60% | 1.32% | ― | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $4.48B | 20.22 | 7.25% | 1.78% | -12.05% | -46.45% | |
60 Neutral | $1.44B | -22.93 | -4.02% | 10.12% | 20.68% | -112.42% | |
54 Neutral | $2.28B | -3.49 | -5.25% | ― | 3.18% | -53.71% | |
52 Neutral | $1.06B | -1.69 | -41.79% | ― | -11.92% | -53.72% |
* Energy Sector Average
FLOC
Flowco Holdings Inc Class A
22.79
4.37
23.70%
DNOW
Now
12.21
-3.16
-20.56%
LBRT
Liberty Energy
27.63
16.93
158.30%
ACDC
ProFrac Holding
5.88
1.14
24.05%
AESI
Atlas Energy Solutions
11.37
-1.87
-14.12%
Flowco Holdings Inc Class A Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Flowco Holdings Announces Secondary Offering and Share Repurchase
Neutral
Mar 24, 2026
On March 19, 2026, Flowco Holdings Inc. entered into an underwriting agreement with selling stockholders and a syndicate led by J.P. Morgan Securities LLC and Jefferies LLC for a secondary public offering of 7,800,000 shares of its Class A common ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flowco Holdings Completes Acquisition of Valiant Artificial Lift
Positive
Mar 3, 2026
Flowco Holdings Inc. announced on March 3, 2026, that it completed the acquisition of Valiant Artificial Lift Solutions, LLC for total consideration of about $200 million, net of Valiant’s cash. The deal was financed with $170 million drawn ...
Regulatory Filings and ComplianceShareholder Meetings
Flowco Schedules 2026 Virtual Annual Shareholder Meeting
Neutral
Feb 5, 2026
On January 30, 2026, Flowco Holdings Inc. set May 7, 2026, as the date for its 2026 Annual Meeting of Stockholders, which will be held virtually, with March 9, 2026 designated as the record date for determining shareholders entitled to vote. Follo...
Financial DisclosuresRegulatory Filings and Compliance
Flowco updates 2024 financial statements for shelf registration
Neutral
Feb 4, 2026
Flowco Holdings Inc. has reissued the financial statements section of its 2024 annual report in connection with a new shelf registration filing, to reflect the effects of its post-IPO common control reorganization and related accounting treatments...
Business Operations and StrategyM&A Transactions
Flowco to Acquire Valiant, Expanding Artificial Lift Portfolio
Positive
Feb 2, 2026
On February 1, 2026, Flowco Holdings Inc. signed a definitive stock purchase agreement to acquire Riverstone Oilfield Services and Equipment, the parent of Valiant Artificial Lift Solutions, for approximately $200 million in a cash-and-stock deal ...
Business Operations and StrategyDividends
Flowco Holdings Declares Quarterly Dividend for Class A Shareholders
Positive
Jan 30, 2026
On January 30, 2026, Flowco Holdings Inc. announced that its board had declared a quarterly cash dividend of $0.08 per share for its Class A common stock, payable on February 25, 2026 to shareholders of record as of February 13, 2026, with its ope...
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.