Flowco (FLOC, Financial) has announced a new stock repurchase initiative, allowing the company to buy back up to $50 million of its Class A common stock. This buyback program provides the company with flexibility, as it does not commit Flowco to acquire a specific number of shares and can be adjusted, paused, or ended at the company's discretion.
FLOC Key Business Developments
Release Date: May 13, 2025
- Revenue: $192 million, up approximately 3.4% quarter-over-quarter.
- Adjusted Net Income: $32.8 million.
- Adjusted EBITDA: $74.9 million, an increase of 1.5% from Q4 2024.
- Adjusted EBITDA Margins: Decreased by approximately 73 basis points.
- Production Solutions Revenue: $116 million, with adjusted segment EBITDA of $50.6 million.
- Natural Gas Technologies Revenue: $76.4 million, an increase of 5.1% from Q4 2024.
- Free Cash Flow: Approximately $15 million generated during the quarter.
- Debt Balance: Reduced to $176 million as of last Friday.
- Capital Investment: $27.9 million directed towards expanding rental fleet.
- Annualized Adjusted ROCE: Approximately 18% for the first quarter.
- Dividend: $0.08 per share declared, payable May 28.
- Revolving Credit Facility Borrowings: $175.6 million with availability of $547.4 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Flowco Holdings Inc (FLOC, Financial) reported a solid first quarter with revenue growth of 3.4% and adjusted EBITDA growth of 1.5% quarter-over-quarter.
- The company has a competitive advantage with its domestically sourced supply chain and US manufacturing base, which minimizes the impact of tariffs.
- Flowco's fastest-growing product lines, vapor recovery and high-pressure gas lift, continue to gain market share, benefiting from the shift away from Chinese-manufactured ESPs.
- The company generated approximately $15 million of free cash flow during the quarter and reduced its debt balance to $176 million.
- Flowco declared an $0.08 per share dividend, reinforcing its commitment to returning value to shareholders.
Negative Points
- Adjusted EBITDA margins decreased slightly due to a change in revenue mix and increased costs associated with building out public corporate functions.
- There is uncertainty in the market due to evolving tariff policies and broader economic conditions, which could impact future performance.
- The company anticipates muted growth in product sales as customers defer purchases or become more conservative in their spending.
- Flowco's adjusted ROCE for the first quarter was 18%, slightly below the 20% target set during their IPO.
- The company faces challenges in maintaining growth amid a flat production environment and broader industry pressures.
