Executive Summary

Q1 2025 was a mixed quarter: EPS beat consensus, while revenue missed and EBITDA landed near the low end of company guidance given mix shifts and higher public company costs . On S&P Global consensus, EPS was $0.45 vs $0.32 estimate (beat), revenue was $192.4M vs $198.7M estimate (miss), and EBITDA (SPGI definition) was ~$69.4M vs $76.5M estimate (miss)* .
Values retrieved from S&P Global.
Sequentially, revenue grew 3.4% q/q to $192.4M, Adjusted EBITDA rose 1.5% q/q to $74.9M, and Adjusted EBITDA margin dipped 73 bps to 38.9% on segment mix and corporate build-out . Year over year vs the predecessor’s Q1 2024, revenue and Adjusted EBITDA more than doubled, reflecting the 2024 business combination scale .
Management maintained Q2 2025 EBITDA guidance at $74–$78M and continues to target low double-digit y/y EBITDA growth for 2025, with margin expansion expected as rental mix increases in 2H .
Board declared a $0.08 dividend (record May 14, payable May 28) and emphasized strong liquidity: $175.6M drawn on revolver with $547.4M availability on a $723.0M borrowing base as of May 9 .

What Went Well and What Went Wrong

What Went Well

Rental-heavy portfolio and domestic manufacturing insulated the model from tariff dislocations; management reiterated the strategy of growing High Pressure Gas Lift (HPGL) and Vapor Recovery Units (VRUs) with high returns and visibility .
Segment execution: Production Solutions revenue +2.3% q/q to $116.0M and Adjusted Segment EBITDA +1.3% q/q to $50.6M; Natural Gas Technologies revenue +5.1% q/q to $76.4M and Adjusted Segment EBITDA +3.1% q/q to $28.7M .
Explicit quote: “We remain confident in our ability to generate growth year over year, even in a flat production environment,” highlighting resilience and tariff tailwinds for HPGL given domestic supply chain .

What Went Wrong

Consolidated Adjusted EBITDA margin compressed to 38.9% (−73 bps q/q) on segment mix and higher corporate costs tied to public company build-out .
Revenue missed S&P Global consensus; EBITDA (SPGI definition) missed consensus, reflecting definition differences and near-term working capital/transition costs* .
Values retrieved from S&P Global.
Management flagged muted growth in product sales (downhole components and certain compression packages) amid macro uncertainty, keeping Q2 EBITDA guidance unchanged despite rising rental mix .

Financial Results

Headline Quarterly Metrics (sequential comparison)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$75.5	$186.0	$192.4
Net Income ($USD Millions)	$18.1	$22.3	$27.0
Adjusted Net Income ($USD Millions)	$18.5	$28.8	$32.8
Adjusted EBITDA ($USD Millions)	$34.5	$73.8	$74.9
Adjusted EBITDA Margin (%)	45.7%	39.7%	38.9%
Diluted EPS ($)	N/A	N/A	$0.24

Year-over-Year Comparison (entity-reported)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$66.7	$192.4
Net Income ($USD Millions)	$17.2	$27.0
Adjusted Net Income ($USD Millions)	$17.6	$32.8
Adjusted EBITDA ($USD Millions)	$34.2	$74.9
Adjusted EBITDA Margin (%)	51.3%	38.9%

Segment Breakdown

Segment Metric	Q1 2024	Q4 2024	Q1 2025
Production Solutions Revenue ($USD Millions)	$46.2	$113.3	$116.0
Production Solutions Adjusted Segment EBITDA ($USD Millions)	$31.7	$49.9	$50.6
Production Solutions Adjusted Segment EBITDA Margin (%)	68.6%	44.1%	43.6%
Natural Gas Technologies Revenue ($USD Millions)	$20.5	$72.7	$76.4
Natural Gas Technologies Adjusted Segment EBITDA ($USD Millions)	$2.6	$27.8	$28.7
Natural Gas Technologies Adjusted Segment EBITDA Margin (%)	12.5%	38.3%	37.5%
Corporate Adjusted Segment EBITDA ($USD Millions)	$(0.0)	$(4.0)	$(4.4)

Revenue Mix

Mix Metric	Q1 2024	Q4 2024	Q1 2025
Rentals Revenue ($USD Millions)	$46.2	$91.7	$97.3
Sales Revenue ($USD Millions)	$20.5	$94.3	$95.1
Total Revenue ($USD Millions)	$66.7	$186.0	$192.4

Consensus vs Reported (Q1 2025)

Metric	Q1 2025 Consensus	Q1 2025 Actual
Primary EPS ($)	0.316*	0.4543*
Revenue ($USD)	198.664M*	192.350M*
EBITDA ($USD)	76.510M*	69.399M*

Values retrieved from S&P Global. Note: Company-reported Adjusted EBITDA was $74.9M and diluted EPS was $0.24, reflecting different definitions vs SPGI “Primary EPS” and “EBITDA” .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	Q1 2025	$74–$78 (issued Mar-18)	N/A (actual delivered $74.9)	N/A (result in range)
Adjusted EBITDA ($USD Millions)	Q2 2025	N/A	$74–$78 (maintained)	Maintained
EBITDA Margin	2H 2025	Expect expansion as rental mix rises	Reiterated margin improvement with higher rental mix	Maintained
Effective Tax Rate	2025	Low–mid 20% blended (post-IPO)	~22% blended in Q1 period subject to tax	Clarified
Capital Expenditure	2025	Similar to 2024, focused on rental fleet	Only minor adjustments; majority to rentals	Maintained
Dividend	Q2 2025	Board considering policy	$0.08 per share declared (record May 14; payable May 28)	Initiated

Earnings Call Themes & Trends

Topic	Q-2 (Q3 2024)	Q-1 (Q4 2024)	Current Period (Q1 2025)	Trend
HPGL adoption vs ESP	N/A in our set	Positioned HPGL as market-leading; e-Grizzly multi-well electric HPGL highlighted	Tariff headwinds for China-made ESPs; HPGL wallet share gains, programmatic rollouts	Strengthening tailwinds
VRU demand and midstream	N/A in our set	VRU performance and opportunities; midstream interest emerging	VRU adoption rising; LNG/power demand supportive; midstream discussions expanding	Improving
Domestic supply chain/tariffs	N/A in our set	Vertically integrated U.S. manufacturing; tariff insulation	Detailed confidence in minimal tariff impact; U.S. vendors like Ariel Compression	Consistently positive
Mix: Rentals vs Sales	N/A in our set	Rental mix rising; margin lever	Expect higher rental mix; margins to improve; rentals ~70% margin	Positive mix shift
Capital allocation/ROCE	N/A in our set	Adjusted ROCE ~20% in Q4; disciplined returns framework	Q1 annualized adjusted ROCE ~18%; capex focused on rentals with >20% expected returns	Sustained discipline
Tax and corporate costs	N/A in our set	Public company costs $3.9M in Q4; tax rate low–mid 20% blended	Blended ~22% tax in taxed portion; ongoing corporate build-out impacts margins	Normalizing post-IPO

Management Commentary

“Flowco’s performance is driven by our customers’ non-discretionary OpEx rather than their CapEx…we remain confident in the long-term strength of U.S. shale” .
“We generated approximately $15 million of free cash flow during the quarter and have reduced our debt balance to $176 million…while investing $30 million in high-return opportunities” .
“We are maintaining…$74 million to $78 million of EBITDA for Q2 2025” .
“Under the current tariff environment, we believe our High Pressure Gas Lift solution offers a cost-effective alternative…thanks to our vertically integrated manufacturing footprint and domestic supply chain” .
“Demand for vapor recovery units is becoming more ubiquitous…VRUs are a critical component…with strong and durable long-term fundamentals” .

Q&A Highlights

HPGL vs ESP under tariffs: Management detailed domestic sourcing (e.g., Ariel Compression in Ohio) and expected HPGL adoption acceleration given tariff headwinds for China-made ESPs .
Rental mix and margins: Rental revenue share expected to increase, with rental margins around ~70%; mix shift drives margin expansion in 2H .
VRU trajectory: Economics improve with LNG exports and power demand; midstream operators evaluating VRU deployments to capture profitable vapors .
Shareholder returns: Initiated $0.08 dividend; buyback possible longer term but mindful of limited float; ROCE remains the “North Star” .
Capex allocation: Roughly aligned to segment revenue split; focus on rental fleet growth backed by customer demand; minor tweaks only .

Estimates Context

Compared to S&P Global consensus for Q1 2025: EPS beat ($0.45 vs $0.32), revenue missed ($192.4M vs $198.7M), and EBITDA (SPGI definition) missed ($69.4M vs $76.5M)*. The company-reported Adjusted EBITDA was $74.9M, within Q1 guidance and closer to consensus than SPGI EBITDA, reflecting definitional differences (non-GAAP adjustments, inventory fair value, transaction-related costs) .
Values retrieved from S&P Global.
Implications: Estimates may shift toward higher rental mix assumptions and acknowledge modest margin compression from corporate costs; forward EBITDA/margin trajectories likely get nudged up for 2H as rental growth drives mix .

Key Takeaways for Investors

Mixed print vs Street: Strong EPS beat with topline/EBITDA softer on consensus definitions; company Adjusted EBITDA delivered within guided range *.
Values retrieved from S&P Global.
Narrative remains constructive: Rental mix rising, tariff environment favors HPGL, VRU adoption broadening into midstream; margin expansion expected in 2H .
Guidance discipline: Q2 EBITDA held at $74–$78M amid macro uncertainty; management reiterates low double-digit y/y EBITDA growth ambition for 2025 .
Capital returns and balance sheet: $0.08 dividend initiated; robust liquidity with $547.4M revolver availability and borrowing base of $723.0M; focused on >20% ROCE investments .
Watch the mix: Sales headwinds (downhole/components) near term; rentals (HPGL/VRU) drive margin and visibility—supportive for 2H upgrades if adoption accelerates .
Definitions matter: SPGI “Primary EPS” and “EBITDA” differ from company non-GAAP (Adjusted EBITDA); use company’s reconciliation to interpret profitability trajectory .
Catalysts: Evidence of HPGL program wins, VRU midstream contracts, margin upticks from rental mix, and any tariff developments impacting ESP competitors could drive re-rating .

Additional context press release: IPO background (Jan 17, 2025) and combination of Estis, Flogistix, Flowco Production Solutions underpinning scale and domestic manufacturing .

Non-GAAP note: Adjusted Net Income, Adjusted EBITDA, and Adjusted Segment EBITDA/Margins are non-GAAP; see reconciliations in the press releases .

Flowco Holdings Inc. (FLOC)·Q1 2025 Earnings Summary