Flowco Q4: 42.4% EBITDA Margin on $197M Revenue and $63M Free Cash
Flowco reported Q4 revenue of $197 million and adjusted net income of $43 million, generating $83.5 million of Adjusted EBITDA at a 42.4% margin and $63 million of free cash flow. Rental revenue surpassed $110 million, up 4% quarter-over-quarter, while CapEx totaled $127 million for 2025 with 2026 spending expected at $115 million.
1. Q4 Financial Performance
Flowco delivered Q4 revenue of $197 million and adjusted net income of $43 million, generating $83.5 million of Adjusted EBITDA at a 42.4% margin. The company converted operations into $63 million of free cash flow and reduced leverage below pre-HPGL/VRU acquisition levels.
2. Rental Platform Growth and CapEx
Rental revenue exceeded $110 million for the first time, driven by HPGL and VRU demand and up 4% sequentially. Full-year 2025 CapEx (excluding M&A) reached $127 million, focused on expanding surface equipment and vapor recovery fleets, with 2026 investment planned at approximately $115 million.
3. Valiant Acquisition Details
Flowco will acquire Valiant Artificial Lift Solutions for $200 million consideration (about $170 million cash plus 1.5 million shares), valuing the business at 3.9x projected 2026 Adjusted EBITDA. Valiant is expected to contribute $52 million of EBITDA with pro forma leverage below one turn post-close.
4. 2026 Outlook and Liquidity
First-quarter 2026 Adjusted EBITDA is guided at $82 million to $86 million, including roughly one month from Valiant. As of Feb. 20, borrowings under the credit facility stood at $142 million against a $722 million base, leaving $580 million of capacity, and a $0.08 quarterly dividend was declared.