Flowco Trimming 2Q26 Outlook on Downhole Component Margin Pressure, But Valiant Acquisition Delivering Ahead of Plan

Research evidence excerpt

Flowco Trimming 2Q26 Outlook on Downhole Component Margin Pressure, But Valiant Acquisition Delivering Ahead of Plan

J P M O R G A N North America Equity Research

22 June 2026

Flowco

Trimming 2Q26 Outlook on Downhole Component Overweight

Margin Pressure, But Valiant Acquisition Delivering FLOC, FLOC US

Ahead of Plan Price (22 Jun 26):$23.06

Oil & Gas Exploration & Production

JPM View: Ahead of our JPM Natural Resources Conference, FLOC released an Arun Jayaram AC

updated June investor deck today, signaling a more cautious outlook for 2Q26. (1-212) 622-8541

Management now expects adjusted 2Q26 EBITDA to land at the low end or slightly arun.jayaram@jpmchase.com

below the prior $93-$97mm guidance range and JPMe/STe of $95mm. For 2Q26, Sowmya Vemulapalli

FLOC now expects its Production Solutions segment to see sequential growth in (1-212) 270-4660

rental revenue for the company’s Surface Equipment business, though this will be sowmya.vemulapalli@jpmchase.com

partially offset by higher-than-expected maintenance and operating costs. Within Jason Kim

Downhole Components, the Valiant business continues to outperform (1-212) 622-1408

jason.b.kim@jpmchase.com

expectations, delivering results ahead of previous guidance, while the rest of the J.P. Morgan Securities LLC

business is anticipated to experience lower margins compared to 1Q26 due to

increased fuel, lubrication, and overhead costs, which are being actively managed.

In the Natural Gas Technologies segment, FLOC expects results to be generally in

line with or slightly below 1Q26, supported by increased rental revenue but

impacted by higher operating costs and lower VRU sales. Overall, business

activity remains healthy across all units, but margin pressure, especially within