Flowco: 2Q26 Preview: Margins Reset, Revenue Holds as Production-Optimization Thesis Remains Intact

研报英文原文证据摘录

Flowco: 2Q26 Preview: Margins Reset, Revenue Holds as Production-Optimization Thesis Remains Intact

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

01 July 2026

Flowco Overweight

FLOC, FLOC US

2Q26 Preview: Margins Reset, Revenue Holds as Price (30 Jun 26):$21.34

Production-Optimization Thesis Remains Intact Price Target (Dec-26):$28.00

JPM View: Heading into the 2Q26 print, we believe the core debate is no longer Oil & Gas Exploration & Production

ACabout demand for FLOC’s offerings but margin durability as the company’s Arun Jayaram

investor deck refresh ahead of the J.P. Morgan Natural Resources Conference reset (1-212) 622-8541

expectations, even as the underlying growth story remains firmly intact (fireside arun.jayaram@jpmchase.com

chat recap here). We now expect FLOC’s 2Q26 EBITDA print to come in slightly Jason Kim

below the prior $93-97mm range (vs. prior JPMe/STe of $95mm), driven by (1-212) 622-1408

margin pressure within Downhole Components in the Production Solutions jason.b.kim@jpmchase.com

segment. The margin pressure has been driven by service-intensity costs tied to Sowmya Vemulapalli

fleet requirements from fuel, lubrication, and overhead costs, compounded by an (1-212) 270-4660

sowmya.vemulapalli@jpmchase.com

unfavorable (but transitory) mix of lower-margin new well installations, with J.P. Morgan Securities LLC

operators electing to produce rather than purchase some of the higher-margin

digital solutions FLOC would otherwise install. On the Surface Equipment side,

rental revenue is expected to grow sequentially with increased activity, but is Quarterly Forecasts (FYE Dec)

expected to be offset by higher-than-expected maintenance and operating costs Adj. EBITDA ($ mn)

(i.e. lube oil).