Flowco 2Q26 First Take – ALERT

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

11 August 2026

Flowco

2Q26 First Take – ALERT

Overweight

FLOC, FLOC US

Price (10 Aug 26):$22.33

Oil & Gas Exploration & Production

EBITDA Results. Adj. EBITDA $94mm v. JPMe/Street $92mm/93mm.

JPM View: Stock Reaction – Positive. We anticipate a positive reaction to the

print, which featured better-than-expected results that ended up in the original

guidance range, suggesting a strong end to the quarter in terms of operating

momentum, and a surprise cash return “kiss.” After preannouncing expectations

in mid-June that 2Q26 Adjusted EBITDA was to be at the low end of, or slightly

below, the previously guided range of $93-97mm due to higher-than-anticipated

maintenance costs in the Production Solutions segment, FLOC delivered a betterthan-expected print of $94mm, which was above JPMe/STe of $92mm/93mm, on

revenues of $236mm (+13% sequentially from $210mm in 1Q26) and an Adjusted

EBITDA Margin of 39.8% (vs. 40.8% in 1Q26). The sequential margin

compression of ~100bps was concentrated in Production Solutions, where

Adjusted Segment EBITDA Margin slipped 229bps to 41.6% on increased

maintenance and operating costs in Surface Equipment, even as segment revenue

surged +22% q/q to $171mm on two additional months of contribution from the

recent Valiant ESP transaction. Natural Gas Technologies revenue was softer at

$65mm (-6.3% q/q) on lower Vapor Recovery system sales, though segment

margins held effectively flat at 42.8%. Importantly, FLOC generated $50mm of

free cash flow (+7% vs. $46mm in 2Q25) on $95mm of operating cash flow, even

after accounting for the previous guide in 1Q26 for FCF to moderate into 2Q on a

capex ramp and working-capital normalization.

Post-market close yesterday, FLOC declared a one-time special cash dividend of

$0.14/share in addition to maintaining its recently raised $0.09/share quarterly

dividend (itself a 12.5% increase announced in the 1Q26 print), reinforcing our

view that the business remains financially sound even in a quarter where EBITDA

expectations moved lower. We believe the debate on the stock rests on whether

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