HOUSTON--(BUSINESS WIRE)--February 26, 2026--
Flowco Holdings Inc. (NYSE: FLOC) ("Flowco" or the "Company"), a provider of production optimization, artificial lift and emissions management and monetization solutions for the oil and natural gas industry, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Where presented, the financial results for 2024 represent periods (i) during which Flowco's operating subsidiary, Flowco MergeCo LLC ("Flowco LLC"), was a privately-owned limited liability company and (ii) prior to the completion of Flowco's initial public offering in January 2025. Historical financial information for the periods ended in 2024 reflects information for Flowco LLC, and historical financial information presented prior to June 20, 2024 reflects only the historical financial information of Estis Compression LLC ("Estis") as the accounting predecessor prior to the business combination of Estis, Flowco Production Solutions, LLC and Flogistix, LP and parent entities formed in connection with such business combination (the "2024 Business Combination").
Key Fourth Quarter 2025 Highlights
-- Revenues of $197.2 million, generating net income of $43.0 million and
Adjusted Net Income1 of $45.7 million
-- Adjusted EBITDA1 of $83.5 million
-- Adjusted EBITDA Margin1 of 42.4%
-- Net cash provided by operating activities of $87.2 million and Free
Cash Flow1 of $63.2 million
-- In January 2026, Flowco's Board of Directors declared a quarterly cash
dividend of $0.08 per share
-- Robust liquidity with approximately $579.6 million of availability
under our revolving credit facility as of February 20, 2026
Financial Summary
Three Months Ended Year Ended December 31,
---------------------------------------- ---------------------------
December 31, September December 31,
2025 30, 2025 2024 2025 2024
------------ ------------ ------------ ------------ -------------
(in thousands)
Revenues $197,213 $176,941 $185,993 $759,719 $ 535,278
Net income 42,985 34,273 22,336 131,655 80,249
Adjusted
Net
Income
(1) 45,734 37,301 28,779 148,802 99,283
Adjusted
EBITDA
(1) 83,545 76,803 73,779 311,737 223,661
------- ------- ------- ------- --------
Adjusted
EBITDA
Margin
(1) 42.4% 43.4% 39.7% 41.0% 41.8%
(1) Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, and Free
Cash Flow are non-GAAP financial measures. See definitions of these
measures and the reconciliation of GAAP to non-GAAP financial measures
outlined in the reconciliation tables accompanying this press release.
Joe Bob Edwards, President and CEO, commented, "Flowco ended the year with a strong fourth quarter, underscoring a year of consistent execution and differentiated growth across both of our operating segments in a market environment that remained dynamic and at times uncertain. U.S. oil and natural gas production reached record levels during the year, driven in part by operators' continued focus on maximizing recovery and optimizing existing wells -- a trend that directly aligns with Flowco's production optimization platform.
In the fourth quarter, we maintained our industry-leading margins as anticipated sales growth complemented the strength of our resilient, high-margin rental portfolio. In the fourth quarter and throughout the year, we generated meaningful free cash flow, enabling us to reduce leverage to levels below where we stood prior to our asset transaction in August. This performance reflects the durability of our financial model and our continued focus on disciplined capital allocation.
Subsequent to quarter-end, we announced our agreement to acquire Valiant Artificial Lift Solutions, expanding our artificial lift capabilities and strengthening our ability to deliver the right solution for our customers in each well, every time. The transaction remains subject to customary regulatory approvals, and we expect it to close in the first week of March. We believe this transaction meaningfully expands our addressable market and strengthens our ability to support customers earlier in a well's producing life and throughout the well lifecycle. As we integrate the business in 2026, we are confident in our ability to drive incremental growth and long-term value while continuing to advance Flowco's broader production optimization strategy."
Segment Information
We report our results in two segments, Production Solutions and Natural Gas Technologies. Production Solutions includes the rental, sale and service associated with high pressure gas lift, conventional gas lift and plunger lift, including a range of digital solutions and other production related technologies. Natural Gas Technologies includes the design, manufacture, rental and sale of vapor recovery and natural gas systems. Corporate costs not directly related to either segment are categorized separately.
Segment Financial Information
Year Ended December
Three Months Ended 31,
------------------------------- --------------------
December
December September 31,
31, 2025 30, 2025 2024 2025 2024
--------- ---------- -------- --------- ---------
(in thousands)
Production
Solutions
Revenues $ 127,442 $ 125,596 $113,330 $ 497,275 $ 327,805
Adjusted
Segment
EBITDA (1) 57,477 55,260 49,929 216,670 161,354
-------- --------- ------- -------- --------
Adjusted
Segment
EBITDA Margin
(1) 45.1% 44.0% 44.1% 43.6% 49.2%
Natural Gas
Technologies
Revenues $ 69,771 $ 51,345 $ 72,663 $ 262,444 $ 207,473
Adjusted
Segment
EBITDA (1) 29,982 25,317 27,802 111,358 66,259
-------- --------- ------- -------- --------
Adjusted
Segment
EBITDA Margin
(1) 43.0% 49.3% 38.3% 42.4% 31.9%
Corporate
Adjusted
Segment
EBITDA (1) $ (3,914) $ (3,774) $(3,952) $(16,291) $ (3,952)
-------- --------- ------- -------- --------
Adjusted
Segment
EBITDA Margin
(1) nm nm nm nm nm
Total
Revenues $ 197,213 $ 176,941 $185,993 $ 759,719 $ 535,278
Adjusted
Segment
EBITDA (1) 83,545 76,803 73,779 311,737 223,661
-------- --------- ------- -------- --------
Adjusted
Segment
EBITDA Margin
(1) 42.4% 43.4% 39.7% 41.0% 41.8%
(1) Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, and Free
Cash Flow are non-GAAP financial measures. See definitions of these
measures and the reconciliation of GAAP to non-GAAP financial measures
outlined in the reconciliation tables accompanying this press release.
Production Solutions
Fourth quarter 2025 revenue for the Production Solutions segment increased 1.5% from the third quarter of 2025, primarily due to an increase in Surface Equipment revenue. Adjusted Segment EBITDA increased 4.0% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin increasing 110 basis points. The increase in Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin resulted from a decrease in SG&A in the segment and a favorable revenue mix quarter over quarter.
Natural Gas Technologies
Fourth quarter 2025 revenue for the Natural Gas Technologies segment increased 35.9% from the third quarter of 2025, primarily due to an increase in Vapor Recovery and Natural Gas Systems sales. Adjusted Segment EBITDA increased 18.4% quarter over quarter for the same period, with Adjusted Segment EBITDA Margin decreasing 634 basis points due to a revenue mix shift toward sales.
Corporate
Corporate Adjusted Segment EBITDA for fourth quarter 2025 was $(3.9) million, compared to $(3.8) million Corporate Adjusted Segment EBITDA in the third quarter of 2025.
Balance Sheet & Liquidity
As of February 20, 2026, the Company had outstanding borrowings under its senior secured revolving credit facility ("Credit Agreement") of $142.0 million and, with a current borrowing base of $722.1 million, had availability under the Credit Agreement of $579.6 million. The Company intends to use a portion of such availability to fund the cash consideration payable at the closing of its acquisition of Valiant Artificial Lift Solutions, which is expected to total approximately $170.0 million, subject to customary adjustments in accordance with the purchase agreement.
Dividend Declaration
On January 30, 2026, Flowco announced that its Board of Directors had declared a quarterly cash dividend of $0.08 per share of Class A common stock payable on February 25, 2026 to Class A common stockholders of record as of the close of business on February 13, 2026. Flowco MergeCo LLC, the Company's operating subsidiary, will make a corresponding distribution of $0.08 per unit to holders of its common units.
Conference Call and Webcast Information
Flowco will host a conference call on Thursday, February 26, 2026, at 8:00 am Eastern Time to discuss fourth quarter and full year 2025 results. The conference call can be accessed live over the phone by dialing 1-877-704-4453 (for the U.S.) or 1-201-389-0920 (for International). A telephonic replay of the conference call will be available two hours after the call and can be accessed by dialing 1-844-512-2921 (for the U.S.) or 1-412-317-6671 (for International). The passcode for the call and replay is 13758392. A live webcast of the conference call will also be available under the Investor Relations section of Flowco's website at ir.flowco-inc.com.
About Flowco
Flowco is a leading provider of production optimization, artificial lift and emissions management and monetization solutions for the oil and natural gas industry. The company's products and services include a full range of equipment and technology solutions that enable oil and natural gas producers to efficiently and cost-effectively maximize the profitability and economic lifespan of their assets.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These statements generally relate to future events or our future financial or operating performance, and include, but are not limited to: statements regarding guidance or estimates related to the Company's results of operations or financial condition; industry trends, customer demand and industry outlook, and effects on Flowco's operations; Flowco's strategies and plans, including matters relating to the Company growth, capital expenditures, dividend policies, and leverage profile. When used in this press release, words such as "expect, " "project," "estimate," "believe," "anticipate," "intend," "plan," "seek," "forecast," "target," "predict," "may," "should," "would," "could," and "will," the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Flowco believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These risks and uncertainties are described further in our annual report on Form 10-K for the year ended December 31, 2024 and our quarterly report for the period ended September 30, 2025 filed with the Securities and Exchange Commission. Flowco undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Flowco Holdings Inc.
Condensed Consolidated Statement of Operations
Three Months Ended Twelve Months Ended
------------------------------------- ---------------------------
December 31, September December December 31, December 31,
2025 30, 2025 31, 2024 2025 2024
------------ ------------ --------- ------------ -------------
(in thousands except share and per share amounts)
Revenues:
Rentals $ 111,592 $ 106,966 $ 91,705 $ 417,958 $ 276,687
Sales 85,621 69,975 94,288 341,761 258,591
---------- ---------- ------- ---------- ---------
Total revenues 197,213 176,941 185,993 759,719 535,278
Operating expenses:
Cost of rentals
(exclusive of
depreciation and
amortization
disclosed
separately
below) 30,593 29,295 25,538 114,341 74,494
Cost of sales
(exclusive of
depreciation and
amortization
disclosed
separately
below) 59,176 44,888 65,857 232,209 189,930
Selling, general
and
administrative
expenses 26,380 28,980 26,249 118,577 62,453
Depreciation and
amortization 38,601 38,953 34,360 144,838 90,862
Loss on sale of
equipment 487 232 70 742 797
---------- ---------- ------- ---------- ---------
Income from
operations 41,976 34,593 33,919 149,012 116,742
Other expenses:
Interest expenses (4,372) (2,757) (10,171) (18,939) (32,345)
Loss on debt
extinguishment -- -- -- -- (221)
Other income
(expenses), net 219 229 (943) 740 (2,756)
---------- ---------- ------- ---------- ---------
Total other
expenses (4,153) (2,528) (11,114) (18,199) (35,322)
---------- ---------- ------- ---------- ---------
Income before
provision for
income taxes 37,823 32,065 22,805 130,813 81,420
Income tax
benefit
(provision) 5,162 2,208 (469) 842 (1,171)
---------- ---------- ------- ---------- ---------
Net income 42,985 34,273 $ 22,336 131,655 $ 80,249
======= =========
Net income
attributable to
redeemable
non-controlling
interests 25,747 21,756 90,257
---------- ---------- ----------
Net income
attributable to
Flowco Holdings
Inc. $ 17,238 $ 12,517 $ 41,398
========== ========== ==========
Earnings per share
(1):
Basic $ 0.62 $ 0.46 $ 1.53
Diluted $ 0.41 $ 0.32 $ 1.24
Weighted average
shares outstanding
(1):
Basic 28,766,587 27,445,906 26,977,063
Diluted 90,064,283 90,661,805 90,673,021
(1) The calculations of basic and diluted earnings per share and weighted
average shares of common stock outstanding cover the periods after
January 16, 2025, which are the periods following the Company's initial
public offering and the related reorganization transactions, through the
end of fourth quarter 2025.
Flowco Holdings Inc.
Condensed Consolidated Balance Sheets
As of
----------------------------------------
December 31, December 31,
2025 2024
-------------------- ------------------
(in thousands except share and per share
amounts)
Assets
Current assets:
Cash and cash
equivalents $ 4,522 $ 4,615
Accounts receivable,
net of allowances
for credit losses of
$1,079 and $1,169,
respectively 100,465 120,353
Inventory 149,590 151,179
Prepaid expenses and
other current
assets 5,615 9,982
----- ------------- --------------
Total current
assets 260,192 286,129
Property, plant and
equipment, net 797,534 702,616
Operating lease
right-of-use assets 17,556 19,480
Finance lease
right-of-use assets 25,861 21,871
Intangible assets, net 273,437 302,522
Goodwill 249,692 249,692
Deferred tax asset 16,692 --
Other assets 5,387 6,639
----- ------------- --------------
Total assets $ 1,646,351 $ 1,588,949
===== ============= ==============
Liabilities, redeemable
non-controlling
interests and
stockholders'/members'
equity
Current liabilities:
Accounts payable $ 22,827 $ 31,321
Accrued expenses 26,909 33,829
Current portion of
operating lease
obligations 8,004 6,809
Current portion of
finance lease
obligations 12,895 7,837
Deferred revenue 7,376 8,002
----- ------------- --------------
Total current
liabilities 78,011 87,798
Long-term liabilities:
Long-term debt, net 167,819 635,916
Tax receivable
agreement liability 21,952 --
Operating lease
obligations, net of
current portion 9,783 12,739
Finance lease
obligations, net of
current portion 10,862 13,389
----- ------------- --------------
Total long-term
liabilities 210,416 662,044
----- ------------- --------------
Total liabilities 288,427 749,842
Commitments and
contingencies
----- ------------- --------------
Redeemable
non-controlling
interests 1,129,298 --
----- ------------- --------------
Members' equity:
Members' equity -- 839,107
----- ------------- --------------
Total members'
equity -- 839,107
----- ------------- --------------
Stockholders' equity:
Class A common
stock, $0.0001 par
value -- 300,000,000
shares authorized;
29,091,960 shares
issued and
outstanding as of
December 31, 2025;
no such shares
authorized, issued
or outstanding as of
December 31, 2024. 3 --
Class B common
stock, $0.0001 par
value -- 150,000,000
shares authorized;
60,562,983 shares
issued and
outstanding as of
December 31, 2025;
no such shares
authorized, issued
or outstanding as of
December 31, 2024. 6 --
Additional paid-in
capital 69,279 --
Retained earnings 159,338 --
----- ------------- --------------
Total
stockholders'
equity to Flowco
Holdings Inc. 228,626 --
----- ------------- --------------
Total liabilities,
redeemable
non-controlling
interests and
members'/stockholders'
equity $ 1,646,351 $ 1,588,949
===== ============= ==============
Flowco Holdings Inc.
Condensed Consolidated Statements of Cash Flows
Three
Months
Ended
December Twelve Months Ended
31, December 31,
---------- --------------------------
2025 2025 2024
---------- ------------ ------------
(in thousands)
Cash flows from
operating activities
Net income $ 42,985 $ 131,655 $ 80,249
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 38,601 144,838 90,862
Provision for
inventory
obsolescence 201 1,837 1,809
Amortization of
operating
right-of-use
assets 3,200 9,827 4,326
Amortization of
deferred
financing
costs 337 1,349 714
Loss on sale of
equipment 487 742 797
Loss on debt
extinguishment -- -- 221
Gain on lease
termination (153) (944) (958)
Stock-based
compensation 1,556 11,026 992
Provision for
deferred income
taxes (5,162) (5,942) --
Allowance for
credit losses (536) 1,015 636
Changes in operating
assets and
liabilities:
Accounts
receivable 19,041 18,873 (15,487)
Inventory 9,499 (76) 21,920
Prepaid expenses
and other
current assets 2,053 4,367 (3,029)
Other assets and
liabilities (8) (82) 864
Accounts payable
- trade (9,501) (8,493) 739
Accrued expenses (7,290) (6,931) (4,246)
Deferred revenue (5,162) (626) (4,292)
Operating lease
liabilities (3,496) (9,913) 864
Finance lease
liabilities 524 1,848 2,402
-------- ---------- --------
Net cash provided by
operating activities 87,176 294,370 179,383
-------- ---------- --------
Cash flows used in
investing activities
Asset acquisition -- (71,813) (7,000)
Additions to
property, plant
and equipment (24,004) (127,287) (90,494)
Payment of
contingent
consideration
related to a
business
combination -- (548) --
Proceeds from sale
of property, plant
and equipment 33 467 166
Net cash acquired
in 2024 Business
Combination -- -- 3,088
Payment for
capitalized patent
costs (137) (571) (193)
-------- ---------- --------
Net cash used in
investing activities (24,108) (199,752) (94,433)
-------- ---------- --------
Cash flows used in
financing activities
Issuance of Class
A common stock in
IPO, net of
underwriting
discount -- 461,803 --
Payment of offering
costs -- (2,458) --
Repurchase of Class
A common stock -- (15,000) --
Payments on
long-term debt (207,887) (1,114,672) (296,009)
Proceeds from
long-term debt 153,077 646,574 459,683
Payments on finance
lease obligations (3,919) (14,965) (7,503)
Proceeds on finance
lease
terminations 120 469 715
Purchase of LLC
Interests from
Continuing Equity
Owners -- (20,876) --
Payment of debt
issuance costs -- (13) (6,708)
Payment of dividend
equivalent units -- (10) --
Payment of tax
withheld on
stock-based
compensation -- (296) --
Distributions to
members of Flowco
LLC (4,845) (28,548) (230,513)
Dividends paid to
Flowco Holdings
Inc. shareholders (2,327) (6,719) --
-------- ---------- --------
Net cash provided by
(used in) financing
activities (65,781) (94,711) (80,335)
-------- ---------- --------
Net increase
(decrease) in cash
and cash equivalents (2,713) (93) 4,615
Cash and cash
equivalents
Beginning of period 7,235 4,615 --
-------- ---------- --------
End of period $ 4,522 $ 4,522 $ 4,615
======== ========== ========
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company uses non-GAAP financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA and Free Cash Flow, as well as Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin, in this press release to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results provides management additional insight on the consolidated financial performance from period to period to project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our management and investors with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Similarly, Free Cash Flow does not represent our residual cash flow for discretionary expenditures, since the calculation of this measure does not reflect certain debt service requirements or certain other non-discretionary expenditures. Non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The Company urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business.
Adjusted Net Income
Adjusted Net Income is a non-GAAP measure that we define as net income (loss) adjusted to eliminate the impact of (i) transaction-related expenses, (ii) share-based compensation, (iii) loss on the sale of equipment, (iv) loss on debt payments and (v) changes to the value of our inventory. Adjusted Net Income is a supplemental non-GAAP financial measure used by management, our stockholders and others to provide visibility on the profitability and financial strength of the Company by excluding certain expenses related to non-recurring Company transactions.
Reconciliation from net income to Adjusted Net Income is set forth as follows:
Twelve Months Ended
Three Months Ended December 31,
--------------------------------- -------------------
December September December
31, 2025 30, 2025 31, 2024 2025 2024
--------- ---------- ---------- -------- ---------
(in thousands)
Net income $ 42,985 $ 34,273 $ 22,336 $131,655 $ 80,249
Transaction
related
expenses (1) 705 -- 2,727 1,204 5,810
Share-based
compensation
expense (2) 1,557 1,479 483 9,668 992
Non-recurring
charges (3) -- 1,317 -- 5,219 --
Loss on sale of
equipment 487 232 70 742 797
Loss on debt
extinguishment -- -- -- -- 221
Inventory
valuation
adjustments
(4) -- -- 3,163 314 11,214
-------- --------- ------ ------- --------
Adjusted Net
Income $ 45,734 $ 37,301 $ 28,779 $148,802 $ 99,283
======== ========= ====== ======= ========
(1) Represents the transaction-related expenses as part of the 2024 Business
Combination, non-capitalizable IPO related costs and business
combination expenses associated with the Valiant acquisition, which were
expensed as incurred and included in the consolidated statements of
operations.
(2) Reflects non-cash compensation expense for equity-based awards to our
employees and non-employee directors for the periods presented.
(3) Represents (i) one-time charge for a settlement expense related to a
lawsuit for the three months ended September 30, 2025, and (ii)
termination benefits and related expenses and the costs associated with
the re-purposing of one of our manufacturing facilities in Pampa, TX for
the three months ended June 30, 2025.
(4) Reflects non-cash adjustment related to inventory fair value step-up
from the 2024 Business Combination which has been included in cost of
sales.
Adjusted EBITDA and Adjusted EBITDA margin
We define EBITDA as net income, adjusted to exclude interest expense, provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted to exclude (i) share-based compensation expense, (ii) business combination-related expenses and (iii) other non-cash and non-recurring expenses.
EBITDA and Adjusted EBITDA are key performance indicators we use in evaluating our operating performance and in making financial, operating and planning decisions. In particular, the exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA provides additional visibility on operating performance across reporting periods by removing the effect of non-cash and/or non-recurring expenses. Accordingly, we believe that this measure provides useful information to our stockholders and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Reconciliation from net income to EBITDA and Adjusted EBITDA are set forth as follows:
Twelve Months Ended
Three Months Ended December 31,
--------------------------------- -------------------
December September December
31, 2025 30, 2025 31, 2024 2025 2024
--------- ---------- ---------- -------- ---------
(in thousands)
Net income $ 42,985 $ 34,273 $ 22,336 $131,655 $ 80,249
Interest expense 4,372 2,757 10,171 18,939 32,345
Income tax
benefit
(provision) (5,162) (2,208) 469 (842) 1,171
Depreciation and
amortization 38,601 38,953 34,360 144,838 90,862
-------- --------- ------ ------- --------
EBITDA 80,796 73,775 67,336 294,590 204,627
Transaction
related
expenses (1) 705 -- 2,727 1,204 5,810
Share-based
compensation
expense (2) 1,557 1,479 483 9,668 992
Non-recurring
charges (3) -- 1,317 -- 5,219 --
Loss on sale of
equipment 487 232 70 742 797
Loss on debt
extinguishment -- -- -- -- 221
Inventory
valuation
adjustments
(4) -- -- 3,163 314 11,214
-------- --------- ------ ------- --------
Adjusted EBITDA $ 83,545 $ 76,803 $ 73,779 $311,737 $ 223,661
======== ========= ====== ======= ========
(1) Represents the transaction-related expenses as part of the 2024 Business
Combination, non-capitalizable IPO related costs and business
combination expenses associated with the Valiant acquisition, which were
expensed as incurred and included in the consolidated statements of
operations.
(2) Reflects non-cash compensation expense for equity-based awards to our
employees and non-employee directors for the periods presented.
(3) Represents (i) one-time charge for a settlement expense related to a
lawsuit for the three months ended September 30, 2025, and (ii)
termination benefits and related expenses and the costs associated with
the re-purposing of one of our manufacturing facilities in Pampa, TX for
the three months ended June 30, 2025.
(4) Reflects non-cash adjustment related to inventory fair value step-up
from the 2024 Business Combination which has been included in cost of
sales.
Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin
In addition to business segment profit or loss, our management also evaluates Adjusted Segment EBITDA, which is presented on a business unit level for purposes of allocating resources and evaluating operating and financial performance. As discussed above, the Company operates and manages its business units in the following two operating and reporting segments:
-- Production Solutions: relates to rentals, sales and services related to
high pressure gas lift, conventional gas lift and plunger lift. This
segment includes rental, sales and service revenues.
-- Natural Gas Technologies: relates to the design, manufacturing, rental,
sale and servicing of vapor recovery and natural gas systems. This
segment includes rental, sales, service revenues and methane abatement
technology.
We define Adjusted Segment EBITDA as segment net income, as adjusted in the same manner as defined for EBITDA and Adjusted EBITDA above. Reconciliation from segment net income, which includes direct segment costs but excludes corporate costs not directly related to either segment, to Adjusted Segment EBITDA is set forth as follows:
Twelve Months Ended
Three Months Ended December 31,
-------------------------------- --------------------
December September December
31, 2025 30, 2025 31, 2024 2025 2024
--------- ---------- --------- --------- ---------
(in thousands)
Production
Solutions
Net income $ 33,236 $ 31,734 $ 29,712 $ 126,678 $ 73,385
Interest expense 219 (1,651) (3,031) 963 13,455
Income tax
benefit
(provision) (25) -- 356 239 770
Depreciation and
amortization 22,832 23,577 20,198 84,215 61,475
-------- --------- -------- -------- --------
EBITDA 56,262 53,660 47,235 212,095 149,085
Transaction
related
expenses (1) 705 -- -- 705 1,028
Share-based
compensation
expense (2) -- -- 329 1,280 700
Non-recurring
charges (3) -- 1,317 -- 1,317 --
(Gain) loss on
sale of
equipment 510 283 41 959 784
Loss on debt
extinguishment -- -- (221) -- --
Inventory
valuation
adjustments
(4) -- -- 2,545 314 9,757
-------- --------- -------- -------- --------
Adjusted Segment
EBITDA 57,477 55,260 49,929 216,670 161,354
Natural Gas
Technologies
Net income $ 14,037 $ 9,774 $ 14,542 $ 46,672 $ 29,519
Interest expense 207 224 (1,816) 857 3,135
Income tax
benefit
(provision) -- 1 113 142 401
Depreciation and
amortization 15,761 15,369 14,162 60,596 29,387
(MORE TO FOLLOW) Dow Jones Newswires
February 26, 2026 06:00 ET (11:00 GMT)