Flowco Holdings Inc. announced its financial results for the first quarter ended March 31, 2025, on May 13, 2025. Total revenues reached $192.350 million, a significant increase from $66.712 million in the first quarter of 2024. Net income for the quarter was $27.045 million, up from $17.185 million in the prior year period.
Adjusted EBITDA for Q1 2025 was $74.901 million, compared to $34.226 million in Q1 2024. The Production Solutions segment reported $115.992 million in external revenues, a 2.3% sequential increase from Q4 2024. The Natural Gas Technologies segment reported $76.358 million in external revenues, a 5.1% sequential increase from Q4 2024, primarily due to delayed natural gas system sales.
Joe Bob Edwards, President and CEO, stated that Flowco delivered solid first-quarter results, underscoring the resilience of its business and the strength of both operating segments. He noted that the U.S. upstream outlook has been challenged by evolving tariff policies and broader economic uncertainty. Despite this, management remains confident in generating year-over-year growth, even in a flat production environment.
The company continues to invest growth capital in its High Pressure Gas Lift and Vapor Recovery offerings, which are experiencing strong demand. Flowco believes its High Pressure Gas Lift solution offers a cost-effective alternative to competing technologies potentially impacted by tariffs. The company's vertically integrated manufacturing footprint and domestic supply chain limit exposure to tariff-related cost pressures.
Adjusted EBITDA margins saw a slight sequential decrease to 38.9% from 39.7% in Q4 2024, attributed to a change in segment mix and increased costs associated with establishing public company infrastructure. As of May 9, 2025, the company had outstanding borrowings of $175.6 million under its revolving credit facility, with $547.4 million available under the $723.0 million borrowing base. Flowco generated $15 million in free cash flow during the quarter, used to reduce borrowings.
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