Flotek Industries Q2 Earnings Call Highlights

Record second-quarter performance: Revenue rose 70% year over year to nearly $100 million, while adjusted EBITDA increased 109% to $16.8 million and net income reached $10 million. Data analytics and power services accelerated: Data analytics revenue grew 223% and generated 51% of total gross profit. Flotek’s contracted backlog exceeded $500 million, with a pipeline of more than $1 billion and a 10-year Puerto Rico project expected to add approximately $400 million in backlog. Guidance was raised: Flotek now expects 2026 revenue of $340 million to $350 million and adjusted EBITDA of $47 million to $51 million, supported by strong international chemistry sales and low leverage below one times adjusted EBITDA.

Flotek Industries NYSE: FTK reported second-quarter results marked by record data analytics revenue, strong international chemistry sales and higher profitability, while outlining a growing pipeline for its power-services technology. Total revenue approached $100 million in the second quarter, up 70% from the year-earlier period and representing the company’s strongest quarterly performance in a decade, Chief Executive Officer Ryan Ezell said. Gross profit rose 65% year over year, while adjusted EBITDA increased 109% to $16.8 million. Net income was $10 million, or $0.26 per share, compared with $1.8 million, or $0.05 per share, a year earlier, according to Chief Financial Officer Bond Clement. Revenue increased by $41 million year over year, with chemistry contributing 68% of the increase and data analytics accounting for the remaining 32%.

Data Analytics Becomes Largest Gross-Profit Contributor Flotek’s data analytics segment posted revenue growth of 223% from the prior-year quarter, with segment revenue representing 19% of company revenue, up from 10% a year earlier. Ezell said data analytics accounted for 51% of total company gross profit, compared with 26% in the prior-year period, making it the company’s largest gross-profit contributor. The business includes power services and digital valuation applications built around Flotek’s PWRtek platform and XSPCT Analyzer. Clement said 63% of second-quarter data analytics revenue came from external customers, compared with 44% a year earlier. The Montana Power Services contract contributed nearly $6 million in quarterly revenue, while upstream power-services revenue increased by $2.5 million sequentially. Ezell said Flotek expects to support more than 5 gigawatts of power through measurement or control using its technology by the first quarter of 2027. This figure includes measurement and control services for natural-gas-powered hydraulic fracturing fleets, conventional gas-fired power plants and the company’s recently announced Puerto Rico project.

Flotek also reported that its contracted backlog exceeded $500 million. Ezell said the company’s utility, infrastructure and data-center power-services pipeline was at its highest level to date, with a combined potential value of more than $1 billion across opportunities in various stages of bidding and negotiation. Puerto Rico Contract Adds Long-Term Opportunity On Aug. 3, Flotek announced a 10-year agreement related to a 400-megawatt natural-gas-fired grid-enhancement project for the Puerto Rico Electric Power Authority, or PREPA. Under the agreement, Flotek expects approximately $400 million of revenue backlog through 2036 from renting gas-fired generation equipment and deploying its conditioning, analytics and gas-distribution skid systems. The company is partnering with Power Expectations, which leads the group executing the emergency temporary power-generation project. Flotek expects support-equipment dell...