HOUSTON, June 23, 2025 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced the Company's schedule for releasing its second quarter 2025 financial and operating results.The Company plans to issue its second quarter 2025 financial and operating results press release after market close on Tuesday, August 5, 2025, and will host its earnings conference call on Wednesday, August 6, 2025, at 9:00 a.m. Central (10:00 a.m. Eastern). The press release will be posted on the ...

Core Insights - Flotek Industries is gaining recognition in the custody transfer segment of the oil industry, which is crucial for revenue distribution among stakeholders [1][4] - The company’s JP3 XSPCT Analyzer automates the custody transfer process, addressing significant underpayment issues identified during pilot tests [2][8] - Flotek is transitioning from pilot tests to monthly contracts starting Q2 2025, which will enhance its Data Analytics division's revenue stream [3][8] Company Developments - The pilot tests revealed potential annual underpayments of up to $3.5 million, highlighting the financial impact of Flotek's technology [2][8] - Flotek's digital platform, Viper, provides comprehensive tools for monitoring, reporting, and compliance, positioning the company as a leader in modernizing custody transfer processes [3][4][8] - The company’s stock has appreciated approximately 72% year-to-date, reflecting positive market sentiment [7] Market Context - The custody transfer market is currently dominated by established players like Emerson Electric and Honeywell International, which offer advanced measurement and automation systems [5][6] - Emerson's technology focuses on high-accuracy flow measurement, while Honeywell provides secure and real-time data solutions for inventory control and custody transfer [5][6] Financial Outlook - Flotek Industries is trading at a forward price-to-earnings ratio of 27.76, indicating market expectations for growth [9] - The Zacks Consensus Estimate projects a 56% year-over-year improvement in Flotek's earnings for 2025, suggesting strong future performance [10]

Company Overview - Flotek Industries (FTK) shares increased by 9.2% to close at $16.55, supported by high trading volume, compared to a 5.7% gain over the past four weeks [1] - The company specializes in developing specialty chemicals for domestic and international energy producers and oilfield service companies [2] Financial Performance - Flotek reported impressive Q1 earnings with EPS exceeding estimates by 183% and revenue increasing by 37% year-over-year, driven by strong performance in green chemistry and data analytics segments [2] - The company raised its full-year guidance and completed a strategic asset acquisition worth $160 million [2] - Upcoming quarterly earnings are expected to be $0.10 per share, reflecting a year-over-year increase of 66.7%, with revenues projected at $48.11 million, up 4.2% from the previous year [3] Market Position and Analyst Sentiment - Flotek is increasingly recognized as a tech-enabled standout in a weak energy sector, with rising institutional interest and lower operational costs contributing to its growth [2] - The consensus EPS estimate for Flotek has been revised 9.5% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - Flotek currently holds a Zacks Rank of 1 (Strong Buy), while competitor Schlumberger (SLB) has a Zacks Rank of 3 (Hold) [4][5]

Group 1: Company Performance - Flotek Industries (FTK) has gained approximately 59% year-to-date, significantly outperforming the average return of -0.6% for the Oils-Energy sector [4] - The Zacks Consensus Estimate for FTK's full-year earnings has increased by 22.1% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - Flotek Industries is ranked 1 (Strong Buy) in the Zacks Rank system, suggesting strong potential for future performance [3] Group 2: Industry Context - Flotek Industries is part of the Oil and Gas - Field Services industry, which consists of 23 companies and currently ranks 134 in the Zacks Industry Rank [5] - The average return for the Oil and Gas - Field Services industry has been a loss of 9.6% year-to-date, highlighting Flotek's superior performance within its industry [5] - Another outperforming stock in the Oils-Energy sector is Gibson Energy Inc. (GBNXF), which has returned 0.7% year-to-date [4][6]

Core Insights - Flotek Industries (FTK) has achieved a 52-week high of $16.83, reflecting a remarkable 200% increase over the past year, driven by investor confidence in its transformation strategy focused on recurring revenues, analytics expansion, and global growth [1][8] - The company is set to join the Russell 3000 Index, which is expected to enhance its visibility and attract institutional interest [10] Strategic Developments - Flotek's strategic acquisition of power optimization assets from ProFrac Holding Corp. for $108 million is a significant catalyst for growth, transitioning the company into a recurring-revenue, data-focused business model [3] - The acquisition is projected to generate $14 million in EBITDA for 2025 and $20 million for 2026, with 22 units already leased to ProFrac [3][8] Revenue Growth and Market Position - The Data Analytics Services (DAS) segment is becoming more predictable, supported by a $20 million annual take-or-pay chemistry contract with ProFrac, providing long-term revenue visibility [4] - International chemistry revenues surged nearly 250% year-over-year in Q1 2025, with strong growth in the Middle East and Argentina, positioning FTK to diversify its customer base [5][9] Financial Performance - In Q1 2025, Flotek reported a 37% year-over-year revenue growth, a 41% increase in gross profit, and a 244% surge in net income, with adjusted EBITDA nearly doubling [9] - Management anticipates an 80% year-over-year growth in adjusted EBITDA for 2025, driven by operating leverage from analytics assets and international expansion [10] Competitive Advantage - Flotek's hybrid model, which combines proprietary hardware with analytics and long-term leases, offers more predictability and margin resilience compared to competitors like ChampionX, which relies on one-time product sales [11][12] - The DAS segment is expected to generate more revenue in 2025 than in all of 2024, highlighting the effectiveness of the expanded partnership with ProFrac [12] Valuation and Growth Outlook - Flotek's forward price-to-earnings ratio stands at 25.71, higher than the subindustry average of 12.62, reflecting justified premium due to its growth potential [13] - The Zacks Consensus Estimate projects earnings growth of 56% in 2025 and 27% in 2026, indicating a strong growth profile in the energy services sector [15] Conclusion - Flotek's stock price surge is attributed to its successful execution across multiple fronts, including the ProFrac deal, international expansion, and a shift towards a high-margin, recurring-revenue model [18] - The company is currently rated as a Strong Buy, with upward estimate revisions and margin expansion providing a solid investment thesis [19]

Core Viewpoint - Flotek Industries (FTK) is strategically expanding its Data Analytics Services (DAS) segment through the acquisition of mobile gas monitoring and dual-fuel optimization units, aiming to build recurring, high-margin revenues from real-time gas analytics and remote power solutions [1][2]. Group 1: Acquisition Details - In April 2025, Flotek acquired 30 mobile gas monitoring and dual-fuel optimization units from ProFrac Holding Corp. for $105 million [1]. - The transaction is expected to generate $14 million in EBITDA in 2025 from 22 units already deployed under a six-year lease [2]. - Once all 30 units are operational, annual lease revenues could reach $27.4 million in 2026, nearly double the DAS segment's revenues in 2024 [2]. Group 2: Strategic Positioning - The acquisition strengthens Flotek's partnership with ProFrac and positions the company to capitalize on the growing off-grid energy market [3]. - This move enhances Flotek's competitiveness in gas analytics and on-site power management, which are critical as industries aim to reduce flaring and improve fuel efficiency [3]. Group 3: Competitive Landscape - Compared to larger rival ChampionX, which has not adopted a lease-based model for its analytics technology, Flotek's hybrid approach combines hardware with built-in analytics and long-term leases [4][5]. - ChampionX's digital revenues remain modest, and its reliance on short-cycle markets adds volatility, highlighting Flotek's differentiated strategy [4]. Group 4: Financial Performance and Estimates - Flotek's shares have increased approximately 54% year to date [8]. - The company trades at a forward price-to-earnings ratio of 24.98, significantly higher than the subindustry's 12.19 [9]. - The Zacks Consensus Estimate for Flotek's 2025 earnings indicates a 56% year-over-year improvement, with estimates of $0.53 for the current year and $0.67 for the next year [11][12].

Group 1 - Flotek Industries has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly impacts stock prices [1][3] - The Zacks rating system focuses on changes in earnings estimates, which are tracked through a consensus measure from sell-side analysts [2][6] - The upgrade indicates a positive outlook on Flotek's earnings, suggesting potential favorable impacts on its stock price [3][10] Group 2 - There is a strong correlation between earnings estimate revisions and near-term stock movements, making it crucial for investment decisions [4][6] - Rising earnings estimates for Flotek imply an improvement in the company's underlying business, which should lead to higher stock prices [5][8] - For the fiscal year ending December 2025, Flotek is expected to earn $0.53 per share, reflecting a 55.9% increase from the previous year, with a 22.1% increase in the Zacks Consensus Estimate over the past three months [8] Group 3 - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]

Group 1: Flotek Industries (FTK) - Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, for clients in the energy, consumer industrials, and food & beverage industries [1] - The company has a Zacks Rank of 1 (Strong Buy) and the Zacks Consensus Estimate for its current year earnings has increased by 12.8% over the last 60 days [1] - Flotek Industries' shares gained 103.4% over the last three months, significantly outperforming the S&P 500's gain of 2.7% [2] Group 2: Harmony Gold (HMY) - Harmony Gold conducts underground and surface gold mining [2] - The company also holds a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings has increased by 3.7% over the last 60 days [2] - Harmony Gold's shares gained 47.8% over the last three months, again outperforming the S&P 500's gain of 2.7% [3] Group 3: Ferrovial SE (FER) - Ferrovial SE is an infrastructure company based in Amsterdam [3] - The company has a Zacks Rank of 1 and the Zacks Consensus Estimate for its current year earnings has increased by 11.2% over the last 60 days [3] - Ferrovial SE's shares gained 17.7% over the last three months, also outperforming the S&P 500's gain of 2.7% [3]

Core Points - Flotek Industries, Inc. will be added to the Russell 3000® Index effective June 30, 2025, enhancing its visibility in the investment community [1][2][3] - Membership in the Russell 3000® Index includes automatic inclusion in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, as well as applicable Russell growth and value style indexes [2] - The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them as of June 2024 [3] Company Overview - Flotek Industries is a leading chemistry and data technology company focused on the energy industry, leveraging real-time data to provide innovative solutions [5][6] - The company holds an intellectual property portfolio of over 130 patents and has a global presence in more than 59 countries [5] - Flotek aims to reduce the environmental impact of energy through sustainable and optimized chemistry and data solutions [6] Industry Context - FTSE Russell, the provider of the Russell indexes, is a global leader in benchmarking and analytics, with approximately $18.1 trillion benchmarked to its indexes [7] - FTSE Russell's indexes cover 98% of the investable market globally and are used extensively by institutional and retail investors [7]

Group 1 - The Daily Drilling Report is an investment group focused on providing analysis for the oil and gas industry, featuring a model portfolio that encompasses all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] - Technical analysis is utilized to identify catalysts within the oil and gas sector [1] Group 2 - Fluidsdoc is an international oil industry veteran with 40 years of experience, having worked across six continents and over twenty countries, specializing in the upstream oilpatch [2]