Flotek Industries (FTK) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $99.4 million, up 70% year-over-year, marking the strongest quarter in a decade, with net income rising 463% to $10.0 million and diluted EPS at $0.26.

• Data Analytics segment revenue grew 223% year-over-year to $19.2 million, becoming the largest contributor to gross profit at 51%, while Chemistry Technologies revenue reached $80.2 million, up 53% year-over-year.

• International Chemistry revenue increased 172% year-over-year to $10.6 million, driven by Middle East projects and expanded operations in Saudi Arabia.

• Secured a 10-year, $400 million contract for Puerto Rico's 400 MW gas power project, expanding contracted backlog and supporting long-term, high-margin revenue.

• Six-month 2026 revenue totaled $169.4 million, with net income of $14.6 million, up from $7.1 million in the prior year.

Financial highlights

• Q2 gross profit rose 65% year-over-year to $23.8 million (24% margin); adjusted EBITDA up 109% to $16.8 million; net income margin reached 10%.

• H1 2026 revenue up 49%, adjusted EBITDA up 81% versus H1 2025.

• SG&A expenses rose 14% year-over-year but declined to 8% of revenue, the lowest in a decade.

• Cash and equivalents at June 30, 2026: $4.4 million; ABL borrowings: $10.4 million outstanding.

• Total stockholders’ equity increased to $129.2 million from $113.1 million at year-end 2025.

Outlook and guidance

• 2026 revenue guidance raised to $340–$350 million (up 45% vs. 2025); adjusted EBITDA guidance increased to $47–$51 million (up 49%).

• Guidance excludes potential revenue from Montana Power Services phase II and Puerto Rico contract for 2026.

• H2 2026 expected to outpace H1, with normalization in domestic chemistry and continued strong international performance.

• Full-year 2026 Data Analytics segment revenue from the Lease Agreement alone projected at $27 million.

• Ongoing geopolitical instability and commodity price volatility are being monitored for potential impact.