Flotek Industries, Inc.

What they do

Flotek operates two segments: Chemistry Technologies (CT) designs and manufactures specialty chemicals for energy and industrial customers, and Data Analytics (DA) provides measurement and digital solutions for process control and emissions reduction. The company also owns PWRtek, a mobile power generation platform acquired from ProFrac in 2025. CT revenue reached $80.2 million in the second quarter of 2026, and DA posted record quarterly revenue of $19.2 million.

Revenue drivers

• Chemistry Technologies (CT) — Largest segment, generating $80.2 million in Q2 2026 (up 53% YoY), including $10.6 million from international sales. Long-term supply agreement with ProFrac Services includes minimum purchase requirements; shortfall fees of $27.4 million were recognized in 2025.
• Data Analytics (DA) — Record quarterly revenue of $19.2 million in Q2 2026 (up 223% YoY), with external customers representing 63% of segment revenue. Includes $5.9 million from a utility infrastructure support contract signed in March 2026.
• PWRtek power generation — Acquired 22 operating units and 8 under-construction units from ProFrac for $107.5 million in April 2025; leased back to ProFrac GDM. Recently awarded a 10-year, up to 40 MW contract with PREPA in Puerto Rico.

Recent performance

Total revenue for Q2 2026 was $99.4 million, up 70% year-over-year, with net income of $10.0 million (diluted EPS $0.26). Six-month revenue reached $169.4 million, net income $14.6 million (diluted EPS $0.38). Adjusted EBITDA for Q2 was $16.8 million, up 109%. Gross profit in Q2 was $23.8 million, with DA contributing 51% of total gross profit. Cash at June 30, 2026 was $4.4 million, with long-term debt of $40.0 million.

Strategy

Flotek is shifting to a data-driven technology platform, with DA now the largest contributor to gross profit. It is expanding beyond oil and gas into power generation and infrastructure, evidenced by the PREPA contract and utility support agreements. The company is also increasing capacity through the PWRtek platform, with 30 units completed and placed into service. Management emphasizes leveraging chemistry and real-time measurement to reduce environmental impact and improve customer returns.

Risks

• Customer concentration and related party dependence — Extensive reliance on ProFrac for chemistry supply and equipment rental; shortfall fees have been required in 2024 and 2025, highlighting under-purchasing.
• Project execution and delays — The utility support contract has seen power generation paused due to infrastructure delays; PREPA deployment is subject to schedule risks and no assurance of extension.
• Oil and gas industry cyclicality — Spending by energy customers depends on commodity prices and industry conditions, which could adversely affect demand for chemistry and analytic services.
• Liquidity and debt — Cash balance of $4.4 million is low relative to total liabilities of $138.8 million, and the PWRtek Note creates debt obligations.

Outlook

For 2026, Flotek raised guidance: total revenues now expected at $340-$350 million (up from $270-$290 million) and Adjusted EBITDA at $47-$51 million (up from $36-$41 million). This guidance does not include any potential revenue from the PREPA contract. Management states initial deployment under the PREPA contract is targeted for Q4 2026, with power generation expected by end of Q1 2027.