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Bull of the Day: Flotek Industries (FTK)

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Key Takeaways

  • Flotek more than doubled after Q1 earnings beat and five straight quarters of profit growth.
  • FTK data analytics unit surged 57%, now a key driver of margin and long-term upside.
  • 2025 guidance implies 128% EBITDA growth as recurring revenue from tech deals scales up.

Flotek Industries (FTK - Free Report) is a Zack Rank #1 (Strong Buy) that delivers sustainable chemistry solutions and real-time data analytics to clients across the energy and industrial sectors.

The stock has surged to multi-year highs after a strong earnings report. Investors are starting to notice this relative strength in a sector that has been weak so far in 2025.

About the Company

Flotek Industries, Inc. is a Houston-based technology company that operates through two core segments: Chemistry Technologies (CT) and Data Analytics (DA).

Its Chemistry Technologies division formulates and supplies environmentally conscious specialty chemicals designed to improve the efficiency and profitability of oil and gas production. These green chemistries are tailored to support a broad range of energy producers, including those in oil, gas, geothermal, and alternative energy.

The Data Analytics segment complements Flotek’s chemistry business by providing real-time measurement and insight tools that allow customers to monitor and optimize their operations while reducing emissions and carbon intensity.

The company is valued at $450 million and has a Forward PE of 30. The stock has Zacks Style Scores of “A” in Growth but “D” in Value.

Q1 Earnings Beat

Flotek reported a strong first quarter, delivering earnings of $0.17 per share, or a 183% EPS surprise to the upside. Revenue came in at $55.4 million, a 37% year-over-year increase.

Both segments helped the quarter, with chemistry revenue up 36% and data analytics jumping 57%. Gross margin reached 23%, and net income rose 244%. Adjusted EBITDA more than doubled to $7.8 million, marking the fifth consecutive quarter of growth.

The company guided full-year 2025 revenue to $200–210 million (vs. $203 million expected) and adjusted EBITDA of $34–39 million. At the midpoint, that implies 128% growth in both metrics, with EBITDA margin expected to expand to 17%, up from 11% in 2024.

 

Flotek Industries, Inc. Price and EPS Surprise

Flotek Industries, Inc. Price and EPS Surprise

Flotek Industries, Inc. price-eps-surprise | Flotek Industries, Inc. Quote

 

 

Flotek continues to scale its data analytics business rapidly, underpinned by its April acquisition of 30 gas monitoring and dual-fuel optimization assets tied to a $160 million multi-year contract. That deal is expected to generate over $20 million in annual operating income and push fixed-fee DAS revenue above $27 million in 2026.

The stock surged after the earnings report, moving from the $8 area to $16 is just over a week. There has been about a month of consolidation since, but the stock remains near its recent post-earnings highs.

Estimates Headed Higher

Looking at analyst estimates, there is little movement on the short-term timeframe, but upside when looking down the road.

For the current quarter, estimates have been lowered over the last 30 days from $0.11 to $0.10. For next quarter there have been no adjustments.

For the current year we see numbers going higher over the last 90 days, moving from $0.43 to $0.53, or 23%.

For next year there has been a move higher in estimates in just the last 30 days. Numbers have been taken from $0.58 to $0.67, or 15%.

The Technical Take

The stock has experienced a big move over the last month, more than doubling from the pre-earnings levels. A decade ago, the stock was at much higher levels, and after being left for dead in 2024 is back on the rise.

Looking at the long-term chart, the downward trend is clearly broken. The stock has short-term room to the 2020 highs around $19, but investors would be better off waiting for pullbacks, rather than chasing.

Let’s look at some moving averages where bulls should be watching for support.

21-day: $14.60

50-day: $10.40

200-day: $8.00

Fibonacci Support levels reside at $11.40(50%) and $10.30 (61.8%).

In Summary

Flotek Industries has emerged as a standout in the energy sector, combining strong earnings momentum with a compelling growth story centered on green chemistry and real-time data analytics.

The recent price surge reflects investor enthusiasm, but the technical setup suggests that pullbacks to key support levels may offer better entry points for long-term buyers.

As energy markets remain volatile and capital flows shift toward differentiated tech-enabled solutions, Flotek’s integrated platform and strategic growth initiatives could help it outperform peers. The stock’s strong Zacks Rank, paired with bullish revisions and renewed institutional attention, reinforces the bullish case.


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