Flotek Industries Provides Update on Puerto Rico Power Project and Reaffirms its Full-Year 2026 Guidance
Rhea-AI Summary
Flotek Industries (NYSE: FTK) provided an update on its role in the Emergency Temporary Power Generation Puerto Rico project (PREPA Contract) and reaffirmed its raised full-year 2026 guidance. The company continues to target $340–$350 million in total revenue and $47–$51 million in Adjusted EBITDA, excluding any potential contribution from the PREPA Contract.
Flotek entered a 10-year agreement to supply power-generation equipment and its proprietary PWRtek systems for a proposed 400-megawatt project at the Aguirre Power Plant, assuming defined project responsibilities on July 31, 2026. The Financial Oversight and Management Board for Puerto Rico voted to direct PREPA to terminate the contract, and on August 17, 2026, PREPA ordered all consortium parties, including Flotek, to immediately halt project work while it evaluates these developments. PREPA has not yet issued a formal termination notice to Flotek. The company emphasized that timing and scope of its participation depend on resolution of the PREPA Contract, financing and bonding, regulatory approvals and project deployment, and noted that guidance does not add back an estimated $9 million in 2026 non-cash contract-asset amortization.
Positive
- 2026 revenue guidance reaffirmed at $340–$350 million, excluding PREPA
- 2026 Adjusted EBITDA guidance reaffirmed at $47–$51 million, excluding PREPA
- Guidance excludes non-cash contract-asset amortization of approximately $9 million in 2026
Negative
- Oversight Board voted to direct PREPA to terminate the PREPA Contract
- PREPA ordered an immediate hold on all project work on August 17, 2026
- Company states no assurance project proceeds or expected PREPA revenues are realized
Market reaction after PREPA contract update: FTK -4.17%
Following this news, FTK has declined 4.17%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.2% from its starting point during tracking. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $27.46. Trading volume is exceptionally heavy at 11.8x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 04 | Guidance increase | Positive | +27.9% | Record quarterly performance and higher full-year revenue and EBITDA guidance |
| Aug 03 | Power contract | Positive | +13.7% | Ten-year Puerto Rico agreement supporting a 400-megawatt power project |
| Jul 06 | Earnings schedule | Neutral | -3.6% | Announced timing for second-quarter financial results and conference call |
| May 05 | Q1 earnings | Positive | -3.1% | Higher revenue, data analytics growth, and 2026 guidance |
| Apr 09 | Earnings schedule | Neutral | +3.8% | Announced timing for first-quarter financial results and conference call |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive company announcements produced mixed six-month reactions, including strong gains for the August contract and guidance updates but declines after earlier results.
Key Terms
adjusted ebitda financial
non-gaap financial measure financial
form 8-k regulatory
asset based loan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
As previously disclosed, on August 4, 2026, the Company raised its full-year 2026 financial guidance following record second-quarter performance. The updated outlook targets total revenue of
As previously disclosed on August 3, 2026, Flotek entered into a 10-year agreement to provide power-generation equipment and its proprietary PWRtek gas-conditioning, distribution and real-time monitoring systems in support of the proposed 400-megawatt project at the Aguirre Power Plant. The Company has filed a Current Report on Form 8-K today with the Securities and Exchange Commission providing a factual update on the current status of the PREPA Contract in light of the developments further discussed below.
Flotek joined the project after the original procurement and execution of the PREPA Contract between the Puerto Rico Electric Power Authority ("PREPA") and the initially selected consortium. Before Flotek assumed its defined project responsibilities, the Company was advised that questions regarding the authorization of certain signatures associated with the PREPA Contract had been raised and had been fully vetted through the procurement process. PREPA and the Third-Party Procurement Office subsequently reviewed Flotek's qualifications, approved its participation and authorized the substitution through which Flotek assumed the applicable project responsibilities on July 31, 2026.
The Financial Oversight and Management Board for
The timing and ultimate scope of Flotek's participation remain subject to resolution of the PREPA Contract matter, satisfaction of applicable contractual conditions, financing and bonding requirements, governmental and regulatory approvals, and the project proceeding to deployment. No assurance can be given that the project will proceed as originally contemplated, that the work stoppage will be lifted, that the Oversight Board's revocation will be reversed or modified, or that the Company will realize any or all of the expected revenues under the PREPA Contract.
- We are unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure without unreasonable efforts, as we are unable to predict with a reasonable degree of certainty the impact of certain items that would be expected to impact the GAAP financial measure, including, among other items, certain stock-based compensation costs and interest costs related to fluctuations in borrowings under the Company's asset based loan. These items do not impact the non-GAAP financial measure. Guidance does not add back non-cash amortization of contract assets estimated to total approximately
$9 million
About Flotek Industries, Inc.
Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company's technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, over 20 years of field and laboratory data, and a global presence in more than 59 countries.
Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.
Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK." For additional information, please visit www.flotekind.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable federal securities laws. These statements include, without limitation, statements regarding the status of the PREPA Contract, the Company's potential participation in the project, the timing and scope of any equipment deployment, and the revenues, operating results or other benefits that may be realized from the project.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including the outcome of governmental, regulatory, contractual or law-enforcement reviews; termination, modification or invalidation of relevant agreements; actions taken by the Oversight Board, PREPA, or law enforcement agencies; disputes among project participants; the ability of project participants to secure financing, bonding, fuel, permits and governmental approvals; interconnection and construction requirements; project delays; and other risks described in Flotek's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Flotek undertakes no obligation to update any forward-looking statement except as required by law.
View original content to download multimedia:https://www.prnewswire.com/news-releases/flotek-industries-provides-update-on-puerto-rico-power-project-and-reaffirms-its-full-year-2026-guidance-302854009.html
SOURCE Flotek Industries, Inc.