What factors drove the changes in Innovex's revenue and profit?

What is the market's earnings forecast for Innovex next quarter?

What does Innovex do and what are its main business segments?

Did Innovex beat or miss consensus estimates last quarter?

What were the key takeaways from Innovex's earnings call?

What is Innovex's latest dividend and current dividend yield?

What guidance did Innovex's management provide for the next earnings period?

What were the key takeaways from Innovex’s earnings call?

- **Revenue Surge**: Q3 revenue $240M (+58% YoY), driven by North American land (+10% QoQ) and Subsea services record in U.S. offshore.
- **Eldridge Exit Boost**: $87M from facility sale; 1-2% margin improvement expected in 2026.
- **Strategic Wins**: OneSubsea partnership targets 2027 revenue; Saudi facility expansion supports unconventional growth.
- **Cash Strength**: $163M net cash, $112M free cash flow YTD; M&A pipeline active with 20%+ ROIC deals.
- **2026 Outlook**: Mid-20s EBITDA margin achievable with Saudi/Mexico recovery; Subsea business to become less margin-dilutive.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $240 million, up 58% YoY and 7% sequentially, driven by North American land growth (10% QoQ) and Citadel integration. Subsea services revenue hit a record in the U.S. offshore market.
- **Strategic Initiatives**: 
  - Exited Eldridge facility, generating $87 million in proceeds, with full exit by Q1 2026.
  - New Subsea wellhead partnership with OneSubsea, targeting 2026 orders and 2027 deliveries.
  - Saudi Arabia manufacturing facility inauguration; Argentina dissolvable plug sales expand product suite in Vaca Muerta.
- **Operational Efficiency**: On-time delivery improved to 76%, driving market share gains. Cross-selling Citadel and legacy products (e.g., Mexico XPAC system) accelerates organic growth.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Adjusted EBITDA: $44 million (18% margin), down $3 million QoQ due to integration costs.
  - Free Cash Flow: $37 million (83% EBITDA conversion), year-to-date $112 million.
  - Net Debt: $26 million; cash position $163 million post-Eldridge sale.
- **Cost Management**: 
  - SG&A up $7 million QoQ due to Citadel integration and ERP project.
  - CapEx $12 million (5% of revenue), with $4 million one-time integration costs.
- **2026 Outlook**: Eldridge exit to unlock 1-2% margin improvement; targeting mid-20s EBITDA margin with Saudi/Mexico recovery.

**【Q&A Key Highlights】**
- **Saudi Activity**: Rigs resuming in 2026; 70-80% direct NOC sales, with potential gas/unconventional growth.
- **OneSubsea Impact**: First orders late 2026, revenue in 2027; long-term accretive to 25% EBITDA target.
- **M&A Strategy**: $190 million deployed in 2024, 20%+ ROIC; pipeline active, prioritizing accretive deals over buybacks.
- **Tariffs Mitigation**: Flexible pricing, supply chain optimization; 2025 steel tariffs partially offset by customer sharing.


Innovex International Inc (INVX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

INVX

INVX fundamentals

You can ask Aime