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Innovex International (INVX) investor relations material

Innovex International Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary4 Nov, 2025

Executive summary

  • Achieved $240 million in Q3 2025 revenue, up 58% year-over-year and 7% sequentially, with net income of $39 million and strong market share gains in North America and international markets, driven by acquisitions and operational execution.

  • Completed major acquisitions including Citadel, Dril-Quip, SCF, and DWS, expanding product offerings and global reach.

  • Closed the sale of the Eldridge facility for $90 million, generating $87 million in net proceeds and reducing operational footprint by 80%.

  • Signed an exclusive subsea wellhead supply agreement with OneSubsea, strengthening subsea market position and opening new long-term growth opportunities.

  • Maintained resilience in a challenging market, with continued market share gains and record technology deployment in key international regions.

Financial highlights

  • Q3 2025 revenue: $240 million (up 58% year-over-year, 7% sequentially); net income: $39 million; Adjusted EBITDA: $44 million (18% margin); free cash flow: $37 million.

  • Net cash from operations: $48 million; capital expenditures: $12 million (5% of revenue), with $4 million one-time integration-related.

  • Gross margins remained flat quarter over quarter, resilient at 32-34% LTM.

  • Free cash flow conversion: 83–84% in Q3; year-to-date $112 million (+120% YoY).

  • Ended Q3 with $163 million in cash and $26 million in total debt; $132.8 million available under the revolving credit facility.

Outlook and guidance

  • Q4 2025 guidance: revenue of $235–$245 million and adjusted EBITDA of $42–$47 million, assuming flat market activity.

  • Margins expected to remain under pressure in Q4 due to ongoing integration, tariffs, and product mix; improvement anticipated in 2026 post-facility consolidation.

  • CapEx to remain slightly elevated through year-end, normalizing in 2026.

  • Long-term goal to expand adjusted EBITDA margins to 25%, contingent on market recovery in key regions.

  • Management expects stable global upstream energy spending and sustained customer activity, supported by industry underinvestment and strong demand.

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Frequently asked questions

Dril-Quip, Inc. is a provider of highly engineered drilling and production equipment for the global oil and gas industry, focusing on both offshore and onshore applications. The company designs, manufactures, and services products such as subsea and surface wellheads, production trees, mudline hanger systems, specialty connectors, and drilling riser systems. Dril-Quip’s offerings are tailored for use in deepwater, harsh environments, and other demanding applications. The company also provides installation, commissioning, and decommissioning services as part of its lifecycle management solutions for its equipment. The company is headquartered in Houston, Texas, and its shares are listed on the NYSE.

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