Innovex International (INVX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $239 million, down 13% sequentially and 1% year-over-year, with a net loss of $17 million primarily due to a $48.8 million legal settlement.

• Adjusted EBITDA reached $49.3 million, exceeding guidance, with a 21% margin, up from 19% in Q4 2025 and Q1 2025.

• Free cash flow was $14 million, and net cash from operations was $20 million.

• Ended the quarter with $201 million in cash and no bank debt, maintaining a strong balance sheet.

• Continued operational execution, innovation, and disciplined growth through acquisitions, including Drilling Innovative Solutions and Citadel Casing Solutions.

Financial highlights

• Q1 2026 revenue: $239 million, down 13% sequentially and 1% year-over-year.

• Net loss: $16.7 million, compared to net income of $14.8 million in Q1 2025, mainly due to legal settlement.

• Adjusted EBITDA: $49.3 million, with a 21% margin, up from 19% in Q4 2025 and Q1 2025.

• Free cash flow: $14 million, representing 28% conversion of Adjusted EBITDA.

• Capital expenditures: $6 million, or 2.4% of revenue, down 35% sequentially.

Outlook and guidance

• Q2 2026 revenue expected between $235 million and $245 million; Adjusted EBITDA guidance is $43 million–$48 million.

• Guidance reflects less favorable product mix and higher costs due to Middle East conflict.

• Margin improvement expected in the second half of 2026, driven by share gains and subsea growth.

• Expects stable to modestly increasing global upstream energy spending through 2028, with well counts recovering after a slight dip in 2026.