Innovex International (INVX) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $274 million, up 14% sequentially, with net income of $14 million and Adjusted EBITDA of $52 million at a 19% margin.

• Free cash flow for Q4 2025 was $43 million, with a strong cash position of $203 million and no bank debt at year-end.

• Integration of recent acquisitions (Citadel, DWS, Dril-Quip) delivered revenue synergies, operational efficiencies, and expanded technology portfolio.

• Strategic alliances and new contracts in Asia Pacific, Mediterranean, and Brazil underpin a positive outlook for subsea business.

• Ongoing operational transformation includes exiting the Eldridge facility by Q2 2026, reducing footprint and driving margin improvement.

Financial highlights

• Q4 2025 revenue was $274 million, up 14% sequentially and 9% year-over-year.

• Adjusted EBITDA for Q4 was $52 million (19% margin); free cash flow was $43 million.

• Full-year 2025 revenue totaled $978 million; Adjusted EBITDA was $188 million (19% margin); free cash flow was $156 million.

• SG&A expenses for 2025 were $129 million (13% of revenue), down from 18% in 2024.

• Q4 net income margin was 5%; full-year net income margin was 9%.

Outlook and guidance

• Q1 2026 revenue expected at $225–$235 million; Adjusted EBITDA $38–$42 million, reflecting seasonality and delivery timing.

• Margin improvement anticipated as low-margin legacy projects roll off and Eldridge facility exit completes by Q2 2026.

• Subsea order volume for 2026 projected to rise versus 2025, with growth expected in the back half of 2026 and into 2027.

• Free cash flow conversion expected to normalize to 50%-60% in 2026, with potential for higher performance.

• Sequential revenue decline anticipated in Q1 2026 due to lower subsea deliveries and seasonality.