Innovex International Inc (STU:DQU0)

Q2 2026 Innovex International Inc Earnings Call Transcript

Aug 4, 2026 / 01:00 PM GMT

Release Date Price: €25.2 (+2.44%)

Transcript 10-Q8-K

Key Points

Positve

Revenue and adjusted EBITDA hit the high end of guidance, with revenue at $245 million and adjusted EBITDA at $48 million, reflecting a 20% margin.
Completed the acquisition of TCO Group, adding differentiated, high-margin, capital-light technologies with strong growth potential.
Secured a $20 million subsea tension riser package in Malaysia, with follow-on wellhead orders anticipated, boosting subsea momentum.
Successfully completed the first XPAC trial with a major international operator in Asia Pacific, expanding market reach.
Strong free cash flow of $30 million (63% of adjusted EBITDA) and a robust balance sheet with $222 million cash and no bank debt.
International and offshore revenue grew 11% sequentially, driven by strength in key markets like Mexico and Saudi Arabia.
Completed the first installation of the Argo Latch subsea release plug in Brazil, showcasing integrated innovation.
Expecting Q3 revenue of $260-$270 million and adjusted EBITDA of $51-$57 million, indicating continued growth.

Negative

NAM land revenue declined 4% sequentially due to seasonally lower Canadian activity, reflecting market softness.
Increased logistics costs in the Middle East due to regional conflict, with $1.5 million in additional freight expenses impacting margins.
TCO acquisition contributed only $15 million in revenue and $3 million in EBITDA in Q3 guidance, with conservative expectations.
Middle East performance remains flat in Q3, with potential growth dependent on conflict resolution.
ROCE is reduced by net balance sheet cash position, currently at 12%, below the long-term target of high-teens.
US land revenue was flat in Q2, with growth expected only in the back half of the year.
Integration of Drillquip is still ongoing, with one more ERP conversion expected later this year, posing execution risks.
Project timing variability in subsea and international businesses creates quarter-to-quarter revenue unpredictability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

INVX.N - Innovex International Inc
Q2 2026 Innovex International Inc Earnings Call
Aug 04, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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And welcome to Inovex's second quarter 2026 earnings call. At this time, all participants are in listen-only mode, and there will be a question-and-answer opportunity at the end of this call.

As a reminder, this call is being recorded. I will now turn the call over to Eric Wells, Chief of Staff. Eric, please go ahead.

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Unidentified_2 [2]
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Good morning, everyone, and thank you for joining us. An updated investor presentation has been posted under the investors tab on the company's website, along with the earnings press release.

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