Innovex International (INVX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $245 million, up 2% sequentially and 9% year-over-year, with net income of $25 million and a 20% adjusted EBITDA margin.

• Adjusted EBITDA was $48 million, with free cash flow of $30 million and a net income margin of 10%.

• Completed the $95 million acquisition of TCO Group, funded with $65 million cash and $30 million stock, enhancing technology portfolio and international presence.

• Achieved strong commercial momentum in subsea and international businesses, including major project wins in Asia, Latin America, and Malaysia.

• Integration and operational optimization efforts are driving improved execution, market share gains, and organic growth.

Financial highlights

• Q2 2026 revenue: $244.9 million, up 2% sequentially and 9% year-over-year; adjusted EBITDA: $48 million (20% margin); net income: $25 million.

• Free cash flow was $30 million (63% of adjusted EBITDA); capital expenditures were $7 million (2.7% of revenue).

• Ended Q2 with $222 million in cash and no bank debt.

• NAM land revenue was $131.4 million; international and offshore revenue was $113.5 million.

• Six-month net income was $8.4 million, down 72% due to a $51.6 million legal settlement accrual.

Outlook and guidance

• Q3 2026 revenue expected between $260 million and $270 million, with adjusted EBITDA of $51–$57 million, including TCO contributions.

• TCO expected to contribute $15 million in revenue and $3 million in EBITDA in Q3.

• Management anticipates continued growth in subsea, international, and U.S. land markets, with margin improvement as logistics costs normalize.

• Expects stable well drilling activity globally through 2028, with modest upstream spending growth projected for 2027 and 2028.

• Maintains a conservative balance sheet and expects existing liquidity and credit capacity to meet short- and long-term needs.