Superior Energy Services (SPNX) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income from continuing operations was $29.5 million ($1.46 per diluted share) on revenue of $201.1 million, down from Q1 2024 net income of $37.9 million ($1.88 per share) and revenue of $208.6 million.

• Adjusted EBITDA for Q2 2024 was $60 million, a decrease from $68.1 million in Q1 2024.

• Free cash flow in Q2 2024 totaled $39 million, with $34.7 million in capital expenditures.

• Leadership transition announced: Dave Lesar to become Chairman and CEO effective August 19, 2024.

Financial highlights

• Q2 2024 revenue declined 4% sequentially to $201.1 million; net income from continuing operations fell 22% to $29.5 million.

• Adjusted EBITDA margin was 30% in Q2 2024, down from 33% in Q1 2024.

• Cash, cash equivalents, and restricted cash totaled $335.3 million as of June 30, 2024.

• No outstanding borrowings on the credit facility at quarter-end.

Outlook and guidance

• Full-year 2024 revenue expected between $780 million and $840 million; adjusted EBITDA between $235 million and $265 million.

• Q3 2024 revenue guidance: $190 million–$215 million; adjusted EBITDA: $55 million–$70 million.

• Full-year free cash flow projected at $120 million–$140 million; capital expenditures expected at $100 million–$110 million, with majority for asset replacement.