Executive Summary

Q3 revenue was $240.0M, up 7% q/q, with Adjusted EBITDA of $43.6M (18% margin) and diluted EPS of $0.57; operating cash flow was $48.4M and FCF $36.5M .
Management closed the sale of the legacy Dril-Quip Eldridge facility (~$90.0M proceeds) and cited 76% on-time subsea deliveries; near-term exit costs weighed on margins but are expected to abate after year-end .
Q4 guidance: revenue $235–$245M and Adjusted EBITDA $42–$47M; Innovex also announced an exclusive subsea wellhead partnership with OneSubsea, supporting subsea growth aspirations .
Estimates context: S&P Global Wall Street consensus for Q3 and Q4 was unavailable at the time of analysis; estimate comparisons will be updated when accessible (S&P Global) [functions.GetEstimates].

What Went Well and What Went Wrong

What Went Well
- U.S. Land market share gains and integration of Citadel drove performance despite relatively flat activity; subsea deliveries improved with on-time delivery at 76% .
- Strong cash generation and balance sheet flexibility: $48.4M operating cash flow, $36.5M FCF, $163M cash and $26M total debt at quarter-end .
- Strategic catalysts: closed Eldridge facility sale (~$90.0M) and signed exclusive subsea wellhead agreement with OneSubsea, positioning for margin expansion and growth .
What Went Wrong
- Sequential margin compression: Adjusted EBITDA margin declined to 18% (from 21% in Q2) due to Eldridge exit costs and full-quarter Citadel inclusion in SG&A/capex .
- YoY net income decline versus unusually high Q3’24 (benefited from large bargain purchase gain); current quarter included $3.3M bargain purchase loss and a $(40.9)M gain on asset sale .
- Management flagged continued near-term costs through Q4 tied to the Eldridge exit, with substantial move-out by year-end (near-term headwind) .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$151.8	$224.234	$240.0
Net Income ($USD Millions)	$82.586	$15.345	$39.228
Diluted EPS ($)	$1.99	$0.22	$0.57
Income from Operations ($USD Millions)	$(13.218)	$22.695	$62.284
Adjusted EBITDA ($USD Millions)	$27.411	$46.642	$43.613
Adjusted EBITDA Margin (%)	18%	21%	18%
Net Income Margin (%)	54%	7%	16%
Cash from Operations ($USD Millions)	$21.722	$59.210	$48.374
Free Cash Flow ($USD Millions)	$20.051	$51.913	$36.522

Segment/Geographic Revenue Detail

Segment	Q3 2024 ($000s)	Q2 2025 ($000s)	Q3 2025 ($000s)
North America Onshore – Product	79,668	77,368	86,597
North America Onshore – Rental	5,228	26,698	28,114
North America Onshore – Service	13,411	15,901	17,218
Revenue – North America Onshore	98,307	119,967	131,929
International & Offshore – Product	46,975	72,081	79,205
International & Offshore – Rental	4,172	17,305	14,274
International & Offshore – Service	2,363	14,881	14,592
Revenue – International & Offshore	53,510	104,267	108,071
Total Revenue	151,817	224,234	240,000

KPIs and Balance Sheet Highlights

KPI/Balance Metric	Q3 2024	Q2 2025	Q3 2025
On-time delivery – Subsea	—	—	76%
ROCE (TTM)	9%	13%	13%
Cash & Equivalents ($M)	$99.895	$68.781	$163.374
Total Debt ($M)	$23.046 (LT+current)	$40.718 (LT+current)	$26.406 (LT+current)
Capex ($M)	$1.671	$7.297	$11.852

Notes:

Q3’24 net income and EPS benefited from a large non-GAAP item (bargain purchase gain), inflating YoY comps; Q3’25 includes a $(40.9)M gain on sale of assets and a $3.3M bargain purchase loss .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2025	N/A	$235–$245M	New
Adjusted EBITDA	Q4 2025	N/A	$42–$47M	New

Guidance to Actual (for context)

Metric	Period	Prior Guidance (given on 8/5/25)	Actual	Result
Revenue	Q3 2025	$230–$240M	$240.0M	At high end
Adjusted EBITDA	Q3 2025	$40–$45M	$43.6M	Within range

Earnings Call Themes & Trends

Note: A Q3’25 earnings call was scheduled for Nov 4, 2025; transcript was not available in the document set at time of analysis. Thematic evolution below reflects management’s press releases across Q1–Q3’25 .

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
U.S. Land market share	Q2: US land revenue flat vs ~7% rig decline; early Citadel synergies . Q1: NAM Land +17% q/q on full-quarter DWS .	Continued market share gains after Citadel integration .	Improving share momentum
Subsea transformation/Eldridge facility	Q1: Signed agreement to sell Eldridge ($95M) to unlock margin step-change .	Closed sale (~$90M), exit costs weighed on margins; 76% on-time delivery; substantial exit by YE .	Execution progressing; near-term costs, mid-term margin upside
International	Q1: Mexico softer; DWS growth offset .	Middle East deliveries; Saudi softness but building position; Abu Dhabi record 54,000-foot well .	Mixed near-term, positive medium-term setup
M&A and capital allocation	Q2: Acquired Citadel (all-cash $70M), EPS accretive; buybacks under $100M program . Q1: Acquired SCF; initiated buyback program .	Net cash strengthened by Eldridge sale; evaluating pipeline; ~$90.7M authorization remaining .	Ongoing disciplined M&A and optionality
Supply chain/tariffs	—	Managing supply chains and contracts to minimize tariff exposure .	Risk management in place
Profitability/margins	Q2: Adj. EBITDA margin 21% on lower revenue . Q1: Adj. EBITDA margin 19% .	Adj. EBITDA margin 18% due to exit costs; reiterates path to “mid-20s” EBITDA margins post-exit .	Near-term pressure; mid-term expansion roadmap intact

Management Commentary

CEO: “We continued to increase our market share in the U.S. Land market after successfully integrating Citadel… The closing of the sale of our Eldridge facility is a foundational element of our plan to drive a step change in subsea margins… As the exclusive wellhead provider on bundled subsea packages, Innovex expects to meaningfully grow our already strong position in the subsea wellhead market.”
CFO: “Our capital-light business model and disciplined cost control allowed us to maintain strong free cash flow and healthy margins… Closing the Eldridge facility sale generated $87 million in net proceeds… We have remaining authorization to repurchase up to approximately $90.7 million of our shares.”
CFO (operations): “The increase in our SG&A and capex sequentially related primarily to incremental costs associated with the exit of the Eldridge facility and the inclusion of a full quarter of Citadel results… we believe exiting this facility unlocks the first major step in our aspirations of mid 20s EBITDA Margins.”
CEO (international): “In Abu Dhabi… multiple Innovex technologies were instrumental in drilling a 54,000 foot well… Despite soft activity in Saudi Arabia… we anticipate [progress] to be evident in our results by early 2026.”

Q&A Highlights

The Q3’25 earnings call was scheduled for Nov 4, 2025, but a transcript was not available in the repository at the time of analysis; we will update Q&A highlights once posted .

Estimates Context

S&P Global consensus for Q3’25 EPS, revenue, and EBITDA, and for Q4’25 forward estimates, was unavailable at the time of analysis; thus, we cannot quantify beats/misses versus Street for this quarter (Values retrieved from S&P Global; data unavailable) [functions.GetEstimates].
Management’s Q3 outcomes landed at the high end of prior revenue guidance and within the Adjusted EBITDA range, which typically underpin estimate recalibrations post-print .

Key Takeaways for Investors

Revenue growth of 7% q/q with solid cash generation (OCF $48.4M; FCF $36.5M) underscores the capital-light, cash-conversion profile even amid transitory exit costs .
Near-term margin compression (EBITDA margin 18%) reflects Eldridge exit costs; management reiterates a pathway to “mid-20s” EBITDA margins post-consolidation, a medium-term re-rating lever .
Strategic catalysts: exclusive OneSubsea partnership and subsea operational improvements (76% on-time delivery) support subsea growth and margin normalization into 2026 .
Balance sheet optionality: $163M cash vs. $26M total debt and ongoing buyback authorization (~$90.7M) provide flexibility to pursue accretive M&A and repurchases .
Geographic mix is diversifying, with International & Offshore now >$100M per quarter; watch Middle East momentum vs. Saudi timing and Mexico stabilization .
Q4 guide ($235–$245M revenue; $42–$47M EBITDA) sets a stable near-term base while exit costs persist through Q4; execution on the facility exit and subsea fulfillment is the key swing factor .
Street estimate comparisons were unavailable; monitor subsequent consensus updates given the high-end revenue delivery versus prior guide and maintained cash generation (S&P Global) .

Sources: Q3’25 8-K and press release, including financial statements, KPIs, guidance, and management commentary ; Q2’25 and Q1’25 earnings 8-Ks for prior period context .

Innovex International, Inc. (INVX)·Q3 2025 Earnings Summary