Innovex International (INVX)·Q4 2025 Earnings Summary
Innovex International Surges 7% to 52-Week High on Strong Q4 Revenue Beat
February 23, 2026 · by Fintool AI Agent
Innovex International (INVX) delivered a strong Q4 2025, posting revenue of $274M (up 14% sequentially and 9% year-over-year) with Adjusted EBITDA of $52M at a 19% margin . The oilfield services company generated $43M in free cash flow, converting 83% of Adjusted EBITDA to cash, and ended the year with $203M in cash and no bank debt . The stock surged 6.7% to hit a new 52-week high of $27.28. However, Q1 2026 guidance came in below consensus at $225-235M revenue (vs. $240M expected) and $38-42M EBITDA (vs. $45M expected), reflecting lower subsea deliveries and normal seasonality .
Did Innovex Beat Earnings in Q4 2025?
Yes — Innovex beat on revenue and EBITDA.
*Consensus estimates from S&P Global
The revenue beat was driven by continued strength in International & Offshore markets (49% of Q4 revenue), higher-than-expected subsea deliveries, and revenue synergies from the DWS and Citadel acquisitions .
Ask Fintool AI AgentWhat Did Management Guide?
Q1 2026 guidance came in below consensus, driven by lower subsea deliveries and normal seasonality.
*Consensus estimates from S&P Global
CFO Kendal Reed explained: "The sequential revenue decrease is primarily due to lower subsea deliveries, reflecting normal seasonality as well as the earlier-than-anticipated execution of certain deliveries originally planned for the first quarter."
Management expects low-margin subsea projects to continue weighing on margins in H1 2026, with improvement expected by year-end following the Eldridge facility exit .
How Did the Stock React?
INVX shares surged +6.7% to $27.17 following the earnings release, hitting a new 52-week high (prior high was $25.55 intraday). Volume was 1.5M shares, approximately 4x the average daily volume.
Key price levels:
- 52-week high: $27.28 (hit today)
- 52-week low: $11.93
- 50-day moving average: $23.87
- 200-day moving average: $19.09
The strong stock reaction reflects investor enthusiasm for the operational transformation and continued revenue momentum heading into 2026.
What Changed From Last Quarter?
Revenue acceleration — Q4's $274M was a 14% sequential jump from Q3's $240M, reversing the softness seen in Q2 ($224M). This marks the highest quarterly revenue in 2025 .
EBITDA margin stability — Maintained 19% Adjusted EBITDA margin despite higher integration costs from recent acquisitions .
Free cash flow strength — $43M in Q4 represents 83% conversion of Adjusted EBITDA. Full-year 2025 FCF totaled $156M .
*Source: Company 8-K *
What Did Management Say?
CEO Adam Anderson highlighted the innovation flywheel and subsea momentum:
"We delivered a strong finish to 2025, with revenues exceeding the high end of our guidance range due to higher-than-expected subsea deliveries, revenue synergies from the DWS and Citadel acquisitions, and new product introductions."
"This is but one example of how our innovation flywheel – powered by deep customer relationships and disciplined execution – enables us to organically expand our footprint with differentiated products that solve meaningful customer challenges."
CFO Kendal Reed emphasized the capital-light model and M&A optionality:
"We converted approximately 83% of our Adjusted EBITDA into Free Cash Flow in Q4 and for the year 2025. We ended the year with approximately $203 million of cash and no bank debt, providing significant financial flexibility as we examine a deep pipeline of inorganic investment opportunities."
Key Strategic Initiatives
Operational Transformation
Innovex made significant progress exiting the legacy Eldridge facility, with full completion expected by the end of Q2 2026 .
CFO Kendal Reed noted: "The expected exit of the Eldridge facility in the second quarter is a foundational element of our plan to improve these margins. We expect a reduced manufacturing footprint, improved on-time delivery, and optimized bidding practices to drive improved subsea margins by year-end 2026."
Subsea Momentum
Innovex reported significant progress in its subsea business :
- XPak Technology: Completed 10th successful installation in Brazil's pre-salt fields; adapted for onshore use in the Permian for a major independent operator
- OneSubsea Alliance: Delivered first subsea wellhead products under the global Innovex-OneSubsea partnership in the Far East
- New Awards: Recently won significant projects in Asia, a smaller award in the Mediterranean, and a landmark subsea wellhead contract in Brazil with an IOC "we have not worked with in over a decade"
- Mexico Completion: Substantially completed deliveries of subsea wellheads and large-diameter tubulars for a major offshore development
CEO Anderson noted: "I'm excited about the trajectory of our subsea business... our subsea strategy is gaining momentum."
Geographic Diversification
Q4 2025 revenue by geography :
International & Offshore accelerated significantly in Q4, with $135M in revenue (+25% QoQ) driven by higher subsea deliveries and product revenues .
Saudi Arabia Expansion: Innovex inaugurated its manufacturing facility in Saudi Arabia during Q4, "further strengthening our commitment to and partnership with the Kingdom" .
M&A Track Record
Innovex has completed multiple acquisitions, most recently Citadel Casing Solutions in May 2025. Recent deals include:
- Nov 2024: Downhole Well Solutions (DWS)
- May 2025: Citadel Casing Solutions
The company maintains a disciplined "small ticket, big impact" approach, with CFO Reed noting they are examining "a deep pipeline of inorganic investment opportunities" while evaluating all investments against the share repurchase authorization .
Ask Fintool AI AgentBalance Sheet & Capital Position
Innovex ended Q4 2025 with a fortress balance sheet :
Management highlighted significant financial flexibility to pursue M&A opportunities aligned with the "small ticket, big impact" strategy, with all investments evaluated against the share repurchase authorization .
Business Model Highlights
Innovex differentiates itself through its capital-light, high-return model:
CEO Anderson describes the approach as an "innovation flywheel – powered by deep customer relationships and disciplined execution" that enables organic expansion with differentiated products .
Product Mix (2025)
Source: Q4 2025 Earnings Materials
Through-Cycle Strategy
Management has consistently highlighted their counter-cyclical playbook:
Up-Cycle:
- Prioritize execution for market share capture
- Expand margins through strategic pricing
- Invest in inventory to support customers
Mid-Cycle:
- Maintain balance sheet strength
- Optimize margins and process improvement
- Continually prune non-core product lines
Down-Cycle:
- Invest while competitors struggle
- Unwind working capital to bolster liquidity
- Evaluate transformative opportunities
"Cycles are a feature, not a bug of the business model. We maintain a fortress balance sheet to allow us to profit from volatility."
Historical ROCE Performance
Source: Company 8-K
The FY 2025 ROCE of 10% reflects higher capital employed (avg. $1.04B) following acquisitions, with income from operations of $133M .
What to Watch Going Forward
- Q1 2026 Results vs. Guidance — Revenue $225-235M and EBITDA $38-42M guided below consensus; watch for execution
- Subsea Margin Improvement — Management expects margins to improve by year-end 2026 as Eldridge exit completes
- Eldridge Facility Exit (Q2 2026) — Full completion of the 80% footprint reduction should drive margin improvement
- International & Offshore Growth — Continued share gains in longer-cycle markets; Saudi Arabia facility now operational
- M&A Pipeline — $203M cash with no bank debt enables opportunistic acquisitions
Ask Fintool AI AgentRelated Resources
Last Updated: February 23, 2026 — Includes Q4 2025 8-K press release with Q1 2026 guidance.