Innovex International, Inc. (NYSE: INVX) reported fourth‑quarter 2025 revenue of $274 million, a 14% sequential increase, and net income of $13.97 million. Earnings per share were $0.20, falling 31% short of the consensus estimate of $0.29. The company’s adjusted EBITDA margin was 19% for the quarter, and its free cash flow reached $43 million, leaving $203 million in cash and no bank debt at year‑end.
Revenue growth was driven by strong demand in the U.S. land, offshore, and international markets, as well as higher‑than‑expected subsea deliveries. The company also benefited from revenue synergies generated by the recent acquisitions of DWS and Citadel, and from the launch of new products such as SubZERO centralizers and XPak expandable liner hangers. Compared with Q4 2024, when revenue was $250.69 million and EPS was $0.47, the current quarter shows a solid acceleration in top‑line performance.
Margin compression in Q4 was largely attributable to the low‑margin subsea projects that weighed on corporate profitability, despite the company’s disciplined cost control. Adjusted EBITDA margin of 19% for the quarter and a 10% return on capital employed for the full year reflect this pressure. Nevertheless, Innovex converted approximately 83% of its adjusted EBITDA into free cash flow, underscoring the strength of its capital‑light business model.
For the first quarter of 2026, Innovex guided revenue to $225 million–$235 million and adjusted EBITDA to $38 million–$42 million. The guidance signals a modest sequential decline driven by lower subsea deliveries, but management remains confident in its ability to maintain cost discipline and generate cash flow.
The company’s recent acquisitions have expanded its product portfolio and market reach. Citadel was acquired for $70 million on May 30 2025, and DWS was completed on December 3 2024. These deals are expected to deliver ongoing revenue synergies and broaden Innovex’s presence in key segments.
"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. Despite a softer macro environment, we continued to grow market share across the U.S. Land, Offshore, and International markets while also generating substantial Free Cash Flow," said CEO Adam Anderson. "Our capital‑light business model and disciplined cost control continued to drive strong Free Cash Flow in the fourth quarter and full year 2025. 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 that align with our 'small ticket, big impact' strategy," added CFO Kendal Reed.
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