third quarter of 2026
Filed Oct 29, 2026Innovex reported third-quarter revenue of $ 265,054, Adjusted EBITDA of $ 55,400 and Free Cash Flow of $ 32,390, and guided fourth-quarter total revenue to $260 - $270 million and Adjusted EBITDA to $53 - $58 million.
Revenue increased 10% year-over-year and 8% quarter-over-quarter, while Adjusted EBITDA increased to $ 55,400 and its margin reached 21%. Net income of $ 26,286 was below $ 39,228 in the prior-year quarter, and income from operations was below both comparative quarters.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $265.1M | up 8% quarter-over-quarter | up 10% year-over-year |
| Cost of revenues, three months ended September 30, 2026GAAP | 169,177 | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | 44,432 | – | – |
| Gain on sale of assets, net, three months ended September 30, 2026GAAP | (89 ) | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | 16,547 | – | – |
| Acquisition and integration costs, three months ended September 30, 2026GAAP | 900 | – | – |
| Provision for legal settlement, three months ended September 30, 2026GAAP | 1,761 | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $32.33M | – | – |
| Interest (income) expense, net, three months ended September 30, 2026GAAP | (192 ) | – | – |
| Other (income) expense, net, three months ended September 30, 2026GAAP | (2,253 ) | – | – |
| Bargain purchase loss, three months ended September 30, 2026GAAP | — | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $34.77M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 8,485 | – | – |
| Net income, three months ended September 30, 2026GAAP | $26.29M | – | – |
| Net income (loss) % revenue, three months ended September 30, 2026GAAP | 10 % | – | – |
| Earnings per common share, basic, three months ended September 30, 2026GAAP | $ 0.38 | – | – |
| Earnings per common share, diluted, three months ended September 30, 2026GAAP | $ 0.37 | – | – |
| Weighted average common shares outstanding, basic, three months ended September 30, 2026GAAP | 69,956,631 | – | – |
| Weighted average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 70,652,583 | – | – |
| Comprehensive income, three months ended September 30, 2026GAAP | $30.2M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $55.4M | – | – |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 21 % | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $38.82M | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | (6,429 ) | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $32.39M | – | – |
| Net cash (provided by) used in investing activities, three months ended September 30, 2026GAAP | −$69.43M | – | – |
| Net cash used in financing activities, three months ended September 30, 2026GAAP | −$2.76M | – | – |
| Net change in cash and cash equivalents, three months ended September 30, 2026GAAP | −$33.29M | – | – |
| Income from operations, twelve months ended September 30, 2026GAAP | $70.07M | – | – |
| Return on Capital Employed, twelve months ended September 30, 2026non-GAAP | 10 % | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $188.8M | – | – |
| Total assets, September 30, 2026GAAP | $1.42B | – | – |
| Total liabilities, September 30, 2026GAAP | 297,895 | – | – |
| Total stockholders’ equity, September 30, 2026GAAP | 1,117,117 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Revenue - North America OnshoreU.S. Land benefited from increased activity and modest share gains, with particular success in cementing tools. | 145.7M | – | – |
| North America Onshore ProductsThe Company won meaningful awards with two large operators that expanded its market share position in cementing tools in the Lower 48. | 98.56M | – | – |
| North America Onshore ServicesNo separate driver reported. | 17.95M | – | – |
| North America Onshore RentalNo separate driver reported. | 29.16M | – | – |
| Revenue - International & OffshoreThe Company cited follow-on subsea awards in Malaysia, a long-term subsea wellhead contract in Indonesia, a North Sea fishing contract, Middle East qualification activity, and re-entry into Venezuela. | 119.4M | – | – |
| International & Offshore ProductsNo separate driver reported. | 91.80M | – | – |
| International & Offshore ServicesNo separate driver reported. | 13.34M | – | – |
| International & Offshore RentalNo separate driver reported. | 14.25M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- Revenue$260 - $270 million
- NoteAdjusted EBITDA of $53 - $58 million
Capital returns
- Dividend payment —
What drove it
- Revenue was reported as up 8% quarter-over-quarter and up 10% year-over-year.
- U.S. Land benefited from increased activity and modest share gains, particularly in cementing tools.
- Subsea backlog continued to grow during the quarter and management stated it should translate into meaningful growth in 2027 and beyond.
- The Company secured a $30+ million subsea wellhead contract in Indonesia and additional $9+ million subsea work through its OneSubsea Alliance.
- The Company began installation of its 20K psi wellhead system Offshore US.
- Management cited direct corporate purchasing activity with a major national oil company in the Middle East and expects direct awards to increase over coming quarters.
Concerns
- Net income was $ 26,286, compared with $ 39,228 in the prior-year quarter.
- Income from operations was $ 32,326, compared with $ 62,284 in the prior-year quarter and $ 33,782 in the prior quarter.
- Management stated that project timing and geopolitical uncertainty may continue to create quarter-to-quarter variability.
- Management cited regional disruptions related to the ongoing conflict in Iran.
- Provision for legal settlement was 1,761, and the legal settlement accrual was 53,368 at September 30, 2026.
- ROCE was 10 % for the twelve months ended September 30, 2026, compared with 13 % for the twelve months ended September 30, 2025.
What to watch
- Q4 2026 total revenue guidance of $260 - $270 million.
- Q4 2026 Adjusted EBITDA guidance of $53 - $58 million.
- Conversion of subsea backlog into growth in 2027 and beyond.
- Expansion of direct awards in the Middle East.
- Progress in Venezuela as activity recovers.
- The effects of project timing and geopolitical uncertainty on quarter-to-quarter results.
Balance sheet and cash flow
- Cash and cash equivalents were $ 188,763 at September 30, 2026.
- The Company reported no bank debt at quarter-end.
- Current portion of long-term debt and finance lease obligations was 5,873, and long-term debt and finance lease obligations were 18,273 at September 30, 2026.
- Net cash provided by operating activities was $ 38,819.
- Capital expenditures were (6,429 ).
- Payments on acquisitions, net of cash acquired were (63,347 ).
- Net cash used in investing activities was $ (69,433 ).
- Net cash used in financing activities was $ (2,762 ).
Analysis
Innovex delivered third-quarter revenue of $ 265,054, which the release characterized as up 8% quarter-over-quarter and up 10% year-over-year. Adjusted EBITDA was $ 55,400, compared with $ 47,997 in the prior quarter and $ 43,613 in the prior-year quarter, while Adjusted EBITDA Margin was 21 %, compared with 20 % and 18 %, respectively. Management attributed momentum to increased U.S. Land activity, modest share gains, and success in cementing tools, alongside growth in subsea backlog and international opportunities.
GAAP profitability was weaker than the prior-year comparison. Net income was $ 26,286 versus $ 39,228, diluted earnings per common share were $ 0.37 versus $ 0.57, and income from operations was $ 32,326 versus $ 62,284. The prior-year period included a gain on sale of assets, net of (40,918 ), versus (89 ) in the current quarter. Current-quarter costs also included a provision for legal settlement of 1,761, acquisition and integration costs of 900, legal defense costs of 28 within the Adjusted EBITDA reconciliation, and transaction costs of 555.
Cash generation remained positive but was below the prior-year quarter. Net cash provided by operating activities was $ 38,819, Free Cash Flow was $ 32,390, and capital expenditures were (6,429 ). Cash and cash equivalents ended at $ 188,763, while management reported no bank debt. Payments on acquisitions, net of cash acquired were (63,347 ), driving net cash used in investing activities of $ (69,433 ) and net change in cash and cash equivalents of $ (33,292 ).
The geographic revenue table showed Revenue - North America Onshore of 145,664 and Revenue - International & Offshore of 119,390. Management highlighted subsea awards in Malaysia and Indonesia, a North Sea fishing contract, Middle East technology qualifications, and re-entry into Venezuela. It also said direct awards in the Middle East are expected to increase, bypassing local agents and expanding margins.
For Q4 2026, Innovex expects $260 - $270 million in total revenue and Adjusted EBITDA of $53 - $58 million. The Company did not provide a reconciliation of Adjusted EBITDA guidance to the most directly comparable GAAP measure, citing the inability to forecast the timing and magnitude of reconciling items without unreasonable effort. Management identified project timing and geopolitical uncertainty as potential sources of quarter-to-quarter variability, while positioning subsea backlog as a contributor to meaningful growth in 2027 and beyond.
Management, verbatim
We delivered a strong third quarter as the investments we have made in our technology portfolio and global operating platform continue to drive profitable growth.
Adam Anderson, CEO
Our third quarter results demonstrate the strength of Innovex's capital-light business model and disciplined approach to capital allocation.
Kendal Reed, CFO
We remain focused on converting those advantages into sustainable, profitable growth while maintaining our discipline around execution and capital allocation.
Adam Anderson, CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Q4 2026 gross margin guidance was not reported.
- Q4 2026 operating expenses guidance was not reported.
- Q4 2026 tax rate guidance was not reported.
- A GAAP reconciliation for Q4 2026 Adjusted EBITDA guidance was not provided.
- Share repurchases were not reported.
- Dividend declaration amount, record date, and payment date were not reported.
- A prior outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.