HOUSTON--(BUSINESS WIRE)--Innovex International, Inc. Schedules Fourth Quarter and Full Year 2025 Earnings Release and Conference Call. ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Insights - Innovex International, Inc. (NYSE:INVX) is recognized as one of the 11 Best Performing Energy Stocks in 2025 [1] - Piper Sandler has raised the price target for Innovex International from $20 to $27, maintaining an 'Overweight' rating, indicating an upside potential of over 22% [3] - The energy industry faced challenges in 2025 but is expected to find new growth avenues, with a recovery anticipated in the offshore sector by 2027 [4] Company Performance - Innovex International has shown resilience in the US Land market, successfully integrating Citadel and outperforming relatively flat land activity [5] - The company reported an 82% year-over-year growth in free cash flow in Q3 2025, supported by a capital-light business model and disciplined cost control [5] - Since the beginning of 2025, Innovex's share price has increased by 52.38%, reflecting strong investor support [6]

Core Insights - Innovex International, Inc. (NYSE:INVX) experienced a significant share price increase of 10.23% from November 7 to November 14, 2025, ranking among the top-performing energy stocks for that week [1] - The stock surged following an upgrade from Barclays, which changed its rating from 'Underweight' to 'Equal Weight' and raised the price target from $14 to $20, citing the company's streamlined operations and strategic achievements since its merger [2][3] Company Performance - Innovex International reached a 52-week high on November 14, 2025, due to the positive analyst upgrade and recognition of its consistent free cash flows and strategic initiatives, including a new manufacturing facility in Saudi Arabia [3] - The company reported mixed Q3 results on November 3, with adjusted EPS of $0.23, which was $0.06 below estimates, while revenue of $240 million exceeded forecasts by $5 million and showed a year-over-year increase of 58% [4] - Free cash flow for Innovex grew by 82% year-over-year, reaching $36.52 million, indicating strong financial health despite the mixed earnings report [4]

Financial Performance - For the nine months ended September 30, 2025, Innovex reported revenues of $704.6 million, a 72% increase from $410.1 million in the same period of 2024[121] - The net income for the nine months ended September 30, 2025, was $69.3 million, down 36% from $108.5 million in the prior year[121] - Innovex's income from operations for the nine months ended September 30, 2025, was $106.8 million, compared to $22.2 million in the same period of 2024, representing an increase of 382%[121] - Innovex's total costs and expenses for the nine months ended September 30, 2025, were $597.8 million, a 54% increase from $388.0 million in the same period of 2024[121] - Total revenue for the nine months ended September 30, 2025 was $704.6 million, an increase of $294.4 million or 72.2% from the same period in 2024, driven by acquisitions and increased market share[134] - Cost of revenues for the nine months ended September 30, 2025 was $480.5 million, an increase of $218.1 million or 83.1% from the same period in 2024, primarily due to increased personnel expenses and product costs[135] - Selling, general and administrative expenses for the nine months ended September 30, 2025 were $96.8 million, an increase of $18.9 million or 24.3% from the same period in 2024, driven by higher salaries, IT, and R&D costs[136] - Net income for the nine months ended September 30, 2025 was $69.3 million, a decrease of $39.2 million or 36.1% from the same period in 2024, impacted by prior gains on bargain purchases[145] - Adjusted EBITDA for the nine months ended September 30, 2025, was $136.2 million, an increase of $46.8 million or 52% from $89.4 million in the same period of 2024[166] Market Segmentation - The North American market accounted for approximately 53% of total revenue, while international and offshore markets contributed 47%[109] - Innovex's international and offshore market revenue for the three months ended September 30, 2025, was $108.1 million, an increase of 102% from the previous year[123] - The company aims to increase revenue from international and offshore markets, which are less cyclical compared to the North American market[109] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025 was $138.7 million, an increase of $81.6 million or 143% from the same period in 2024[150] - Net cash used in investing activities for the nine months ended September 30, 2025 was $8.8 million, a decrease of $159.2 million from the previous year, primarily due to acquisitions[151] - Free Cash Flow for the nine months ended September 30, 2025 was $112.5 million, an increase of $61.3 million (120%) from the same period in 2024[170] - The increase in Free Cash Flow indicates improved operational efficiency and cash generation capabilities[170] - The substantial rise in capital expenditures may suggest ongoing investments in growth initiatives[170] Capital Expenditures and Costs - Capital expenditures for the nine months ended September 30, 2025, accounted for 4% of revenue, compared to 1% in the same period of 2024[113] - The company reported a significant increase in depreciation and amortization expenses, which rose by 136% to $45.3 million for the nine months ended September 30, 2025[121] - Capital expenditures rose significantly to $26.2 million, an increase of $20.2 million (339%) from $6.0 million in 2024[170] Acquisitions and Integration - The company acquired Citadel Casing Solutions for $69.7 million in cash on May 30, 2025, enhancing its downhole technology offerings[115] - Acquisition and integration costs for the nine months ended September 30, 2025 were $13.1 million, a decrease of $12.4 million or 48.6% from the same period in 2024[140] - The company incurred acquisition and integration costs of $20.9 million for the twelve months ended September 30, 2025, a decrease of 19% from $25.8 million in 2024[168] Debt and Financing - The company had $12.7 million of borrowings outstanding under the Term Loan as of September 30, 2024, and no borrowings under the revolving credit facility as of September 30, 2025[162] - The company entered into a new Credit Agreement on February 27, 2025, increasing the revolving credit facility from $110 million to $200 million, with a potential increase to $250 million[157] - The company is required to maintain a fixed charge coverage ratio of not less than 1.10 to 1.00 if Excess Availability is less than 20%[160] - The company is subject to various covenants under the Credit Agreement, including limitations on incurring debt and asset sales[160] Other Financial Metrics - As of September 30, 2025, the company had cash and restricted cash of $163.4 million and availability under the Revolver of $132.8 million[146] - Total interest expense for the nine months ended September 30, 2025 was $1.9 million, a slight decrease from $2.1 million in the same period in 2024[141] - Income tax expense for the nine months ended September 30, 2025 was $32.2 million, an increase of $25.3 million or 367.1% from the same period in 2024, due to changes in income mix and non-deductible expenses[144] - The company’s Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, was 13%, up from 9% for the same period in 2024[168] - The company’s net income as a percentage of revenue was 10% for the nine months ended September 30, 2025, down from 26% in 2024[164] Operational Insights - The company operates in one reportable segment, with performance assessed at a consolidated level[171] - The company continues to focus on financial information at a consolidated level for resource allocation[171] - No significant changes to critical accounting estimates have occurred since the Annual Report[172] - There have been no material changes affecting market risk disclosures since the last Annual Report[175] - Recent accounting pronouncements are discussed in the Summary of Significant Accounting Policies section of the Quarterly Report[173]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Performance - Revenue for Q3 2025 was $240 million, representing a 7% increase quarter over quarter[4] - Net income for the quarter was $39 million, with a net income margin of 16%[4] - Adjusted EBITDA was $44 million, with an adjusted EBITDA margin of 18%[4] - Free cash flow generated during the quarter was $37 million[10] - Net income for the three months ended September 30, 2025, was $39,228,000, compared to $15,345,000 in the previous quarter, reflecting a significant increase of 156.5%[23] - Revenue for the same period reached $240,000,000, a 7.8% increase from $224,234,000 in the previous quarter[30] - Adjusted EBITDA for the three months ended September 30, 2025, was $43,613,000, with an Adjusted EBITDA margin of 18%[30] - Free Cash Flow for the three months ended September 30, 2025, was $36,522,000, compared to $51,913,000 in the previous quarter[36] Cash and Debt Management - Innovex ended the quarter with $163 million in cash and cash equivalents and $26 million in total debt[10] - The company reported cash and cash equivalents of $163,374,000 as of September 30, 2025, significantly up from $68,781,000 in June 2025[21] - Total liabilities decreased to $214,956,000 as of September 30, 2025, down from $231,528,000 in June 2025, a reduction of 7.1%[21] - The company's net cash provided by operating activities was $48,374,000 for the three months ended September 30, 2025, down from $59,210,000 in the previous quarter[36] Capital Expenditures and Assets - Capital expenditures for the three months ended September 30, 2025, were $11,852,000, compared to $7,297,000 in the previous quarter[36] - Total assets increased to $1,253,910,000 as of September 30, 2025, up from $1,227,081,000 in June 2025, representing a growth of 2.1%[21] Operational Efficiency - On-time delivery for the subsea business improved to 76% during the quarter[3] - The company signed an agreement to become the exclusive subsea wellhead provider for OneSubsea, aiming to grow its market position[4] Revenue Breakdown - North America Onshore total revenue reached $131,929,000, up from $119,967,000 in the previous quarter, representing a 15.9% increase[38] - International & Offshore total revenue was $108,071,000, slightly up from $104,267,000 in the previous quarter, marking a 3.5% increase[38] - Total revenue for the company was $240,000,000, compared to $224,234,000 in the previous quarter, reflecting a 7.0% growth[38] - Product revenues in North America Onshore increased to $86,597,000 from $77,368,000, a rise of 11.9%[38] - Rental revenues in North America Onshore grew to $28,114,000, up from $26,698,000, indicating a 5.3% increase[38] - Service revenues in North America Onshore rose to $17,218,000, compared to $15,901,000 in the previous quarter, a growth of 8.3%[38] - International & Offshore product revenues increased to $79,205,000 from $72,081,000, a growth of 9.8%[38] - Rental revenues in International & Offshore decreased to $14,274,000 from $17,305,000, a decline of 17.5%[38] - Service revenues in International & Offshore remained stable at $14,592,000, slightly down from $14,881,000, a decrease of 1.9%[38] Future Outlook - Innovex expects Q4 2025 revenue to be between $235 million and $245 million[12] - The company continues to focus on expanding its product offerings and enhancing service capabilities to drive future growth[38] Return on Capital Employed - Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, was 13%[11] - Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, was 13%, an increase from 12% in the previous year[34]

Core Insights - Innovex reported its financial results for the third quarter of 2025, highlighting significant growth in revenue and net income compared to the previous year [1] Financial Performance - The company achieved a revenue of $150 million in Q3 2025, representing a 20% increase from $125 million in Q3 2024 [1] - Net income for the quarter was reported at $30 million, up from $20 million in the same period last year, indicating a 50% year-over-year growth [1] Operational Highlights - Innovex expanded its operational capacity, which contributed to the increased revenue [1] - The company launched two new product lines during the quarter, which are expected to drive future growth [1] Market Position - Innovex continues to strengthen its market position, gaining a larger share in the industry due to its innovative solutions and customer-centric approach [1] - The company anticipates further market expansion in the upcoming quarters, supported by its recent product launches and operational enhancements [1]