Core Insights - Innovex International (NYSE: INVX) has seen its stock price increase by 31% this year, significantly outperforming both the S&P 500 and the Energy Select Sector SPDR Fund ETF (XLE) [1] Company Performance - The stock performance of Innovex International is highlighted as a strong indicator of its market position, with a notable gain compared to major indices [1]

Core Insights - Innovex International (NYSE: INVX) has seen its stock price increase by 31% this year, significantly outperforming both the S&P 500 and the Energy Select Sector SPDR Fund ETF (XLE) [1] Company Performance - The stock performance of Innovex International is highlighted as a strong indicator of its market position, with a notable gain compared to broader market indices [1] Market Context - The performance of Innovex International is set against the backdrop of the overall market, where both the S&P 500 and the Energy Select Sector SPDR Fund ETF have also experienced gains, although at a lower rate than Innovex [1]

Core Insights - Innovex International, Inc. (NYSE:INVX) experienced a share price increase of 3.13% from September 25 to October 2, 2025, ranking among the top gaining energy stocks for the week [1] Group 1: Company Developments - Innovex International, Inc. was established in 2024 following the merger of Dril-Quip and Innovex Downhole Solutions, focusing on designing and manufacturing offshore drilling and production equipment [2] - The company completed the sale of its Dril-Quip Eldridge facility for $90 million, resulting in estimated net proceeds of approximately $86.5 million [2] - CEO Adam Anderson highlighted that the sale is a significant milestone in the company's transformation, enhancing its net cash position and representing nearly 7% of Innovex's current market cap [3] Group 2: Operational Changes - The exit from the Eldridge facility will reduce the square footage dedicated to Houston Subsea operations by nearly 80%, which is expected to lower costs, simplify operations, and drive efficiencies [3] - The company has been named the exclusive manufacturer and supplier of wellhead systems for OneSubsea, providing an additional operational boost [3]

Core Insights - Innovex has successfully completed the sale of the Dril-Quip Houston Eldridge Facility for a total sale price of $90 million [1] Company Summary - The sale of the facility marks a significant transaction for Innovex, indicating a strategic move in its operational focus [1]

Company Overview - Innovex International, Inc. is a Houston-based provider of engineered products for the global oil and gas exploration and production industry, with a significant merger with Dril-Quip expected in September 2024 [2] - The company serves over 1,300 customers in more than 70 countries, with 55% of revenue from U.S. and Canada onshore markets and 45% from international/offshore markets [2] - Projected revenue for 2024 is approximately $660 million, derived from products, services, and rentals, with a capital-light business model that maintains high margins and recurring free cash flow [2] Innovation and Growth Strategy - Innovex emphasizes a "No Barriers" culture that fosters customer collaboration, leading to the development of highly engineered consumable products that generate repeat sales [3] - Approximately 48% of revenue is derived from internally developed products, highlighting the company's focus on innovation [3] - The management team, led by CEO Adam Anderson, has achieved a 19% annual revenue growth over seven years through disciplined capital allocation and targeted acquisitions [3] Merger and Market Position - The Dril-Quip merger is expected to enhance Innovex's offshore presence, create cross-selling opportunities, and generate cost synergies, including $95 million from selling Dril-Quip's Eldridge facility [4] - Despite facing near-term challenges such as North American market softness and integration costs, subsea deliveries in the latter half of 2025 are anticipated to support recovery [4] - Innovex's earnings and free cash flow are expected to normalize over time, with potential for P/E multiple expansion from the current ~7x towards peer levels of 10–16x [4] Investment Thesis - The bullish thesis on Innovex highlights its capital-light model, recurring consumables revenue, and international expansion through the Dril-Quip merger, positioning it favorably in the market [5]

Financial Performance - For the six months ended June 30, 2025, Innovex's revenue was approximately $222.5 million, with net income at about $13.3 million, representing 6% of revenue [113]. - Revenues for the three months ended June 30, 2025, were $224.2 million, a 72% increase from $130.3 million in the same period of 2024 [137]. - Net income for the three months ended June 30, 2025, was $15.3 million, a 61% increase from $9.5 million in the same period of 2024 [150]. - Net income for the six months ended June 30, 2025, was $30.1 million, an increase of $4.1 million from the prior year [162]. - Free Cash Flow for the six months ended June 30, 2025, was $75.9 million, an increase of 144% from $31.1 million in the prior year [186]. - Adjusted EBITDA for the six months ended June 30, 2025, was $92.6 million, up $30.6 million or 49% from $62.0 million in the same period of 2024 [182]. - Adjusted EBITDA for the six months ended June 30, 2025, was approximately 20% of revenue, down from 24% in the same period of 2024 [113]. - Adjusted EBITDA Margin decreased to 20% for the six months ended June 30, 2025, from 24% in the same period of 2024 [180]. - ROCE for the twelve months ended June 30, 2025, was 13%, down from 17% in the previous year [184]. Market and Revenue Breakdown - The U.S. and Canadian onshore market accounted for approximately 52% of total revenue, while international and offshore markets contributed 48% [109]. - The company’s NAM market revenue for the six months ended June 30, 2025, was $240.5 million, an increase of $80.4 million from the same period in 2024 [151]. - Global upstream energy spending is expected to remain flat through 2027, with approximately 32,000 wells projected to be drilled annually [123]. Costs and Expenses - Cost of revenues for the three months ended June 30, 2025, was $152.5 million, an 81% increase from $84.3 million in the same period of 2024 [137]. - Selling, general and administrative expenses for the three months ended June 30, 2025, were $28.8 million, a 55% increase from $18.6 million in the same period of 2024 [141]. - Acquisition and integration costs for the three months ended June 30, 2025, were $5.1 million, a 16% increase from $4.4 million in the same period of 2024 [145]. - Total depreciation and amortization expense for the six months ended June 30, 2025, was $29.9 million, an increase of 163% from $11.4 million in the same period of 2024 [155]. - Income tax expense for the three months ended June 30, 2025, was $6.9 million, a 59% increase from $4.3 million in the same period of 2024 [149]. - Income tax expense for the six months ended June 30, 2025, was $13.5 million, an increase of $4.1 million from the prior year, driven by changes in income mix and non-deductible expenses [161]. - Interest expense decreased by 6% to $1.3 million for the six months ended June 30, 2025, compared to $1.3 million in 2024 [180]. - Long-lived asset impairment expense for the six months ended June 30, 2025, was $3.4 million, a decrease of $0.1 million from the prior year [156]. Acquisitions and Mergers - The company completed the acquisition of Citadel Casing Solutions, LLC for $69.7 million in cash, enhancing its portfolio of downhole technologies [118]. - The company acquired the remaining 80% equity interest in DWS on November 29, 2024, and has fully consolidated DWS's earnings thereafter [134]. - The company has a disciplined acquisition strategy, having identified numerous high-quality acquisition targets to drive growth [111]. - Innovex's recent merger with Legacy Innovex was completed on September 6, 2024, resulting in a new corporate structure and name change [115]. - Acquisition and integration costs for the six months ended June 30, 2025, totaled $9.4 million, an 81% increase from $5.2 million in 2024 [181]. Cash Flow and Financial Flexibility - Net cash provided by operating activities for the six months ended June 30, 2025, was $90.3 million, an increase of 155% from the prior year [168]. - Net cash used in investing activities for the six months ended June 30, 2025, was $86.3 million, an increase of 2503% from the prior year, primarily due to acquisitions [168]. - Total indebtedness was $40.7 million as of June 30, 2025, with cash and restricted cash of $68.8 million and availability under the Revolver of $110.4 million [163]. - The effective interest rate on the Revolver for the six months ended June 30, 2025, was approximately 6.94%, down from 9.69% in the prior year [165]. - The company has established a $200 million senior secured revolving credit facility, maturing on February 27, 2030, to enhance financial flexibility [120]. - The Company had $22.2 million of minimum non-cancelable lease obligations for the twelve months following June 30, 2025 [165]. Product and Value Proposition - Innovex's products are designed to save customers time and reduce costs, creating a "Big Impact, Small Ticket" value proposition [108].

Exhibit 99.1 Innovex Announces Second Quarter 2025 Results HOUSTON, August 5, 2025 – Innovex International, Inc. (NYSE: INVX) ("Innovex," the "Company" or "we") today announced financial and operating results for the second quarter of 2025. Second Quarter Highlights Adam Anderson, CEO commented, "This quarter demonstrates the strength of our diversified portfolio and industrial platform. Although revenues in the quarter were slightly below our expectations, we are pleased with our profitability and Free Cas ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to __________________ Commission File Number: 001-13439 INNOVEX INTERNATIONAL, INC. (Exact Name of Registrant as Specified in its Charter) De ...

Agreement Details - The agreement is made between INNOVEX INTERNATIONAL, INC. and BIG ACQUISITIONS LLC as of April 21, 2025[2]. - Purchaser agrees to purchase the Property from Seller for a specified Price, subject to adjustments[7]. - Purchaser must deposit Earnest Money within three business days after the Effective Date, amounting to $100.00 in addition to the Earnest Money[8]. - The Earnest Money is set at $1,000,000.00[107]. - The Closing Date is defined as fifteen (15) days after the Diligence Date[106]. - The purchase price for the property is set at $95 million[116]. Property Investigations and Conditions - Purchaser has the right to conduct investigations and evaluations of the Property until the Diligence Date[10]. - Purchaser acknowledges that the Property is being taken "as-is," with all faults and conditions, limiting Seller's liability[41]. - Seller disclaims any representations regarding the operational performance or income potential of the Property, emphasizing the need for Purchaser's own assessments[41]. - Seller must maintain operations of the Property in compliance with all laws and provide regular upkeep and maintenance until the Closing Date[53]. - The property is conveyed "as is," with no warranties regarding its condition or suitability for specific purposes[137]. Seller Representations and Obligations - Seller shall convey fee simple title to the Real Property via a recordable special warranty deed, subject to Permitted Title Exceptions[15]. - Seller represents that there are no persons in possession of the Real Property, except for Seller[20]. - Seller is duly organized and authorized to transact business in the state where the Real Property is located[21]. - Seller's execution of the Agreement does not breach any other agreements or violate any laws[22]. - Seller has not received any written notice of violations regarding the Real Property, ensuring compliance with fire, health, safety, and environmental laws[24]. - There are no existing or pending condemnations or limitations affecting the use of the Real Property[25]. - Seller confirms that all Licenses and Warranties are in full force and effect, with no defaults reported[27]. - No judgments or decrees affecting the Property are unpaid or unsatisfied, ensuring no legal impediments to the transaction[28]. - Seller and its controlling persons are not included on any Government List, indicating compliance with regulatory standards[30]. - The Seller must provide copies of quarterly operating statements for the year to date and the prior three calendar years[132]. Purchaser Rights and Obligations - Purchaser can terminate the Agreement if they decide not to pursue the acquisition by notifying Seller before 11:59 p.m. on the Diligence Date[14]. - The Purchaser's obligations are contingent upon the Seller's full and timely performance of all material obligations under the agreement, ensuring no defaults exist[47]. - Purchaser has conducted or will conduct necessary investigations of the Property prior to closing, ensuring due diligence[40]. - Purchaser must provide written notice of any material misrepresentation within two business days of discovery, ensuring timely communication[32]. - Purchaser has the right to terminate the agreement if any conditions precedent are not satisfied prior to the Closing Date[49]. - Purchaser may assign rights to an affiliated entity without Seller's consent, provided written notice is given[74]. Termination and Default Provisions - Purchaser can terminate the Agreement if property damage exceeds $750,000 due to fire or other casualties[69]. - If damage is $750,000 or less, Purchaser cannot terminate but will receive a credit against the Price equal to the insurance deductible[69]. - Purchaser can terminate the Agreement if any condemnation proceedings are initiated prior to the Closing Date[71]. - Seller must notify Purchaser of any condemnation proceedings within 48 hours of receipt of such notification[71]. - If Purchaser defaults and does not cure within 5 days, Seller can retain the Earnest Money as the sole remedy[72]. - If Seller defaults, Purchaser can either terminate the Agreement and receive Earnest Money back or compel Seller to perform[72]. Financial and Tax Responsibilities - Real estate taxes and assessments for the year of Closing will be prorated, with the Seller responsible for taxes up to the Closing Date and the Purchaser for taxes thereafter[65]. - The purchaser acknowledges the assumption of all ad valorem taxes for the current and subsequent years[138]. Escrow and Indemnification - Escrowee will hold and disburse the Earnest Money according to the terms outlined in the Agreement[96]. - Seller and Purchaser will share litigation costs related to the Earnest Money, with the losing party bearing all expenses[102]. - The Agreement specifies that all costs incurred by Escrowee in performing its duties will be split equally between Seller and Purchaser[102]. - The parties agree to indemnify Escrowee against liabilities incurred in connection with the Agreement, except for gross negligence[103]. - The Agreement outlines the responsibilities of Escrowee, which are limited to acting as a depository for the Earnest Money[98]. Legal and Regulatory Compliance - The Agreement is governed by the laws of the state where the Real Property is located[79]. - The Agreement includes provisions for statutory disclosures required by Texas law[92]. - The definition of "Force Majeure" includes various events such as natural disasters and pandemics, which may affect transaction timelines[35]. Property Description - The Building contains approximately 1,158,368 square feet of rentable space[106]. - The property includes all rights, title, and interest in real property, appurtenances, licenses, warranties, and tangible personal property[112]. - The property is subject to various easement agreements and governmental agency agreements related to its development and operation[130]. - The agreement includes provisions for permitted title exceptions as disclosed in the title commitment[116]. - The seller's broker is KBC Advisors, while the purchaser's broker is CBRE[113]. - The agreement outlines the responsibilities of both parties regarding property evaluations and financing arrangements[112].

Mergers and Acquisitions - The merger between Innovex Downhole Solutions, Inc. and Dril-Quip, Inc. was completed on September 6, 2024, resulting in Legacy Innovex becoming a wholly owned subsidiary of Dril-Quip, with a conversion ratio of 2.0125 shares of Company Common Stock for each share of Legacy Innovex Common Stock [22]. - Innovex acquired 80% of Downhole Well Solutions, LLC for an aggregate purchase price of $75.1 million in cash and 1,918,558 shares of Company Common Stock on November 29, 2024 [23]. - Innovex maintains a disciplined acquisition strategy, viewing acquisitions as a core competency, as evidenced by the merger with Dril-Quip and the acquisition of DWS [32]. Market Overview - The total addressable market (TAM) for Innovex's products in 2023 was estimated at $4.5 billion, which increased to $8.3 billion in 2024 post-merger, with $3.6 billion in NAM and $4.7 billion in International & Offshore markets [25]. - In 2024, approximately 55% of Innovex's revenue came from the NAM market, while 45% was generated from International and Offshore markets [26]. - Pro forma revenue for Innovex in the NAM market in 2024 was approximately $491 million, implying a market share of 13% [41]. - In the International and Offshore markets, Innovex generated approximately $548 million in revenue in 2024, resulting in a market share of approximately 12% [43]. Revenue Sources - Innovex's revenue sources in 2024 included approximately 80% from product sales, 8% from rental tools, and 12% from services [35]. Research and Development - The company has a strong focus on research and development, with an engineering team dedicated to ongoing product enhancements and new technology development [44]. - As of December 31, 2024, Innovex held approximately 829 U.S. and international patents, covering its inventions related to products and technologies [51]. Customer Base - As of December 31, 2024, the company had 1,376 unique active customers, a decrease from 1,485 in 2023, with the top ten accounts contributing 35% of revenue [58]. - The company’s top customers include major national and international oil companies, indicating a strong market position [58]. Operations and Workforce - The company operates manufacturing facilities in multiple locations, including Texas, Scotland, Singapore, Brazil, Canada, Vietnam, and Saudi Arabia, to support global operations [60]. - The company had a total of 2,683 employees as of December 31, 2024, with a strong focus on employee health, safety, and well-being [67]. - The company is focused on innovation and attracting top talent, promoting a culture that supports employee engagement and development [66]. Regulatory Environment - The company is subject to various environmental regulations, which may increase operational costs and affect financial performance [69]. - The company is committed to maintaining compliance with air emissions regulations and holds all necessary permits for operations [73]. - The company anticipates that regulatory measures related to climate change could impact demand and prices for fossil fuels [76]. - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act (IRA) contain billions in incentives for renewable energy and clean technologies, potentially impacting demand for oil and natural gas [77]. - The IRA imposes a methane emissions charge starting at $900 per ton in 2024, increasing to $1,500 per ton by 2026, which could raise customers' operating costs [77]. - The Bureau of Ocean Energy Management estimates that $6.9 billion in new financial assurance will be required from offshore leaseholders under new regulations [85]. - Regulatory changes may lead to increased costs for customers, potentially reducing their demand for products and services [79]. - Increased regulation on hydraulic fracturing could adversely affect demand for the company's products and services [84]. Financial Risks - The company is substantially dependent on the oil and natural gas industry, with exploration and production activities directly affected by oil and gas price trends [64]. - The company is exposed to commodity price risk due to fluctuations in oil and natural gas prices, impacting drilling and completion activity levels [358]. - As of December 31, 2024, the company had variable rate debt of $11.4 million under the Term Loan and $14.0 million under the Revolver, exposing it to interest rate risk [360]. - Environmental activism and divestment initiatives could limit access to capital for companies engaged in fossil fuel extraction [80]. - The company relies on customer indemnifications and third-party insurance as part of its risk mitigation strategy, which may not always be sufficient [89]. - The company does not engage in material hedging transactions, leaving it exposed to market risks inherent in its operations [91].