Dril-Quip(US:DRQ)2025-08-05 20:34Financial Performance - Revenue for Q2 2025 was $224 million, a decrease of 7% quarter over quarter[4] - Net income for Q2 2025 was $15 million, with a net income margin of 7%[4] - Adjusted EBITDA for Q2 2025 was $47 million, resulting in an Adjusted EBITDA margin of 21%[4] - Total revenue for the three months ended June 30, 2025, was $224,234,000, a decrease of 6.5% from $240,415,000 in the previous quarter and an increase of 72.2% from $130,302,000 in the same quarter last year[34] - Net income for the same period was $15,345,000, representing a 4% increase from $14,757,000 in the previous quarter and a 61.5% increase from $9,534,000 in the same quarter last year[21] - Adjusted EBITDA for the three months ended June 30, 2025, was $46,642,000, up from $45,921,000 in the previous quarter and significantly higher than $29,518,000 in the same quarter last year[28] - Free Cash Flow for the three months ended June 30, 2025, was $51,913,000, compared to $24,034,000 in the previous quarter and $20,893,000 in the same quarter last year[32] - The company reported an Adjusted EBITDA Margin of 21% for the three months ended June 30, 2025, compared to 19% in the previous quarter and 23% in the same quarter last year[28] Cash Flow and Assets - Free cash flow generated in Q2 2025 was $52 million, reflecting the company's capital-light business model[7] - Total current assets increased to $670,105,000 as of June 30, 2025, from $632,638,000 in the previous quarter and $294,982,000 in the same quarter last year[19] - Cash and cash equivalents increased to $68,781,000 as of June 30, 2025, from $68,116,000 in the previous quarter and significantly up from $10,356,000 in the same quarter last year[19] - The company maintained a net cash balance sheet post-acquisition, with $69 million in cash and cash equivalents[7] Acquisitions and Share Repurchase - The acquisition of Citadel Casing Solutions was completed for $70 million, which is expected to be 8% accretive to EPS[3] - The company made payments on acquisitions totaling $63,256,000 during the three months ended June 30, 2025[21] - The company repurchased 624,531 shares at an average price of $14.89 per share as of June 30, 2025[4] Future Outlook - For Q3 2025, Innovex expects total revenue to be between $230 million and $240 million[10] Operational Metrics - Return on Capital Employed (ROCE) for the twelve months ended June 30, 2025, was 13%[9] - ROCE for the twelve months ended June 30, 2025, was 13%, up from 12% in the previous period and down from 17% in the same period last year[31] - Innovex's US land revenue remained flat despite a 7% decline in rig count, indicating resilience in market share[6] - Total liabilities increased to $231,528,000 as of June 30, 2025, compared to $217,627,000 in the previous quarter and $119,132,000 in the same quarter last year[19]