Dril-Quip(US:DRQ)2025-11-03 21:33Financial 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, yielding an adjusted EBITDA margin of 18%[4] - Total revenue for the three months ended September 30, 2025, was $240,000,000, representing a 7.8% increase from $224,234,000 in the previous quarter and a 58.1% increase from $151,817,000 in the same quarter last year[30] - Net income for the three months ended September 30, 2025, was $39,228,000, compared to $15,345,000 in the previous quarter and $82,586,000 in the same quarter last year, indicating a significant year-over-year decline[30] - Adjusted EBITDA for the three months ended September 30, 2025, was $43,613,000, down from $46,642,000 in the previous quarter but up from $27,411,000 in the same quarter last year[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 and $20,051,000 in the same quarter last year[36] Cash Flow and Capital Expenditures - Free cash flow generated during the quarter was $37 million, with net cash provided by operating activities amounting to $48 million[4][10] - The company reported a net cash provided by operating activities of $48,374,000 for the three months ended September 30, 2025, down from $59,210,000 in the previous quarter[36] - The company incurred capital expenditures of $11,852,000 during the three months ended September 30, 2025[36] Assets and Liabilities - Total assets as of September 30, 2025, were $1,253,910,000, an increase from $1,227,081,000 as of June 30, 2025[21] - Total liabilities decreased to $214,956,000 as of September 30, 2025, from $231,528,000 as of June 30, 2025[21] - Total stockholders' equity increased to $1,038,954,000 as of September 30, 2025, compared to $995,553,000 as of June 30, 2025[21] Market Position and Future Outlook - Innovex expects Q4 2025 revenue to be between $235 million and $245 million, with adjusted EBITDA projected at $42 million to $47 million[12] - The company signed an agreement to become the exclusive subsea wellhead provider for OneSubsea, aiming to enhance its market position[4] - The company continues to focus on expanding its market presence and enhancing product offerings to drive future growth[38] Operational Performance - On-time delivery for the subsea business improved to 76% during the quarter[3] - Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, was 13%[11] - The Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, was 13%, up from 12% for the previous twelve months[34] 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] - 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[38]