Innovex Revenue Growth Reaccelerates After a Slow Quarter

The Tip Desk · November 1, 2026 · 3 min read

Third-quarter sales reached $265.1 million, up 8% from the prior quarter, as Adjusted EBITDA rose to $55.4 million.

Innovex International (INVX), the Houston-based oilfield-equipment company formed in 2024 from the merger of Dril-Quip and Innovex Downhole Solutions, reported third-quarter revenue of $265.1 million, up 8% from the second quarter after a 2% sequential increase in that prior period.

The acceleration marked a step-up from the second quarter’s modest sequential gain. Revenue was also 10% above the year-earlier $240.0 million.

Adjusted EBITDA rose to $55.4 million from $48.0 million, and Adjusted EBITDA margin expanded to 21% from 20%. Net income was $26.3 million, or $0.37 a share on a diluted basis, with net income margin holding at 10%.

Income from operations declined to $32.3 million from $33.8 million. Gain on sale of assets fell to $0.1 million from $9.9 million, and selling, general and administrative expenses rose to $44.4 million from $39.1 million. The company recorded a $1.8 million provision for legal settlement related to the Impulse litigation, compared with $2.8 million in the second quarter.

North America Onshore revenue increased to $145.7 million from $131.4 million, led by products at $98.6 million versus $86.3 million. International & Offshore revenue rose to $119.4 million from $113.5 million, with products at $91.8 million versus $81.1 million and rental down to $14.2 million from $17.3 million.

Chief Executive Adam Anderson said the U.S. Land business benefited from increased activity and modest share gains, with particular success in cementing tools. He said the company re-entered Venezuela as activity began to recover and that the capital-light model allows participation without significant fixed investment there. Despite regional disruptions related to the conflict in Iran, he said the Middle East business delivered a solid quarter.

Subsea awards continued. The company was awarded a $30+ million subsea wellhead contract with a major international operator in Indonesia and additional $9+ million of subsea work through the OneSubsea Alliance. Anderson said the company successfully began installation of its 20K psi wellhead system offshore in the United States, secured two follow-on subsea awards in Malaysia, a long-term subsea wellhead contract in Indonesia, and a fishing contract in the North Sea that displaces the incumbent supplier. He said the subsea backlog continued to grow and should translate into meaningful growth in 2027 and beyond.

Net cash provided by operating activities was $39.0 million, versus $37.0 million in the second quarter. Free cash flow was $32.4 million. Capital expenditures totaled $6.4 million, about 2.4% of revenue. Cash and cash equivalents declined to $188.8 million from $222.1 million after $63.3 million of payments on acquisitions, net of cash acquired, versus $12.0 million in the prior quarter. The company had no bank debt at quarter-end.

Chief Financial Officer Kendal Reed said the results demonstrate the capital-light model and that the company remains well positioned to drive long-term shareholder value. Anderson said that over the coming quarters the company expects direct awards to increase, bypassing local agents and expanding margins.

For the fourth quarter of 2026, Innovex expects total revenue of $260 million to $270 million and Adjusted EBITDA of $53 million to $58 million. The company said it is unable to reconcile Adjusted EBITDA guidance to the most directly comparable GAAP measure without unreasonable effort.

Income from operations for the twelve months ended September 30, 2026 was $70.1 million. Return on Capital Employed for that twelve-month period was 10%.