Overview

• US oilfield equipment provider's Q1 revenue fell 1% yr/yr, with a 13% sequential decline

• Adjusted EBITDA for Q1 beat analyst expectations, driven by favorable mix and facility exit benefits

• Company completed DIS acquisition and repurchased $14.1 mln of shares in Q1

Outlook

• Innovex expects Q2 2026 revenue of $235 mln to $245 mln

• Company sees Q2 2026 Adjusted EBITDA of $43 mln to $48 mln

• Company expects less favorable product mix and higher costs in Q2 due to Middle East conflict

Result Drivers

• OPERATIONAL EXECUTION - Co said strong operational execution, new product introductions, and cross-selling supported Q1 revenue and margin performance

• PRODUCT MIX & FACILITY EXIT - Adjusted EBITDA margin improved due to favorable product mix and earlier-than-anticipated benefits from the exit of the legacy Eldridge facility, per CFO Kendal Reed

• REGIONAL TRENDS - Strength in North America Land and increased activity in Mexico offset softer activity in other international markets; Middle East saw modest operational impact from conflict-related disruptions

Company press release: ID:nBw9SY4X5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Innovex International Inc is $33.00, about 19.2% above its May 1 closing price of $27.69

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.