NASDAQ$CHX

ChampionX Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

ChampionX reported solid results led by robust top-line growth.

ChampionX reported first quarter 2022 results with revenue of $866.0 million, a 26% increase year-over-year. Net income was $36.7 million and adjusted EBITDA was $124.8 million. The company delivered targeted annualized cost synergies of $125 million exiting the first quarter.

  • Revenue of $866.0 million, increased 26% year-over-year, and 5% sequentially
  • Net income attributable to ChampionX of $36.7 million; adjusted net income of $45.5 million
  • Adjusted EBITDA of $124.8 million, increased 32% year-over-year, and decreased 6% sequentially
  • ChampionX initiated a regular quarterly dividend of $0.075 per share of common stock.

Headline financials

Total Revenue

$866M

Previous: $685M+26.4%
EPS (adj)

$0.22

Previous: $0.08+175.0%
Adjusted EBITDA Margin

14.4%

Previous: 13.8%+4.3%
Income Before Taxes Margin

5.1%

Previous: 1.0%+410.0%
Adjusted EBITDA

$125M

Previous: $94.2M+32.4%
Capital Expenditures

$30.6M

Previous: $25.6M+19.6%
Free Cash Flow

-$61M

Previous: $64.6M-194.4%
Net Income

$36.7M

Previous: $5.8M+532.8%
Operating Income

$67.7M

Previous: $38.9M+74.2%
Gross Profit

$208M

Previous: $162M+27.9%
Cash & Equivalents

$177M

Previous: $260M-31.8%
Total Assets

$3.57B

Previous: $3.48B+2.8%
Stock-Based Comp

$4.73M

Previous: $6.44M-26.6%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$866M

Q1 2022+26.4%vs Q1 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

ChampionX · $832M total across 4 segments · Q1 2022

  • Production Chemical Tech
    $515M+24.9%
  • Production & Automation Tech
    $220M+32.1%
  • Drilling Technologies
    $56.9M+62.5%
  • Reservoir Chemical Tech
    $39.9M+33.5%

Forward guidance

For the second quarter, ChampionX expects revenue to be between $875 million and $905 million, with growth expected in each of its businesses. They expect adjusted EBITDA of $134 million to $142 million.

Tailwinds

  • Top-line momentum to continue
  • Volume improvements and price increase realization to offset raw material cost inflation
  • Sequential margin improvement
  • Growth expected in each of our businesses
  • Constructive demand tailwinds in our businesses that support a favorable multi-year outlook for our sector

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports

Historical avg

+0.7%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+3.6%

Avg return

30 days after

56%

19 / 34 earnings

Positive

+20.5%

Q3 2022

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025-2.2%-0.4%-2.3%
Q4 2024-0.6%+0.3%+1.2%
Q3 2024-1.8%-1.5%+5.5%
Q2 2024-2.0%-2.4%-8.0%
Q1 2024-0.3%-1.7%-6.5%
Q4 2023+10.4%+10.2%+19.1%
Q3 2023-8.4%-12.6%-13.2%
Q2 2023+0.2%+1.3%+3.6%
Q1 2023+0.1%+1.4%+2.7%
Q4 2022-11.8%-10.2%-0.0%
Q3 2022+20.5%+17.3%+27.5%
Q2 2022-1.8%+1.7%+12.9%
Q1 2022-1.6%
Q4 2021-4.5%
Q3 2021+2.8%
Q2 2021+6.8%
Q1 2021+4.8%
Q4 2020+10.1%
Q3 2020+5.5%
Q2 2020+3.5%
Q1 2020+5.9%
Q4 2019-11.7%
Q3 2019+0.5%
Q2 2019+2.4%
Q1 2019+1.5%
Q4 2016+0.5%
Q4 2018+0.5%
Q3 2017+0.7%
Q3 2018+0.7%
Q2 2017+4.9%
Q2 2018-1.2%
Q1 2017-3.2%
Q4 2017-3.2%
Q1 2018-3.2%

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