NASDAQ$CHX
ChampionX Corporation · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
ChampionX reported first quarter 2023 results with revenue increase and strong free cash flow.
ChampionX reported a 10% year-over-year increase in revenue to $948.3 million for Q1 2023. Net income attributable to ChampionX increased by 73% year-over-year to $63.5 million. The company generated $92.4 million in cash from operating activities and $69.4 million in free cash flow. ChampionX repurchased $40 million of common stock during the quarter.
- Revenue increased 10% year-over-year to $948.3 million.
- Net income attributable to ChampionX increased 73% year-over-year to $63.5 million.
- Adjusted EBITDA increased 41% year-over-year to $175.6 million.
- Generated $92.4 million in cash from operating activities and $69.4 million in free cash flow.
Headline financials
Revenue & EPS history
ChampionX · Revenue · Quarterly
$948M
Revenue by segment
ChampionX · $926M total across 4 segments · Q1 2023
- Production Chemical Tech$592M+14.9%63.9%
- Production & Automation Tech$252M+14.2%27.2%
- Drilling Technologies$56.7M-0.3%6.1%
- Reservoir Chemical Tech$25.8M-35.3%2.8%
Forward guidance
For the second quarter of 2023, ChampionX expects revenue between $970 million and $1.0 billion and adjusted EBITDA of $182 million to $190 million. The company anticipates strong cash generation for 2023, converting at least 50% of adjusted EBITDA to free cash flow and remains committed to returning at least 60% of free cash flow to shareholders.
Tailwinds
- Expects a seasonal rebound in international businesses.
- Anticipates continued positive momentum in North American businesses.
- Expects revenue to be between $970 million and $1.0 billion in Q2.
- Expects adjusted EBITDA of $182 million to $190 million in Q2.
- Expects to deliver an adjusted EBITDA margin exit rate of greater than 20% in Q4 2023.
Headwinds
- Broader macro environment remains uneven.
- Typical seasonal decline in international operations.
- Revenue declined 4% sequentially in Q1.
- Net income attributable to ChampionX decreased 6% sequentially.
- Adjusted EBITDA declined 2% sequentially.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 12 quarterly earnings reports · overlaid with Q1 2023
+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
| Quarter | Report date | Reaction (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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