NASDAQ$CHX

ChampionX Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

ChampionX reported strong Q2 2022 results with revenue growth and adjusted EBITDA increase.

ChampionX reported a strong second quarter of 2022, marked by revenue of $932.6 million, a 24% increase year-over-year, and adjusted EBITDA of $138.3 million, a 31% increase year-over-year. The company highlighted robust top-line growth across its portfolio and a commitment to returning capital to shareholders.

  • Revenue increased by 24% year-over-year to $932.6 million, driven by strong demand in international and North American markets.
  • Adjusted EBITDA increased by 31% year-over-year to $138.3 million, with sequential margin expansion due to increased pricing realization.
  • Free cash flow was $53.5 million, with over 60% returned to shareholders through dividends and stock repurchases.
  • The company expects continued top-line momentum in Q3 2022, with revenue between $925 million and $955 million and adjusted EBITDA between $148 million and $156 million.

Headline financials

Total Revenue

$933M

Previous: $749M+24.5%
EPS (adj)

$0.28

Previous: $0.11+154.5%
Adjusted EBITDA Margin

14.8%

Previous: 14.1%+5.0%
Income Before Taxes Margin

2.9%

Previous: 1.5%+93.3%
Capital Expenditures

$23M

Previous: $20.1M+14.2%
Free Cash Flow

$53.5M

Previous: $40.8M+31.1%
Net Income

$27.3M

Previous: $7.3M+274.5%
Operating Income

$56.2M

No prior period
Gross Profit

$212M

Previous: $180M+17.7%
Cash & Equivalents

$167M

Previous: $239M-30.0%
Total Assets

$3.46B

Previous: $3.49B-0.7%
Stock-Based Comp

$5.07M

Previous: $5.91M-14.3%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$933M

Q2 2022+24.5%vs Q2 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

ChampionX · $897M total across 4 segments · Q2 2022

  • Production Chemical Tech
    $552M+23.6%
  • Production & Automation Tech
    $242M+28.8%
  • Drilling Technologies
    $57.9M+53.9%
  • Reservoir Chemical Tech
    $44.1M+32.8%

Forward guidance

ChampionX expects continued top-line momentum in the third quarter of 2022, with revenue between $925 million and $955 million, and adjusted EBITDA between $148 million and $156 million.

Tailwinds

  • Top-line momentum to continue in Q3 2022.
  • Sequential revenue increase in Production Chemical Technologies.
  • Sequential revenue increase in Production & Automation Technologies.
  • Sequential revenue increase in Drilling Technologies segments.
  • Continued price increase realization to offset cost inflation.

Headwinds

  • Lower revenue in Reservoir Chemical Technologies due to exiting certain product lines.
  • Declining cross-supply sales to Ecolab.
  • Raw material and freight cost inflation.
  • Restructuring efforts impacting Reservoir Chemical Technologies.
  • Exiting of certain product lines to improve overall profitability.

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 Q2 2022

Historical avgQ2 2022

+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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