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
Revenue & EPS history
ChampionX · Revenue · Quarterly
$933M
Revenue by segment
ChampionX · $897M total across 4 segments · Q2 2022
- Production Chemical Tech$552M+23.6%61.6%
- Production & Automation Tech$242M+28.8%27.0%
- Drilling Technologies$57.9M+53.9%6.5%
- Reservoir Chemical Tech$44.1M+32.8%4.9%
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
+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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