NASDAQ$CHX

ChampionX Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ChampionX's financial performance in Q2 2023 reflected revenue of $926.6 million and net income of $95.8 million.

ChampionX reported Q2 2023 results with revenue of $926.6 million and net income attributable to ChampionX of $95.8 million. Adjusted EBITDA was $186.2 million. The company generated strong free cash flow of $88.8 million and repurchased $51.2 million of common stock, returning 76% of free cash flow to shareholders.

  • Revenue was $926.6 million, a 1% year-over-year decrease.
  • Net income attributable to ChampionX was $95.8 million, a 250% year-over-year increase.
  • Adjusted EBITDA was $186.2 million, a 35% year-over-year increase.
  • Free cash flow was $88.8 million.

Headline financials

Total Revenue

$927M

Previous: $933M-0.6%
EPS (adj)

$0.49

Previous: $0.28+75.0%
Adjusted EBITDA Margin

20.1%

Previous: 14.8%+35.8%
Income Before Taxes Margin

11.7%

Previous: 2.9%+303.4%
Capital Expenditures

$30.7M

Previous: $23M+33.9%
Free Cash Flow

$88.8M

Previous: $53.5M+66.0%
Net Income

$96.6M

Previous: $27.3M+253.4%
Operating Income

$108M

Previous: $56.2M+92.8%
Gross Profit

$282M

Previous: $212M+33.2%
Cash & Equivalents

$263M

Previous: $167M+57.3%
Total Assets

$3.33B

Previous: $3.46B-3.8%
Stock-Based Comp

$6.34M

Previous: $5.07M+25.0%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$927M

Q2 2023-0.6%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

ChampionX · $910M total across 4 segments · Q2 2023

  • Production Chemical Tech
    $574M+4.0%
  • Production & Automation Tech
    $254M+4.9%
  • Drilling Technologies
    $57.3M-0.9%
  • Reservoir Chemical Tech
    $23.9M-45.9%

Forward guidance

ChampionX expects Q3 2023 revenue to be between $960 million and $990 million, and adjusted EBITDA between $199 million and $207 million. They anticipate delivering an adjusted EBITDA exit rate of 21% in Q4 2023 and expect to convert at least 50% of adjusted EBITDA to free cash flow for the full year, with a commitment to returning at least 60% of free cash flow to shareholders.

Tailwinds

  • Expected increase in international businesses.
  • Continued positive momentum in North American production-oriented businesses.
  • Good volume pick-up in July as factors impacting Q2 volumes resolve.
  • Focus on driving margin expansion.
  • Strong cash generation.

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 2023

Historical avgQ2 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

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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