NASDAQ$CHX
ChampionX Corporation · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
ChampionX's Q3 2021 performance was marked by revenue growth and strategic advancements.
ChampionX reported a strong third quarter in 2021, with revenue reaching $818.8 million, a 9% sequential increase. Net income attributable to ChampionX was $56.8 million, and adjusted EBITDA stood at $123.6 million. The company also strengthened its balance sheet by repaying $97 million of debt and completed the acquisition of Scientific Aviation.
- Revenue increased by 9% sequentially to $818.8 million, driven by robust topline growth in all businesses.
- Net income attributable to ChampionX was $56.8 million, with adjusted EBITDA increasing sequentially by 17% to $123.6 million.
- Free cash flow generation remained strong at $67.3 million, and $97 million of debt was repaid, ending the quarter with $613 million in liquidity.
- The company is on track to deliver targeted annualized cost synergies of $125 million within 24 months of the merger closing, exiting Q3 at a $118 million cost-synergy annualized run-rate.
Headline financials
Revenue & EPS history
ChampionX · Revenue · Quarterly
$819M
Revenue by segment
ChampionX · $780M total across 4 segments · Q3 2021
- Production Chemical Tech$488M+18.9%62.5%
- Production & Automation Tech$204M+49.3%26.2%
- Drilling Technologies$49.4M+214.4%6.3%
- Reservoir Chemical Tech$38.2M+79.6%4.9%
Forward guidance
ChampionX anticipates topline momentum to continue into Q4 2021, expecting revenue between $820 million and $860 million, driven by production-oriented businesses, and adjusted EBITDA between $130 million and $140 million. The company expects volume improvements, price increase realization, and cost synergy delivery to offset continued raw material cost inflation. For 2022, ChampionX expects another year of positive growth across its portfolio and is enthusiastic about margin expansion potential as inflationary factors ease.
Tailwinds
- Topline momentum is expected to continue in Q4 2021, driven by production-oriented businesses.
- Volume improvements, price increase realization, and cost synergy delivery are anticipated to offset raw material cost inflation.
- The company expects to exit 2021 with a higher adjusted EBITDA margin rate than the 2020 exit rate.
- Constructive demand tailwinds in the businesses are expected to continue.
- 2022 is anticipated to be another year of positive growth across the portfolio.
Headwinds
- Continued raw material cost inflation poses an ongoing challenge.
- Short-term supply chain and logistics bottlenecks persist due to the global economic rebound.
- Raw materials and other inflationary factors may impact margin expansion in the short term.
- The company faces the challenge of ensuring pricing realization and productivity efforts gain further traction.
- The evolving energy industry presents uncertainties that require adaptation and strategic navigation.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 12 quarterly earnings reports
+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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