NASDAQ$CHX

ChampionX Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

ChampionX reported strong Q3 2022 results with revenue growth, adjusted EBITDA margin expansion, and strong free cash flow generation.

ChampionX reported a strong third quarter with revenue of $1.0 billion, a 25% increase year-over-year. Net income attributable to ChampionX was $23.1 million, while adjusted EBITDA reached $166.1 million. The company's board also approved an increase in the share repurchase program authorization to $750 million.

  • Revenue reached $1.0 billion, a 25% increase year-over-year and 10% sequentially.
  • Net income attributable to ChampionX was $23.1 million.
  • Adjusted EBITDA was $166.1 million, up 34% year-over-year.
  • Free cash flow was $167.4 million, representing 101% of adjusted EBITDA.

Headline financials

Total Revenue

$1.02B

Previous: $819M+24.8%
EPS (adj)

$0.33

Previous: $0.15+120.0%
Adjusted EBITDA Margin

16.3%

Previous: 15.1%+7.9%
Income Before Taxes Margin

3.7%

Previous: 10.3%-64.1%
Free Cash Flow to Adjusted EBITDA

101.0%

No prior period
Capital Expenditures

$21.2M

Previous: $21.3M-0.7%
Free Cash Flow

$167M

Previous: $67.3M+148.7%
Net Income

$23.2M

Previous: $56.8M-59.1%
Operating Income

$62.3M

Previous: $109M-42.9%
Gross Profit

$197M

Previous: $196M+0.5%
Cash & Equivalents

$187M

Previous: $254M-26.1%
Total Assets

$3.4B

Previous: $3.5B-2.9%
Stock-Based Comp

$5.01M

Previous: $5.56M-9.9%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$1.02B

Q3 2022+24.8%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

ChampionX · $988M total across 4 segments · Q3 2022

  • Production Chemical Tech
    $644M+32.0%
  • Production & Automation Tech
    $248M+21.1%
  • Drilling Technologies
    $61M+23.4%
  • Reservoir Chemical Tech
    $35.5M-7.1%

Forward guidance

For the fourth quarter, ChampionX expects revenue between $985 million and $1.015 billion and adjusted EBITDA between $176 million and $184 million.

Tailwinds

  • Activity is expected to improve in international markets.
  • Continued price increase realization is expected.
  • Sequential adjusted EBITDA margin improvement is anticipated.
  • Constructive demand tailwinds are expected to support a favorable multi-year outlook.
  • Continued delivery of solid bottom-line growth, adjusted EBITDA margin expansion, and strong cash generation is expected.

Headwinds

  • Normal seasonality is expected in North American businesses into the year-end holidays.
  • Lower revenue is expected in Reservoir Chemical Technologies due to exiting certain product lines.
  • restructuring efforts

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 Q3 2022

Historical avgQ3 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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