NASDAQ$CHX
ChampionX Corporation · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
ChampionX reported strong Q4 2022 results with revenue growth and adjusted EBITDA margin expansion.
ChampionX reported Q4 2022 revenue of $985.9 million, a 20% increase year-over-year, and net income attributable to ChampionX of $67.9 million, a 56% increase year-over-year. Adjusted EBITDA was $178.8 million, a 34% increase year-over-year. The company generated free cash flow of $168.6 million, representing 17% of revenue, and repurchased $80 million of common stock.
- Revenue increased 20% year-over-year to $985.9 million.
- Net income attributable to ChampionX increased 56% year-over-year to $67.9 million.
- Adjusted EBITDA increased 34% year-over-year to $178.8 million.
- Free cash flow was $168.6 million, representing 17% of revenue.
Headline financials
Revenue & EPS history
ChampionX · Revenue · Quarterly
$986M
Revenue by segment
ChampionX · $960M total across 4 segments · Q4 2022
- Production Chemical Tech$637M+28.5%66.3%
- Production & Automation Tech$244M+20.4%25.4%
- Drilling Technologies$53.8M+7.4%5.6%
- Reservoir Chemical Tech$25.7M-35.4%2.7%
Forward guidance
For Q1 2023, ChampionX expects revenue to be between $952 million and $982 million and adjusted EBITDA of $164 million to $172 million. The company is targeting an exit rate of 20% adjusted EBITDA margin in Q4 2023 and expects to convert at least 50% of adjusted EBITDA to free cash flow.
Tailwinds
- Expects typical seasonal declines in international operations, partially offset by a rebound in North American businesses.
- Q1 2023 revenue represents a 12% increase year-over-year at the guidance midpoint.
- Q1 2023 adjusted EBITDA represents a 35% increase year-over-year at the guidance midpoint.
- Adjusted EBITDA margin is expected to progressively improve through the year.
- Cash generation is expected to be strong, converting at least 50% of adjusted EBITDA to free cash flow.
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 Q4 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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