INVX · Innovex International, Inc.

Innovex International delivered a mixed first quarter in 2026, characterized by strong operational execution and Adjusted EBITDA outperformance, offset by a significant one-time legal settlement that pushed GAAP results into a loss. Revenue of $239 million declined 13% sequentially but remained relatively flat year-over-year. The GAAP net loss of $17 million, or $(0.24) per share, was primarily driven by a $48.8 million provision for a legal settlement recorded in selling, general and administrative expenses. Excluding this and other non-cash or non-recurring items, Adjusted EBITDA rose to $49 million, yielding a 21% margin—a 200 basis point improvement from the prior quarter. Management attributed the margin expansion to a favorable product mix and the accelerated exit from the legacy Eldridge facility, which reduced the manufacturing footprint of subsea businesses by approximately 85%.

Operationally, the company highlighted strength in North America Land and Mexico, which mitigated softer international activity and minor disruptions from Middle East conflicts. Strategic initiatives included the completion of the DIS acquisition for $16 million, aimed at enhancing U.S. offshore capabilities, and securing two significant subsea projects in Asia each exceeding $20 million. The company maintained a robust liquidity position with $201 million in cash and no bank debt, supporting $14.1 million in share repurchases during the quarter. Looking ahead, management guided for Q2 2026 revenue between $235 million and $245 million, with Adjusted EBITDA expected in the range of $43 million to $48 million, noting potential headwinds from Middle East disruptions and a less favorable product mix.