Innovex International, Inc. · NYSE:INVX
Innovex International — Q4 2024 Earnings Presentation
19 slides from Innovex International's earnings presentation, Feb 26, 2025
Slide 1: Innovex International Q4 2024 Earnings Presentation
Innovex International Q4 2024 Earnings Presentation Highly Confidential | 1
Slide 2: Disclaimer
Disclaimer Important Information and Disclaimers This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” Historical financial results
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Industry Information We obtained the industry, market and competitive position data used throughout this Presentation from our own internal estimates and research, as well as from independent industry publications, government publications and other published independent sources.
Slide 4: Innovex is Building a Unique Energy Industrial Platform
Innovex is Building a Unique Energy Industrial Platform Our VISION is to create a unique energy industrial platform focused on driving exceptional value and service to our customers, and exceptional absolute returns for our shareholders. 1 Curated Portfolio of Complementary, Mission Critical Product
Slide 5: Innovex's No Barriers Culture
Innovex’s No Barriers Culture No Barriers between our customers and our employees No Barriers to our ongoing success Big Impact, Customer Small Ticket Centric Products Disciplined Flat, Lean and Acquisitions Unbureaucratic & Divestitures Organization Empowered Rapid Response Employees to Market Need
Slide 6: Innovex Today
Innovex Today Track record of successful, disciplined growth since inception Proven and Successful Business Model Runway for Sustained Growth • Disciplined Revenue Growth: 27% revenue CAGR since • Innovation: New product development drives revenue inception1 under a low leverage framework growth and
Slide 7: Q4 2024 Performance & Q1 2025 Outlook
Q4 2024 Performance & Q1 2025 Outlook Q4 2024 Commentary Financial Performance(1)(2) • Revenue of $251 million, up 65% quarter over quarter $300 Revenue Adj. EBITDA Adj. EBITDA Margin % 80% $251 70% $250 • Net income of $32 million 60% $200 50% $152 • Adjusted EBITDA(2) of $49 million and Adjusted $
Slide 8: Transforming Legacy Dril-Quip via Our Proven Playbook
Innovex is Transforming Legacy Dril-Quip via Our Proven Playbook No Barriers culture is focusing on margins & market share through a differentiated management approach • Organic Growth Opportunities Clear Path to Margin Enhancement via Cost Synergies1 • Product Synergies: Ran 18”x22” Legacy Dril- Qu
Slide 9: Operational Transformation to Drive the No Barriers Culture
Operational Transformation to Drive the No Barriers Culture Innovex’s Proven Playbook in Action Divesting Legacy Dril-Quip Eldridge Facility • 128 acre facility in prime Houston real estate market • All existing functions within the facility will be moved to two separate facilities, totaling ~23 acr
Slide 10: Innovex Platform Accelerating DWS Growth
Innovex Platform Accelerating DWS Growth DWS is Market Leader in US Land, with Untapped International Opportunity DWS Investment Thesis Key Transaction Metrics • Market leader in US Land with large, untapped international growth opportunity • Multiple cross selling opportunities across same 3.8x 13%
Slide 11: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations 11
Slide 12: Reconciliation to Non-GAAP Metrics: Quarterly Net Income to Adjusted EBITDA
Innovex International Reconciliation to Non-GAAP Metrics Quarterly Net Income to Adjusted EBITDA ($ in millions) Q4’23 Q1’24 Q2’24 Q3’243 Q4’24 Net Income $18 $16 $10 $83 $32 (+) Net Interest Expense 1 1 1 1 0 (+) Income Tax Provision 5 5 4 (3) (4) (+) Depreciation and Amortization Expense 6 5 7 8 1
Slide 13: Reconciliation to Non-GAAP Metrics: Quarterly Free Cash Flow
Innovex International Reconciliation to Non-GAAP Metrics Quarterly Free Cash Flow Q4’23 Q1’24 Q2’24 Q3’241 Q4’24 ($ in millions) Cash Flow from Operating Activities $21 $13 $23 $22 $36 Capital Expenditures (1) (2) (2) (2) (8) Free Cash Flow $20 $10 $21 $20 $29 (1) Reflects Legacy Innovex’s results t
Slide 14: Reconciliation to Non-GAAP Metrics: Return on Capital Employed
Innovex International Reconciliation to Non-GAAP Metrics Return on Capital Employed (ROCE) ($ in millions) 2024 2023 2022 2021 20203 20193 20183 Income from Operations $49 $97 $77 $14 ($1) $44 $35 Plus: Acquisition Costs1 33 2 3 5 2 2 1 Less: Income Tax Expense 2 20 10 4 2 9 (4) Adjusted Income from
Slide 15: Legacy Standalone Innovex Annual Adjusted EBITDA and Margin
Legacy Standalone Innovex Reconciliation to Non-GAAP Metrics Annual Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) 2023 2022 2021 20202 20192 20182 Revenue $556 $467 $295 $189 $325 $277 Net Income 74 63 10 (5) 32 35 Interest Expense, Net 6 4 2 2 4 4 Income Tax Expense 20 10 4 2 9 (4) Dep
Slide 16: Legacy Standalone Dril-Quip Annual Adjusted EBITDA and Margin
Legacy Standalone Dril-Quip Reconciliation to Non-GAAP Metrics Annual Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) 2023 2022 2021 2020 2019 2018 Revenue $478 $362 $322 $365 $415 $385 Net Income 1 (2) (128) (31) 2 (96) Interest Expense, Net (8) (4) 0 (2) (8) (8) Income Tax Provision 13
Slide 17: Legacy Standalone DWS Trailing Twelve Month Net Income to Adjusted EBITDA
Legacy Standalone DWS Reconciliation to Non-GAAP Metrics Trailing Twelve Month Net Income to Adjusted EBITDA LTM ($ in millions) (as of Sep-24) Revenue $72 Net Income $25 (+) Net Interest Expense (0) (+) Income Tax Provision – (+) Depreciation and Amortization Expense 7 (-) Other Expense / (Income)
Slide 18: Legacy Standalone DWS Trailing Twelve Month Free Cash Flow
Legacy Standalone DWS Reconciliation to Non-GAAP Metrics Trailing Twelve Month Free Cash Flow LTM ($ in millions) (as of Sep-24) Cash Flow from Operations $33 (-) Capital Expenditures (9) Free Cash Flow $24 Note: Figures shown above reflect unaudited results. A quality of earnings analysis was condu
Slide 19: Pro Forma Net Debt / LTM Adj. EBITDA
Pro Forma Reconciliation to Non-GAAP Metrics Pro Forma Net Debt / LTM Adj. EBITDA ($ in millions) As of 9/30/24 Cash and Cash Equivalents - Innovex $100 (+) Cash and Cash Equivalents – DWS 12 (-) Debt & Finance Lease Obligations – Innovex (23) (-) Debt & Finance Lease Obligations – DWS (2) (-) Cash
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