Innovex International, Inc. · NYSE:INVX
Innovex International — Q1 2025 Earnings Presentation
18 slides from Innovex International's earnings presentation, May 7, 2025
Slide 1: Innovex International Q1 2025 Earnings Presentation
Innovex International Q1 2025 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: Q1 2025 Performance & Q2 2025 Outlook
Q1 2025 Performance & Q2 2025 Outlook Q1 2025 Commentary Financial Performance(1)(2) • Revenue of $240 million, down 4% sequentially $300 Revenue Adj. EBITDA Adj. EBITDA Margin % 35% $251 $240 30% • Net income of $15 million $250 25% $200 • Adjusted EBITDA(2) of $46 million and Adjusted 20% $152 EBI
Slide 7: Transforming Legacy Dril-Quip via Our Proven Playbook
Innovex is Transforming Legacy Dril-Quip via Our Proven Playbook Eldridge sale unlocks further margin potential • Organic Growth Highlights Clear Path to Margin Enhancement via Cost Synergies • Product Synergies: Utilized an integrated suite of Legacy Dril-Quip and Legacy Innovex products in a signi
Slide 8: No Barriers Culture Drives Operational Transformation
No Barriers Culture Drives Operational Transformation Innovex’s Proven Playbook in Action Definitive Agreement for $95 million sale of Eldridge Facility • Frees up ~9% of Market Cap • 82% Footprint Reduction: from 113 acres to ~23 acres • Expected close Q3 2025 Transforming operating model to drive
Slide 9: Flexible Supply Chain
Flexible Supply Chain Supply Chain Designed to Enhance the Customer Experience and Maintain Strong Margins in any Environment Flexible and Robust Supply Chain Model Flexibility to toggle production across manufacturing hubs Access to low-cost country manufacturing Proximity to support operatio
Slide 10: We use the cycle to drive growth
We use the cycle to drive growth Current market conditions present opportunity Up-Cycle Mid-Cycle Down-Cycle • Prioritize execution to drive market • Maintain balance sheet strength • Invest while competitors struggle share capture • Optimize margins and focus on • Unwind working capital to bolster
Slide 11: We Generate Real Cash and Actual Returns by Leveraging our Platform
We Generate Real Cash and Actual Returns by Leveraging our Platform We curate our portfolio based on underlying economic potential, not pitchbook logic The Innovex Approach Typical OFS Playbook Invest in small ticket, big impact products Aggregate EBITDA Drive organic growth through customer f
Slide 12: A Complementary Portfolio of Curated, High Margin Offshore Products & Services
A Complementary Portfolio of Curated, High Margin Offshore Products & Services Core products represent ~4%1 of the cost of an average offshore well Our Deepwater Subsea Wellbore Complementary Business Model Product Legend Big Impact, Small Ticket Single use / consumable products Sustained
Slide 13: A Complementary Portfolio of Curated, High Margin Onshore Products & Services
A Complementary Portfolio of Curated, High Margin Onshore Products & Services Represents ~2%1 of the cost of an average North American land well Our Onshore Wellbore Complementary Business Model Product Legend Big Impact, Small Ticket Wellhead Penetrator Single use / consumable products Du
Slide 14: 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 15: Appendix: GAAP Reconciliations
Appendix: GAAP Reconciliations 15
Slide 16: Reconciliation to Non-GAAP Metrics: Net Income to Adjusted EBITDA
Innovex International Reconciliation to Non-GAAP Metrics Quarterly Net Income to Adjusted EBITDA ($ in millions) Q1’24 Q2’24 Q3’243 Q4’24 Q1’25 Net Income $16 $10 $83 $32 $15 (+) Net Interest Expense 1 1 1 0 1 (+) Income Tax Provision 5 4 (3) (4) 7 (+) Depreciation and Amortization Expense 5 7 8 12
Slide 17: Reconciliation to Non-GAAP Metrics: Quarterly Free Cash Flow
Innovex International Reconciliation to Non-GAAP Metrics Quarterly Free Cash Flow Q1’24 Q2’24 Q3’241 Q4’24 Q1’25 ($ in millions) Cash Flow from Operating Activities $13 $23 $22 $36 $31 Capital Expenditures (2) (2) (2) (8) (7) Free Cash Flow $10 $21 $20 $29 $24 (1) Reflects Legacy Innovex’s results t
Slide 18: Reconciliation to Non-GAAP Metrics: Return on Capital Employed
Innovex International Reconciliation to Non-GAAP Metrics Return on Capital Employed (ROCE) ($ 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
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