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Mar 31, 2021

ChampionX Q1 2021 Earnings Report

ChampionX reported first quarter 2021 results, demonstrating resilience amid energy market imbalances and delivering solid free cash flow.

Key Takeaways

ChampionX reported revenue of $684.9 million and net income of $5.8 million in Q1 2021. The company navigated raw material supply chain disruptions and delivered adjusted EBITDA of $94.2 million. Strong free cash flow generation continued, representing 9% of revenue.

Revenue was $684.9 million.

Net income attributable to ChampionX was $5.8 million; adjusted net income of $15.6 million.

Adjusted EBITDA was $94.2 million.

Free cash flow was $64.6 million, representing 9% of revenue.

Total Revenue
$685M
Previous year: $261M
+162.0%
EPS
$0.08
Previous year: -$8.18
-101.0%
Gross Profit
$162M
Previous year: $82.3M
+97.2%
Cash and Equivalents
$260M
Previous year: $53.6M
+384.4%
Free Cash Flow
$64.6M
Previous year: $21.8M
+196.9%
Total Assets
$3.48B
Previous year: $1.25B
+179.1%

ChampionX

ChampionX

ChampionX Revenue by Segment

Forward Guidance

For the second quarter of 2021, ChampionX expects revenue to be between $700 million and $740 million, and adjusted EBITDA of $97 million to $105 million.

Positive Outlook

  • Continued positive momentum in shorter-cycle North American businesses.
  • Seasonal uptick in international operations.
  • Meaningful margin rate improvement in the second half of the year.
  • Exiting the year with a higher margin rate than the 2020 exit rate.
  • Driven by production-oriented businesses.

Challenges Ahead

  • Some additional short-term raw materials cost inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income