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Mar 31, 2023
ChampionX Q1 2023 Earnings Report
ChampionX reported first quarter 2023 results with revenue increase and strong free cash flow.
Key Takeaways
ChampionX reported a 10% year-over-year increase in revenue to $948.3 million for Q1 2023. Net income attributable to ChampionX increased by 73% year-over-year to $63.5 million. The company generated $92.4 million in cash from operating activities and $69.4 million in free cash flow. ChampionX repurchased $40 million of common stock during the quarter.
Revenue increased 10% year-over-year to $948.3 million.
Net income attributable to ChampionX increased 73% year-over-year to $63.5 million.
Adjusted EBITDA increased 41% year-over-year to $175.6 million.
Generated $92.4 million in cash from operating activities and $69.4 million in free cash flow.
ChampionX
ChampionX
ChampionX Revenue by Segment
Revenue by Segment
Production Chemical Tech Revenue
CapyFin.comProduction & Automation Tech Revenue
CapyFin.comDrilling Technologies Revenue
CapyFin.comReservoir Chemical Tech Revenue
CapyFin.com Forward Guidance
For the second quarter of 2023, ChampionX expects revenue between $970 million and $1.0 billion and adjusted EBITDA of $182 million to $190 million. The company anticipates strong cash generation for 2023, converting at least 50% of adjusted EBITDA to free cash flow and remains committed to returning at least 60% of free cash flow to shareholders.
Positive Outlook
- Expects a seasonal rebound in international businesses.
- Anticipates continued positive momentum in North American businesses.
- Expects revenue to be between $970 million and $1.0 billion in Q2.
- Expects adjusted EBITDA of $182 million to $190 million in Q2.
- Expects to deliver an adjusted EBITDA margin exit rate of greater than 20% in Q4 2023.
Challenges Ahead
- Broader macro environment remains uneven.
- Typical seasonal decline in international operations.
- Revenue declined 4% sequentially in Q1.
- Net income attributable to ChampionX decreased 6% sequentially.
- Adjusted EBITDA declined 2% sequentially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income