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Jun 30, 2022
ChampionX Q2 2022 Earnings Report
ChampionX reported strong Q2 2022 results with revenue growth and adjusted EBITDA increase.
Key Takeaways
ChampionX reported a strong second quarter of 2022, marked by revenue of $932.6 million, a 24% increase year-over-year, and adjusted EBITDA of $138.3 million, a 31% increase year-over-year. The company highlighted robust top-line growth across its portfolio and a commitment to returning capital to shareholders.
Revenue increased by 24% year-over-year to $932.6 million, driven by strong demand in international and North American markets.
Adjusted EBITDA increased by 31% year-over-year to $138.3 million, with sequential margin expansion due to increased pricing realization.
Free cash flow was $53.5 million, with over 60% returned to shareholders through dividends and stock repurchases.
The company expects continued top-line momentum in Q3 2022, with revenue between $925 million and $955 million and adjusted EBITDA between $148 million and $156 million.
Revenue by Segment
Forward Guidance
ChampionX expects continued top-line momentum in the third quarter of 2022, with revenue between $925 million and $955 million, and adjusted EBITDA between $148 million and $156 million.
Positive Outlook
- Top-line momentum to continue in Q3 2022.
- Sequential revenue increase in Production Chemical Technologies.
- Sequential revenue increase in Production & Automation Technologies.
- Sequential revenue increase in Drilling Technologies segments.
- Continued price increase realization to offset cost inflation.
Challenges Ahead
- Lower revenue in Reservoir Chemical Technologies due to exiting certain product lines.
- Declining cross-supply sales to Ecolab.
- Raw material and freight cost inflation.
- Restructuring efforts impacting Reservoir Chemical Technologies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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