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Jun 30, 2023
ChampionX Q2 2023 Earnings Report
ChampionX's financial performance in Q2 2023 reflected revenue of $926.6 million and net income of $95.8 million.
Key Takeaways
ChampionX reported Q2 2023 results with revenue of $926.6 million and net income attributable to ChampionX of $95.8 million. Adjusted EBITDA was $186.2 million. The company generated strong free cash flow of $88.8 million and repurchased $51.2 million of common stock, returning 76% of free cash flow to shareholders.
Revenue was $926.6 million, a 1% year-over-year decrease.
Net income attributable to ChampionX was $95.8 million, a 250% year-over-year increase.
Adjusted EBITDA was $186.2 million, a 35% year-over-year increase.
Free cash flow was $88.8 million.
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
ChampionX expects Q3 2023 revenue to be between $960 million and $990 million, and adjusted EBITDA between $199 million and $207 million. They anticipate delivering an adjusted EBITDA exit rate of 21% in Q4 2023 and expect to convert at least 50% of adjusted EBITDA to free cash flow for the full year, with a commitment to returning at least 60% of free cash flow to shareholders.
Positive Outlook
- Expected increase in international businesses.
- Continued positive momentum in North American production-oriented businesses.
- Good volume pick-up in July as factors impacting Q2 volumes resolve.
- Focus on driving margin expansion.
- Strong cash generation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income