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Dec 31, 2021
ChampionX Q4 2021 Earnings Report
ChampionX's Q4 2021 results were announced, featuring revenue of $822.1 million and net income of $43.4 million.
Key Takeaways
ChampionX reported Q4 2021 results with revenue of $822.1 million and net income attributable to ChampionX of $43.4 million. The company's adjusted EBITDA was $133.1 million, and free cash flow was $71.0 million. They also initiated a quarterly cash dividend of $0.075 per share.
Revenue reached $822.1 million.
Net income attributable to ChampionX was $43.4 million; adjusted net income was $54.2 million.
Adjusted EBITDA was $133.1 million with margin expansion of 110 basis points sequentially.
Free cash flow was $71.0 million, representing 9% of revenue.
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 Q1 2022, ChampionX expects revenue between $815 million and $845 million, and adjusted EBITDA of $122 million to $130 million. The company anticipates positive top-line and bottom-line growth for the full year, with an exit 2022 adjusted EBITDA margin rate of 18%.
Positive Outlook
- Expect typical seasonal declines in international operations to be partially offset by revenues delayed from Q4 due to supply chain bottlenecks.
- Positive momentum in shorter-cycle North American land drilling-oriented business.
- Confident that the company will deliver positive top-line and bottom-line growth.
- Targeting an exit 2022 adjusted EBITDA margin rate of 18%.
- Focused on profitable growth and delivering continued margin expansion in each of the businesses as we progress through the year.
Challenges Ahead
- Expect typical seasonal declines in international operations.
- Raw material availability and global supply chain bottlenecks to constrain growth somewhat in the first half of 2022.
- Supply chain bottlenecks which constrained international sales during the period.
- COVID impact.
- Continued raw material inflation and logistics headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income