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Dec 31, 2022
ChampionX Q4 2022 Earnings Report
ChampionX reported strong Q4 2022 results with revenue growth and adjusted EBITDA margin expansion.
Key Takeaways
ChampionX reported Q4 2022 revenue of $985.9 million, a 20% increase year-over-year, and net income attributable to ChampionX of $67.9 million, a 56% increase year-over-year. Adjusted EBITDA was $178.8 million, a 34% increase year-over-year. The company generated free cash flow of $168.6 million, representing 17% of revenue, and repurchased $80 million of common stock.
Revenue increased 20% year-over-year to $985.9 million.
Net income attributable to ChampionX increased 56% year-over-year to $67.9 million.
Adjusted EBITDA increased 34% year-over-year to $178.8 million.
Free cash flow was $168.6 million, representing 17% 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 2023, ChampionX expects revenue to be between $952 million and $982 million and adjusted EBITDA of $164 million to $172 million. The company is targeting an exit rate of 20% adjusted EBITDA margin in Q4 2023 and expects to convert at least 50% of adjusted EBITDA to free cash flow.
Positive Outlook
- Expects typical seasonal declines in international operations, partially offset by a rebound in North American businesses.
- Q1 2023 revenue represents a 12% increase year-over-year at the guidance midpoint.
- Q1 2023 adjusted EBITDA represents a 35% increase year-over-year at the guidance midpoint.
- Adjusted EBITDA margin is expected to progressively improve through the year.
- Cash generation is expected to be strong, converting at least 50% of adjusted EBITDA to free cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income