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ChampionX
🇺🇸 NASDAQ:CHX
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•
Dec 31, 2023

ChampionX Q4 2023 Earnings Report

ChampionX's Q4 2023 earnings decreased due to lower rig count in U.S. land and end of year inventory destocking but the Board approved an increase in share repurchase program authorization and raised quarterly dividend.

Key Takeaways

ChampionX reported Q4 2023 revenue of $943.6 million, a 4% year-over-year decrease. Net income attributable to ChampionX was $77.2 million, a 14% increase year-over-year. The company's Board of Directors approved an increase to the share repurchase program authorization to $1.5 billion and raised the regular quarterly dividend by 12% to $0.095 per share.

Revenue for Q4 2023 was $943.6 million, down 4% year-over-year.

Net income attributable to ChampionX for Q4 2023 was $77.2 million, up 14% year-over-year.

Adjusted EBITDA for Q4 2023 was $198.1 million, up 10% year-over-year.

The board approved an increase in the share repurchase program authorization to $1.5 billion and a 12% increase in the regular quarterly dividend to $0.095 per share.

Total Revenue
$944M
Previous year: $986M
-4.3%
EPS
$0.44
Previous year: $0.43
+2.3%
Gross Profit
$282M
Previous year: $283M
-0.1%
Cash and Equivalents
$289M
Previous year: $250M
+15.3%
Free Cash Flow
$140M
Previous year: $169M
-17.1%
Total Assets
$3.24B
Previous year: $3.39B
-4.3%

ChampionX

ChampionX

ChampionX Revenue by Segment

Forward Guidance

For the first quarter of 2024, ChampionX expects revenue to be between $908 million and $938 million, and adjusted EBITDA to be between $179 million and $189 million.

Positive Outlook

  • Expect 2024 to be a positive growth year, driven by the constructive market environment, particularly for international businesses.
  • Expect revenues, adjusted EBITDA and adjusted EBITDA margin to progressively improve through the year.
  • Expect strong 2024 cash generation.
  • Committed to returning at least 60% of free cash flow to shareholders during the year.
  • Excited about the positive revenue outlook driven by multi-year healthy fundamentals for our sector.

Challenges Ahead

  • Expect typical seasonal declines in international operations in Q1.
  • Expect these declines to be partially offset by sequential improvement in North American businesses.
  • On a consolidated basis, in the first quarter, expect revenue to be between $908 million and $938 million.
  • Expect adjusted EBITDA of $179 million to $189 million in Q1.
  • Expect 2024 cash generation 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

Company Overview

Full financial data and analysis

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