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Sep 30, 2023
Dril-Quip Q3 2023 Earnings Report
Reported strong revenue growth driven by the Great North acquisition and key customer deliveries, along with substantial free cash flow improvement.
Key Takeaways
Dril-Quip reported a 31% sequential increase in revenue, driven by the acquisition of Great North and key deliveries to customers. Free cash flow was the highest since 2017, benefiting from improved working capital and a U.S. tax refund. However, capacity constraints in the offshore rig market are introducing headwinds.
Revenue increased 31% sequentially and 33% year-over-year to $117.2 million.
Net Loss decreased to $7.0 million, a $10.5 million decrease sequentially.
Cash provided by operations was $26.8 million, an increase of $25.8 million year-over-year.
Free cash flow was $21.4 million, the highest since 2017.
Revenue by Segment
Forward Guidance
Capacity constraints in the offshore rig market are introducing headwinds. Multiple customers have delayed product orders and service deliveries due to rig availability delaying drilling schedules, with latest estimates pushing some activity to spring of 2024. Our view that we are in the early innings of a multi-year offshore upcycle and that Dril-Quip’s portfolio is well-positioned for growth remains unchanged.
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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