Innovex International : Q1 2026 Earnings Slides

Published: 2026-05-04 17:28:16 ET INVX

Published on 05/04/2026 at 05:28 pm EDT

Industry Information

We obtained the industry, market and competitive position data used throughout this Presentation from our own internal estimates and research, as well as from independent industry publications, government publications and other published independent sources. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research and our industry experience and are based on assumptions made by us based on such data and our knowledge of the industry and market, which we believe to be reasonable. In addition, while we believe the industry, market and competitive position data included in this Presentation is reliable and based on reasonable assumptions, we have not independently verified the accuracy or completeness of any third-party information. Some data is also based on our good faith estimates. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in these publications. Forecasts and other forward-looking statements obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this Presentation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. None of Innovex, the underwriters or any of their respective affiliates, advisers, connected persons or any other person accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this Presentation or its contents or otherwise arising in connection with this Presentation. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable law or regulation of any jurisdiction that may not lawfully be disclaimed.

The information contained in this Presentation is provided as at the date of this Presentation and is subject to change without notice.

Financial Information: Non-GAAP Financial Measures

This Presentation contains both financial measures prepared and presented in accordance with generally accepted accounting principles ("GAAP") and non-GAAP financial measures, which are measurements of financial performance that are not prepared and presented in accordance with GAAP. Accordingly, these measures should not be considered as a substitute for data prepared and presented in accordance with GAAP. These non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Return on Capital Employed ("ROCE") and Free Cash Flow, are or have been used by Innovex's management when evaluating results of operations and as otherwise described below. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Innovex's management believes these non-GAAP financial measures provide users of our financial statements with additional and useful comparisons of current results of operations with past and future periods. Although we use or have used these non-GAAP financial measures to assess the performance of our business and for the other purposes, the use of these non-GAAP financial measures as an analytical tool has limitations, and you should not consider them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with GAAP. In addition, because not all companies use identical calculations, the non-GAAP financial measures included in this Presentation may not be comparable to similarly titled measures disclosed by other companies, including our peers or other companies in our industry. Please see "Appendix: GAAP Reconciliations" within the Presentation for reconciliations of the non-GAAP financial measures included in the Presentation to our most directly comparable financial measures calculated and presented in accordance with GAAP.

Management has provided outlook regarding Adjusted EBITDA, which is a non-GAAP financial measure and excludes certain charges. A reconciliation of this non-GAAP financial measure to the corresponding GAAP financial measure has not been provided because guidance for the various reconciling items is not provided. The Company is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the Company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

Use of Website

Investors should note that Innovex announces material financial information in SEC filings, press releases and public conference calls. Innovex may use the Investors section of its website (https://www.innovex-inc.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. Information on Innovex's website is not part of this Presentation.

Track record of successful, disciplined growth since inception

Proven and Successful Business Model Runway for Sustained Growth

Disciplined Revenue Growth: 29% revenue CAGR since inception1 under a low leverage framework

Returns Focused: ROCE2 outperformed S&P 500 from 2019 thru 2025

Attractive Margin and Low Capex Profile: High margins with negligible sustaining capital requirements

Through Cycle Playbook: Strategy performs well across all market environments

Innovation: New product development drives revenue growth and expands our addressable market

Geographic & Market Share Expansion: Continued organic market share growth within North America, with sizeable opportunities in International & Offshore markets

Disciplined Curation: Qualitative and Quantitative framework applied to all investments and divestments

Strong Market Tailwinds: Growing domestic service intensity coupled with sustained International & Offshore investment

Nov 2016

Antelope Oil Tools, Team Oil Tools, and Isolation Technologies merge to form Innovex

March 2021

Rubicon Oilfield International acquired by Innovex

August 2022

Pride Energy Services acquired by Innovex

Transformational Merger

November 2024

Downhole Well Solutions acquired by Innovex

April 2026

Drilling Innovative Solutions LLC acquired by Innovex

June 2019

QCI/Enerserv acquired by Innovex

August 2021

Applied Oil Tools acquired by Innovex

September 2024

Innovex and Dril-Quip merge to form Innovex International

May 2025

Citadel Casing Solutions acquired by Innovex

Source: FactSet, Public Disclosure. S&P 500 represents the median metric for current constituents. Note: (1) Since inception of Legacy Innovex (2) ROCE is a non-GAAP measure and defined as Income from Operations excluding acquisition and integration costs, litigation related expenses not reflective of our ongoing operating performance, and income tax expense (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is

defined as the combined values of debt and stockholders' equity. See appendix for reconciliation to Innovex's most comparable GAAP measure.

Big Impact, Small Ticket

Curated portfolio of mission-critical products

High Free Cash Flow1 Conversion

50-60% of Adjusted EBITDA2 converts to free cash flow under normal business conditions

Attractive Margin Profile

20% LTM Adjusted

INNOVEX

TODAY

Global & Diversified Presence

EBITDA2 Margin Shorter cycle NAM Land and

longer cycle International & Offshore

Capital Light, High Return (ROCE3) Model

Historically only 2-3% of revenue reinvested into capex

Strong balance sheet

$201 MM Net Cash Position

Free Cash Flow is a non-GAAP measure. We define Free Cash Flow as cash provided by operations less capital expenditures.

Adjusted EBITDA is a non-GAAP measure. We define Adjusted EBITDA as net income (loss) before interest (income) expense, net, income tax expense (benefit), net, depreciation and amortization, (gain) loss on sale of assets, and other

expense, net, further adjusted to exclude certain items which we believe are not reflective of our ongoing performance or which are non-cash in nature.

(3) Return on Capital Employed ("ROCE") is a non-GAAP measure. We define ROCE as Income from Operations excluding acquisition and integration costs, litigation related expenses not reflective of our ongoing operating performance, and income tax expense (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders' equity.

No Barriers between our customers and our employees No Barriers to our ongoing success

Big Impact, Small Ticket Products

Customer Centric

Disciplined Acquisitions & Divestitures

Flat, Lean and Unbureaucratic Organization

Empowered Employees

Rapid Response to Market Needs

Relentless Innovation

Q1 2026 Commentary Financial Performance(1)

Revenue of $239 million, down 13% sequentially

Net loss of $17 million

Adjusted EBITDA(1) of $49 million and Adjusted EBITDA Margin (1) of 21%

Net cash from operations of $20 million

Free Cash Flow(2) of $14 million

$300

$250

$200

$150

$100

$50

Revenue Adj. EBITDA Adj. EBITDA Margin %

$240

$239

$224

$46

$47

$44

$52

$49

$274

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

80%

70%

60%

50%

40%

30%

20%

10%

Quarterly Free Cash Flow(2)

$60

$50

$40

$30

$20

$10

$52

$43

$37

$24

$14

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. We define Adjusted EBITDA as net income (loss) before interest (income) expense, net, income tax expense (benefit), net, depreciation and amortization, (gain) loss on sale of assets, and other expense, net, further adjusted to exclude certain items which we believe are not reflective of our ongoing performance or which are non-cash in nature. We define Adjusted EBITDA Margin as Adjusted EBITDA

7 divided by revenue. See appendix for reconciliation to Innovex's most comparable GAAP measures.

Free Cash Flow is a non-GAAP measure. We define Free Cash Flow as cash provided by operations less capital expenditures. See appendix for reconciliation to Innovex's most comparable GAAP measures.

Leading Top Line Growth Consistently High Margins

(2020 - 2025 Revenue per Share CAGR) (Historical Adj. EBITDA Margins1)

2025 Total Debt / Adjusted EBITDA1:

40 %

35 %

30 %

25 %

20 %

15 %

S&P 500

Big 3

10 %

5 %

0 %

2020 2021 2022 2023 2024 2025

Negligible Capex Strong Returns

(Investment in PP&E as % of Revenue) (8-Yr Average Return on Capital Employed ("ROCE")2)

Peer Median 2%

16.0 %

12.0 %

8.0 %

4.0 %

S&P 500

Big 3

0.0 %

2020 2021 2022 2023 2024 2025

Source: Capital IQ, Public Disclosure. S&P 500 represents the median metric for current constituents. Big 3 represents the median metric of SLB, BKR and HAL. (1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. We define Adjusted EBITDA as net income (loss) before interest (income) expense, net, income tax expense (benefit), net, depreciation and amortization, (gain) loss on sale of assets, and other expense, net, further adjusted to exclude certain items which we believe are not reflective of our ongoing performance or which are non-cash in nature. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. See appendix for reconciliation to Innovex's most comparable GAAP measures. Adjusted EBITDA for the presented peers has been pulled or derived from the public filings or presentations of such peers and then divided by the publicly disclosed revenues as applicable to arrive at the margin presented. Innovex's computation of Adjusted EBITDA may not be comparable to those of its peers. (2) ROCE is a non-GAAP measure. We define ROCE as Income from Operations excluding acquisition and integration costs, litigation related expenses not reflective of our ongoing operating performance, and income tax expense (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders' equity. See appendix for reconciliation to Innovex's most comparable GAAP measure. ROCE for the presented peers has been derived from the public filings or presentations of such peers and calculated in accordance with Innovex's definition of ROCE.

Products and Services across well life cycle

Diverse Geographic Mix

Broad Technology Portfolio not reliant on a single product

Revenue by Key Product Family Revenue by Key Geography

7% 3%

24%

12%

21%

16%

Subsea

Well Construction Drilling Enhancement Production Solutions Surface Wellhead Fishing & Intervention Service, Mileage & Other

10%

12%

52%

18%

Note: Revenues are attributable to geographies based on the sales destination of the products or services provided. US Offshore includes $4.2mm in revenue attributable to Canadian offshore operations. Revenue in any one of our geographies or in any one of our product families may fluctuate from period to period based on the mix of products and services sold in a given period and the timing of revenue recognition.

Innovex's Proven Playbook in Action

DRQ

Exit of Eldridge facility nearly complete

80% Footprint Reduction: from 113 acres to ~23 acres

Expect to fully exit in Q2 2026

Transforming operating model to drive higher margins and enhance the customer experience

Optimize direct to indirect manufacturing personnel ratios

Consolidate global manufacturing and operations facilities

Smaller, more flexible supply chain model will improve on-time delivery

Smaller footprint will improve collaboration through proximity, facilitating No Barriers Culture.

- 80%

INVX

Current market conditions present opportunity

Up-Cycle Mid-Cycle Down-Cycle

Prioritize execution to drive market share capture

Expand margins through strategic price increases

Invest in inventory to support customer needs

Maintain focused acquisition approach

Divest underperforming or noncore product families

Maintain balance sheet strength

Optimize margins and focus on process improvement

Maintain focused acquisition approach

Continually prune non-core product lines from portfolio

Invest while competitors struggle

Unwind working capital to generate cash

Evaluate transformative opportunities

Continually prune non-core product lines from portfolio

We strive to maintain a fortress balance sheet to allow us to profit from volatility.

We curate our portfolio based on underlying economic potential, not pitchbook logic

The Innovex Approach Typical OFS Playbook

Invest in small ticket, big impact products

Drive organic growth through customer focused innovation

Apply No Barriers approach to achieve exceptional margins and free cash flow, leveraging our industrial platform, and attracting long term investors

Actively curate a product portfolio that fully integrates with our existing R&D framework

Use disciplined approach to M&A and divestitures, enhancing growth with products that fit our approach, at valuations that drive strong returns

Defend the strength of our balance sheet

Aggregate EBITDA

Consolidate via a "roll up" strategy

Chase "scale," regardless of the underlying economic moat, to become a cyclical "play" on a cycle

Combine distinct segments and business lines that operate autonomously

Pay high M&A multiples with low realized ROCE1

Aggressive use of leverage to justify "accretion"

Note: (1) Return on Capital Employed ("ROCE") is a non-GAAP measure. We define ROCE as Income from Operations, before acquisition costs and after tax (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders' equity

Quarterly Net Income to Adjusted EBITDA

(7)% 5%

16% 7% 6%

21% 19%

18% 21% 19%

legal settlement, which includes monetary damages aw

arded by a jury and estimated future awards in the amount of $48.8 million and (ii) legal

($ in millions)

Q1'26

Q4'25

Q3'25

Q2'25

Q1'25

Net Income (Loss)

$(17)

$14

$39

$15

(+) Net Interest Expense (Income)

(+) Income Tax Provision (Benefit)

(5)

(+) Depreciation and Amortization Expense

(-) Other Expense (Income)

(2)

(+) Impulse Litigation Expenses1

(+) Non-Recurring Expenses

(30)

Adjusted EBITDA

$49

$52

$44

$47

$46

Net Income Margin %

Adjusted EBITDA Margin %

(1) Amount is comprised of the following associated with the Impulse Litigation: (i) provision for defense costs in the amount of $2.4 million.

Note: Individual items rounded to the nearest million.

Annual Net Income to Adjusted EBITDA

($ in millions)

2025

2024

2023

2022

2021

20201

Net Income

$83

$140

$74

$63

$10

$(5)

(+) Net Interest Expense (Income)

(+) Income Tax Provision (Benefit)

(+) Depreciation and Amortization Expense

(-) Other Expense (Income)

(2)

(1)

(+) Non-Recurring Expenses

(2)

(37)

Adjusted EBITDA

$188

$139

$132

$102

$35

$29

Net Income Margin %

21%

13%

14%

(3)%

Adjusted EBITDA Margin %

19%

21%

24%

22%

12%

15%

(1) 2020 financial information has not been audited in accordance with PCAOB standards. Note: Individual items rounded to the nearest million.

Quarterly Free Cash Flow

($ in millions)

Q1'26

Q4'25

Q3'25

Q2'25

Q1'25

Cash Flow from Operating Activities

$20

$52

$48

$59

$31

Capital Expenditures

(6)

(9)

(12)

(7)

Free Cash Flow

$14

$43

$37

$52

$24

Note: Individual items rounded to the nearest million

Return on Capital Employed (ROCE)

($ in millions)

2025

2024

2023

2022

2021

20203

20193

20183

Income from Operations

$133

$49

$97

$77

$14

$(1)

$44

$35

Plus: Acquisition Costs1

Less: Income Tax Expense

(4)

Adjusted Income from Operations, After Tax1

$105

$80

$79

$70

$15

$(1)

$37

$40

Beginning Debt

Beginning Equity

958

329

251

181

135

Ending Debt

Ending Equity

1,058

958

329

251

181

130

135

Average Capital Employed

$1,038

$686

$360

$280

$168

$178

$167

$114

ROCE

10%1

12%1

22%1

25%1

9%1

(1)%1,2

22%1

35%1

(1) Beginning in 2024, Acquisition costs were added back into Income from Operations to calculate ROCE. The historical ROCE values have been updated to reflect this calculation.

(2) 2020 ROCE excludes post 2020 audit private to public company accounting write-down of $43 million.

17 (3) 2020, 2019 and 2018 financial information has not been audited in accordance with PCAOB standards. Note: Individual items rounded to the nearest million.

Disclaimer

Innovex International Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:24 UTC.