Innovex Revenue Rises 10% to $265 Million in Third Quarter of 2026
Key Facts
Innovex International said on October 29, 2026, that revenue reached $265 million in the third quarter, up 8% from the previous quarter and 10% from the same period in 2025, while net income came to $26 million, according to a company filing with the U.S. Securities and Exchange Commission. The results were announced ahead of a call the following day for management to discuss them, putting revenue and profit growth at the center of its quarterly update. Adjusted EBITDA margin was 21%, compared with 20% in the second quarter and 18% a year earlier, according to figures Nasdaq reported from the company’s statement. But net income of $26.286 million remained below the $39.228 million recorded in the third quarter of 2025, despite rising from $25.031 million in the previous quarter. The comparison shows quarter-on-quarter improvement in revenue, margin and net income, alongside an annual decline in net income.
The quarterly revenue increase came from both of the company’s main businesses, with faster growth in North American land operations. Revenue from that business was $146 million, up 11% from $131 million in the second quarter, according to the call transcript published by Benzinga. International and offshore revenue was $119 million, up 5% sequentially. Management attributed land growth to higher drilling and completion activity, as well as continued market-share gains in the United States. It said the addition of TCO was the main factor behind the international and offshore business’s gains, while the timing of offshore project deliveries in the Eastern Hemisphere affected results.
On liquidity, Innovex recorded free cash flow of $32 million in the third quarter and ended the period on September 30 with about $189 million in cash and equivalents and no bank debt, according to its filing with the SEC. Nasdaq reported, citing the company’s statement, that net cash from operating activities was about $39 million, compared with capital expenditures of $6 million. Capital expenditures represented about 2.4% of revenue during the quarter. These figures put cash flow and capital investment alongside sales growth in the assessment of performance, while the reported cash balance reflects liquidity at period-end. The source did not provide comparative figures for free cash flow or capital expenditures in previous periods.
The company announced a subsea wellhead contract in Indonesia worth more than $30 million, along with other offshore work worth more than $9 million through the OneSubsea alliance, according to its statement as reported by Nasdaq. The chief executive said the company’s subsea backlog continued to grow during the quarter and “should translate into meaningful growth in 2027 and beyond.” Management thus links the new contracts to expectations for offshore business expansion in coming years. This comes as the company pointed to differences in delivery timing among offshore projects, a factor it also cited in explaining its fourth-quarter outlook. The statement did not specify separate execution dates for the two contracts.
For the fourth quarter of 2026, Innovex expects revenue of $260 million to $270 million and adjusted EBITDA of $53 million to $58 million, according to its filing with the SEC. The guidance reflects a recovery in offshore project deliveries in the Eastern Hemisphere, offset by a modest decline in Saudi Arabia and a slight seasonal decrease in some U.S. land products. These factors put the projected revenue range below the third-quarter figure of $265 million at the low end and above it at the high end. The trajectory of revenue in the coming quarter therefore depends, in management’s view, on the balance between improved offshore deliveries and seasonal and regional declines. The available material did not include a comparable estimate for the fourth quarter of the previous year.
Chief Executive Adam Anderson and Chief Financial Officer Kendall Reed took part in the results discussion on a call held on October 30 at 9 a.m. Eastern time, according to the company’s announcement. The question-and-answer session included analysts from Citi, Piper Sandler and Barclays, as well as Pickering Energy Partners, Johnson Rice and Daniel Energy Partners, according to the call transcript published by Benzinga. Anderson said the company expects 2027 revenue to rise about 10% compared with full-year 2026 results. He tied that estimate to stable U.S. land activity, the absence of major disruptions in Venezuela, and Middle East activity staying closer to third-quarter levels rather than declining as expected in the fourth quarter. The figure remains an estimate conditional on these assumptions, not formal annual guidance issued by the company.
On earnings per share and the market, Investing.com reported that EPS was $0.37, missing analysts’ estimate of $0.39 by $0.02. The site said the stock closed at $30.01 on October 30. The results were announced on October 29, ahead of a call to discuss them, while the figures presented here do not include a price comparison that would allow the stock’s reaction to the announcement to be measured. The update brings together annual and quarterly revenue growth, a margin above both comparison periods, and EPS below the published estimate. The next operating step identified by the company is to deliver on its fourth-quarter outlook, alongside its offshore contracts and conditional expectation for revenue growth in 2027.