INVX

Innovex International, Inc. recently reported past second-quarter 2026 results with sales of US$244.9 million and net income of US$25.03 million, while also completing an underwritten follow-on offering of 5,000,000 common shares by selling stockholders and closing the acquisition of TCO Group AS. Together, stronger quarterly earnings, ongoing M&A activity and fresh equity issued by existing holders highlight how Innovex is reshaping its portfolio and capital structure. Now we’ll examine how the stronger quarterly earnings performance affects Innovex International’s existing investment narrative and expected business trajectory. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Innovex International, you need to be comfortable with an oilfield technology company leaning on offshore and Subsea work, plus an active M&A agenda. The latest quarter’s higher sales and net income, combined with the TCO Group AS acquisition, support the idea that Innovex is trying to scale earnings, but the biggest near term risk remains project timing and potential legal or cost pressures, which this news does not fully resolve. The most relevant update here is Innovex’s fresh Q3 2026 revenue guidance of US$260–US$270 million, issued alongside the Q2 results. That guidance sets a near term benchmark for how quickly the stronger quarter, recent acquisitions and ongoing Subsea and offshore awards might translate into higher revenue, while also giving investors a reference point for judging whether legal costs, Middle East logistics pressures or slower project awards start to bite. Yet, while results look encouraging, the unresolved patent litigation and potential for higher Middle East logistics costs remain issues investors should be aware of... Read the full narrative on Innovex International (it's free!) Innovex International's narrative projects $1.2 billion revenue and $169.7 million earnings by 2029. This requires 5.8% yearly revenue growth and a $117.8 million earnings increase from $51.9 million today. Uncover how Innovex International's forecasts yield a $32.80 fair value, a 12% upside to its current price. Some of the lowest ranked analysts were already cautious, assuming only about 4.6 percent annual revenue growth to roughly US$1.1 billion, and they highlight how ongoing Middle East logistics and legal cost risks might look more troubling even after this stronger quarter. Explore 6 other fair value estimates on Innovex International - why the stock might be a potential multi-bagger! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Innovex International research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Innovex International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Innovex International's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: Find 51 companies with promising cash flow potential yet trading below their fair value. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include INVX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue and adjusted EBITDA hit the high end of guidance, with revenue at $245 million and adjusted EBITDA at $48 million, reflecting a 20% margin. Completed the acquisition of TCO Group, adding differentiated, high-margin, capital-light technologies with strong growth potential. Secured a $20 million subsea tension riser package in Malaysia, with follow-on wellhead orders anticipated, boosting subsea momentum. Successfully completed the first XPAC trial with a major international operator in Asia Pacific, expanding market reach. Strong free cash flow of $30 million (63% of adjusted EBITDA) and a robust balance sheet with $222 million cash and no bank debt. International and offshore revenue grew 11% sequentially, driven by strength in key markets like Mexico and Saudi Arabia. Completed the first installation of the Argo Latch subsea release plug in Brazil, showcasing integrated innovation. Expecting Q3 revenue of $260-$270 million and adjusted EBITDA of $51-$57 million, indicating continued growth. NAM land revenue declined 4% sequentially due to seasonally lower Canadian activity, reflecting market softness. Increased logistics costs in the Middle East due to regional conflict, with $1.5 million in additional freight expenses impacting margins. TCO acquisition contributed only $15 million in revenue and $3 million in EBITDA in Q3 guidance, with conservative expectations. Middle East performance remains flat in Q3, with potential growth dependent on conflict resolution. ROCE is reduced by net balance sheet cash position, currently at 12%, below the long-term target of high-teens. US land revenue was flat in Q2, with growth expected only in the back half of the year. Integration of Drillquip is still ongoing, with one more ERP conversion expected later this year, posing execution risks. Project timing variability in subsea and international businesses creates quarter-to-quarter revenue unpredictability. Warning! GuruFocus has detected 4 Warning Signs with ENTG. Is INVX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the TCO acquisition, specifically the expected contribution in Q3 and the cross-selling opportunities, particularly in markets like Brazil?A: Kendall Reed (CFO) confirmed the TCO deal closed on July 1, with Q3 guidance including $15 million in revenue and $3 million in EBITDA from TCO. Adam Anderson (CEO) highlighted Brazil as a prime cross-selling opportunity, noting TCO's emerging products fit well with the company's subsea wellhead business, where Innovex is the number one provider. The acquisition strengthens positions in Norway and the UAE, with potential to accelerate TCO technologies across new customers and geographies. Q: What is driving the strong offshore momentum, and has customer behavior changed regarding project sanctions and awards?A: Adam Anderson (CEO) reported a robust offshore pipeline, citing three major Asia projects totaling $60-$80 million in revenue expected to materialize next year. These awards stem from legacy Drillquip relationships and a desire for energy security. He noted a strong pipeline of awards expected to convert over the next six months in the U.S. Gulf and internationally, with the company taking market share through aggressive commercial strategies and the talent/technology from the Drillquip acquisition. Q: How is the company performing in Saudi Arabia, and what is the growth potential in unconventional applications like Jafurah?A: Adam Anderson (CEO) reported a nice uptick in Saudi business, with the first direct contract signed with end users. The company is building market share with expandable liner hangers in deep gas applications and has qualified trench foot technology from the Citadel acquisition for Jafurah. While still more levered to legacy oil land markets, growth in gas and unconventional spaces is expected to be a significant driver over the next couple of years. Q: What is the outlook for Q3 guidance, and what factors could drive results to the high end of the range?A: Kendall Reed (CFO) explained that Q3 guidance includes $15 million from TCO and approximately $250 million from the legacy business. The Middle East is expected to be relatively flat quarter-over-quarter. Factors that could drive high-end results include stronger-than-expected TCO delivery timing and resolution of the Middle East conflict, which has been a drag on margins due to increased logistics costs of around $1.5 million. Q: Can you elaborate on the progress in Mexico and the strategy for the Canadian wellhead business internationally?A: Adam Anderson (CEO) noted Mexico is a strong market for technically demanding wells where Innovex has best-fit technology and strong market share. The first surface wellhead delivery to Mexico is a commercial milestone. For Canadian wellheads, the strategy focuses on growing share in the thermal space and expanding internationally, particularly in Mexico, while the U.S. land market remains a slower-evolving opportunity given the strong distribution network already in place. Q: How is the company thinking about organic growth relative to its key end markets, and what is the track record of market share gains?A: Kendall Reed (CFO) stated that pro forma for all acquisitions, the business is up slightly year-over-year despite broader market declines, indicating continued share gains. Adam Anderson (CEO) added that the "No Barriers" culture has driven consistent market share growth over the past decade, making the company number one, two, or three in most North American product lines, with similar positioning developing internationally. Q: What is the revenue split between the U.S. and Canada in the NAM land segment, and what are the expectations for U.S. land activity?A: Kendall Reed (CFO) clarified that Canada represents roughly 8% of overall business and about 15% of North America land revenue, with significant seasonality impacting Q2. U.S. land was flat in Q2, but the company expects nice growth in Q3 driven by rig additions from both larger independents and smaller operators, with strength expected through Q3 and Q4. Q: What is the company's capacity for additional M&A, and how is the integration of recent acquisitions progressing?A: Kendall Reed (CFO) expressed confidence in the team's integration capabilities, noting the Drillquip integration is nearing completion with facility consolidation done and one more ERP conversion later this year. This frees up significant bandwidth to take on new opportunities. The M&A pipeline remains robust with a mix of smaller bolt-ons and larger strategic transactions, all evaluated against stringent qualitative and quantitative criteria. Q: Can you provide an update on tariff refunds and the impact of tariffs on the business?A: Kendall Reed (CFO) noted that the more meaningful 232 tariff on raw material steel was not included in refund programs, but the company has applied for and received modest tariff refunds expected in Q3. These are immaterial to the overall business but represent a small positive. Q: What are the key drivers for margin improvement going forward, and what is the status of the Eldridge facility exit?A: Kendall Reed (CFO) confirmed the move out of Eldridge was completed in Q2, enabling supply chain efficiencies. Margin drivers include resolution of Middle East logistics costs, incrementals from subsea awards converting to revenue, TCO returning to average quarterly performance, and growth in Mexico and Saudi Arabia at high incremental margins. The company expects to be consistently north of 20% EBITDA margin post-Eldridge exit. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by improving activity levels in international markets and growing commercial momentum within the subsea business, particularly in Asia Pacific. The acquisition of TCO Group adds differentiated, gas-tight downhole barrier technology that fits the company's 'big impact, small ticket' consumable product strategy. Management attributes successful subsea competition to a 'No Barriers' commercial mindset, optimized manufacturing footprint, and the strategic alliance with OneSubsea. Operational progress in Brazil demonstrated the value of the combined Innovex and legacy Dril-Quip portfolio through the integrated deployment of ArgoLATCH and XPak systems. Market share gains in Saudi Arabia were specifically driven by expandable liner hanger technologies and expansion into unconventional applications. The company is leveraging product expertise from Canada to enter the Mexican surface wellhead market, marking a key milestone in its international land strategy. Management believes the completion of major integration and manufacturing optimization efforts has transitioned the company into a phase of consistent, profitable growth. Q3 2026 guidance assumes $15 million in revenue and $3 million in EBITDA from the newly acquired TCO business, with expectations for growth in subsequent quarters. Subsea project awards totaling $60 million to $80 million in Asia are expected to contribute meaningfully to revenue starting in 2027. Management expects to leverage the existing platform to reduce SG&A as a percentage of revenue as the Dril-Quip integration concludes and the business scales. The company is targeting a long-term return on capital employed (ROCE) in the high-teens through margin expansion, disciplined M&A, and shareholder returns. Future growth strategy focuses on cross-selling TCO technologies into established markets like Brazil and Saudi Arabia where Innovex already maintains a strong presence. Increased logistics costs due to Middle East conflict, specifically air freight, created a $1.5 million headwind to margins in the second quarter. The company completed its exit from the Eldridge facility in Q2, which is expected to drive future margin improvements and supply chain responsiveness. The TCO acquisition was funded with $65 million in cash and $30 million in stock, preserving balance sheet flexibility with no bank debt remaining. Management noted that while they are monitoring opportunities in Venezuela, they have not yet recognized meaningful revenue and will utilize a capital-light model there. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is prioritizing international land markets like Mexico for wellhead growth due to established service company relationships and lower barriers to entry compared to U.S. land. While evaluating U.S. land opportunities, growth there is expected to evolve more slowly than in thermal applications in Canada and international markets. Confidence is driven by a robust pipeline of projects being sanctioned for energy security and the company's ability to take market share from incumbents. Management expects several large international awards to be announced over the next six months, particularly in the Western Hemisphere and U.S. Gulf. The two-year Dril-Quip integration is nearly complete, with only one ERP conversion remaining, which is freeing up organizational bandwidth for new deals. The M&A pipeline remains robust, including both small bolt-ons and larger strategic transactions that meet stringent return criteria. Activity in the Middle East is expected to remain relatively flat in Q3 compared to Q2 due to the ongoing conflict. Resolution of the conflict would provide an immediate boost to margins by eliminating elevated logistics and freight expenses.

HOUSTON, August 03, 2026--(BUSINESS WIRE)--Innovex International, Inc. (NYSE: INVX) ("Innovex," the "Company" or "we") today announced financial and operating results for the second quarter of 2026. Second Quarter Highlights Revenue of $245 million, up 2% quarter-over-quarter and up 9% year-over-year Net Income of $25 million and Net Income Margin of 10% Adjusted EBITDA1 of $48 million and Adjusted EBITDA Margin1 of 20% Net Cash Provided by Operating Activities of $37 million Free Cash Flow1 of $30 million Income from Operations of $100 million (twelve months ended June 30, 2026) Return on Capital Employed1 of 12% (twelve months ended June 30, 2026) $222 million of cash and cash equivalents and no bank debt at quarter-end Awarded an additional $20 million subsea tension riser package for an operator in Malaysia, with follow-on wellhead awards anticipated Completed the first successful XPak trial with a major independent oil company in Asia Closed the acquisition of TCO Group AS ("TCO") in a cash and stock transaction valued at $95 million on July 1, 2026 Adam Anderson, CEO, commented, "We delivered an excellent second quarter – with revenue at the high end of our guidance range and strong operational execution across the business. Performance was supported by improving activity in key international markets and growing commercial momentum within our subsea business. Our ‘No Barriers’ culture has unleashed our subsea teams – as evidenced by a $20 million subsea award in Malaysia, the first successful XPak trial for a major operator in Asia Pacific, and the first installation of our ArgoLATCH Subsea Release Plug in a key deepwater exploration well in Brazil – an innovation that combines technologies from both legacy Innovex and legacy Dril-Quip. Improving end-market fundamentals, innovation, and strong execution are expected to continue supporting momentum in our subsea business results over the coming quarters. Our Canadian wellhead team also completed its first surface wellhead delivery to Mexico during the quarter, leveraging Innovex’s international platform to expand into a new market. These results reflect the strength of our differentiated technology portfolio and the benefits of our customer-focused culture. On July 1st, we completed the acquisition of TCO, a highly complementary, capital-light business that expands our technology offering, strengthens our international presence, and exemplifies our disciplined ‘big impact, small ticket’ acquisition strategy." Kendal Reed, CFO, continued, "Our second quarter results demonstrate the strength of Innovex’s capital-light business model. We generated $30 million of Free Cash Flow and ended the quarter with $222 million of cash and cash equivalents and no bank debt, providing significant financial flexibility to invest in high-return capital allocation opportunities. We are very pleased with the completion of the TCO acquisition for $95 million, funded with a mix of cash and equity, which preserves our strong balance sheet and financial capacity to pursue our robust pipeline of M&A opportunities. TCO is an excellent example of our stringent quantitative and qualitative M&A framework in action. TCO is a high-margin, cash-generative business with a portfolio of largely consumable products that fit our ‘big impact, small ticket’ business proposition. In addition to acquiring TCO at an attractive valuation, we see meaningful opportunities to accelerate its organic growth by leveraging the Innovex platform. The transaction enhances Innovex’s corporate margin profile and is expected to be accretive to Innovex’s earnings per share." Operational & Financial Results Kendal Reed, CFO, commented, "Operational execution remained strong throughout the second quarter as we continued to improve the efficiency and competitiveness of the business while delivering revenue at the high end of our guidance range. Our business in the Middle East improved relative to the first quarter and Mexico benefited from increased customer activity and continued demand for our differentiated completion technologies. Across our subsea businesses, we continued to build commercial momentum through new technology deployments, increased customer engagement and improved operational execution. While geopolitical uncertainty and project timing may continue to create quarter-to-quarter variability, we believe the underlying trajectory of the business remains positive as we enter the second half of 2026." Adam Anderson, CEO, concluded, "We are encouraged by the momentum across our platform of businesses. Activity across Latin America, particularly in Mexico, continues to improve. We are also seeing encouraging commercial progress in both the Middle East and Asia Pacific, including market share gains in expandable liner hanger technologies, growth in unconventional applications in Saudi Arabia, and the deployment of our technologies into new fields. I am particularly excited by the outlook for our subsea business, where improving offshore market fundamentals are complemented by our stronger competitive position, differentiated technologies, alliance with OneSubsea, and customer-focused commercial execution. Over the past several months, we have secured a number of meaningful project awards and expanded our presence with new customers and in new regions, providing us with growing confidence in the long-term trajectory of the business. Looking ahead, we are also excited about the opportunities created by the addition of TCO, whose differentiated technologies further strengthen our ability to deliver value for customers around the world. More broadly, we believe Innovex is entering a new phase. We now have a stronger, more efficient operating platform, a broader portfolio of differentiated technologies, and greater opportunities to extend those technologies across customers, applications, and geographies. We remain focused on converting these advantages into sustainable, profitable growth while maintaining our discipline around execution and capital allocation." Balance Sheet, Debt, Cash Flow & Other Net cash provided by operating activities was $37 million for the second quarter of 2026, while capital expenditures totaled $7 million (approximately 2.7% of revenue) for the second quarter of 2026. Innovex generated Free Cash Flow of $30 million during the second quarter of 2026 and ended the quarter with approximately $222 million of cash and cash equivalents and no bank debt. Innovex maintains a strong liquidity position and disciplined balance sheet to preserve flexibility and support high-return capital allocation opportunities. We continue to focus on M&A opportunities with strong quantitative and qualitative characteristics. Return on Capital Employed ("ROCE") Innovex’s efficient capital allocation and capital-light business model enable the Company to generate strong returns on its invested capital. Income from operations for the twelve months ended June 30, 2026 was $100 million. Return on Capital Employed ("ROCE") for the twelve months ended June 30, 2026 was 12%. We remain focused on capital efficiency, which we believe is a key driver of sustainable value creation for our stockholders. Q3 2026 Guidance Looking to the third quarter of 2026, Innovex expects to generate $260 - $270 million in total revenue and Adjusted EBITDA of $51 - $57 million. Q3 guidance includes TCO contributions. The Company is unable to provide a reconciliation of Adjusted EBITDA guidance to the most directly comparable GAAP measure without unreasonable effort due to the inherent difficulty in forecasting the timing and magnitude of items that have not yet occurred. Conference Call Details Management will host a conference call and a webcast to discuss the financial results on August 4, 2026, at 9:00 a.m. Eastern Time / 8:00 a.m. Central Time. The call will be open to all interested parties and may include forward-looking statements. To access the call, please dial in approximately ten minutes prior to the start time. Date / Time: August 4, 2026 – 9:00 a.m. Eastern Time / 8:00 a.m. Central TimeWebcast: https://events.q4inc.com/attendee/159948172 U.S. Toll-Free Dial-In: +1 (833) 461-5787U.S. Local Dial-In: +1 (585) 542-9983Meeting ID: 159948172 A replay of the webcast will be made available shortly after the call and may be accessed through the Investors section of the Company’s website. About Innovex International, Inc. Innovex International, Inc. (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc. and Innovex Downhole Solutions, Inc. Innovex’s comprehensive portfolio extends throughout the lifecycle of the well, and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering costs, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East, and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service. Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Innovex’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including "may," "believe," "expect," "intend," "anticipate," "plan," "should," "estimate," "continue," "potential," "will," "hope" or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other "forward-looking" information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks related to the Company’s merger and acquisition activities, including the ultimate outcome and results of integrating operations, the effects of the Company’s merger and acquisition activities (including the Company’s future financial condition, results of operations, strategy and plans), potential adverse reactions or changes to business relationships resulting from the completion of mergers and acquisitions, expected benefits from mergers and acquisitions and the ability of the Company to realize those benefits, the significant costs required to integrate operations, whether merger or acquisition-related litigation will occur and, if so, the results of any litigation, settlements and investigations, operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; acts of terrorism, war or political or civil unrest in the United States or elsewhere; loss or corruption of our information or a cyberattack on our computer systems; uncertainties pertaining to the Impulse litigation; the risks related to economic conditions and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Innovex disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release, except as may be required by law. Non-GAAP Measures Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA (a non-GAAP measure) as net income (loss) before interest (income) expense, 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. Management uses Adjusted EBITDA to assess the profitability of our business operations and to compare our operating performance to our competitors without regard to the impact of financing methods and capital structure and excluding costs that management believes do not reflect our ongoing operating performance. We track Adjusted EBITDA on an absolute dollar basis and as a percentage of revenue, which we refer to as Adjusted EBITDA Margin. Free Cash Flow We also utilize Free Cash Flow (a non-GAAP measure) to evaluate the cash generated by our operations and results of operations. We define Free Cash Flow as net cash provided by operating activities less capital expenditures, as presented in our Consolidated Statements of Cash Flows. Management believes Free Cash Flow is useful because it demonstrates the cash that was available in the period that was in excess of our needs to fund our capital expenditures. We track Free Cash Flow both on an absolute dollar basis and as a percentage of revenue. Free Cash Flow does not represent our residual cash flow available for discretionary expenditures, as we have non-discretionary expenditures, including, but not limited to, any principal payments required under the terms of our credit facility, which are not deducted in calculating Free Cash Flow. Return on Capital Employed (ROCE) We utilize Return on Capital Employed ("ROCE") (a non-GAAP measure) to assess the effectiveness of our capital allocation over time and to compare our capital efficiency to our competitors. 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. We revised our definition of ROCE and Adjusted Income from Operations, after tax to exclude litigation related expenses not reflective of our ongoing operating performance, which for the twelve months ended June 30, 2026 is reflective of the costs related to the Impulse Litigation. In particular, we believe that the exclusion of the aforementioned litigation related expenses eliminated in calculating Adjusted Income from Operations, after tax and ROCE provides useful measures for period-to-period comparisons of our business. We did not revise prior years’ Adjusted Income from Operations, after tax or ROCE because there were no other charges similar in nature to these costs. Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and ROCE do not represent and should not be considered alternatives to, or more meaningful than, net income and net cash provided by operating activities, or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Our computation of Adjusted EBITDA, Free Cash Flow and ROCE may differ from computations of similarly titled measures of other companies. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure, see tables below. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803958068/en/ Contacts Investor Relations Contact Eric WellsChief of [email protected] (346) 398-0000

Innovex International (INVX) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this maker of offshore drilling and production equipment would post earnings of $0.23 per share when it actually produced earnings of $0.34, delivering a surprise of +47.83%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Innovex International, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $244.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.04%. This compares to year-ago revenues of $224.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Innovex International shares have added about 28.4% since the beginning of the year versus the S&P 500's gain of 9.4%. While Innovex International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Innovex International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $251 million in revenues for the coming quarter and $0.86 on $993 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, North American Construction (NOA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This heavy construction and mining services company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +2800%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. North American Construction's revenues are expected to be $252.93 million, up 9.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Innovex International, Inc. (INVX) : Free Stock Analysis Report North American Construction Group Ltd. (NOA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Oil States International (OIS) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.27%. A quarter ago, it was expected that this energy services company would post earnings of $0.08 per share when it actually produced earnings of $0.09, delivering a surprise of +12.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Oil States International, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $156.66 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $165.41 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Oil States International shares have added about 14.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Oil States International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Oil States International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $167.57 million in revenues for the coming quarter and $0.53 on $647.54 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Innovex International (INVX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This maker of offshore drilling and production equipment is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +7.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Innovex International's revenues are expected to be $240 million, up 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oil States International, Inc. (OIS) : Free Stock Analysis Report Innovex International, Inc. (INVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Soft earnings didn't appear to concern Innovex International, Inc.'s (NYSE:INVX) shareholders over the last week. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Innovex International has an accrual ratio of -0.11 for the year to March 2026. Therefore, its statutory earnings were quite a lot less than its free cashflow. In fact, it had free cash flow of US$146m in the last year, which was a lot more than its statutory profit of US$51.9m. Innovex International shareholders are no doubt pleased that free cash flow improved over the last twelve months. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. See our latest analysis for Innovex International That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Innovex International's profit was reduced by unusual items worth US$28m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Innovex International to produce a higher profit next year, all else being equal. Considering both Innovex International's accrual ratio and its unusual items, we think its statutory earnings are unlikely to exaggerate the company's underlying earnings power. Based on these factors, we think Innovex International's earnings potential is at least as good as it seems, and maybe even better! If you want to do dive deeper into Innovex International, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for Innovex International you should know about. After our examination into the nature of Innovex International's profit, we've come away optimistic for the company. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.