ChampionX reports Q1 EPS 58c, consensus 41c

Reports Q1 revenue $922.1M, consensus $921.08M. “Q1 demonstrated the resiliency of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated robust free cash flow despite typical seasonal headwinds internationally. Our ongoing focus on productivity contributed to strong year-over-year profitability improvement,” CEO Sivasankaran Somasundaram said. “During Q1 2024, we generated revenue of $922M, which decreased 3% year-over-year. Revenue declined 2% sequentially, in line with our expectations, driven by a typical seasonal decline in international operations, partially offset by higher volumes in our shorter-cycle North American businesses. We generated net income attributable to ChampionX of $113M, which increased 78% year-over-year and 46% sequentially, and adjusted EBITDA of $192M, which increased 4% year-over-year and declined 3% sequentially. Our income before income taxes margin improved by approximately 547 basis points year-over-year and 308 basis points sequentially, and our adjusted EBITDA margin expanded by approximately 130 basis points year-over-year and declined 21 basis points sequentially in the first quarter…Our balance sheet and financial position remain strong, ending Q1 with approximately $1.1B of liquidity, including $386M of cash and $670M of available capacity on our revolving credit facility.”