Innovex International, Inc.

Innovex reported second-quarter 2026 revenue of $245 million, up 2% sequentially and up 9% year over year. Adjusted EBITDA was $48 million, for a 20% margin, versus 21% in Q1 2026 and Q2 2025. NAM land revenue was $131 million, down 4% sequentially, while international and offshore revenue was $113 million, up 11% sequentially. Gross profit was not explicitly stated, but cost of sales excluding depreciation and amortization was about $161 million and SG&A was $39 million, down about $3 million sequentially. Free cash flow was $30 million, capital expenditures were $7 million, and the company ended the quarter with about $222 million of cash and cash equivalents and no bank debt. For Q3 2026, management guided to revenue of $260 million to $270 million and adjusted EBITDA of $51 million to $57 million. TCO is expected to add about $15 million of revenue and about $3 million of EBITDA in Q3.

Adam Anderson said Q2 showed Innovex entering “a new phase,” where prior integration and manufacturing work is increasingly translating into commercial wins, differentiated technology, and broader market reach. He highlighted momentum in subsea, Mexico, Saudi Arabia, and other international markets, and framed TCO as a strategically attractive, capital-light acquisition that fits the company’s “big impact, small ticket” model. His tone was optimistic but measured, emphasizing discipline, execution, and long-term platform expansion rather than a short-term spike.

Kendal Reed focused on the financial mechanics of the quarter and the outlook: $245 million of revenue, $48 million of adjusted EBITDA, 20% margin, $30 million of free cash flow, $7 million of capex, and $222 million of cash with no bank debt. She said SG&A fell about $3 million sequentially to $39 million and noted the company expects SG&A to decline as a percentage of revenue as integration progresses. She also said TCO was purchased for $95 million, split between $65 million cash and $30 million of stock, and that the deal is a disciplined use of excess cash. She called out about $1.5 million of increased freight expense tied to Middle East conflict and said the company remains focused on high-teens ROCE over time through margin expansion, M&A, and shareholder returns.

Analysts pressed on North America land, offshore momentum, TCO integration, tariffs, and the impact of Middle East conflict. Management said U.S. land is still relatively small but should see some Q3 growth, while Canada remains seasonally weak in Q2 and Mexico is a key international land opportunity. On offshore, Adam Anderson said several Asia projects total roughly $60 million to $80 million of revenue and that more awards could convert over the next 6 months. Kendal Reed said the company has received modest tariff refunds that will come in during Q3, but they are immaterial overall.