ChampionX Corporation

Latest Results (26.12.2024):

Revenue Overview

In the third quarter of 2024, ChampionX Corporation reported revenue of $906.5 million. This figure represents a 4% decrease year-over-year, primarily due to lower sales in Mexico, although revenue from other regions increased by 6% year-over-year. Sequentially, revenue increased by 1%, with North America and international revenues both showing slight growth compared to the second quarter.

Net Income and Margins

ChampionX Corporation's net income attributable to the company for the third quarter of 2024 was $72.0 million. The income before income taxes margin stood at 11.2%, while the adjusted EBITDA was $197.5 million, reflecting a 21.8% adjusted EBITDA margin, the highest level achieved by ChampionX to date.

Cash Flow and Liquidity

During the third quarter of 2024, ChampionX Corporation generated cash from operating activities amounting to $141.3 million, which was 196% of the net income attributable to the company. The free cash flow for the period was $108.1 million, representing 55% of the adjusted EBITDA. The company ended the quarter with approximately $1.1 billion in liquidity, including $389 million in cash and $671 million of available capacity on its revolving credit facility.

Production Chemical Technologies

ChampionX Corporation's Production Chemical Technologies segment reported revenue of $559.5 million in the third quarter of 2024, a 2% sequential decrease due to lower international sales volumes. The segment's operating profit was $87.3 million, with an adjusted segment EBITDA of $120.6 million. The segment operating profit margin increased by 60 basis points to 15.6%, and the adjusted segment EBITDA margin rose by 94 basis points to 21.6%.

Production & Automation Technologies

The Production & Automation Technologies segment of ChampionX Corporation saw a revenue increase of 13% sequentially, reaching $275.7 million in the third quarter of 2024. This growth was driven by higher demand for artificial lift systems in North America and the acquisition of RMSpumptools. The segment's operating profit was $34.1 million, with an adjusted segment EBITDA of $69.6 million. The segment operating profit margin increased by 330 basis points to 12.4%, and the adjusted segment EBITDA margin rose by 118 basis points to 25.2%.