Innovex International reported higher revenue and adjusted EBITDA for the third quarter of 2026, while net income declined from a year earlier. The oilfield equipment and services company also highlighted new subsea awards, a successful offshore test of its 20,000-psi wellhead system and its return to Venezuela.
The quarter ended with $189 million in cash and no bank debt. Innovex said its growing subsea backlog is expected to support meaningful growth in 2027 and beyond.
Key details
- Revenue reached $265.1 million, up 8% from the second quarter and 10% from a year earlier.
- Net income was $26.3 million, compared with $25.0 million in the prior quarter and $39.2 million in the third quarter of 2025. Net income margin was 10%, down from 16% a year earlier.
- Adjusted EBITDA was $55.4 million, up from $48.0 million in the prior quarter and $43.6 million a year earlier. Adjusted EBITDA margin rose to 21%, from 20% in the second quarter and 18% a year earlier.
- Operating cash flow was $38.8 million, compared with $37.0 million in the prior quarter and $48.4 million a year earlier. Free cash flow, a non-GAAP measure, was $32.4 million, up from $30.4 million in the prior quarter but below $36.5 million a year earlier.
- The company ended September with $189 million in cash and cash equivalents and no bank debt. Innovex said that liquidity gives it flexibility to pursue organic investment and acquisitions.
- Subsea awards included a contract worth more than $30 million for wellhead work with a major international operator in Indonesia, plus more than $9 million of additional subsea work through its OneSubsea Alliance.
- Innovex supported the successful installation of its 20,000-psi wellhead system for a major operator offshore in the United States.
- Management said U.S. Land activity increased and the business gained modest market share, particularly in cementing tools. The company also said Middle East operations delivered a solid quarter despite regional disruptions related to the conflict in Iran.
- Innovex re-entered Venezuela during the quarter as activity began to recover. CEO Adam Anderson said the company sees an opportunity there and expects its capital-light model to let it participate without significant fixed investment.
- For the 12 months ended Sept. 30, Innovex reported $70 million of operating income and a 10% return on capital employed, a non-GAAP measure.
Implications
Revenue and adjusted EBITDA rose year over year, but net income and cash flow were lower than a year earlier. The cash balance and absence of bank debt leave Innovex with substantial liquidity and no bank borrowing at quarter-end. Management’s stated growth priorities include expanding its subsea business, developing new products and pursuing opportunities in recovering markets such as Venezuela.