Innovex stock price plunges due to earnings falling short of expectations despite revenue surpassing forecasts

LootboxPhobia · 2026-02-23T21:55:36+00:00

Innovex International Inc. announced that its Q4 earnings did not meet profit expectations. Although revenue exceeded expectations, earnings per share of $0.20 fell short of the anticipated $0.29, resulting in a 6.2% drop in stock price. The company's CEO stated that despite seasonal factors affecting performance, the company still maintains its 2026 revenue guidance.

LootboxPhobia

2026-02-23 21:55:36

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Investing.com – Innovex International Inc. (NYSE:INVX) announced its Q4 earnings fell short of profit expectations, despite revenue surpassing forecasts. This news caused its stock to drop 6.2% in after-hours trading on Monday.

The oilfield services company reported adjusted earnings per share of $0.20 for the quarter, below the analyst consensus of $0.29. However, revenue reached $273.6 million, exceeding the expected $239.47 million and up 9% from $250.7 million in the same period last year. Revenue increased 14% quarter-over-quarter.

The company posted a net profit of $14 million this quarter, representing 5% of revenue. Adjusted EBITDA totaled $52 million, with a profit margin of 19%. Free cash flow for the quarter was $43 million, with full-year free cash flow projected at $156 million for fiscal 2025.

CEO Adam Anderson stated, “We finished 2025 on a strong note, with revenue exceeding the high end of our guidance range, driven by better-than-expected subsea equipment deliveries, revenue synergies from the DWS and Citadel acquisitions, and the launch of new products.”

For Q1 2026, Innovex provided revenue guidance of $225 million to $235 million, with a midpoint of $230 million. The company expects adjusted EBITDA between $38 million and $42 million, with a midpoint of $40 million. The quarter-over-quarter decline in revenue reflects typical seasonal factors, including reduced subsea equipment deliveries and earlier-than-expected execution of certain projects.

CFO Kendal Reed noted that low-margin subsea projects are expected to continue pressuring margins in the first half of 2026. However, the company anticipates margin improvements in subsea operations by the end of the year following the expected exit from the Eldridge facility in Q2.

Innovex ended the year with approximately $203 million in cash and no bank debt.

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