ChampionX (CHX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $912.0M, up 1% sequentially, with net income of $82.8M and adjusted EBITDA of $212.3M.

• Full-year 2024 revenue was $3.63B, net income $320.3M, and adjusted EBITDA $784.7M, with North America revenue up 3% year-over-year.

• Strong cash flow: Q4 operating cash flow $207.3M (250% of net income), free cash flow $170.1M; full-year operating cash flow $589.7M, free cash flow $460.5M.

• ChampionX agreed to be acquired by SLB in an all-stock transaction, approved by shareholders and pending regulatory approval.

Financial highlights

• Q4 adjusted EBITDA margin reached 23.3%, the highest level for ChampionX; full-year adjusted EBITDA margin was 21.6%, up 107 bps year-over-year.

• Q4 income before income taxes margin was 13.0%; full-year margin was 12.2%, up 90 bps from prior year.

• Q4 diluted EPS was $0.43; full-year diluted EPS was $1.65.

• Q4 free cash flow conversion was 80% of adjusted EBITDA; full-year conversion was 59%.

• Ended 2024 with $1.2B liquidity, including $508M cash and $675M available on revolving credit facility.

Outlook and guidance

• Expects global oil production growth in 2025 and anticipates another year of positive performance relative to oil and gas market activity.

• Discontinued quarterly guidance and earnings calls due to pending SLB acquisition.