Gold prices steady ahead of Fed decision; weekly weakness noted
HOUSTON - Innovex International, Inc. (NYSE: INVX), a Houston-based company currently trading at $15.91, has entered into a definitive agreement to sell its facility located at 6401 North Eldridge Pkwy, Houston, Texas. The transaction is valued at $95 million, subject to customary adjustments, and is expected to close in the third quarter of 2025. According to InvestingPro data, the company maintains a strong financial health score of "GREAT," with liquid assets significantly exceeding short-term obligations.
The company has announced that it will lease the property back on a short-term basis to ensure the completion of its facility consolidation initiatives and to avoid any disruption to customer deliveries. The sale aligns with Innovex’s strategy to reduce its operating footprint dedicated to Subsea operations in Houston by 82%, which is anticipated to drive significant cost reductions and improve delivery times to customers. The company’s strong balance sheet, with a current ratio of 3.94 and a conservative debt-to-equity ratio of 0.1, positions it well for this strategic move.
According to Adam Anderson, CEO of Innovex, the proceeds from the sale represent about 9% of the company’s current market capitalization of $1.1 billion and will enhance its net cash position. He emphasized that the sale is a key milestone in the transformation of the Dril-Quip business. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with multiple ProTips highlighting the company’s solid financial foundation.
Kendal Reed, CFO of Innovex, stated that the proceeds would further strengthen the company’s balance sheet and could be used to fund shareholder returns through a share buyback program or to invest in mergers and acquisitions.
Innovex also provided a business update for the first quarter of 2025, with total revenue expected to be approximately $240 million, slightly below the previously announced guidance of $245 - $255 million. The company anticipates Adjusted EBITDA for the quarter to be between $44 - $46 million. These figures are preliminary estimates and subject to change upon finalization of quarterly financial results.
The company plans to release detailed earnings results for the first quarter of 2025 on May 6, 2025, after the close of U.S. financial markets, followed by a conference call and webcast on May 7, 2025. For deeper insights into INVX’s financial performance, investors can access comprehensive valuation metrics and expert analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
Innovex was established in 2024 following the merger of Dril-Quip, Inc. and Innovex Downhole Solutions, and it offers a comprehensive portfolio of services throughout the lifecycle of a well.
This news article is based on a press release statement from Innovex International, Inc.
In other recent news, Innovex International reported strong financial results for the fourth quarter and full-year 2024. The company achieved a 65% increase in quarterly revenue compared to the previous quarter, totaling $251 million, a substantial rise from $133.19 million in the same quarter last year. Innovex’s net income reached $32 million, with a net income margin of 13%, while adjusted EBITDA was $49 million, maintaining a 20% margin. The company also reported free cash flow of $29 million and a return on capital employed of 12%. Innovex’s strategic actions, such as the planned divestiture of the Dril-Quip Eldridge facility and the acquisition of Downhole Well Solutions, have contributed to its growth and improved margins. The company’s CFO, Kendal Reed, noted the achievement of $30 million in annualized merger cost synergies. Looking forward, Innovex anticipates first-quarter 2025 revenue between $245 million and $255 million, with adjusted EBITDA projected to range from $45 million to $50 million. These developments reflect Innovex’s operational efficiency and strategic focus.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.