Innovex International Reports 19% Revenue Growth to $660.8 Million Following Dril-Quip Merger

Innovex International, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, following its merger with Dril-Quip, Inc. The company generated total revenues of $660.8 million, a 19% increase from $555.5 million in the previous year. This growth was primarily driven by a substantial rise in international and offshore market revenues, which reached $299.7 million, up from $189.4 million in 2023. In contrast, revenues from the North American market slightly decreased to $361.1 million, down from $366.1 million, reflecting a decline in drilling activity in the region.

The merger, completed on September 6, 2024, has allowed Innovex to expand its addressable market significantly, with a pro forma total addressable market (TAM) estimated at $8.3 billion for 2024, compared to $4.5 billion prior to the merger. The company also acquired an 80% stake in Downhole Well Solutions (DWS) for $75.1 million in cash and shares, further enhancing its product offerings and market reach. The merger and acquisition activities have positioned Innovex to capture a larger market share, with estimates indicating a 13% share in the North American market and a 12% share in international and offshore markets.

Despite the revenue growth, Innovex reported a net income of $140.3 million, a 90% increase from $73.9 million in 2023. This increase was attributed to the gain on bargain purchase from the merger, which amounted to $85.8 million, and a gain on the consolidation of equity method investment of $8.0 million. However, the company also faced increased costs, with total expenses rising by 33% to $611.7 million, driven by higher selling, general, and administrative expenses, as well as acquisition costs related to the merger and DWS acquisition.

Operationally, Innovex maintained a customer base of 1,376 active customers, with its top ten accounts contributing 35% of total revenue. The company emphasized its commitment to innovation and customer responsiveness, which it believes will enable it to continue capturing market share. As of December 31, 2024, Innovex had a total employee count of 2,683, reflecting its growth and expansion efforts.

Looking ahead, Innovex anticipates continued growth driven by its strategic acquisitions and a focus on expanding its presence in the international and offshore markets. The company is closely monitoring market conditions, including oil and natural gas prices, which are expected to influence future capital spending in the exploration and production sector. Innovex's management remains optimistic about its ability to navigate the cyclical nature of the oil and gas industry while leveraging its enhanced operational scale and product portfolio to deliver value to shareholders.