Wed, Apr 30, 8:17 PM (12 days ago)
**ChampionX Corporation (CHX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $864.5 million, down 5% sequentially due to market slowdown. - **Profit Margins:** Gross profit margin at 33.7%, down from 33.9% in Q4 2024. - **Net Income:** $89.0 million, up 4.9% sequentially. - **Earnings per Share (EPS):** Basic EPS $0.45, diluted EPS $0.44. - **Cash Flow:** Operating cash flow of $66.8 million, down from $173.5 million in Q4 2024. **Segment Performance:** - **Production Chemical Technologies:** Revenue down 8%, operating profit down 21%. - **Production & Automation Technologies:** Revenue down 2%, operating profit flat. - **Drilling Technologies:** Revenue down 3%, operating profit down 24%. - **Reservoir Chemical Technologies:** Revenue up 23%, operating profit up 141%. **Trends & Uncertainties:** - **Market Conditions:** Oil prices decreased slightly, with OPEC+ production cuts extending through April 2025. - **Inflation & Tariffs:** Inflation rates moderated, but tariffs and trade measures pose risks. - **Merger with SLB:** Pending merger with Schlumberger Limited, subject to regulatory approvals. **Future Operations & Impact:** - **Capital Expenditures:** Projected at 4% of revenue for 2025. - **Dividends & Share Repurchases:** $0.095 per share dividend declared, no share repurchases in Q1 2025. - **Liquidity:** Total liquidity of $1.2 billion, with $526.6 million in cash and cash equivalents. **Notable Changes:** - **Divestiture of US Synthetic:** Agreement to sell US Synthetic Corporation for approximately $300 million. - **Sale-Leaseback:** Completed sale-leaseback of properties in Orem, Utah, for $45.5 million. **Risk Factors:** - **Geopolitical & Economic Uncertainties:** Tariffs, trade measures, and global economic conditions. - **Operational Risks:** Supply chain disruptions, regulatory changes, and environmental liabilities. **ChampionX Corporation (CHX) remains focused on navigating market uncertainties while pursuing strategic growth initiatives and maintaining financial discipline.**