Innovex International Sells Dril-Quip Eldridge Campus for $95M

By Bobby Samwell • Saturday, April 26 10:07 • Permanent Link

Innovex International, Inc. has announced the divestiture of its Dril-Quip Eldridge campus, located at 6401 North Eldridge Pkwy, Houston, Texas 77041, for a sale price of $95.0 million. The sale is expected to close in the third quarter of 2025 and is subject to adjustments and customary closing conditions.

Adam Anderson, the CEO of Innovex, stated that the sale of the Eldridge campus represents a significant milestone in the ongoing transformation of the Dril-Quip business. The expected proceeds from the sale represent approximately 9% of Innovex’s current market cap and will further bolster the company’s existing net cash position. Additionally, the company expects the exit of Eldridge to reduce its operating footprint dedicated to subsea operations in Houston by 82%, driving significant cost reduction and enabling better on-time delivery and responsiveness to customers' needs.

Kendal Reed, the CFO of Innovex, mentioned that the proceeds from the sale of Eldridge are expected to further strengthen the company's balance sheet. The company plans to deploy this capital for long-term returns for shareholders, including a previously announced $100.0 million share buyback authorization and a robust mergers and acquisitions pipeline.

In terms of financial performance, Innovex expects total revenue for the first quarter of 2025 to be approximately $240 million, compared to the previously announced guidance of $245 * $255 million. Despite lower-than-expected revenue, the company anticipates adjusted EBITDA for the first quarter of 2025 to be between $44 * $46 million.

These results for the first quarter of 2025 are preliminary estimates and are subject to change as the company finalizes its first quarter 2025 results. Innovex will provide additional detail with the release of first quarter 2025 earnings results on May 6, 2025, after the close of the U.S. financial markets. The management will host a conference call and webcast to discuss the financial results on May 7, 2025.

Innovex International, Inc. is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc and Innovex Downhole Solutions. The company’s comprehensive portfolio extends throughout the lifecycle of the well, with locations throughout North America, Latin America, Europe, the Middle East, and Asia. The market has reacted to these announcements by moving the company's shares -0.2% to a price of $15.91. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.