Innovex International, Inc. has made a significant business move by announcing the divestiture of the Dril-Quip Eldridge campus, located in Houston, Texas, for a sale price of $95.0 million. This divestiture represents approximately 9% of Innovex’s current market cap and is expected to close in the third quarter of 2025.
The sale of the Eldridge campus will reduce the company's 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.
Additionally, the company provided a business update for the first quarter of 2025, stating that despite lower-than-expected revenue, Innovex anticipates adjusted EBITDA for the first quarter of 2025 to be between $44 * $46 million. This is a key metric for the company's profitability and performance.
The company's actual first quarter results for 2025 are expected to be released on May 6, 2025, after the close of the U.S. financial markets. During the subsequent conference call and webcast on May 7, 2025, at 10:00 a.m. Eastern Daylight Time, management will discuss the financial results in detail and may provide forward-looking information.
Innovex International, Inc. has also outlined its plans for the proceeds from the sale of the Eldridge facility, including potential deployment for a previously announced $100.0 million share buyback authorization and a robust M&A pipeline. This indicates the company's intention to drive long-term returns for its shareholders.
As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $15.91. For more information, read the company's full 8-K submission here.
