ChampionX Corporation Reports $3.63 Billion Revenue for Fiscal Year 2024, Announces Merger with Schlumberger

ChampionX Corporation reported a revenue of $3.63 billion for the fiscal year ending December 31, 2024, a decrease of 3% from the previous year's revenue of $3.76 billion. The decline was primarily attributed to reduced sales in Latin America and a decrease in revenue from a Cross Supply and Product Transfer Agreement with Ecolab. Despite the drop in revenue, the company achieved a gross profit of $1.19 billion, reflecting a 4% increase from $1.14 billion in 2023, driven by productivity improvements and cost control measures.

The company's net income for 2024 was $320.3 million, slightly up from $314.2 million in 2023. This increase in profitability was supported by a reduction in the cost of goods sold, which fell by 7% to $2.45 billion, compared to $2.62 billion in the prior year. However, selling, general, and administrative expenses rose by 14% to $720.6 million, largely due to transaction costs related to the pending merger with Schlumberger Limited, as well as costs associated with recent acquisitions.

In terms of strategic developments, ChampionX announced a merger agreement with Schlumberger on April 2, 2024, which is expected to enhance its market position and operational capabilities. The merger, which is subject to customary closing conditions, will see ChampionX become an indirect wholly-owned subsidiary of Schlumberger. Additionally, the company made significant acquisitions in 2024, including RMSpumptools Limited, which is anticipated to bolster its artificial lift business internationally.

Operationally, ChampionX reported a total employee count of approximately 7,100 across 38 countries as of December 31, 2024. The company continues to focus on enhancing its product offerings and expanding its geographic reach, with a notable increase in revenue from its Production & Automation Technologies segment, which grew by 4% to $1.04 billion, driven by the acquisition of RMSpumptools. The company also emphasized its commitment to sustainability and innovation, aligning with industry trends towards lower carbon solutions.

Looking ahead, ChampionX expects to generate sufficient cash flow from operations to support its business needs and continue funding its capital expenditures and share repurchase program. The company anticipates that ongoing market volatility, particularly in oil and gas prices, will continue to influence its operational strategies and financial performance. The management remains optimistic about the potential benefits of the merger with Schlumberger and the strategic acquisitions made during the year, which are expected to contribute positively to future growth.