ChampionX Corporation Reports $864.5 Million Revenue in Q1 2025, Down 6.3% Year-Over-Year

ChampionX Corporation reported a total revenue of $864.5 million for the first quarter of 2025, a decrease of 6.3% from $922.1 million in the same period of the previous year. The decline was primarily attributed to a slowdown in market activity, particularly in the Production Chemical Technologies segment, which saw a revenue drop of 8% to $523.4 million. Net income for the quarter was $89.0 million, down from $113.2 million year-over-year, resulting in earnings per share of $0.45, compared to $0.59 in the prior year.

In terms of operational metrics, the company experienced a reduction in gross profit, which fell to $291.5 million from $299.2 million a year earlier. Selling, general, and administrative expenses increased slightly to $177.0 million, reflecting ongoing costs associated with the pending merger with Schlumberger Limited. The company recorded $10.2 million in legal and professional fees related to the merger during the quarter. The effective tax rate for the quarter was 14.7%, a decrease from 28.1% in the previous quarter, primarily due to discrete tax benefits.

ChampionX is actively pursuing a merger with Schlumberger, which was announced on April 2, 2024. Under the terms of the merger agreement, each share of ChampionX common stock will be converted into 0.735 shares of Schlumberger common stock. The merger is subject to customary closing conditions, including regulatory approvals and shareholder consent. As of March 31, 2025, ChampionX had 191.4 million shares of common stock outstanding.

The company also reported significant changes in its balance sheet, with total assets increasing to $3.5 billion from $3.47 billion at the end of 2024. Cash and cash equivalents rose to $526.6 million, up from $507.7 million, while long-term debt remained stable at approximately $590.7 million. ChampionX's liquidity position is strong, with total liquidity of $1.2 billion, including available capacity under its revolving credit facility.

Looking ahead, ChampionX anticipates continued challenges due to fluctuating oil prices and market conditions. The company expects to generate sufficient cash from operations to meet its business requirements and maintain its dividend policy, with a quarterly cash dividend of $0.095 per share declared for the first quarter of 2025. The company remains focused on managing costs and enhancing operational efficiency to navigate the current economic landscape.