Good morning and welcome to InnoVex's second quarter 2025 earnings call. At this time, all participants are in a listen-only mode and there will be a question and answer opportunity at the end of this call. As a reminder, this call is being recorded. At this time, I would like to turn the call over to Abinesh Kiropa, Senior Director of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us on today's call. An updated investor presentation has been posted under the InnoVex tab on the company's website, along with the earnings press release. This call is being recorded, and a replay will be made available on the company's website following the call. Before we begin, I would like to remind you that InnoVex's comments may include forward-looking statements and discuss non-GAAP financial measures. It should be noted that a variety of factors could cause InnoVex's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. Please refer to the second quarter 2025 financial and operational results announcement that we released yesterday for a discussion of forward-looking statements and reconciliations of non-GAAP measures. Speaking on the call today from Inovex, we have Adam Anderson, Chief Executive Officer and Kendall V, Chief Financial Officer. I would now like to turn

the call to Adam Anderson. Thanks, Avi. Good morning, and thank you, everyone, for joining us today. First, I'd like to say thanks to our incredible team. We continue to see progress in our strategic initiatives, and I'm very proud and grateful for their efforts. On today's call, I'll discuss our second quarter results and walk through some of the key highlights, with organic growth, the Citadel acquisition, and our outlook. Kendall will then review our Q2 financial results, our strong financial position, and the multiple levers we can pull and we have strong shareholder returns. InnoVex has created a unique energy industrial platform that drives exceptional service and value for our customers, as well as strong absolute returns for our shareholders. We've done this by curating a portfolio of what we refer to as big impact, small ticket products. Our business model requires very little capital, typically 2% to 3% of revenue, and we aim to convert 50% to 60% of our EBITDA into free cash flow under normal business conditions. I am extremely pleased with our strong margins in pre-cash flow in Q2, but disappointed by the lower-than-expected revenues. Margins in pre-cash flow grew sequentially despite a challenging operating environment. The North America land business remained resilient, absorbing the seasonal effects of breakup in Canada. Excluding the benefit of one-month of Citadel revenue, our U.S. land business remained flat, outperforming a 7% rate cap reduction. This revenue performance reflects market share gains. For example, in our drilling enhancement product line, which was brought over from the DWS acquisition last year, this product line continues to gain share in the U.S. while also growing share outside of the U.S. as we leverage our international distribution channels. Importantly, revenue synergies from the DWS acquisition have begun materializing, demonstrating the value of this transaction. As an example, the legacy DWS sales team recently won a multi-rig bid for our cementing tools with a major operator in the Permian Basin, the first big cross-selling win of many we expect to realize. Turning to international and offshore business, revenue was down approximately 13% sequentially. This softness was primarily isolated to our Middle East and Asia-Pacific markets, which experienced activity declines, short-term product-specific headwinds, and delivery delays, which deferred revenues that we had previously expected to book in Q2. Unlying demand, however, remains healthy, and we expect a return to momentum in the coming quarters. Despite the weakness in our Middle East and Asia-Pacific businesses, we did see a growth in our Latin America business thanks to stronger performance in Mexico and Argentina. Importantly, we're starting to gain traction with our drilling and completion tools in Argentina's unconventional market thanks to customer adoption of our gun drill reamers and dissolvable crackbooks. This is particularly exciting as we expect adoption of these products to open the market for our entire suite of webware technologies, driving organic growth in future quarters. I would now like to discuss our recent acquisition of Citadel Casing Solutions, which we did on May 30th. Citadel is already expanding our market position, enhancing our technology portfolio, and unlocking meaningful commercial synergies. This acquisition further solidifies and affects leadership position in the U.S. land market for cementing tools, with market-leading scale and capabilities. Citadel's product lines are complementary to our legacy portfolio and fit squarely within our big-impact, small-ticket approach. By big-impact, small-ticket, we mean solutions that are critical to well-construction and completion, yet represent a small portion of our customers' overall well-cost. We've curated a portfolio of products that fit this description because these products tend to have consistent margins to provide a clear value proposition. I developed Trenchfoot wet shoe technology as a quintessential big impact small ticket product. This proprietary technology enables increased reservoir access, which ultimately increases production from our customers' wells. Additionally, these tools help operators reduce cycle times, driving measurable gain efficiencies paramount in today's competitive landscape. A good example of this, Trenchfoot has been utilized by one major international operators in over 1,500 successful installations in the U.S., with a 100% reliability rate, leading to an estimated $161 million in savings. We estimate that this technology has been adopted on only 25% of applicable wealth in the U.S., which means we have significant potential to grow shares. We are already seeing significant new synergies from the transaction, which should drive incremental growth in the coming quarters. It's important to understand that Citadel's existing BlueShip customer base had minimal overlap with Inovex's customer base, which means there are opportunities to grow market share for both legacy portfolios. In fact, just a few months after close, we have already seen early wins. Within the last week, we've made significant progress validating the Trenchfoot system for one of the largest operators in West Texas. We successfully passed the first stage of field testing with this customer and expect to pick up nine additional rigs utilizing Trenchfoot with this strategic customer. We expect this to translate to roughly $1 million per quarter of additional revenue with larger potential by both deploying Trenchfoot to more rigs with this customer and expanding the set of products we supply to this customer. We don't plan to stop with U.S. land, however. While approximately 80% of Suddow's current business is concentrated in U.S. land, the portfolio is well-suited for applications in offshore and international markets, which can now be easily tapped into the NFX platform. Finally, we have already realized synergies through Salesforce integration and distribution consolidation. Press-selling efforts are quickly gaining traction on side efforts to improve delivery efficiency by streamlining our footprint. These early wins give us confidence that this transaction will drive long-term, sustainable value across the entire Innobex platform for both our customers and shareholders. The Citadel acquisition is a prime example of our M&A strategy, a great business needing an exit for its current investors that fits extremely well with Innobex's platform and business model. Our strong balance sheet allowed us to execute this transaction at a time of particularly elevated macro uncertainty. as we see the long-term value of the combined portfolio and commercial synergies. As we've said all along, we make the cycle of our industry a feature, not a part of our business model, and this quarter with no exception. Even after spending $70 million of cash on the Citadel acquisition, we maintain a net cash balance sheet. We expect to close in the $95 million sale of our Eldridge facility in the third quarter, which today represents roughly 8% of our market cap. Our thesis when we merged with Citadel was that we could improve margins and service quality And this veil not only frees up an exceptional amount of capital, but the key enabler of our plans to consolidate facilities, raise agencies, and drive cultural change. As discussed previously, we've made improving the customer experience a top priority. And a key driver of that has been raising our on-prem delivery of the Sub-C product line now to the low 70% range. This operational progress has meaningfully enhanced our credibility with customers and positioned us to compete for new opportunities we simply wouldn't have been considered for before. In fact, we've recently secured two contracts, each in the $5 to $10 million range, that we likely would have lost in the past due to delivery reliability concerns. While we're pleased with this early progress, we're not stopping here. Our goal is to reach an on-time delivery rate of over 90%, consistent with Inovex's historical standards, and we're confident in our team's ability to continue to close that gap. Overall, I'm pleased with the second quarter result, like the tough operating environment. We maintained margins, generated significant free cash flow, and closed on a highly accretive acquisition. I would like to once again thank our employees for their efforts and look forward to continued progress against our aspirations to improve the customer experience, grow market share, and achieve margins in the mid-20% range. I would like to hand the call over to Kendall.

Thanks, Adam, and good morning, everyone. Just as a general reminder before we review the Q2 results, we closed on the merger with Terrell Clip on September 6, 2024. and Inovex was the accounting acquirer in the merger, so historical comparative periods prior to Q3 2024 reflect legacy Inovex standalone results. Turning to Q2 2025, while we were disappointed by the top-line results, we were pleased that our overall Q2 financial performance demonstrated the durability of our earnings and cash flow, highlighting the strength of our business model in all phases of the cycle. Our second quarter revenue was $224 million, which is an increase of 72% year-over-year and a decrease of 7% sequentially. The year-over-year increase is primarily driven by the impact of the drill-foot merger and the DWS acquisition. We evaluate our revenue geographically by separating our shorter cycle onshore U.S. and Canadian operations, which we refer to as NAM land, from our longer cycle international and offshore operations, which includes the Gulf of America. Our Q2 NAM land revenue of $120 million was flat in comparison to Q1 revenue, with growth in U.S. land primarily as a result of the DWS business continuing to outpace the market and the addition of one month of Citadel revenue, roughly offsetting seasonal declines in Canada due to spring breakups. Our international and offshore revenue during the second quarter of 2025 was $104 million, a decrease of 13% sequentially to primarily the greater than anticipated revenue weakness in our Middle East and Asia-Pacific business, as Adam discussed. Our TCU cost of sales, exclusive of depreciation and amortization, decreased by $11 million sequentially to $153 million. Selling general and administrative expenses for the quarter decreased by $3 million sequentially. Our SG&A as a percentage of revenue continues to decrease from the close of the drill-quit merger, moving from approximately 25% in Q3 2024 to just below 13% in Q2 2025. Strong operational execution and synergies have driven increases in EBITDA margin from the time of the merger, rising from 18% in Q3 2024 to 21% in Q2 2025, despite a decrease in revenue. We continue to believe that in the long term, the combined Inovect platform can generate EBITDA margins of 25% or greater, in line with Inovect's historical results. We expect the sale of the Eldridge facility to unlock the next phase of margin expansion. We still expect the facility sale to close in the third quarter of 2025, with margin benefits being realized over the course of 2026. However, we would caution that we do not expect margin improvement to be linear, as we will incur various costs and inefficiencies as we work through the integration of physical operations over the next year. Adjusted EBITDA for the second quarter was approximately $45 million, an increase of approximately $1 million sequentially and an increase of $17 million year-over-year. Free cash flow for the second quarter was $52 million, a sequential increase of $28 million. During Q2, we successfully completed the departure of our subsidiary product line for total proceeds of $10 million. While this sale had no impact on Q2 revenue, approximately $7 million of that $10 million sale price was attributable to inventory, and thus represents a one-time benefit to cash flow from operations and free cash flow during the second quarter. As a reminder, under normal business conditions, we aim to convert 50% to 60% of our adjusted EBITDA into free cash flow. During periods of slower activity, however, we can unwind working capital to convert an even higher percentage of our adjusted EBITDA into cash. Capital expenditures in the second quarter of 2025 were $7 million, representing approximately 3% of revenue, in line with our historical target of 2% to 3% of revenue. We still anticipate being on the high end of our historical range in 2025 while we work through facility consolidation after the sale of the Eldridge facility. This marginal increase in 2025 CapEx will be far outweighed by the net proceed for the sale of Eldridge, which demonstrates the value of our capital. Even after acquiring Citadel in an all-cash deal, our balance sheet remains strong with a net cash position to end the quarter. Our total asset as of June 30, 2025, was $41 million, representing a debt-to-trailing 12-month adjusted EBITDA ratio of 0.2 times, more than offset $69 million of cash and equivalents. Our return on capital employed for the 12-month ended June 30, 2025 was 13%, which is an increase of 1% compared to the 12-month ended March 31, 2025. We continue to make progress towards our goal of returning the business to Inovex's seven-year historical average ROCE of approximately 18%. Turning to our outlook for the third quarter, we expect adjusted EBITDA of $40 to $45 and revenues of $230 to $240 million. Our anticipated sequential revenue growth is supported by several key factors. First, scheduled deliveries on certain key projects in the Middle East will increase from Q2 to Q3. Additionally, our U.S. offshore and Asia-Pacific revenue is expected to benefit from shipments that were previously expected in Q2, but have now shifted into the back half of the year. Finally, Q3 will mark the first full quarter of contribution from Citadel, which is expected to be a meaningful offset to potential softness in the U.S. land market, where continued uncertainty and decreased customer investments may weigh further on activity. Latin America, North Sea, and Africa businesses are expected to remain relatively stable quarter over quarter, reflecting consistent underlying demand across those regions. The operating environment continues to be volatile. We remain focused on strong execution and capital discipline, and we're confident in the resilience of our portfolio as we move into the back half of the year. As we have stressed previously, we believe that our business model can be opportunistic in all phases of the cycle. The acquisition of Citadel is a great example and showcases our M&A strategy in action. By leveraging our strong balance sheet and cash flow generative business model, we were able to acquire Citadel in an all-cash deal while obtaining a conservative leverage profile and net cash position. Citadel was acquired at an attractive value of 3.8 times LPM adjusted EBITDA and was 8% creative to Inovect's earnings per share before factoring in expected synergies. Citadel fits our strict qualitative and quantitative frameworks, utilizing its big impact on our ticket product portfolio to create a capitalized business which achieved 26% adjusted EBITDA margins with strong free cash flow and returns on capital. We continue to maintain an active M&A pipeline of attractive companies which fit our framework, and we are positioned to be opportunistic given the lack of capital available to the energy sector. In addition to evaluating inorganic growth opportunities, we maintain significant capacity on our previously authorized $100 million share repurchase program as a key in use of capital. During the second quarter, we repurchased approximately $8.5 million worth of shares. We will continue to weigh share repurchases against M&A, especially in the current environment where there is significant market volatility. As we look towards the second half of the year, we are excited about potential opportunities on the horizon. We believe our net cash balance sheet, expected close of the Eldridge facility sale in Q3, and the integration of the Citadel business will position us well to continue delivering superior returns to our shareholders. I will now turn the call back to Adam.

Thanks, Kendall. So to close, I want to reiterate that while we face some headwinds in the quarter, we've continued to remain opportunistic and grow the business both organically and inorganically. As I've always said, we are adept at responding to events and developments that are difficult to predict. We've taken steps to strengthen our execution, unlock synergies, and ensure that we remain aligned with our customers' evolving needs in a more demanding environment. At the same time, the foundational pillars of our business remain strong. Our strategy is resonating, our portfolio is well-positioned for both near-term resilience and long-term growth, and we continue to execute with discipline. As we look ahead, we are confident in our ability to navigate the current landscape while investing in the resources that will position us for success over time. Thank you again to our team for their continued focus and to our customers and shareholder for your trust and partnership. We would like to open the line for questions now. Thank you.

Ladies and gentlemen, we will now begin the question and answer session. I would like to remind everyone to ask a question. Please press the star button followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. One moment, please, for your first question. Your first question comes from the line of Dave Smith of Pickering Energy Partners. Please go ahead.

Hey, good morning. Congrats on the quarter and the seriously strong free cash flow generation. Thanks, Dave. I think last quarter you flagged a recovery in subsea deliveries that were expected in the second half. I wanted to ask us if anything has changed in that view since last quarter. And, you know, could you please share color for how second half subsea deliveries might split up between Q3 and Q4?

That's right. We think the subsea deliveries will be a little stronger in the back half of the year than the first half of the year. So we gave guidance on Q3. It's probably a little early to give – we're not ready to give guidance on Q4 revenue. But I think we – I'd say those increases are probably going to be modest. You'll definitely see it. International law enforcement should be up a little bit in Q3, but we're a little bit too early to say with, let's say, specificity. I think what we see at sub-sea business is we have a really wonderful franchise. franchise. The nature of the business is a little bit lumpier than our U.S. land business, so I think that's what you're seeing, a little bit of softness in the first half of the year. I'll step by a little bit stronger in the back half of the year, but it's a good franchise. We're really excited about where we're headed with it over the next couple of years.

And just want to follow up on the international and offshore product revenue decline sequentially. I know you gave some regional color on it, but I was just looking at if there was any more color on whether, you know, it really was just mostly delayed deliveries, you know, was it concentrated in any particular product line or customer? And then, you know, did the Q3 guide factor in, you know, any conservatism on the current delivery schedule?

Yeah, so the – as I said on the call, it's a couple different things. I think the activity was a little bit lighter, but most of it was really some deliveries that we're expecting to get in Q2. A lot of those things we had manufactured ready to go. We just didn't quite do everything we needed to do to cross the hurdles for revenue recognition, which, as we talked about before, we've got a much more stringent criteria than what had been recognized previously in the subsidy world. So that's still a little bit of a – giving us a little bit of lumpiness in our results right now, I would say. And the second one that's worth talking about is we talked a little bit about a product-specific headwind. That really has to do with a singular product that we run in one specific market in the Eastern Hemisphere. We've run this tool a few thousand times over the last seven or eight years, had really good success with it. We had a little bump in the road on Q2 with that operationally where we had a problem down hole and we're unfortunately put on hold temporarily with this customer. So we have all hands on deck addressing that issue. We've got a really good line of sight on fixed net. I think we've done enough work that we know what the resolution is. We're just working with our customer on dotting all the I's, crossing all the T's. Expect that we'd get that product back in the ground Q4 and start to see a little bit of improvement for there. But that was the other kind of less than expected revenue or a driver for our less than expected. What I would say on that issue, though, is, hey, this is really, it is unfortunate for sure, but it's really an opportunity for us to demonstrate to our customers how our strength of how responsive we are, the way we really differentiate ourselves. Not that we don't have some of these bumps in the road, but that when we have them, we're much more adept at working with our customers to resolve those issues quickly, leave them feeling like, hey, we've got a really good resolution to it, and that we're problem solvers that they can trust in the future.

Really great caller. I'll turn it back. Thanks, Dave.

Your next question comes from the line of Derek Podheiser of Piper Sandler. Please go ahead.

Good morning, guys. Maybe I just wanted to talk about the guide. This implied margin step down to around the 18% range, it's down from what we just did around 21%. Can you run through the puts and takes of what's driving some of the margin step down and then how we can think about shape and recovery getting back to that level that you guys just hit this quarter?

Yeah, absolutely. So we have a few things going on that are going to weigh on the margins in Q3 as compared to Q2. So for some of those large deliveries on projects in the Middle East that we've referenced are going to come at slightly lower gross margins, so that will have an unpredictable impact on product mix. That will be just kind of a temporary thing that we don't expect to necessarily recur going forward, but that will impact Q3. And then maybe more importantly, we're making a big push on some key integration projects that will result in some costs and inefficiencies during Q3. Namely, we're going to start to incur meaningful costs related to facility consolidation as we close on the sale of that Eldridge campus in Q3 and begin to consolidate both the manufacturing and service operations out of that location into other InnoVex facilities. And it's not just Eldridge. We're also pushing to integrate facilities between Citadel and Inovex during Q3, given the overlap in our U.S. footprints between the companies. And then, I guess, finally, our last large ERP conversion is coming up as well as part of our project to bring the entire company onto the same system as soon as possible. That will, again, drive a few inefficiencies in Q3. So, you know, those integration initiatives are going to put some pressure on margin short-term, but we really believe that they're important and necessary over the long run to be able to run our business as efficiently as possible and ultimately enable us to reach our long-term margin target at 25% or greater.

And then to get back to kind of the 20%, do you think we can get there in 4Q when all this clears up, or is that more of a first-of-next-year target?

I mean, obviously, we don't have Q4 guidance out there, but I would say we expect most of these integration costs to really be concentrated in Q3, and that's a chunk of what's driving it. And then, you know, probably the rest will depend on that product mix, how that looks in Q4. Got it.

And then just for my follow-up, I wanted to go back to the Citadel Trenchfoot product line that you talked You gave it some market share stats, 5% of applicable wells. That was interesting. You had a large operator on a trial that looks like a converter. as you're adding nine additional rigs. Maybe, can you help us understand a performance of color around other trials that you're working on with large customers, and could you see another big tailwind like you just were able to capture? Just maybe some help as far as further customer adoption.

Yeah, that's a really exciting product. I think a large part of why we were really attracted to the citizen, many different reasons, the team, the technology portfolio, and just strengthening one of our most important businesses. That trench foot technology in particular has some real tailwinds behind it. We referenced that one big operator where we picked up nine additional rigs. There's more potential with that same customer, both with trench foot as well as with pulling through some other products. So I think that customer more growth opportunity there. That's the singular biggest one in U.S. land we're working with, but there's a couple other smaller operators or large customers, but smaller relative to those guys that were kind of mid-cycle on or mid-stream on getting qualifications done. And then when you look internationally, that technology really hasn't been implemented internationally hardly at all. And we think in the unconventional space, the Canada, Argentina, Saudi, there's a big – there's the same value proposition in the U.S. for that technology is present in those other markets. But it's just because of – for a whole bunch of reasons, that hasn't been exploited yet. So we're starting to make inroads there. And, in fact, we expect to do our first trial of the trench foot technology in the Middle East by the end of this year. So really excited about continued potential of that technology adoption.

Appreciate the color. I'll turn it back. Thanks, Eric.

Our next question comes from the line of Donna Christ of Johnson & Rines. Please go ahead.

Good morning, guys. Hopefully you all are doing well this morning. I wanted to start on I know, Kendall, you talked about this a little bit as you kind of walked around the world and the integration efforts, but specifically in Vietnam and SCF, how long do you think it's going to take before we can ship some serious manufacturing over there and actually start saving some money around the world as lower cost construction of those parts and pieces come out of Vietnam versus, you know, parts in the world?

Yeah, no, it's a good question. So for anybody who might not be familiar, we closed on the acquisition of a company called SCS back in February that is a machine shop in Vietnam that Inovex had partnered with for a couple of years and really vetted well as a high-quality, low-cost provider of manufactured products exclusively for Inovex. So we have a lot of confidence in our ability to get good products at a very low cost out of that facility. I would say we haven't really ramped up what we're doing over there since the acquisition closed, partially as we're working through strategy around manufacturing and validation globally and where everything fits, and partially because of a lot of the uncertainty due to tariffs and just understanding how we're going to utilize that facility best, whether it's to serve the U.S. market or service the Eastern Hemisphere market without crossing U.S. borders due to tariff issues. So I would say still thinking through that a little bit, but probably should start to see some progress during 2026 on ramping up those volumes and getting some cost margin benefits there.

Okay. And one on cross-selling and bringing some products from, you know, either Canada or around the world into the U.S. and vice versa, but kind of where are we in, you know, wellheads and other kind of products that were big in other locales around the world? and kind of cross-selling them in the U.S. And I fully appreciate that in this environment it's not the best time to start pushing new products on some people, but just where are we in that kind of process?

Yeah, that's been a really important initiative for us over the last six, 12 months, really since the drill clip deal closed. And as you referenced, we've got a really strong position in the Canadian wellhead market as a result of the drill clip merger. So we have been doing a little bit of work outside of Canada with that technology. Probably the earliest success we've seen is in some projects in North Africa, interestingly, we've had a little bit of success there. I think there's a lot of opportunity in Latin America. Again, a little bit of a depressed market, but at the same time, there's some opportunities with customers that we know well that can help kind of accelerate the adoption of some of that technology. And then probably the big market is, of course, in U.S. land. We've gotten a little bit of work in U.S. land. It's pretty early days. We have a little bit of ongoing work in North Dakota with wellheads, but it's pretty de minimis today. We're going through a process right now of, let's say, optimizing the product set so it fits what our customers need for the lower 48. And we have some equipment we're just now getting ready to place on order to serve that market. And we probably won't, because of the kind of supply chain in that product, it probably won't hit the ground until late this year. and then the 2026 before we can start to see a little bit of discernible revenue traction there. So that one is kind of the longest burn of the, let's say, land-based technology. We've been really pleased with kind of what we're seeing from the drilling enhancement guys, the legacy DWS team. We got a really nice win with a larger independent operator out in West Texas that we hadn't done a lot. of work for historically, where they pulled through a lot of these cementing tools for those rigs. So that was a nice win to see. And then early days, we have a couple of small wins from a cross-selling standpoint between Citadel and Inovex, or the legacy Citadel team, I should say, in Inovex. But I think there's more brewery in there that we're excited about.

Just one final one for me. Kendall's done a very good job, and y'all have done a very good job on preserving cash and doing M&A for cash without going into the revolver at all. But now that Eldridge is getting ready to close, it looks like you're going to have a lot of cash on the balance sheet. And I don't know what the M&A pipeline looks like for y'all, but is it safe to say that you'll kind of carry more cash than you historically have on the balance sheet, or should we expect a ramp up in share repurchases as a use for that cash going forward? Just your thoughts around that.

Yeah, I think it's a really good question, and it's one we kind of evaluate day to day. We do maintain a very active M&A pipeline that we're excited about. And to the extent we can deploy meaningful capital into good accretive deals that strengthen our company and make us better, I think that's certainly the preference. So we'd like to continue to do that, but understand that, yeah, holding on to a large cash balance is inefficient, and that's part of the reason we like having the share repurchase program out there. It gives us an alternative use of that capital to be able to return that to shareholders. So I think we want to stay very flexible on that, but, you know, certainly our vision is not to carry a huge cash balance in perpetuity. It's let's use that cash in a way that either makes our company better or gets back in.

I appreciate the color.

I'll turn it back. Thank you, sir.

Your next question comes from the line of Eddie Kim of Barclays. Please do the hand.

Hi, good morning. I just want to touch on the strong U.S. land performance. You held revenue flat quarter to quarter despite a recount decline of 7%. I know you mentioned performance in DWS and one-month contribution is good enough, but is there anything other than that that drove that result, or was it really just a function of those two items?

No, I think that's the big piece. If you look at the, let's call it the legacy Inovex business, the drilling enhancement stuff from DWS, that was blasted down a smidge. The drilling enhancement business was pretty flat. Most of that, I think, is we do get the benefit that we're much more referred to number of wells drilled, complexity of those wells. So I think some of it is just as the rig count declines, we're able to offset some of that because of how we're positioned. And it's just the blocking, it's actually the good work that our folks do in the field, staying close to the customers, our manufacturing guys, our engineering folks taking care of our folks in the field as well as the customer, just that continuous wheel to maintain and grow market share and it's – yeah, so we were very pleased with

Got it. Just a quick housekeeping. I don't know if you mentioned that the revenue EBITDA contribution from the Citadel acquisition in your QQ results. I get that it was only one month, but just curious if you could provide that.

Yeah, I think because we integrated tightly, the specific EBITDA contribution is hard, but you can think of the top-line contribution as being around $5 million.

Okay, great. And then last one, if I can squeeze one in, I know you don't provide free cash flow guidance for the full year. I know you have the target to aim to convert 50% to 60% of EBITDA to free cash flow, but based on how the first half is trending, it looks like you'll be well above that mark. So, I mean, just from a dollar perspective, you did, you know, $76 million of free cash on the first half, is it reasonable to assume you'll be maybe at or above $125 million of free cash flow for the full year? Any thoughts there?

Yeah, I mean, I don't know that we want to throw a specific number out there, but you're We have this goal of 50% to 60% of a job that's not converting into free cash flow under what we call normal business conditions, but say a relatively stable revenue environment. As things have slowed down a little bit, we do tend to convert. a higher percentage of EBITDA into cash as we unwind working capital. So I think that's a little bit of what you've seen going on in the first half. If we get back to revenue growth in the second half, I wouldn't expect that percentage to be quite so high. But still, you can think about it as maybe that normalized 50% to 60% is still a good target for the whole year.

Got it.

There are no further questions at this time. With that, I will turn the call back to our presenters for closing remarks.

Yeah, I think with that, we appreciate everybody's time. Thank you to all of our employees for all the good work they do. Thank you to our shareholders, to our customers for all the support we get. So thank you very much.

This concludes today's conference call. Thank you for participating. You may now disconnect.