Shares of Expro Group Holdings N.V. (NYSE: XPRO) surged 9.02% in pre-market trading on Wednesday after the energy services provider reported better-than-expected first-quarter results and provided an optimistic outlook for the remainder of 2025.

The company reported adjusted earnings per share of $0.25 for Q1 2025, significantly beating analyst estimates of $0.11. Revenue for the quarter came in at $390.87 million, also surpassing expectations of $373.39 million. Despite a typical seasonal slowdown, Expro Group demonstrated resilience and continued margin improvement.

Investors were particularly encouraged by Expro's strong Adjusted EBITDA performance. The company achieved $76 million in Adjusted EBITDA with a 20% margin, marking its best first-quarter performance since the Expro/Frank's merger in Q4 2021. This represents a notable improvement from the 18% Adjusted EBITDA margin in Q1 2024.

Michael Jardon, Chief Executive Officer of Expro, highlighted the company's successful organic investments and M&A strategy, which have enabled margin expansion and increased customer relevance. The company also secured new contract awards totaling $272 million across various product lines, underscoring its strong market position.

Looking ahead, Expro provided upbeat guidance for Q2 2025, projecting revenue in the range of $400 to $410 million and Adjusted EBITDA between $80 to $90 million. While acknowledging near-term uncertainties, management expressed optimism about the company's long-term prospects in the energy services industry.

The positive earnings report and outlook, combined with Expro's continued focus on technology advancement and operational efficiency, appear to be driving investor confidence and contributing to the stock's significant pre-market rally.