Expro Group Holdings N.V. Announces First Quarter 2025 Results

Solid performance in a dynamic operating environment and winter season affected first quarter, with revenue of $391 million.

Adjusted EBITDA(1) of $76 million was the highest first quarter Adjusted EBITDA results since completing the Expro/Frank's merger in the fourth quarter of 2021, Adjusted EBITDA margin(1) was 20% for the first quarter of 2025, compared to 18% for the first quarter of 2024, highlighting a continuation of Adjusted EBITDA margin improvements over the last several years.

Net income of $14 million, and net income margin of 4% for the first quarter of 2025, compared to (1)% for the first quarter of 2024.

Providing second quarter 2025 guidance range of $400 to $410 million of revenue, $80 to $90 million of Adjusted EBITDA.

HOUSTON--(BUSINESS WIRE)--April 30, 2025-- 

Expro Group Holdings N.V. (NYSE: XPRO) (the "Company" or "Expro") today reported financial and operational results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

   -- Revenue was $391 million compared to revenue of $437 million in the 
      fourth quarter of 2024, a decrease of $46 million, or 11%. Consistent 
      with expectations, the decrease in revenue was a result of lower activity 
      in the North and Latin America ("NLA"), Europe and Sub-Saharan Africa 
      ("ESSA") and Asia Pacific ("APAC") segments, offset by modestly higher 
      activity in the Middle East and North Africa ("MENA") segment. Typical 
      with historical patterns, revenue and profitability for the three months 
      ended March 31, 2025, was negatively impacted by the winter season in the 
      Northern Hemisphere and the budget cycles of our national oil company 
      customers. 
 
   -- Net income for the first quarter of 2025 was $14 million, or $0.13 per 
      diluted share, compared to net income of $23 million, or $0.17 per 
      diluted share, for the fourth quarter of 2024. Net income margin was 4% 
      for the three months ended March 31, 2025, down from 5% for the three 
      months ended December 31, 2024. Adjusted net income1 for the first 
      quarter of 2025 was $29 million, or $0.25 per diluted share, compared to 
      adjusted net income for the fourth quarter of 2024 of $43 million, or 
      $0.36 per diluted share. 
 
   -- Adjusted EBITDA for the first quarter was $76 million, a sequential 
      decrease of $24 million, or 24%, primarily attributable to lower revenue 
      and a less favorable activity mix. Adjusted EBITDA margin for the first 
      quarter of 2025 was 20% and for the fourth quarters of 2024 was 23%. 
 
   -- Net cash provided by operating activities for the first quarter of 2025 
      was $42 million, a decrease as compared to net cash provided in operating 
      activities of $97 million for the fourth quarter of 2024, primarily 
      driven by a decrease in Adjusted EBITDA and movements in working capital, 
      including the payment of annual incentives for 2024. 

Michael Jardon, Chief Executive Officer, noted "We are pleased to report solid first quarter financial results, reflecting the continued strength of our business and the resilience of our team. First quarter Adjusted EBITDA and Adjusted EBITDA margin of $76 million and 20%, respectively, represent our best first quarter performance since we completed the Expro/Frank's merger in the fourth quarter of 2021. Organic investment and a successful M&A strategy continue to enable margin expansion and increase our relevance with customers. As a result, we believe we are well-positioned for the remainder of the year on a relative basis, and we remain optimistic about the outlook for our business over the next several years."

1. A non-GAAP measure.

"We continue to advance the development and commercialization of technologies to increase automation and drive demand for our services and solutions. This progress is reflected in our recent contract awards totaling $272 million across various product lines. Notable achievements include a Tubular Running Services $(TRS)$ contract in the Gulf of America valued at approximately $50 million, integrating advanced technologies like CENTRI-FI$(TM)$ and iCAM(TM) to enhance operational efficiency and improve safety. Additionally, we secured contracts for drilling, completion, workover, and abandonment services in Brazil valued in excess of $30 million, and a contract for intervention services in Indonesia valued at $15 million. These successes underscore our commitment to deliver cost-effective, technology-enabled services and solutions across the lifecycle of the well, and maintain industry-leading safety and service delivery performance. We remain dedicated to providing mission critical services to drive sustainable growth and long-term value for our stakeholders."

"Consistent with our fourth quarter earnings call, our view remains that we will continue to make progress in 2025 toward our medium-term target of mid-20s Adjusted EBITDA margin, notwithstanding near-term uncertainty related to tariffs, additional OPEC+ supply, and a range of geopolitical risks. We believe our business, which is largely levered to long-cycle development, is well positioned in the currently dynamic operating environment, and our guidance for second quarter 2025 revenue is within a range of $400 to $410 million and Adjusted EBITDA within a range of $80 to $90 million. The outlook for full-year 2025 is less clear given current market conditions and customers taking a more cautious approach to new project approvals but we believe we will deliver revenue comparable to 2024 results while expanding Adjusted EBITDA margin."

"While 2025 is expected to be a transition year for the energy services industry, the outlook for oil and gas investment and Expro remains quite compelling for the rest of the decade, so we are cautious about the near-term and more bullish over the medium- to long-term. That said, we will size our support structure, capital expenditures and other investments accordingly, so cost and capital discipline will be key themes at Expro until we have better clarity around the direction of international and offshore markets, and the timing of deepwater projects that we expected to be sanctioned in the second half of 2025 and into 2026."

Notable Awards and Achievements

In the first quarter, Expro successfully deployed CENTRI-FI(TM) in Indonesia and the first deployment of Blackhawk Generation-X Rotational Plug Launcher in Norway, showcasing Expro's commitment to integrating advanced technology and automation in operations. There is an increasing demand from the market for our systems, reflecting the value and efficiency they bring to our clients' operation. The CENTRI-FI(TM) consolidated control console is one of a suite of digitally intelligent well construction solutions that allows a fully integrated TRS operation from a single tablet with personnel being removed from the rig floor. The recent deployment of our Blackhawk Generation-X rotational plug launcher included our proprietary Skyhook$(R)$ wireless cement-line make-up device, and all plug launches were successfully confirmed without personnel having to enter the red zone, enhancing the client's safety of their operations.

In the NLA region, we secured a three-year well construction contract for the development phase of a deepwater field covering tubular running services $(TRS.AU)$ across four rigs. The new contract award, valued at approximately $50 million, integrates some of Expro's most advanced technologies, including CENTRI-FI(TM), a completions elevator, completions tongs, iCAM(R) and jet strings. In Brazil, we continued to see positive activity securing contracts across drilling and completions, workover and abandonment, valued at approximately $35 million.

In ESSA, we successfully completed the system integration test $(SIT.AU)$ of our open water intervention riser system (OWIRS), the first of its kind to be built by Expro. The equipment, delivered under the seven-year contract and currently mobilized for offshore deployment, has been on rental since the successful SIT in December, pending operational call-out. Expro's OWIRS ensures safe and reliable subsea well access across development, intervention and abandonment phases of the well, unlocking production gains while minimizing operational costs.

In MENA, Expro successfully concluded deepwater operations for clients in the East Mediterranean providing TRS services for two exploration wells, demonstrating our operational reliability and service quality. In Saudi Arabia, our QPulse(TM) multiphase flow meter technology was successfully piloted on the Jaffurah field, demonstrating excellent correlation in multiphase flow data across three phases compared to the traditional test separator. This success paves the way for Expro's QPulse(TM) technology to be used for production testing as a standalone technology, eliminating the need for a conventional separator. This innovative solution offers non-intrusive, independent, and reliable multiphase measurement with no process interruption or production deferral. The technology is portable, easy to deploy, and provides rapid, cost-efficient data essential for field production allocation and well performance monitoring, all while being non-radioactive and maintaining a low carbon footprint.

Lastly, in APAC, Expro secured a three-year contract worth over $15 million to combine e-line cased hole with slickline on a single unit across 315 wells and won a two-year contract over $8 million in Brunei to deliver well metering services for a client's production assets. The agreement, which commenced in February 2025, underscores Expro's role in optimizing the clients' production through advanced well flow measurement solutions, such as QPulse(TM) , Sonar Meter and Multiphase Flow Meters.

Segment Results

Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2025 to the results for the fourth quarter of 2024.

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April 30, 2025 07:00 ET (11:00 GMT)