HOUSTON--(BUSINESS WIRE)--October 23, 2025--
Expro Group Holdings N.V. (NYSE: XPRO) (the "Company" or "Expro") today reported financial and operational results for the three and nine months ended September 30, 2025, and increased full-year 2025 guidance on Adjusted EBITDA and Adjusted free cash flow.
Third Quarter 2025 Highlights
-- Revenue was $411 million
-- Net income of $14 million, and net income margin of 3%
-- Adjusted EBITDA1 of $94 million
-- Adjusted EBITDA margin1 of 22.8% ranks among the top in our peer group
-- Cash flow from operations of $63 million, or 15% of revenues
-- Free cash flow1 was $39 million, and free cash flow margin1 of 9%.
Adjusted free cash flow1 of $46 million, and adjusted free cash flow
margin1 of 11%
-- Share repurchases of $25 million (2 million shares at an average
$12.06 per share) in the third quarter, totaling $40 million year to date
(3.7 million shares repurchased year to date at an average $10.81 per
share)
-- Voluntary prepayment of our revolving credit facility of $22 million;
liquidity at the end of the quarter stood at $532 million
-- Total order backlog of $2.3 billion at September 30, 2025
-- Increasing full-year Adjusted EBITDA guidance between $350 and $360
million and increasing Adjusted Free Cash Flow guidance to between $110
and $120 million.
Michael Jardon, Chief Executive Officer, noted, "Expro's third quarter results once again demonstrate our commitment to operational excellence, innovation and free cash flow generation, even in a softer market backdrop, reflecting the continued resilience of our business and outstanding performance of our team. Third quarter Adjusted EBITDA margin of 22.8% represents a continuous improvement in our goal of driving at least 25% margins. Additionally, and more importantly, we generated Adjusted free cash flow of $46 million, or 11% of the quarter's revenue. We have also returned another $25 million to shareholders in the form of share repurchases, reaching our guided $40 million for the year ahead of schedule.
"In addition to reporting solid third quarter results, Expro is raising our guidance on both Adjusted EBITDA and Adjusted free cash flow. We now expect Adjusted EBITDA to be between $350 million and $360 million and Adjusted free cash flow to be between $110 million and $120 million.
"Alongside delivering robust financial performance beyond market expectations, we achieved several notable milestones this quarter. Expro set an offshore world record for the heaviest casing string deployment, advancing industry standards in ultra-deep, high-pressure cementing operations. We also introduced industry-first technologies such as QPulse$(TM)$ and ELITE Composition(TM), which have been recognized with prestigious awards and are delivering measurable value for our customers. In addition, Expro was shortlisted for 10 technologies across seven categories at the Gulf Energy Awards, winning Best Health, Safety or Environmental Contribution -- Upstream for our VIGILANCE(TM) Intelligent Safety and Surveillance Solution further highlighting our leadership in technological advancement and industry innovation.
"These achievements, together with major contract wins and a strong safety record, underscore the dedication of our global team and our focus on delivering safe, efficient, and sustainable solutions. Looking ahead, we remain confident in our ability to navigate market challenges and capitalize on opportunities in our core international and offshore markets."
1. A non-GAAP measure.
Notable Awards and Achievements
In the third quarter, Expro continues to demonstrate its commitment to innovating with a purpose, operational excellence, and sustainability through a series of industry recognitions and technology milestones.
The company was honored with the OTC Brasil Spotlight on New Technology$(R)$ Award for two innovative solutions - QPulse(TM) and ELITE Composition - which will be showcased at OTC Brasil from October 28-30. Both technologies were also shortlisted/won at the Gulf Energy Awards in Houston on October 16, where Expro was shortlisted for 10 technologies across seven categories, further highlighting their impact and relevance across global markets. Among the eight categories for which Expro was nominated at the Gulf Energy Awards in Houston on October 16, the company secured the award for Best Health, Safety or Environmental Contribution -- Upstream for its VIGILANCE(TM) Intelligent Safety and Surveillance Solution.
Expro's VIGILANCE(TM) safety surveillance technology tracks equipment as well as personnel movement through a unified, real-time system with 10-centimeter accuracy, and thereby addresses one of the industry's main key performance indicators for enhancing safety for rig floor personnel, particularly for those working in close vicinity of multiple pieces of moving equipment, or the "red zone."
Expro also achieved a technology first with the inaugural deployment of Velonix(TM) in the U.S., optimizing pig control during pipeline cleaning operations. This innovation reduced 6.77 million pounds of CO emissions, generated cost savings for the customer, and provided higher-quality data for faster decision-making, reinforcing our leadership in sustainable pipeline solutions.
Additionally, Expro set an offshore world record for the heaviest casing string deployment using our Blackhawk(R) Gen III Wireless Top Drive Cement Head with SKYHOOK(R) technology. Completed in the Gulf of America, this milestone supports ultra-deep, high-pressure targets safely and reliably, setting a new standard in offshore cementing.
These achievements reflect Expro's strategic focus on delivering scalable, high-margin technologies that drive efficiency, safety, and environmental responsibility across the energy sector.
Performance across the company's global operations remained strong. In the NLA region, Expro signed a five-year extension with a major operator for subsea services in the Gulf of America, estimated at approximately $25 million. In Alaska, we secured an approximate $20 million contract with an operator for expanded Well Testing services, creating new opportunities to deploy multiphase flow meters and fluid analysis services.
In the ESSA region, ENI awarded Expro the "Best Contractor HSE Performance", which coincides with the first anniversary of the OPT plant's operations without a loss time incident, underscoring Expro's industry-leading commitment to safety and operational excellence in the region. Additionally, Expro secured a multi-year slickline services contract in Congo, valued at nearly $10 million, further enhancing our intervention services footprint in West Africa.
Within the MENA region, Expro secured two strategically important Well Flow Management contracts in the UAE, totaling approximately $25 million. These include well test services and a multiphase pump deployment for zero flaring operations, strengthening our position in unconventional well development.
In the APAC region, notably Australia, Expro completed its first rigless conductor driving operation in over a decade during the second quarter, delivered ahead of schedule. In the third quarter, the Bass Straight campaign earned formal recognition from NOPSEMA, Australia's offshore safety regulator, for achieving ALARP (As Low As Reasonably Practicable) safety standards. This acknowledgement underscores Expro's commitment to innovation, operational excellence, and a robust safety culture.
Free Cash Flow and Share Repurchases
Expro generated $39 million in free cash flow and $46 million of Adjusted free cash flow. Free cash flow generation in the quarter was notably strong, driven by solid operating performance, increased discipline in capital spending and improved working capital. Expro's ability to convert Adjusted EBITDA into cash reflects the efficiency of its core operations combined with the focus on free cash flow generation.
Expro is focused on and committed to generating significant free cash flow, and we expect to continue to do so by further expanding the Company's Adjusted EBITDA margin and reducing the capital intensity of the business. Management continues to believe that adjusted free cash flow better reflects the Company's performance by excluding one-time items, in line with corporate finance principals.
Expro has repurchased approximately 2 million shares in the third quarter for an average price of $12.06 per share, totaling $25 million in the quarter. Year to date, the Company has repurchased approximately 3.7 million shares at an average price of $10.81 resulting in $40 million of total share repurchases, in line with and ahead of the annual repurchase target for 2025. Expro will continue to evaluate additional share repurchases in line with the Company's capital allocation framework.
Three Months Ended Nine Months Ended
-------------------- -------------------
September 30, September 30,
2025 2025
-------------------- -------------------
Total revenue $ 411,356 $ 1,224,968
Net cash provided by
operating activities $ 63,179 $ 153,101
Less: Capital
expenditures (24,196) (78,512)
---- -------------- ---------------
Free cash flow 38,983 74,589
Free cash flow margin 9% 6%
Add: Merger and
integration expense
(1) 1,293 5,300
Add: Severance and
other expense (1) 5,782 18,575
---- -------------- ---------------
Adjusted free cash flow $ 46,058 $ 98,464
==== ============== ===============
Adjusted free cash flow
margin 11% 8%
(1) Expenses directly referenced on the condensed consolidated Statements
of Operations.
Financial Guidance
Despite the softer market conditions Expro continues to push for margin improvements and capital efficiency into the business. The Company continues to increase its wallet of products and services with existing customers, driving additional high-margin services without increasing -- and sometimes reducing -- the personnel to perform those services. Additionally, we continue to see the internationalization of acquisitions we have made and we're seeing the Production Services business maturing beyond the initial phase of capital consumption into a high free cash flow generating business. Below is Expro's current expectation for the full year 2025.
-- Revenue: $1,600 million - $1,650 million (from $1.7 billion before)
-- Increased Adjusted EBITDA: $350 million - $360 million (from >$350
million before)
-- Reduced Capex: $110 million - $120 million (from $120 million before)
-- Increased Adjusted Free Cash Flow: $110 million - $120 million (from
$110 million before)
Other Financial Information
As of September 30, 2025, Expro's consolidated cash and cash equivalents, including restricted cash, totaled $199 million, and the Company's total liquidity stood at $532 million. Total liquidity includes $333 million available for drawdowns as loans under the Company's revolving credit facility. The Company had outstanding long-term borrowings of $99 million as of September 30, 2025.
The Company's capital expenditures totaled $24 million in the third quarter of 2025, of which approximately 90% were used for the purchase and manufacture of equipment to directly support customer-related activities and approximately 10% for other property, plant and equipment, inclusive of software costs. Expro plans for capital expenditures in the range of approximately $30 million to $40 million for the remaining three months of 2025.
The company is authorized to acquire up to $100 million of outstanding shares with $36 million remaining authorized for repurchase. During the three months ended September 30, 2025, the Company repurchased approximately 2 million shares at an average price of $12.06 per share, for a total cost of approximately $25 million. The Company remains committed to returning capital to shareholders.
On July 23, 2025, we entered into a new senior secured revolving credit facility, which increased available revolving facility loan commitments to up to $400 million, maturing on July 30, 2029. Concurrently, the company established a $100 million 364-day bridge facility. Proceeds of the revolving facility may be used for general corporate and working capital purposes. Proceeds of the bridge facility may be used for acquisitions and investments and capital expenditure in relation to acquisitions.
The financial measures provided that are not presented in accordance with GAAP are defined and reconciled to their most directly comparable GAAP measures. Please see "Use of Non-GAAP Financial Measures" and the reconciliations to the nearest comparable GAAP measures.
Additionally, downloadable financials are available on the Investor section of www.expro.com.
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the third quarter of 2025 to the results for the second quarter of 2025.
North and Latin America (NLA)
Revenue for the NLA segment was $151 million for the three months ended September 30, 2025, an increase of $8 million, or 6%, compared to $143 million for the three months ended June 30, 2025. The increase was primarily due to higher well construction and well flow management revenue in the Gulf of America, partially offset by lower well intervention and integrity revenue in Argentina.
Segment EBITDA for the NLA segment was $37 million, or 24% of revenues, during the three months ended September 30, 2025, an increase of $3 million, or 9%, compared to $34 million, or 24%, of revenues during the three months ended June 30, 2025. The increase in Segment EBITDA and Segment EBITDA margin was primarily attributable to increased activity on higher margin projects.
Europe and Sub-Saharan Africa $(ESSA)$
Revenue for the ESSA segment was $126 million for the three months ended September 30, 2025, a decrease of $7 million, or 5%, compared to $132 million for the three months ended June 30, 2025. The decrease in revenues was primarily driven by lower well flow management and subsea well access revenue in the U.K. and Norway.
Segment EBITDA for the ESSA segment was $41 million, or 32% of revenues, for the three months ended September 30, 2025, an increase of $1 million, or 2%, compared to $40 million, or 30% of revenues, for the three months ended June 30, 2025. The increase in Segment EBITDA and Segment EBITDA margin, despite the decrease in revenue, was primarily attributable to a favorable product mix and increased activity on higher margin projects.
Middle East and North Africa (MENA)
Revenue for the MENA segment was $86 million for the three months ended September 30, 2025, a decrease of $5 million, or 5%, compared to $91 million for the three months ended June 30, 2025. The decrease in revenue was driven by lower well construction and well intervention and integrity revenue in the Kingdom of Saudi Arabia ("KSA"), the United Arab Emirates ("UAE"), and Qatar.
Segment EBITDA for the MENA segment was $30 million, or 35% of revenues, for the three months ended September 30, 2025, a decrease of $3 million, or 8%, compared to $33 million, or 36% of revenues, for the three months ended June 30, 2025. The decrease in Segment EBITDA and Segment EBITDA margin is consistent with the decrease in revenue.
Asia Pacific (APAC)
Revenue for the APAC segment was $49 million for the three months ended September 30, 2025, a decrease of $8 million, or 14%, compared to $57 million for the three months ended June 30, 2025. The decrease in revenue was driven by lower well construction revenue in Australia and lower well flow management, well intervention and integrity, and well construction revenue in Malaysia, partially offset by higher well construction and well flow management revenue in Indonesia.
Segment EBITDA for the APAC segment was $10 million, or 21% of revenues, for the three months ended September 30, 2025, a decrease of $5 million compared to $15 million, or 26% of revenues, for the three months ended June 30, 2025. The decrease in Segment EBITDA and Segment EBITDA margin is attributable primarily to lower activity and a less favorable product mix.
Conference Call
The Company will host a conference call to discuss third quarter 2025 results on Thursday, October 23, 2025, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
U.S.: +1 (833) 470-1428
International: +1 (646) 844-6383
Access ID: 361484
To listen via live webcast, please visit the Investor section of www.expro.com.
The third quarter 2025 Investor Presentation is available on the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor section of the Company's website approximately three hours after the conclusion of the call and will remain available for a period of two weeks.
To access the audio replay telephonically:
Dial-In: U.S. +1 (866) 813-9403 or +1 (929) 458-6194
Access ID: 725252
Start Date: October 23, 2025, 1:00 p.m. CT
End Date: November 6, 2025, 10:59 p.m. CT
A transcript of the conference call will be posted to the Investor relations section of the Company's website as soon as practicable after the conclusion of the call.
ABOUT EXPRO
Working for clients across the entire well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company's extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity solutions.
With roots dating to 1938, Expro has approximately 8,500 employees and provides services and solutions to leading exploration and production companies in both onshore and offshore environments in more than 50 countries.
For more information, please visit: www.expro.com and connect with Expro on X @ExproGroup and LinkedIn @Expro.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this release include statements, estimates and projections regarding the Company's future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections, guidance and operating results. These statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given
that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties include the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations (including the ability to recover, and to the extent necessary, service and/or economically repair any equipment located on the seabed), political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Company's industry, global or national health concerns, including health epidemics, the possibility of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, future actions of foreign oil producers such as Saudi Arabia and Russia, inflationary pressures, international trade laws, tariffs, the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations, and other guidance.
Such assumptions, risks and uncertainties also include the factors discussed or referenced in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC, as well as other risks and uncertainties set forth from time to time in the reports the Company files with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, historical practice or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
Use of Non-GAAP Financial Measures
This press release and the accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss), and adjusted net income (loss) per diluted share, which may be used periodically by management when discussing financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. These non-GAAP financial measures are presented because management believes these metrics provide additional information relative to the performance of the business. These metrics are commonly employed by financial analysts and investors to evaluate the operating and financial performance of Expro from period to period and to compare such performance with the performance of other publicly traded companies within the industry. You should not consider Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss) and adjusted net income (loss) per diluted share in isolation or as a substitute for analysis of Expro's results as reported under GAAP. Because Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss) and adjusted net income (loss) per diluted share may be defined differently by other companies in the industry, the presentation of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Expro defines Adjusted EBITDA as net income (loss) adjusted for (a) income tax expense, (b) depreciation and amortization expense, (c) severance and other expense, (d) merger and integration expense, (e) gain on disposal of assets, (f) other (income) expense, net, (g) stock-based compensation expense, (h) foreign exchange (gains) losses and (i) interest and finance (income) expense, net. Adjusted EBITDA margin reflects Adjusted EBITDA expressed as a percentage of total revenue.
Contribution is defined as total revenue less cost of revenue excluding depreciation and amortization expense, adjusted for indirect general and administrative costs and stock-based compensation expense included in cost of revenue. Contribution margin is defined as contribution divided by total revenue, expressed as a percentage.
Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Free cash flow margin is defined as free cash flow divided by total revenue, expressed as a percentage. Adjusted free cash flow is defined as cash provided by (used in) operating activities less capital expenditures, add back merger and integration expense and severance and other expense (income). Adjusted free cash flow margin is defined as adjusted free cash flow divided by total revenue, expressed as a percentage.
The Company defines adjusted net income (loss) as net income (loss) before merger and integration expense, severance and other expense, stock-based compensation expense, and gain on disposal of assets, adjusted for corresponding tax benefits of these items. The Company defines adjusted net income (loss) per diluted share as net income (loss) per diluted share before merger and integration expense, severance and other expense, stock-based compensation expense, and gain on disposal of assets, adjusted for corresponding tax benefits of these items, divided by diluted weighted average common shares.
Please see the accompanying financial tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures.
EXPRO GROUP HOLDINGS N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------------------ ---------------------------
September September September September
30, June 30, 30, 30, 30,
------------ ------------ ------------ ------------ ------------
2025 2025 2024 2025 2024
------------ ------------ ------------ ------------ ------------
Total revenue $ 411,356 $ 422,740 $ 422,828 $ 1,224,968 $ 1,275,959
Operating costs
and expenses:
Cost of revenue,
excluding
depreciation
and
amortization
expense (311,142) (319,981) (331,235) (936,615) (1,006,242)
General and
administrative
expense,
excluding
depreciation
and
amortization
expense (20,491) (14,499) (20,467) (56,804) (65,905)
Depreciation and
amortization
expense (46,195) (46,716) (40,391) (138,332) (121,184)
Merger and
integration
expense (1,293) (2,267) (1,437) (5,300) (12,387)
Severance and
other expense (5,782) (6,711) (3,181) (18,575) (8,007)
----------- ----------- ----------- ----------- -----------
Total operating
cost and
expenses (384,903) (390,174) (396,711) (1,155,626) (1,213,725)
----------- ----------- ----------- ----------- -----------
Operating income 26,453 32,566 26,117 69,342 62,234
Other income,
net 524 280 262 2,458 1,081
Interest and
finance
expense, net (4,106) (4,279) (3,895) (11,836) (10,713)
----------- ----------- ----------- ----------- -----------
Income before
taxes and
equity in
income of joint
ventures 22,871 28,567 22,484 59,964 52,602
Equity in income
of joint
ventures 5,897 3,395 4,241 12,998 12,955
----------- ----------- ----------- ----------- -----------
Income before
income taxes 28,768 31,962 26,725 72,962 65,557
Income tax
expense (14,805) (13,959) (10,450) (27,048) (36,673)
----------- ----------- ----------- ----------- -----------
Net income $ 13,963 $ 18,003 $ 16,275 $ 45,914 $ 28,884
=========== =========== =========== =========== ===========
Net income per
common share:
Basic $ 0.12 $ 0.16 $ 0.14 $ 0.40 $ 0.25
Diluted $ 0.12 $ 0.16 $ 0.14 $ 0.40 $ 0.25
Weighted
average common
shares
outstanding:
Basic 114,804,684 115,444,915 117,467,994 115,483,955 113,887,885
Diluted 115,447,110 115,508,918 118,293,677 115,956,527 115,605,215
EXPRO GROUP HOLDINGS N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2025 2024
--------------- --------------
Assets
Current assets
Cash and cash equivalents $ 197,876 $ 183,036
Restricted cash 744 1,627
Accounts receivable, net 493,059 517,570
Inventories 171,716 159,040
Income tax receivables 34,647 28,641
Other current assets 84,004 74,132
----------- ----------
Total current assets 982,046 964,046
----------- ----------
Property, plant and equipment,
net 533,605 563,697
Investments in joint ventures 81,340 73,012
Intangible assets, net 260,672 298,856
Goodwill 348,558 348,918
Operating lease right-of-use
assets 73,671 66,640
Non-current accounts receivable,
net 7,432 7,432
Other non-current assets 17,856 10,940
----------- ----------
Total assets $ 2,305,180 $ 2,333,541
=========== ==========
Liabilities and stockholders'
equity
Current liabilities
Accounts payable and accrued
liabilities $ 299,243 $ 340,298
Income tax liabilities 50,303 52,436
Finance lease liabilities 2,410 2,234
Operating lease liabilities 17,481 17,253
Other current liabilities 95,042 72,209
----------- ----------
Total current liabilities 464,479 484,430
----------- ----------
Long-term borrowings 99,065 121,065
Deferred tax liabilities, net 21,638 44,310
Post-retirement benefits 5,823 10,430
Non-current finance lease
liabilities 13,020 14,006
Non-current operating lease
liabilities 57,891 48,488
Uncertain tax positions 80,659 74,526
Other non-current liabilities 45,508 44,802
----------- ----------
Total liabilities 788,083 842,057
----------- ----------
Common stock 8,556 8,488
Treasury stock (126,936) (83,420)
Additional paid-in capital 2,102,491 2,079,161
Accumulated other comprehensive
income 14,287 14,470
Accumulated deficit (481,301) (527,215)
----------- ----------
Total stockholders' equity 1,517,097 1,491,484
----------- ----------
Total liabilities and stockholders'
equity $ 2,305,180 $ 2,333,541
=========== ==========
EXPRO GROUP HOLDINGS N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September 30,
-------------------------------------
2025 2024
----------------- --------------
Cash flows from operating
activities:
Net income $ 45,914 $ 28,884
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization expense 138,332 121,184
Equity in income of joint
ventures (12,998) (12,955)
Stock-based compensation
expense 21,483 19,251
Elimination of unrealized
loss on sales to joint
ventures - (312)
Changes in fair value of
contingent consideration - (5,761)
Deferred taxes (17,211) (1,126)
Unrealized foreign exchange
(gain) loss (7,227) 3,418
Changes in assets and
liabilities:
Accounts receivable, net 25,574 (28,676)
Inventories (12,676) (15,367)
Other assets (16,219) (11,471)
Accounts payable and
accrued liabilities (34,799) (19,617)
Other liabilities 25,953 (8,463)
Income taxes, net (2,007) 3,375
Dividends received from joint
ventures 4,669 4,132
Other (5,687) (4,418)
------------- -------------
Net cash provided by operating
activities 153,101 72,078
------------- -------------
Cash flows from investing
activities:
Capital expenditures (78,512) (99,158)
Payment for acquisition of
business, net of cash
acquired - (31,967)
Proceeds from settlement of
contingent consideration - 7,500
Proceeds from disposal of
assets 5,000 2,900
------------- -------------
Net cash used in investing
activities (73,512) (120,725)
------------- -------------
Cash flows from financing
activities:
(Cash pledged for) release of
collateral deposits, net (552) 1,242
Proceeds from borrowings - 117,269
Repayment of borrowings (22,000) (44,351)
Repurchase of common stock (40,088) -
Payment of withholding taxes
on stock-based compensation
plans (1,528) (3,269)
Repayment of financed
insurance premium (6,452) (7,828)
Repayments of finance leases (1,433) (1,055)
------------- -------------
Net cash (used in) provided by
financing activities (72,053) 62,008
------------- -------------
Effect of exchange rate
changes on cash and cash
equivalents 6,421 458
------------- -------------
Net increase to cash and cash
equivalents and restricted
cash 13,957 13,819
Cash and cash equivalents and
restricted cash at beginning
of period 184,663 153,166
------------- -------------
Cash and cash equivalents and
restricted cash at end of
period $ 198,620 $ 166,985
============= =============
Supplemental disclosure of
cash flow information:
Cash paid for income taxes,
net of refunds $ 45,873 $ 34,091
Cash paid for interest, net 16,149 8,070
Change in accounts payable and
accrued expenses related to
capital expenditures 4,559 9,545
EXPRO GROUP HOLDINGS N.V.
SELECTED OPERATING SEGMENT DATA AND REVENUE BY AREAS OF CAPABILITIES
(In thousands)
(Unaudited)
Segment Revenue and Segment Revenue as Percentage of Total Revenue:
Three Months Ended Nine Months Ended
--------------------------------------------------- ------------------------------------
September 30, June 30, September 30, September 30, September 30,
------------- ------------- ------------- --------------- ---------------
2025 2025 2024 2025 2024
------------- ------------- ------------- --------------- ---------------
NLA $150,868 37% $142,582 34% $139,397 33% $ 427,728 35% $ 426,776 33%
ESSA 125,838 30% 132,367 31% 131,475 31% 370,578 30% 421,652 33%
MENA 86,061 21% 91,016 22% 86,736 21% 270,631 22% 239,659 19%
APAC 48,589 12% 56,775 13% 65,220 15% 156,031 13% 187,872 15%
------- --- ------- --- ------- --- --------- --- --------- ---
Total $411,356 100% $422,740 100% $422,828 100% $1,224,968 100% $1,275,959 100%
======= === ======= === ======= === ========= === ========= ===
Segment EBITDA(1) , Segment EBITDA Margin(2) , Adjusted EBITDA and Adjusted EBITDA Margin(3) :
Three Months Ended Nine Months Ended
--------------------------------------------------- --------------------------------
September 30, June 30, September 30, September 30, September 30,
------------- ------------- ------------- ------------- -------------
2025 2025 2024 2025 2024
------------- ------------- ------------- ------------- -------------
NLA $ 36,842 24% $ 33,909 24% $ 33,064 24% $101,136 24% $111,915 26%
ESSA 40,503 32% 39,635 30% 32,175 24% 109,326 30% $ 92,373 22%
MENA 29,862 35% 32,571 36% 30,032 35% 96,601 36% $ 83,181 35%
APAC 10,049 21% 14,794 26% 16,193 25% 35,705 23% $ 42,227 22%
------- ------- ------- ------- -------
Total
Segment
EBITDA 117,256 120,909 111,464 342,768 329,696
Corporate
costs(4) (29,181) (29,853) (30,669) (91,115) (95,605)
Equity in
income of
joint
ventures 5,897 3,395 4,241 12,998 12,955
------- ------- ------- -------- --------
Adjusted
EBITDA $ 93,972 23% $ 94,451 22% $ 85,036 20% $264,651 22% $247,046 19%
======= ======= ======= ======= =======
(1) Expro evaluates its business segment operating performance using
Segment Revenue, Segment EBITDA and Segment EBITDA margin. Expro's
management believes Segment EBITDA and Segment EBITDA margin are useful
operating performance measures as they exclude transactions not related
to its core operating activities, corporate costs and certain non-cash
items and allows Expro to meaningfully analyze the trends and
performance of its core operations by segment as well as to make
decisions regarding the allocation of resources to segments.
(2) Expro defines Segment EBITDA margin as Segment EBITDA divided by
Segment Revenue, expressed as a percentage.
(3) Expro defines Adjusted EBITDA margin as Adjusted EBITDA divided by
total revenue, expressed as a percentage.
(4) Corporate costs include the costs of running our corporate head office
and other central functions that support the operating segments,
including research, engineering and development, logistics, sales and
marketing and health and safety and are not attributable to a
particular operating segment.
Revenue by areas of capabilities:
Three Months Ended Nine Months Ended
--------------------------------------------------- ------------------------------------
September 30, June 30, September 30, September 30, September 30,
------------- ------------- ------------- --------------- ---------------
2025 2025 2024 2025 2024
------------- ------------- ------------- --------------- ---------------
Well
Construction $150,343 37% $141,623 34% $159,268 38% $ 422,379 34% $ 427,775 34%
Well
Management
(1) 261,013 63% 281,117 66% 263,560 62% 802,589 66% 848,184 66%
------- ------- ------- --------- ---------
Total $411,356 100% $422,740 100% $422,828 100% $1,224,968 100% $1,275,959 100%
======= ======= ======= ========= =========
(1) Well Management consists of well flow management, subsea well access,
and well intervention and integrity.
EXPRO GROUP HOLDINGS N.V.
GROSS PROFIT, GROSS MARGIN, CONTRIBUTION, AND CONTRIBUTION MARGIN
(In thousands)
(Unaudited)
Gross Profit, Contribution(1) , Gross Margin and Contribution Margin(2) :
Three Months Ended Nine Months Ended
---------------------------------------- ---------------------------
September September September September
30, June 30, 30, 30, 30,
2025 2025 2024 2025 2024
---------- --------- --------- ---------- -----------
Total revenue $ 411,356 $ 422,740 $ 422,828 $1,224,968 $ 1,275,959
Less: Cost of
revenue, excluding
depreciation and
amortization (311,142) (319,981) (331,235) (936,615) (1,006,242)
Less: Depreciation
and amortization
related to cost of
revenue (46,025) (46,580) (40,315) (137,915) (120,956)
--------- -------- -------- --------- ----------
Gross profit 54,189 56,179 51,278 150,438 148,761
Add: Indirect costs
(included in cost
of revenue) 67,889 68,834 71,875 206,749 209,954
Add: Stock-based
compensation
expenses 2,549 2,633 2,266 7,376 6,697
Add: Depreciation
and amortization
related to cost of
revenue 46,025 46,580 40,315 137,915 120,956
--------- -------- -------- --------- ----------
Contribution $ 170,652 $ 174,226 $ 165,734 $ 502,478 $ 486,368
========= ======== ======== ========= ==========
Gross margin 13% 13% 12% 12% 12%
Contribution margin 41% 41% 39% 41% 38%
(1) Expro defines Contribution as Total Revenue less Cost of Revenue,
excluding depreciation and amortization expense, adjusted for indirect
general and administrative costs and stock-based compensation expense
included in Cost of Revenue.
(2) Contribution margin is defined as Contribution as a percentage of
Revenue.
EXPRO GROUP HOLDINGS N.V.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin:
Three Months Ended Nine Months Ended
----------------------------------------- -------------------------
September September September September
30, June 30, 30, 30, 30,
2025 2025 2024 2025 2024
---------- -------- ----------- ---------- ---------
Total revenue $ 411,356 $422,740 $ 422,828 $1,224,968 1,275,959
Net income $ 13,963 $ 18,003 $ 16,275 $ 45,914 28,884
Income tax
expense 14,805 13,959 10,450 27,048 36,673
Depreciation
and
amortization
expense 46,195 46,716 40,391 138,332 121,184
Severance and
other
expense 5,782 6,711 3,181 18,575 8,007
Merger and
integration
expense 1,293 2,267 1,437 5,300 12,387
Other income,
net (524) (280) (262) (2,458) (1,081)
Stock-based
compensation
expense 7,201 7,314 6,831 21,483 19,251
Foreign
exchange loss
(gain) 1,151 (4,518) 2,838 (1,379) 11,028
Interest and
finance
expense, net 4,106 4,279 3,895 11,836 10,713
--------- ------- ------- --------- ---------
Adjusted
EBITDA $ 93,972 $ 94,451 $ 85,036 $ 264,651 247,046
========= ======= ======= ========= =========
Net income
margin 3% 4% 4% 4% 2%
Adjusted
EBITDA
margin 23% 22% 20% 22% 19%
Free Cash Flow Reconciliation, Free Cash Flow Margin, Adjusted Free Cash Flow Reconciliation
and Adjusted Free Cash Flow Margin:
Three Months Ended Nine Months Ended
----------------------------------------- --------------------------
September September September September
30, June 30, 30, 30, 30,
2025 2025 2024 2025 2024
---------- -------- ----------- ---------- ----------
Total revenue $ 411,356 $422,740 $ 422,828 $1,224,968 $1,275,959
Net cash
provided by
operating
activities $ 63,179 $ 48,413 $ 55,313 $ 153,101 $ 72,078
Less: Capital
expenditures (24,196) (21,204) (32,051) (78,512) (99,158)
--------- ------- ------- --------- ---------
Free cash flow 38,983 27,209 23,262 74,589 (27,080)
Operating
cashflow
margin 15% 11% 13% 12% 6%
Free cash flow
margin 9% 6% 6% 6% (2%)
Add: Merger
and
integration
expense (1) 1,293 2,267 1,437 5,300 12,387
Add: Severance
and other
expense (1) 5,782 6,711 3,181 18,575 8,007
--------- ------- ------- --------- ---------
Adjusted free
cash flow $ 46,058 $ 36,187 $ 27,880 $ 98,464 $ (6,686)
========= ======= ======= ========= =========
Adjusted free
cash flow
margin 11% 9% 7% 8% (1%)
(1) Expenses directly referenced on the condensed consolidated Statements
of Operations.
EXPRO GROUP HOLDINGS N.V.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
Reconciliation of Adjusted Net Income:
Three Months Ended Nine Months Ended
---------------------------------- ------------------------
September June September September September
30, 30, 30, 30, 30,
2025 2025 2024 2025 2024
---------- ------- ----------- ---------- -----------
Net income $ 13,963 $18,003 $ 16,275 $ 45,914 $ 28,884
Adjustments:
Merger and
integration
expense 1,293 2,267 1,437 5,300 12,387
Severance and
other
expense 5,782 6,711 3,181 18,575 8,007
Stock-based
compensation
expense 7,201 7,314 6,831 21,483 19,251
--------- ------ ------- --------- -------
Total
adjustments,
before taxes 14,276 16,292 11,449 45,358 39,645
Tax benefit (1) (44) (27) (110) (111)
Total
adjustments, net
of taxes 14,275 16,248 11,422 45,248 39,534
--------- ------ ------- --------- -------
Adjusted net
income $ 28,238 $34,251 $ 27,697 $ 91,162 $ 68,418
========= ====== ======= ========= =======
Reconciliation of Adjusted Net Income per Diluted Share:
Three Months Ended Nine Months Ended
------------------------------------------ ---------------------------
September September September September
30, June 30, 30, 30, 30,
2025 2025 2024 2025 2024
------------ ------------ ------------ ------------ ------------
Net income $ 0.12 $ 0.16 $ 0.14 $ 0.40 $ 0.25
Adjustments:
Merger and
integration
expense 0.01 0.02 0.01 0.05 0.11
Severance and
other
expense 0.05 0.06 0.03 0.16 0.07
Stock-based
compensation
expense 0.06 0.06 0.06 0.19 0.17
----------- ----------- ----------- ----------- -----------
Total
adjustments,
before taxes 0.12 0.14 0.10 0.39 0.34
----------- ----------- ----------- ----------- -----------
Tax benefit (0.00) (0.00) (0.00) (0.00) (0.00)
----------- ----------- ----------- ----------- -----------
Total
adjustments, net
of taxes 0.12 0.14 0.10 0.39 0.34
----------- ----------- ----------- ----------- -----------
Adjusted net
income $ 0.24 $ 0.30 $ 0.23 $ 0.79 $ 0.59
=========== =========== =========== =========== ===========
As reported
diluted weighted
average common
shares
outstanding 115,447,110 115,508,918 118,293,677 115,956,527 115,605,215
View source version on businesswire.com: https://www.businesswire.com/news/home/20251023431927/en/
CONTACT:
InvestorRelations@expro.com
(END) Dow Jones Newswires
October 23, 2025 06:58 ET (10:58 GMT)