[Management View]
Expro reported $423 million in revenue for Q2 2025, marking an 8% sequential increase. EBITDA reached $94 million, exceeding guidance and achieving a record 22% margin. Adjusted free cash flow was $36 million, equivalent to 9% of revenue. Management emphasized operational leverage, cost discipline, and innovation, including three new technologies—Brute Armor Packer, Remote Clamp Insulation System (RCIS), and Generation X Remote Plug Launcher/Skyhook Cement Line Makeup Device—that contributed to efficiency gains and contract wins.

[Outlook]
Expro reaffirmed its full-year 2025 guidance of $1.7 billion in revenue, at least $350 million in EBITDA, and adjusted free cash flow of approximately $110 million. Management anticipates mid-single-digit revenue growth in the second half of 2025, driven by stable activity in key international and offshore markets. Liquidity was strengthened with a $400 million revolving credit facility and a $100 million bridge facility, positioning the company for operational resilience and potential M&A opportunities.

[Financial Performance]
Revenue grew 8% sequentially, driven by increased activity in Europe and Sub-Saharan Africa (ESA) and Asia Pacific (APAC). EBITDA rose 24% QoQ, with a 200 basis point margin improvement. Regional highlights include $143 million revenue in North and Latin America (NLA), $132 million in ESA, $91 million in Middle East and North Africa (MENA), and $57 million in APAC. Segment margins varied, with MENA at 36% and APAC improving to 26%.

[Q&A Highlights]
Question 1: Was the strong Q2 order intake mostly timing-related or indicative of sustained growth in 2025 orders?
Answer: Management attributed the strong Q2 orders to a mix of timing and robust bidding activity. Contract renewals in Guyana and North Africa contributed significantly, reflecting sustained pipeline strength rather than single-event concentration.

Question 2: Could 2026 see improved free cash flow conversion compared to historical levels?
Answer: Management emphasized ongoing margin expansion, cost efficiency initiatives, and disciplined CapEx spending. The DRIVE 2025 program targets $30 million in run-rate cost savings, with half expected to be realized in 2025. These efforts aim to enhance free cash flow generation.

Question 3: What is the outlook for quarterly EBITDA margin cadence across segments?
Answer: Management expects continued margin expansion in 2025, supported by solid execution and customer feedback. Q2 margins were driven by operational efficiency rather than one-off factors, and the second half of 2025 is anticipated to align with guidance.

Question 4: Are there increased M&A opportunities in the current market?
Answer: Management remains active in evaluating accretive acquisitions that enhance portfolio relevance and customer relationships. Expro has a strong track record in integration and synergy realization, positioning it well for future opportunities.

Question 5: Will offshore rig white space impact Expro’s business in the second half of 2025?
Answer: Management does not anticipate significant impact, citing detailed customer engagement and rig-by-rig analysis. However, caution around short-cycle intervention activity is being monitored.

Question 6: What caused the recent softness in subsea well access revenue?
Answer: Management attributed the decline to project timing and expects a rebound in Q4 2025. Operational execution in Angola and other regions remains strong.

Question 7: What are the drivers behind MENA’s revenue and margin performance?
Answer: MENA’s profitability is driven by robust activity in Saudi Arabia (unconventional gas) and Algeria (production optimization). Margins remain strong despite slight sequential declines due to project timing.

Question 8: How should investors view shareholder returns and potential dividends?
Answer: Expro plans $40 million in share repurchases for 2025, with accelerated activity in the second half. Management is focused on increasing free cash flow generation to potentially expand returns and evaluate dividend options in the future.

Question 9: How has customer sentiment evolved amid crude price volatility?
Answer: Management noted sustained execution on deepwater and ultra-deepwater projects, with customers prioritizing existing development plans. New FID approvals have moderated, reflecting cautious behavior.

Question 10: What are Sergio Myworm’s priorities as CFO?
Answer: Sergio emphasized increasing free cash flow conversion through margin expansion, capital efficiency, and faster customer collections. He aims to fine-tune strategic objectives and explore accretive acquisitions.

[Sentiment Analysis]
Analysts expressed positive sentiment regarding Expro’s strong Q2 performance, particularly its record EBITDA margin and robust free cash flow. Management maintained a confident tone, emphasizing operational execution, innovation, and strategic focus on international and offshore markets.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | YoY Change |
|-------------------------|---------------|---------------|----------------|
| Revenue | $423 million | $391 million | +8% |
| EBITDA | $94 million | $76 million | +24% |
| EBITDA Margin | 22% | 20% | +200 bps |
| Adjusted Free Cash Flow| $36 million | $30 million | +20% |

[Risks and Concerns]
1. Commodity price volatility and geopolitical tensions could impact customer spending and project timelines.
2. Short-cycle intervention activity remains subdued, requiring close monitoring.
3. Dependence on international and offshore markets may expose Expro to regional economic and regulatory risks.

[Final Takeaway]
Expro delivered a record-setting quarter, showcasing strong operational execution, margin expansion, and free cash flow generation. Management’s focus on innovation, cost efficiency, and strategic investments positions the company well for sustained growth in international and offshore markets. While macroeconomic uncertainties persist, Expro’s robust liquidity and disciplined approach provide resilience and opportunities for shareholder value creation.