Expro Group Holdings N.V. Announces Second Quarter 2025 Results, Reaffirms Full-Year Guidance, and Remains Committed to Shareholder Return Targets

Expro Group Holdings N.V. (NYSE:XPRO) (the "Company" or "Expro") today reported financial and operational results for the three and six months ended June 30, 2025.

Second Quarter 2025 Highlights

Michael Jardon, Chief Executive Officer, noted "We are pleased to report strong second quarter financial results, reflecting the continued resilience of our business and outstanding performance of our team. Second quarter Adjusted EBITDA margin of 22% represents our best second quarter performance ever and third consecutive quarter of margins at the highest levels in the company's history. Additionally, we generated adjusted free cash flow of $36 million, and we remain committed to returning approximately one-third of our adjusted free cash flow, or ~$40 million, to shareholders annually.

"Expro's results demonstrate the success of the organic and inorganic investments we have made to drive growth and expand margins, our progress on structural cost savings through our Drive25 initiatives, improved business activity mix and above all operational execution. Additionally, we are capitalizing on our diverse geographic footprint in key growth markets and benefitting from our significant exposure to offshore and international markets, with limited exposure in regions such as U.S. land, Mexico and offshore Saudi, markets that will continue to be soft in 2025.

"Innovation and safety are at the heart of everything we do and have been instrumental in driving Expro's continued growth. We are dedicated to developing and profitably commercializing innovative technologies to ensure we remain at the forefront of our industry and deliver differentiated value to customers and superior returns for shareholders.

"The strength and diversity of our portfolio is reflected in the momentum of our regional activity and in our milestone quarter, recording the second-highest new order awards in Expro's history. Our new business wins are a testament to the trust our customers place in Expro and highlights our commitment to safety, service quality, and the delivery of cost-effective, technology-driven solutions throughout the well lifecycle.

"We continue to focus on operational execution to deliver financial results. Given our line of sight on near-term customer activity, we are reaffirming full-year guidance with revenues of circa $1.7 billion and Adjusted EBITDA of at least $350 million and remain committed to returning approximately one-third of adjusted free cash flow to shareholders in 2025. Our focus will continue to be on adjusted free cash flow generation, by continuing to focus on expanding our margins and reducing the capital intensity of our business."

1. A non-GAAP measure.

Notable Awards and Achievements

In the second quarter, Expro achieved three industry firsts, each focused on reducing the customer's operational risk and elevating safety, with two breakthroughs leveraging advanced automation technology. This included the following:

These technologies give Expro competitive advantages in highly specialized service offerings and create current future revenue opportunities by enabling scalable technology applications with improved margins.

Expro demonstrated strong performance across its global operations, securing a substantial multi-year, multi-rig contract in Guyana with revenues in excess of $120 million for completion and tubular running services (TRS). Additionally, the company was awarded a significant three-year contract by Woodside Energy for Mexico's first deepwater oil production facility.

In addition to previously mentioned achievements in NLA, Brazil experienced incremental activity, securing over $50 million in contracts in the second quarter focused on production optimization and well decommissioning solutions.

In the ESSA region, Expro successfully executed a multi-well campaign for a major operator in Angola, completing 11 clean-up and 12 well intervention operations totaling approximately 5,000 hours and achieving a notable 98% job performance rating. In the UK North Sea, the company continued its long-standing collaboration with a major operator, recently extending a three-year contract with revenues of approximately $30 million covering well intervention, well services, and well testing. This is further testament to Expro's high service standards and enduring client partnerships.

Within the MENA region, Expro expanded its portfolio in production optimization, exemplified by a seven-year production contract with revenues of approximately $100 million for the delivery of a gas compression system on low pressure gas wells to maintain throughput at the processing facility. Additionally, as a result of the high service quality delivered to the customer, the team secured a six-month contract extension with revenues of approximately $60 million for early production facilities and gas compression services.

In the APAC region, notably Indonesia, Expro secured four contracts with a single customer with revenues of approximately $15 million for well intervention and integrity services, contributing to brownfield production optimization through enhanced reservoir access, restoration of well integrity, and maximized hydrocarbon recovery. Furthermore, within TRS, Expro performed the first rigless conductor driving operation on a customer's platform in over a decade underscoring our commitment to delivering cost-effective solutions to the region. The team successfully completed a six-slot conductor installation safely and ahead of schedule.

Free Cash Flow and Share Repurchases

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. To further demonstrate comparability to our peers, the Company is redefining the free cash flow measure.

Expro defines free cash flow as net cash provided by (used in) operating activities ("CFFO") minus capital expenditures. Expro will provide a revised adjusted definition in line with most market participants, including a majority of our peers. Expro defines adjusted free cash flow as free cash flow, adjusted for one-time items, including one-time gains and losses, one-time severance costs, and one-time transaction-related costs. It is important to note that both positive and negative one-time items will be adjusted under the new measure. The adjustment of these true one-time items is intended to measure the Company's performance on a "steady state" without undue noise, thus making it in-line with corporate finance principles.

The Company intends to regularly disclose both free cash flow and adjusted free cash flow. In the second quarter of 2025, Expro generated $27 million of free cash flow, with a free cash flow margin of 6%. The Company's adjusted free cash flow was $36 million, with a margin of 9%.

Expro's commitment to share repurchases remains unwavering. We are reaffirming our commitment to repurchase shares using the same dollar amount as before. Nothing has changed in that regard. Under the old definition, that represented one-third of adjusted free cash flow, or circa $40 million.

Other Financial Information

As of June 30, 2025, Expro's consolidated cash and cash equivalents, including restricted cash, totaled $207 million, and the Company's total liquidity stood at $343 million. Total liquidity includes $136 million available for drawdowns as loans under the Company's revolving credit facility. The Company had outstanding long-term borrowings of $121 million as of June 30, 2025.

The Company's capital expenditures totaled $21 million in the second 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 $65 million to $75 million for the remaining six months of 2025.

The company is authorized to acquire up to $100 million of outstanding shares with $61 million remaining authorized for repurchase. During the three months ended June 30, 2025, the Company repurchased approximately 637,000 shares at an average price of $7.87 per share, for a total cost of approximately $5 million. The Company remains committed to returning one third of adjusted free cash flow to shareholders in 2025.

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 second quarter of 2025 to the results for the first quarter of 2025.

North and Latin America (NLA)

Revenue for the NLA segment was $143 million for the three months ended June 30, 2025, an increase of $8 million, or 6%, compared to $134 million for the three months ended March 31, 2025. The increase was primarily due to higher well construction revenue, partially offset by lower revenue from well flow management in Mexico and Brazil.

Segment EBITDA for the NLA segment was $34 million, or 24% of revenues, during the three months ended June 30, 2025, an increase of $4 million, or 12%, compared to $30 million, or 23%, of revenues during the three months ended March 31, 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 $132 million for the three months ended June 30, 2025, an increase of $20 million, or 18%, compared to $112 million for the three months ended March 31, 2025. The increase in revenues was primarily driven by higher revenue from all product lines, particularly in the North Sea within our well flow management and subsea well access product lines and in Angola in our well flow management and well construction product lines.

Segment EBITDA for the ESSA segment was $40 million, or 30% of revenues, for the three months ended June 30, 2025, an increase of $10 million, or 36%, compared to $29 million, or 26% of revenues, for the three months ended March 31, 2025. The increase in Segment EBITDA and Segment EBITDA margin was primarily attributable to higher activity and a favorable product mix.

Middle East and North Africa (MENA)

Revenue for the MENA segment was $91 million for the three months ended June 30, 2025, a decrease of $3 million, or 3%, compared to $94 million for the three months ended March 31, 2025. The decrease in revenue was driven by lower well construction revenue in the Kingdom of Saudi Arabia ("KSA") and the UAE, partially offset by increased well flow management revenue in North Africa.

Segment EBITDA for the MENA segment was $33 million, or 36% of revenues, for the three months ended June 30, 2025, a decrease of $2 million, or 5%, compared to $34 million, or 37% of revenues, for the three months ended March 31, 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 $57 million for the three months ended June 30, 2025, an increase of $6 million, or 12%, compared to $51 million for the three months ended March 31, 2025. The increase in revenue was primarily due to higher well flow management revenue in Malaysia, Indonesia and Brunei and higher well flow integrity and intervention revenue in Malaysia and Brunei, partially offset by lower subsea well access revenue in Malaysia.

Segment EBITDA for the APAC segment was $15 million, or 26% of revenues, for the three months ended June 30, 2025, an increase of $4 million, or 36%, compared to $11 million, or 21% of revenues, for the three months ended March 31, 2025. The increase in Segment EBITDA and Segment EBITDA margin is attributable primarily to higher activity and a favorable product mix.

Conference Call

The Company will host a conference call to discuss second quarter 2025 results on Tuesday, July 29, 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 (404) 975-4839

Access ID: 588182

To listen via live webcast, please visit the Investor section of www.expro.com.

The second 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: 914615

Start Date: July 29, 2025, 1:00 p.m. CT

End Date: August 12, 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.

Revenue by areas of capabilities:

Free Cash Flow Reconciliation, Free Cash Flow Margin, Adjusted Free Cash Flow Reconciliation and Adjusted Free Cash Flow Margin: