Financial Data and Key Metrics Changes - Q4 2024 revenue was $437 million, with adjusted EBITDA of $100 million, representing 23% of revenue, marking the best financial performance since the merger in October 2021 [10][11] - Q4 adjusted cash flow from operations was $115 million, and free cash flow was $75 million, reflecting strong operational performance [11] - Full year 2024 revenue reached $1.71 billion, up 13% year over year, with adjusted EBITDA of $347 million, a 40% increase compared to 2023 [15][49] Business Line Data and Key Metrics Changes - Subsea Well Access business saw increased activity in Angola, contributing to revenue growth, while well flow management services improved in Algeria, Iraq, and Saudi Arabia [11] - North and Latin America (NLA) revenue was $139 million, flat quarter over quarter, with a segment EBITDA margin of 22%, down from 24% in Q3 2024 [50] - Europe and Sub-Saharan Africa (EASA) revenue was $143 million, up 9% sequentially, with an EBITDA margin of 37%, reflecting increased subsea activity [53] Market Data and Key Metrics Changes - MENA revenue for Q4 was $93 million, up 7% sequentially, with a stable EBITDA margin of 35% [58] - Asia Pacific (APAC) revenue decreased by 5% to $62 million, primarily due to reduced well management activity in Malaysia and Australia [60] - The backlog remained healthy at approximately $2.3 billion at the end of Q4 2024, consistent with the previous quarter [17] Company Strategy and Development Direction - The company aims to enhance operational efficiency through the "Drive 25" initiative, targeting a 7% to 8% reduction in support costs over the next 12 to 18 months [40][63] - Focus on strategic acquisitions to broaden the portfolio of technology-enabled services and solutions, with a clean balance sheet allowing for opportunistic M&A [108] - The company expects stable to modest growth in upstream investments in 2025, with a focus on international and offshore markets [26][28] Management's Comments on Operating Environment and Future Outlook - Management anticipates a transition year for the energy services industry in 2025, with cautious near-term outlook but bullish medium to long-term prospects [42][75] - The macro environment is expected to support a positive multiyear outlook for energy services companies, particularly in international and offshore markets [9][22] - Concerns about oil supply are expected to abate, leading to momentum building in international markets as the year progresses [75] Other Important Information - The company reported total available liquidity of $320 million at year-end, with cash and cash equivalents of approximately $185 million [66] - Full-year guidance for 2025 includes revenue expectations of $1.7 billion to $1.75 billion and adjusted EBITDA of $350 million to $370 million [67] Q&A Session Summary Question: About the full-year 2025 revenue guidance - Management indicated that the guidance reflects exposure to markets with minimal spend reductions and benefits from strategic M&A and engineering investments [81][84] Question: On the first quarter guidance and expected rebound - The sequential decline in Q1 is attributed to strong Q4 performance and seasonal impacts, with expectations for a typical recovery in Q2 based on project timing [87][90] Question: Free cash flow progression and capital allocation priorities - Management highlighted the Drive 25 initiative aimed at improving efficiency and reducing costs, with a focus on capital discipline and potential M&A opportunities [95][102][108] Question: Resolution of the Congo project - The company successfully resolved outstanding variation orders, with expectations for improved margins in the O&M phase and operational flexibility in production rates [115][116]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission file number: 001-36053 Expro Group Holdings N.V. (Exact name of registrant as specified in its charter) | The Netherlands | 98-1107145 | | --- | --- | | (State or other jurisdiction of | (IRS Employer | | incorporation or organization) | Identification No.) | | 1311 Broadf ...

Q4 & FY | 2024 Highlights Expro Group Holdings N.V. NYSE: XPRO Disclaimer This presentation 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 presentation that address activities, events or developments that Expro Group Holdings N.V. (the "Company") expects, believes or anticipates will or may occur in the future are forward- lo ...

Group 1: Earnings Performance - Expro Group Holdings reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and significantly up from $0.06 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $436.84 million for the quarter ended December 2024, which was 2.80% below the Zacks Consensus Estimate, but an increase from $406.75 million year-over-year [2] - Over the last four quarters, Expro Group Holdings has surpassed consensus EPS estimates only once, while topping revenue estimates three times [2] Group 2: Stock Performance and Outlook - Expro Group Holdings shares have increased approximately 4.4% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The future stock performance will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $391.39 million, and for the current fiscal year, it is $1.03 on revenues of $1.76 billion [7] Group 3: Industry Context - The Oil and Gas - Production and Pipelines industry, to which Expro Group Holdings belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Expro's stock performance [5][6]

Revenue Performance - Fourth quarter revenue was $437 million, up 3% sequentially and up 7% year-over-year; full-year 2024 revenue reached $1,713 million, a 13% increase compared to 2023[1][8] - Total revenue for Q4 2024 was $436.8 million, an increase from $406.8 million in Q4 2023, representing a growth of 7.4% year-over-year[53] - The year ended December 31, 2024, saw total revenue of $1,712,802,000, an increase from $1,512,764,000 in the previous year[65] Profitability Metrics - Fourth quarter Adjusted EBITDA was $100 million, an 18% sequential increase, with an Adjusted EBITDA margin of 23%, up from 20% in the previous quarter[2][8] - Full-year Adjusted EBITDA increased by 40% to $347 million, with a margin of 20%, up from 16% in 2023[2][8] - Adjusted EBITDA for 2024 was $347,403 thousand, a 39.4% increase from $248,880 thousand in 2023[62] - Adjusted EBITDA for the three months ended December 31, 2024, was $100,357,000, representing an adjusted EBITDA margin of 23%[69] Net Income - Net income for the fourth quarter was $23 million, compared to $16 million in the third quarter of 2024 and a net loss of $12 million in the fourth quarter of 2023[2][8] - Full-year net income was $52 million, a turnaround from a net loss of $23 million in 2023; adjusted net income for 2024 was $111 million[3][12] - Net income for Q4 2024 was $23.0 million, compared to a net loss of $12.4 million in Q4 2023[53] - Net income for the three months ended December 31, 2024, was $23,034,000, compared to $16,275,000 in the previous quarter and a loss of $12,418,000 in the same quarter last year[69] Shareholder Returns - The company repurchased 1.2 million shares for a total cost of $14 million in the fourth quarter, as part of a $100 million stock repurchase program[3][12] - The Company approved a stock repurchase program allowing for the acquisition of up to $100 million of its common stock from October 25, 2023, through November 24, 2025[33] - Approximately 1.2 million shares were repurchased in both 2024 and 2023, costing approximately $14.2 million and $20.0 million respectively[33] Capital Expenditures - Capital expenditures for the fourth quarter totaled $44 million, with full-year expenditures at approximately $144 million; planned capital expenditures for 2025 are estimated between $120 million to $130 million[31][12] - Capital expenditures for 2024 were $143,576 thousand, up from $122,110 thousand in 2023, indicating a 17.6% increase[57] Financial Position - As of December 31, 2024, the company had consolidated cash and cash equivalents of $185 million and outstanding debt of $121 million, resulting in total liquidity of $320 million[32][12] - Total assets increased to $2,333,541 thousand in 2024, up from $2,013,007 thousand in 2023, representing a growth of 15.9%[55] - Total liabilities rose to $842,057 thousand in 2024, up from $717,134 thousand in 2023, reflecting a 17.4% increase[55] - The company reported a total stockholders' equity of $1,491,484 thousand in 2024, an increase from $1,295,873 thousand in 2023, representing a growth of 15.1%[55] Employee and Operational Insights - The Company has approximately 8,500 employees and operates in around 60 countries, providing energy services across the entire well life cycle[40] - Fourth quarter contract wins totaled $314 million, with significant contracts in well construction and intervention across various regions[12][12] Future Outlook - The company anticipates stable to modestly increased revenues for 2025, with an expected improvement of over 100 basis points in Adjusted EBITDA margin year-over-year[14][12] - Forward-looking statements indicate expectations for growth and strategic initiatives, including the anticipated benefits from the Coretrax acquisition[43]

Core Insights - The article discusses the author's extensive experience in stock analysis, particularly in the energy sector, focusing on oilfield equipment services and industrial supply industries [1]. Group 1 - The author has over 14 years of experience in stock analysis, with a specific focus on both long and short positions [1]. - The primary focus of the author's analysis has been on the energy sector for the past 7 years, particularly the oilfield equipment services sector [1]. - The author also covers the industrial supply industry and occasionally collaborates with another contributor [1].

Financial Data and Key Metrics Changes - Expro reported Q3 2024 revenue of $423 million and adjusted EBITDA of $85 million, both within guidance ranges [5][25] - Sequential revenue declined by $47 million or 10%, primarily due to the Congo project ramp-up and strong Q2 results in subsea well access [5][6] - Year-over-year revenue increased by $53 million or 14%, driven by PRT Offshore and Coretrax, despite lower Congo project revenue [6][25] - Adjusted EBITDA decreased by $10 million or 10% sequentially but increased by $35 million or 69% compared to Q3 2023 [6][25] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $139 million, down 11% quarter-over-quarter due to decreased activity in well construction and subsea well access [10] - Europe and Sub-Saharan Africa (ESSA) revenue was $131 million, a sequential decrease of 22%, impacted by a large subsea project in Q2 and Congo project losses [11] - Middle East and North Africa (MENA) revenue increased by 7% to $87 million, driven by Coretrax contributions [14] - Asia Pacific revenue was $65 million, up 4% due to increased activity in Thailand and Australia [14] Market Data and Key Metrics Changes - Commodity prices have been under pressure, leading to cautious customer spending and moderated growth in certain regions, particularly NLA [7][17] - Brent crude prices declined from $80 per barrel in January 2024 to an average of $74 per barrel in September [17][19] - Despite anticipated modest price declines in 2025, Brent is expected to average $78 per barrel, supporting continued upstream investment [19][20] Company Strategy and Development Direction - Expro aims to leverage long-cycle development opportunities in international and offshore markets, anticipating a multiyear up cycle for energy services [6][8] - The company is focusing on cost rationalization initiatives to improve operating leverage and margins [9][31] - Expro has been recognized for innovation in engineering and sustainability, enhancing its market position [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term headwinds exist, the long-term outlook for energy services remains solid, particularly in international and offshore markets [4][8] - The company expects a slow start to 2025 due to potential project delays but remains confident in sustained business momentum [8][31] - Management highlighted ongoing dialogues with customers regarding project timing and scope across all markets [7][8] Other Important Information - Expro's backlog remains healthy at approximately $2.3 billion, including Coretrax and PRT backlog [15] - The company is integrating Coretrax and focusing on maximizing revenue synergies from the acquisition [16][62] Q&A Session All Questions and Answers Question: Can you talk about the revision to the 2024 outlook in detail? - Management explained that the revision was primarily due to performance expectations in NLA and weaker well construction activity in the Gulf of Mexico, with a temporary hiatus in DST activity impacting results [34][35] Question: What are the building blocks to achieve the $2 billion revenue and 25% EBITDA margin? - Management identified activity set, operating leverage, and pricing as key components, noting that a slower ramp-up in drilling completions could shift timelines [42][43] Question: What is the current status of the Congo project and its impact on profitability? - Management confirmed that the Congo project is moving into the O&M phase, with outstanding variation orders being resolved, which could impact Q4 results [45][46] Question: What are the trends in Mexico and Expro's exposure to Pemex? - Management noted governmental transitions in Mexico affecting activity but indicated a return to more historic patterns in exploration [49][50] Question: How do you view the outlook for next year and the impact of offshore drillers' concerns? - Management acknowledged early budgeting processes for 2025 and indicated that sentiment and customer feedback are being closely monitored [52][53]

Revenue Performance - Revenue for the three months ended September 30, 2024, decreased by $46.8 million, or 10.0%, to $422.8 million, compared to $469.6 million for the three months ended June 30, 2024[127]. - Revenue for the nine months ended September 30, 2024, increased by $169.9 million, or 15.4%, to $1,276.0 million compared to $1,106.0 million for the same period in 2023[132]. - Revenue from the NLA segment for the three months ended September 30, 2024, was $139.4 million, accounting for 33.0% of total revenue[141]. - Revenue from the MENA segment for the nine months ended September 30, 2024, was $239.7 million, representing an increase from $168.2 million for the same period in 2023[142]. - NLA segment revenue for Q3 2024 was $139.4 million, a decrease of $17.6 million or 11.2% from Q2 2024[147]. - ESSA segment revenue for Q3 2024 was $131.5 million, a decrease of $37.0 million or 21.9% from Q2 2024[149]. - MENA segment revenue for Q3 2024 was $86.7 million, an increase of $5.3 million or 6.5% from Q2 2024[151]. - APAC segment revenue for Q3 2024 was $65.2 million, an increase of $2.4 million or 3.9% from Q2 2024[153]. - NLA segment revenue for the nine months ended September 30, 2024, was $426.8 million, an increase of $60.5 million or 16.5% from the same period in 2023[158]. - MENA segment revenue for the nine months ended September 30, 2024, was $239.7 million, an increase of $71.5 million or 42.5% from the same period in 2023[162]. - APAC segment revenue increased by $3.4 million, or 1.9%, to $187.9 million for the nine months ended September 30, 2024, compared to $184.4 million for the same period in 2023[163]. Income and EBITDA - Net income for the three months ended September 30, 2024, was $16.3 million, a 6.4% increase from $15.3 million for the three months ended June 30, 2024, with a net income margin of 3.8%[128]. - Adjusted EBITDA for the three months ended September 30, 2024, decreased by $9.5 million, or 10.1%, to $85.0 million from $94.6 million for the three months ended June 30, 2024, maintaining an Adjusted EBITDA margin of 20.1%[129]. - Net income for the nine months ended September 30, 2024, was $28.9 million, compared to a net loss of $10.9 million for the same period in 2023, resulting in a net income margin of 2.3%[132]. - Adjusted EBITDA for the nine months ended September 30, 2024, increased by $83.3 million, or 50.9%, to $247.0 million from $163.7 million for the same period in 2023, with an Adjusted EBITDA margin of 19.4%[133]. - Total Segment EBITDA for Q3 2024 was $111.5 million, a decrease from $123.3 million in Q2 2024[148]. - NLA segment EBITDA margin for Q3 2024 was 23.7%, down from 28.3% in Q2 2024[148]. - ESSA segment EBITDA margin for Q3 2024 was 24.5%, up from 20.8% in Q2 2024[150]. - MENA segment EBITDA for Q3 2024 was $30.0 million, an increase of $1.4 million or 5.0% from Q2 2024[152]. - Segment EBITDA for the APAC segment was $42.2 million, or 22.5% of revenues, for the nine months ended September 30, 2024, a significant increase from a loss of ($3.5) million, or (1.9)% of revenues, for the same period in 2023[163]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended September 30, 2024, was $55.3 million, significantly higher than $13.2 million for the three months ended June 30, 2024[130]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $72.1 million, down from $105.5 million for the same period in 2023, primarily due to increased working capital[135]. - Total available liquidity as of September 30, 2024, was $302.6 million, including cash and cash equivalents of $167.0 million and $135.6 million available for borrowings[170]. - Net cash provided by operating activities decreased by $33.5 million to $72.1 million for the nine months ended September 30, 2024, compared to $105.5 million for the same period in 2023[176]. - Net cash used in investing activities increased by $29.9 million to $120.7 million for the nine months ended September 30, 2024, compared to $90.8 million for the same period in 2023[177]. Market and Industry Trends - Average daily oil demand in the third quarter of 2024 exceeded the average daily demand levels in the third quarter of 2023, with liquid demand expected to grow by 0.9 million b/d in 2024 over 2023[115]. - Brent crude oil prices declined from an average of $85/bbl in July to an average of $74/bbl in September 2024, primarily due to concerns over global oil demand growth[115]. - The EIA forecasts global liquid fuels consumption will average 103.1 million b/d in 2024, increasing by 0.9 million b/d over 2023[118]. - The EIA predicts that global liquids production will average 102.5 million b/d in 2024, up by 0.5 million b/d from 2023[119]. - Henry Hub natural gas prices averaged $2.11/MMBtu in the third quarter, with forecasts suggesting an increase to nearly $2.81/MMBtu in the fourth quarter[122]. - The market outlook for the remainder of 2024 and into 2025 shows commodity prices driving continued expenditures on exploration and production, with near 2015 levels of upstream investment expected[123]. Corporate Developments - The company has seen increased demand for services related to brownfield and production enhancement as operators strive to maximize previous investments[116]. - The clean energy transition continues to gain momentum, with the company actively developing technologies to enhance the sustainability of its customers' operations[116]. - The company’s revenue is primarily derived from well construction, well flow management, subsea well access, and well intervention and integrity solutions[124]. - Corporate costs rose by $21.6 million, or 29.3%, to $95.6 million for the nine months ended September 30, 2024, compared to $74.0 million for the same period in 2023[164]. - Depreciation and amortization expense increased by $11.8 million, or 10.8%, to $121.2 million for the nine months ended September 30, 2024, compared to $109.4 million for the same period in 2023[165]. - Merger and integration expenses surged by $8.1 million, or 185.9%, to $12.4 million for the nine months ended September 30, 2024, compared to $4.3 million for the same period in 2023[166]. - Interest and finance expense, net increased by $9.0 million, or 534.7%, to $10.7 million for the nine months ended September 30, 2024, compared to $1.7 million for the same period in 2023[168]. - The company suspended vessel-deployed light well intervention operations in Q3 2023 due to a wire failure, and is currently assessing the incident and pursuing an insurance claim[134].

Company Performance - Expro Group Holdings reported quarterly earnings of $0.23 per share, matching the Zacks Consensus Estimate, and showing an improvement from a loss of $0.06 per share a year ago [1] - The company achieved revenues of $422.83 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 0.32% and up from $369.82 million in the same quarter last year [1] - Over the last four quarters, Expro Group Holdings has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [1] Future Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [2] - Current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $449.1 million, while the estimate for the current fiscal year is $0.98 on revenues of $1.72 billion [4] - The estimate revisions trend for Expro Group Holdings is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Oil and Gas - Production and Pipelines industry is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable environment for companies within this sector [5] - Another company in the same industry, Enbridge, is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decline of 15.2%, with revenues anticipated to be $4.54 billion, down 38.2% from the previous year [5]

Revenue Performance - Revenue for Q3 2024 was $423 million, down 10% sequentially and up 14% year-over-year[4]. - Total revenue for Q3 2024 was $422.828 million, a decrease of 10% from $469.642 million in Q2 2024 and an increase of 14.3% from $369.818 million in Q3 2023[34]. - Total revenue for the three months ended September 30, 2024, was $422,828,000, an increase of 14.3% compared to $369,818,000 in Q3 2023[47]. Net Income and Profitability - Net income for Q3 2024 was $16 million, with a net income margin of 4%, compared to 3% in Q2 2024[5]. - Net income for Q3 2024 was $16.275 million, up from $15.286 million in Q2 2024 and a loss of $13.886 million in Q3 2023[34]. - The company reported a net income margin of 4% for Q3 2024, compared to a net loss margin of (4%) in Q3 2023[47]. - The diluted earnings per share for Q3 2024 was $0.14, compared to a loss of $(0.13) in Q3 2023[49]. Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $85 million, down 10% sequentially but up 69% year-over-year, with an adjusted EBITDA margin of 20%[6]. - Adjusted EBITDA for Q3 2024 was $85,036,000, representing a margin of 20%, consistent with Q2 2024[47]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $247,046,000, compared to $163,734,000 for the same period in 2023[47]. Guidance and Future Expectations - Full-year 2024 revenue guidance is refined to a range of $1.72 billion to $1.75 billion, with adjusted EBITDA guidance of $335 million to $350 million[8]. - Q4 2024 revenue is expected to be between $440 million and $470 million, implying sequential growth of 8% and year-on-year growth of 12%[8]. Operational Metrics - Operating income for Q3 2024 was $26.117 million, compared to $27.697 million in Q2 2024 and a loss of $1.572 million in Q3 2023[34]. - Total operating costs and expenses for Q3 2024 were $396.711 million, down from $441.945 million in Q2 2024 and up from $371.390 million in Q3 2023[34]. - The company incurred merger and integration expenses of $1.437 million in Q3 2024, significantly lower than $8.789 million in Q2 2024[34]. Segment Performance - The NLA segment revenue decreased by 11% to $139 million in Q3 2024, while the MENA segment revenue increased by 7% to $87 million[15][19]. - Segment revenue for NLA was $139,397 thousand in Q3 2024, accounting for 33% of total revenue, compared to $105,252 thousand and 28% in Q3 2023[37]. - Well management revenue for the three months ended September 30, 2024, was $263,560 thousand, accounting for 62% of total revenue, compared to 69% in the same period of 2023[41]. Cash and Liquidity - Consolidated cash and cash equivalents as of September 30, 2024, totaled $167 million, with total liquidity of $303 million[22]. - Cash and cash equivalents at the end of the period were $166,985 thousand, compared to $257,011 thousand at the end of Q3 2023, a decrease of 35%[36]. - Operating cash flow provided $72,078 thousand in Q3 2024, compared to $105,528 thousand in Q3 2023, indicating a decrease of 31.7%[36]. Assets and Liabilities - Total assets increased to $2,343,620 thousand as of September 30, 2024, up from $2,013,007 thousand at December 31, 2023, representing a growth of 16.3%[35]. - Total liabilities rose to $860,291 thousand as of September 30, 2024, up from $717,134 thousand at December 31, 2023, an increase of 19.9%[35]. - The company reported an increase in accounts receivable to $532,469 thousand as of September 30, 2024, compared to $469,119 thousand at December 31, 2023, a rise of 13.5%[35]. Employee and Operational Commitment - The company has over 8,500 employees and operates in approximately 60 countries, providing services across the entire well life cycle[28]. - The company emphasizes its commitment to best-in-class safety and service quality in its operations[28]. - Future growth strategies include leveraging the benefits of the Coretrax acquisition and achieving anticipated synergies[29].