Expro to Deliver Geothermal Well Testing Services for Groundbreaking Lionheart Project in Germany Expro to Deliver Geothermal Well Testing Services for Groundbreaking Lionheart Project in Germany Share Expro partners with VERCANA GmbH (part of Vulcan Energy Resources GmbH and responsible for well engineering and drilling) to support first well in Europe's largest geothermal and lithium cluster. Expro partners with VERCANA GmbH to support first well in Europe's largest geothermal and lithium cluster. HOUSTON ...

Core Viewpoint - Expro Group Holdings N.V. (NYSE:XPRO) has been downgraded to Sell from Hold by Freedom Capital analyst Sergey Pigarev, with a price target remaining at $16, primarily due to concerns over fiscal Q4 2025 results and expectations for Q1 2026 [1][2]. Financial Performance - For Q4 2025, Expro Group reported a revenue decline of 12.53% year-over-year, totaling $382.13 million, which missed estimates by $31.34 million [3]. - The earnings per share (EPS) for the quarter was $0.21, falling short of estimates by $0.03 [3]. - The annual revenue for the company was $1.6 billion, which was at the lower end of management's previous guidance [3]. - Management anticipates that fiscal 2026 revenue will remain flat year-over-year, with expectations of a seasonal dip in activity and margins during Q1 2026 [3]. Market Context - Expro Group provides energy services to oil and gas companies in both onshore and offshore environments across approximately 60 countries [4]. - The analyst's cautious sentiment is attributed to a decline in global drilling and falling oil prices, which are expected to negatively impact the company's results in Q1 2026 [2].

Revenue Performance - Total revenue for the year ended December 31, 2025, was $1,607,095, a decrease from $1,712,802 in 2024 and an increase from $1,512,764 in 2023[18] - North and Latin America (NLA) segment revenue was $558,033, accounting for 34.7% of total revenue, while the Europe and Sub-Saharan Africa (ESSA) segment generated $486,900, representing 30.3%[18] - The Middle East and North Africa (MENA) segment revenue increased to $363,616, making up 22.6% of total revenue, while the Asia-Pacific (APAC) segment revenue decreased to $198,546, contributing 12.4%[18] - Revenue is primarily derived from services and product sales to customers in the oil and gas industry, with no single customer accounting for more than 10% of revenue for the year ended December 31, 2025[45] - One customer accounted for approximately 10.5% and 12.5% of revenue in the years ended December 31, 2024 and 2023, respectively[45] - Revenue for the year ended December 31, 2025 decreased by $105.7 million, or 6.2%, to $1,607.1 million compared to $1,712.8 million for the year ended December 31, 2024[190] - NLA revenue was $558.0 million for the year ended December 31, 2025, a decrease of $8.0 million, or 1.4%, compared to 2024[205] - ESSA revenue decreased to $486.9 million for the year ended December 31, 2025, down $77.5 million, or 13.7%, compared to 2024[207] - MENA revenue increased to $363.6 million for the year ended December 31, 2025, an increase of $31.4 million, or 9.5%, compared to 2024[209] - APAC revenue was $198.5 million for the year ended December 31, 2025, a decrease of $51.6 million, or 20.6%, compared to 2024[211] Safety Performance - The Lost Time Injury Frequency (LTIF) rate for 2025 was 0.00, down from 0.06 in 2023, indicating improved safety performance[38] - The Total Recordable Case Frequency (TRCF) rate decreased to 0.37 in 2025 from 0.61 in 2023, reflecting a significant reduction in workplace injuries[38] Corporate Strategy and Goals - The corporate strategy for 2026 focuses on exceeding industry safety expectations, advancing product offerings, and leveraging data for operational improvements[22] - Expro aims to achieve above-market revenue growth and strong profitability while maintaining a commitment to free cash flow generation[22] Workforce and Employment - The company has approximately 8,500 employees, with 20% under collective bargaining agreements, indicating a stable workforce[25] Product Innovations - New product innovations include CoilHose™, Octopoda™, and Galea™, aimed at enhancing well intervention and integrity services[23] Corporate Social Responsibility - Expro is committed to corporate social responsibility, engaging in community activities that align with its core values[35] Market and Economic Risks - The company reported a significant reliance on the oil and gas industry's activity levels, which are influenced by global economic conditions and geopolitical events, such as the ongoing Russian war in Ukraine[68] - Oil and gas prices are volatile and can impact customer demand for services and products, with potential reductions in capital spending during periods of low prices[68] - The company faces risks from political, economic, and social instability in the countries where it operates, which could adversely affect demand for its products and services[78] - The company is exposed to financial risks as shareholders may shift investments away from fossil fuel companies due to climate change concerns[55] - The consolidation of major customers in the industry may lead to reduced capital spending and decreased demand for the company's products and services[86] - The company may face challenges in maintaining sales levels if larger customers consolidate or experience financial difficulties, impacting liquidity and profitability[87] Regulatory and Compliance Risks - The company is subject to numerous stringent environmental and governmental regulations that could materially impact capital expenditures and financial position[49] - Climate change regulations are becoming more stringent, with the EU targeting a 55% reduction in net emissions by 2030 from 1990 levels, which could affect demand for oil and gas services[53] - The company is subject to varying sustainability reporting requirements, which may increase compliance costs and affect capital raising efforts[92] - Compliance with trade sanctions and embargoes poses risks, as failure to comply could result in criminal and civil penalties, including fines and loss of import/export privileges[111] - The company faces regulatory, political, and financial risks associated with greenhouse gas emissions, which could lead to increased operating costs and reduced demand for its services[112] - Data protection regulations may increase compliance costs, and failure to comply could result in fines and adversely affect the company's operations and reputation[113] - The company is subject to increasing regulatory enforcement in privacy and data protection, which could create compliance uncertainty and require changes in business practices[114] Financial Performance - Adjusted EBITDA for the year ended December 31, 2025 increased by $5.6 million, or 1.6%, to $353.0 million from $347.4 million for the year ended December 31, 2024[190] - Adjusted EBITDA margin increased to 22.0% during the year ended December 31, 2025, compared to 20.3% during the year ended December 31, 2024[190] - Net cash provided by operating activities was $210.2 million during the year ended December 31, 2025, an increase of $40.7 million from $169.5 million during the year ended December 31, 2024[190] Cybersecurity Risks - The Company faces ongoing cybersecurity risks that could materially affect its operations if realized[134] - The Company has implemented processes to assess and manage cybersecurity risks, including penetration testing and regular risk assessments[133] - The Chief Information Officer, with over 30 years of experience, oversees cybersecurity risk management, reporting to the Chief Financial Officer[134] - The Company has not identified any material risks from known cybersecurity threats in the last fiscal year[134] Stock and Shareholder Information - The market price of the company's common stock has been volatile, influenced by factors such as quarterly operating results and market conditions[116] - The company’s articles of association and Dutch corporate law may discourage takeover attempts, making it more difficult for third parties to acquire the company[122] - The company is authorized to issue common stock up to 20% of the issued share capital without further shareholder approval, which could affect the market price of its common stock[123] - The Board approved a stock repurchase program allowing the Company to acquire up to $100 million of its common stock from October 30, 2025, through December 31, 2026[144] - The Company repurchased approximately 3.7 million shares for a total cost of approximately $40.1 million during the year ended December 31, 2025[144] Global Operations - The Company operates in over 50 countries, maintaining several manufacturing and service facilities globally[135] - For the year ended December 31, 2025, approximately 81% of the company's revenue was generated outside of the United States, with 63% from offshore oil and gas operations[166] Market Trends and Projections - Global liquids demand grew by 1.2 million barrels per day year-on-year in 2025 and is expected to grow a further 1.1 million barrels per day in 2026[168] - North American drilling activity is projected to decline by 2% in 2026, with an average of 549 active rigs and around 15,300 wells completed[179] - European drilling activity is expected to increase by 1% in 2026, averaging 99 active rigs and accounting for approximately 780 new wells[180] - Offshore drilling in Central and South America is projected to grow by 11% in 2026, averaging 39 rigs and totaling about 225 new wells[179] - The EIA forecasts Brent crude oil prices to average approximately $56 per barrel for 2026, subject to geopolitical uncertainties[173] - The company anticipates continued demand for well intervention and production optimization services as operators focus on efficiency and cost reduction[177] - The market for energy services is significantly influenced by oil prices, affecting customer spending on exploration and production activities[171] - The company is well-positioned to support investment in strategic offshore developments and optimization of existing assets despite softer market conditions[178]

Financial Data and Key Metrics Changes - For the year 2025, the company generated over $1.6 billion in revenue and $353 million in Adjusted EBITDA, representing a 22% margin, which aligns with previously provided guidance [6][21] - Adjusted Free Cash Flow for the year was $127 million, more than double the amount generated in 2024, indicating strong operational efficiency [6][22] - For Q4, revenue was reported at $382 million with Adjusted EBITDA of $88 million, reflecting a 23% margin [6][21] Business Line Data and Key Metrics Changes - The company’s backlog increased by $196 million during Q4, reaching $2.5 billion, which provides robust revenue visibility heading into 2026 [7] - The North and Latin America segment saw a revenue decrease of $21 million to $130 million, primarily due to lower subsea well access and well construction revenue in the U.S. [25] - The Middle East and North Africa segment reported revenues of $93 million, driven by increased well flow management revenue, with an EBITDA margin of 39% [26] Market Data and Key Metrics Changes - Global demand for oil and gas remains resilient, supporting long-term investment, particularly in international and offshore markets [8] - The company anticipates a modest recovery in upstream investment, particularly in deepwater developments, which will support demand for its services [9] Company Strategy and Development Direction - The company aims to expand EBITDA margins and free cash flow generation through its Drive 2025 initiative and increased capital efficiency [10][19] - The long-term strategy focuses on building a diversified company with a compelling business mix and market leadership positions, emphasizing margin expansion and free cash flow generation [18][19] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautiously optimistic outlook for 2026, expecting sequential improvements in the latter quarters despite a softer start due to seasonal factors [33] - The company is focused on maintaining market share and expanding customer wallet share, even in a flat market environment [66] Other Important Information - The company has a strong liquidity position with $551 million in total liquidity, including $198 million in cash [23] - The capital allocation framework prioritizes organic growth, selective M&A, shareholder returns, and maintaining a strong balance sheet [30][31] Q&A Session Summary Question: Can you talk more about the increase in wallet share? - Management highlighted cross-selling opportunities in well construction operations, leveraging existing services to drive efficiency [37] Question: What are the market assumptions behind the 2026 guidance? - Management indicated that current commodity prices support their activity set, with a focus on maintaining market share and expanding margins [42][44] Question: How does the pricing environment affect your pricing conversations? - Management noted that while there is limited ability to raise prices currently, there is no downward pressure, and they remain disciplined in pricing their technology offerings [75][78] Question: How do you see exploration opportunities evolving? - Management expressed excitement about increasing exploration project discussions, which could lead to more revenue opportunities in the future [59][81]

Financial Data and Key Metrics Changes - For the year 2025, the company generated over $1.6 billion in revenue and $353 million in Adjusted EBITDA, representing a 22% margin, which aligns with previously provided guidance [6][21] - Adjusted Free Cash Flow for the year was $127 million, more than double the amount generated in 2024, indicating strong operational efficiency [6][22] - For Q4, revenue was reported at $382 million with Adjusted EBITDA of $88 million, reflecting a 23% margin for the quarter [6][7] Business Line Data and Key Metrics Changes - The company’s backlog increased by $196 million during Q4, reaching $2.5 billion, providing robust revenue visibility for 2026 [7][8] - A significant contract was secured in North Africa worth $380 million for production optimization and well management services, marking one of the largest single customer awards [8][15] Market Data and Key Metrics Changes - Global demand for oil and gas remains resilient, particularly in international and offshore markets, which supports long-term investment [9] - The company anticipates a modest recovery in upstream investment, with growth concentrated in international and offshore projects, especially deepwater developments [9] Company Strategy and Development Direction - The company aims to expand EBITDA margins and free cash flow generation through its Drive 2025 initiative and increased capital efficiency [10][19] - Long-term strategic pillars include margin expansion, free cash flow generation, technical leadership, and pursuing inorganic growth through acquisitions [18][19] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautiously optimistic outlook for 2026, expecting sequential improvements in the latter half of the year despite a softer start due to seasonal factors [33][34] - The company is focused on expanding wallet share with existing customers and leveraging technology to enhance operational efficiency [12][19] Other Important Information - The company closed the quarter with $551 million in total liquidity, including $198 million in cash, enhancing its net cash position [23] - The capital allocation framework prioritizes organic growth, M&A opportunities, shareholder returns, and maintaining a strong balance sheet [30][31] Q&A Session Summary Question: Can you talk more about the increase in wallet share? - Management highlighted cross-selling opportunities in well construction operations, utilizing existing personnel to provide additional services [37][38] Question: What are the market assumptions behind the 2026 EBITDA guidance? - Management indicated that current commodity prices support their activity set, and they expect to maintain market share while expanding customer wallet [42][44] Question: How does the current administration's stance on M&A affect the company's strategy? - Management stated that their M&A interests are globally focused and not heavily influenced by the administration's stance [55][56] Question: What regions are expected to drive recovery in offshore activity? - Management identified the Middle East and North Africa as solid regions for growth, with South America also showing promise [69][70] Question: How does pricing in a tightening rig rate environment affect the company? - Management noted that while there is limited ability to raise prices currently, the disciplined approach of rig operators helps stabilize pricing expectations [76][78] Question: What opportunities exist in Venezuela and surrounding areas? - Management expressed excitement about potential opportunities in Venezuela and its geographical proximity to Guyana and Trinidad, emphasizing the company's capability in high-technology environments [81][82]

Financial Data and Key Metrics Changes - For the year 2025, the company generated over $1.6 billion in revenue and $353 million in Adjusted EBITDA, representing a 22% margin, which aligns with previously provided guidance [7] - Adjusted Free Cash Flow for the year was $127 million, more than doubling the amount generated in 2024, indicating strong operational efficiency [7][24] - For Q4 2025, revenue was reported at $382 million with Adjusted EBITDA of $88 million, reflecting a 23% margin for the quarter [7][22] Business Line Data and Key Metrics Changes - The company’s backlog increased by $196 million during Q4 to reach $2.5 billion, providing robust revenue visibility for 2026 [8] - The North and Latin America segment reported Q4 revenue of $130 million, down $21 million quarter-over-quarter, while the Europe and Sub-Saharan Africa segment saw a decrease of $10 million to $116 million [27][28] - The Middle East and North Africa segment delivered revenues of $93 million, with an EBITDA margin of 39%, reflecting a favorable activity mix [28] Market Data and Key Metrics Changes - Global demand for oil and gas remains resilient, supporting long-term investment, particularly in international and offshore markets [10] - The company anticipates a modest recovery in upstream investment, particularly in deepwater developments, which will support demand for its services [11] Company Strategy and Development Direction - The company aims to expand EBITDA margins and free cash flow generation through its Drive 2025 initiative and increased capital efficiency [12][19] - A commitment to technology and innovation is central to the company’s strategy, with a focus on leveraging acquired technologies across different geographies [15][20] - The company is pursuing selective, accretive mergers and acquisitions to enhance its capabilities and market presence [20][30] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautiously optimistic outlook for 2026, expecting sequential improvements in the latter quarters despite a softer start due to seasonal factors [35][36] - The company is focused on expanding margins and cash generation, even in a potentially flat market environment [48][69] Other Important Information - The company closed the quarter with $551 million in total liquidity, including $198 million in cash, enhancing its net cash position [25] - The capital allocation framework prioritizes organic growth, M&A, shareholder returns, and maintaining a strong balance sheet [30][33] Q&A Session Summary Question: Can you talk more about the increase in wallet share? - The company is expanding wallet share by providing additional services in well construction operations, leveraging existing personnel to drive efficiency [39][40] Question: What are the market assumptions behind the 2026 guidance? - The guidance reflects current commodity prices and the expectation that offshore deepwater projects will maintain activity levels despite market fluctuations [45][46] Question: How does the tightening rig rate environment affect pricing? - The pricing climate has stabilized, and while there is limited ability to raise prices, there is no downward pressure, which is constructive for the company [79][81] Question: What are the exploration opportunities in the region? - Increased exploration discussions are expected, particularly in offshore areas, which could lead to more revenue opportunities for the company [61][62] Question: Has the current administration's stance on M&A changed the company's strategy? - The company remains focused on global opportunities and is not significantly influenced by the administration's stance on M&A [56][59]

Q4 & FY | 2025 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 ...

分组1 - Expro Group Holdings reported quarterly earnings of $0.21 per share, matching the Zacks Consensus Estimate, but down from $0.36 per share a year ago [1] - The company posted revenues of $382.13 million for the quarter, missing the Zacks Consensus Estimate by 4.23%, and down from $436.84 million year-over-year [2] - Expro Group Holdings shares have increased approximately 25.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] 分组2 - The earnings outlook for Expro Group Holdings is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $380 million, and for the current fiscal year, it is $0.82 on revenues of $1.61 billion [7] - The Oil and Gas - Production and Pipelines industry is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - The Company reported total revenue of $1,607 million for the full year 2025, with a net income of $52 million and an Adjusted EBITDA margin of 22.0%[8]. - Total revenue for the year ended December 31, 2025, was $1,607,095, compared to $1,712,802 in 2024, indicating a decline of about 6%[55]. - Total revenue for the three months ended December 31, 2025, was $382.1 million, a decrease of 8.3% from $411.4 million in the previous quarter[49]. - Net income for the three months ended December 31, 2025, was $5.8 million, compared to $14.0 million in the previous quarter, reflecting a decline of 58.6%[49]. - Net income for the year ended December 31, 2025, was $51,686, a slight decrease from $51,918 in 2024[53]. - Adjusted net income for the year ended December 31, 2025, was $115,343,000, compared to $111,183,000 in the previous year[66]. - Operating income for the same period was $11.8 million, down 55.5% from $26.5 million in the prior quarter[49]. - Gross profit for the year ended December 31, 2025, was $192,384, down from $216,276 in 2024, indicating a decrease of about 11%[61]. Cash Flow and Liquidity - Expro generated $127 million of Adjusted free cash flow in 2025, more than doubling the amount from the prior year[4]. - Net cash provided by operating activities increased to $210,172 in 2025, up from $169,479 in 2024, representing a growth of approximately 24%[53]. - Cash and cash equivalents increased to $196.1 million as of December 31, 2025, from $183.0 million a year earlier[51]. - Cash and cash equivalents at the end of the year increased to $197,473 from $184,663 at the beginning of the year[53]. - Free cash flow for the three months ended December 31, 2025, was $23,196,000, with a free cash flow margin of 6%[64]. - The Company plans to utilize at least 33% of the free cash flow generated in 2026 for capital returns to shareholders[15]. - As of December 31, 2025, Expro's total liquidity was $551 million, including $353 million available for drawdowns under its revolving credit facility[18]. Capital Expenditures - Expro's capital expenditures for 2025 totaled $112 million, with a focus on customer-related activities[19]. - Capital expenditures for the year ended December 31, 2025, were $112,387,000, down from $143,576,000 in the previous year[64]. - The Company repurchased $40 million of stock in 2025, achieving its annual repurchase target[5]. Order Backlog and Future Expectations - Expro's total order backlog stood at $2.5 billion as of December 31, 2025, providing strong revenue visibility for 2026[7]. - For 2026, Expro expects Adjusted EBITDA of $355 million to $375 million and Adjusted free cash flow of $125 million to $145 million[7]. - The Company anticipates a revenue range of $1,600 million to $1,650 million for the full year 2026[15]. Employee and Market Presence - The company has approximately 8,500 employees and operates in over 50 countries, indicating a broad market presence[36]. Segment Performance - Segment EBITDA for NLA was $132,931 with a margin of 24% for the year ended December 31, 2025, compared to 25% in 2024[59]. - Adjusted EBITDA for the year ended December 31, 2025, was $353,024, reflecting an increase from $347,403 in 2024, with a margin of 22%[59]. - Adjusted EBITDA for the three months ended December 31, 2025, was $88,373,000, maintaining an adjusted EBITDA margin of 23%[64]. Assets and Liabilities - Total assets decreased to $2.26 billion as of December 31, 2025, down from $2.33 billion a year earlier[51]. - Total liabilities decreased to $725.3 million as of December 31, 2025, compared to $842.1 million in the previous year[51]. Miscellaneous - The company reported a stock-based compensation expense of $29,172,000 for the year ended December 31, 2025[66]. - The diluted weighted average shares outstanding for the year ended December 31, 2025, were 115,749,247[67]. - Forward-looking statements indicate expectations for growth and cash flows, but actual results may differ due to various risks and uncertainties[39][40].

Core Insights - Expro has launched Solus™, a high-debris single shear and seal ball valve system designed to enhance subsea well access solutions in the oil and gas industry [1] Company Overview - Expro is an energy services provider that focuses on innovative solutions for the international oil and gas sector [1] Product Innovation - The Solus™ system replaces the traditional requirement of two valves with a single valve, thereby simplifying operations [1] - This innovation aims to reduce operational risk and complexity while improving functionality and safety [1] Industry Impact - The introduction of Solus™ is expected to revolutionize the industry's approach to subsea well access, potentially accelerating operational efficiency [1]