Core Insights - The earnings season reveals opportunities in lesser-known companies alongside major firms, highlighting the importance of broad market analysis [1] Modine Manufacturing - Modine Manufacturing Co. reported a 13-cent earnings per share beat and revenue exceeding analyst estimates in its recent earnings report for Q1 fiscal 2026 [2] - The company aims for $2 billion in data center revenue by fiscal 2028, with its climate solutions segment generating $1.4 billion in sales for fiscal 2025 [3] - Modine's strategic acquisitions contributed to a 11% year-over-year revenue growth, with a revised full-year fiscal 2026 outlook of 10-15% growth [4] - Modine shares increased by 28% in the last month, with an additional 7% upside potential projected [4] CECO Environmental - CECO Environmental Corp. exceeded analyst expectations, achieving a 35% year-over-year increase in EPS and a 45% rise in EBITDA [5] - The company anticipates $725–775 million in revenue for the full year, with shares up 50.4% in the last month and a potential 9% upside [8] - CECO's sales opportunity pipeline has grown to $5.5 billion, with a backlog of $688 million, reflecting a 274 million new bookings [7] Expro Group - Expro Group Holdings N.V. reported an 8% year-over-year revenue increase, surpassing predictions despite energy sector volatility [9] - The company expects about $1.7 billion in full-year revenue and plans a $40 million share buyback campaign [11] - Expro shares rose nearly 17% in the last month, with over 16% additional upside possible [11]

PART I. FINANCIAL INFORMATION The first part of the report provides detailed financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Expro Group Holdings N.V. as of June 30, 2025, show total revenue of $813.6 million and net income of $32.0 million for the six months ended June 30, 2025, with total assets at $2.34 billion [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies and financial results, including business combinations, segment reporting, revenue disaggregation, income tax, and financial instruments - The company extended its stock repurchase program, authorizing up to **$100.0 million** in repurchases through November 24, 2025, with approximately **1.6 million shares** repurchased for about **$15.0 million** during the first six months of 2025[21](index=21&type=chunk) - The company completed the acquisition of Coretrax on May 15, 2024, for an estimated consideration of **$186.7 million**, expanding its Well Construction and Well Intervention & Integrity solutions[39](index=39&type=chunk)[40](index=40&type=chunk) - On July 23, 2025, the company entered into a new senior secured revolving credit facility for up to **$500 million**, replacing its previous facility, which matures on July 30, 2029[87](index=87&type=chunk) Condensed Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total revenue** | $813,612 | $853,131 | -4.6% | | **Operating income** | $42,889 | $36,117 | +18.8% | | **Net income** | $31,951 | $12,609 | +153.4% | | **Diluted EPS** | $0.27 | $0.11 | +145.5% | Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total current assets** | $1,002,171 | $964,046 | +4.0% | | **Total assets** | $2,338,222 | $2,333,541 | +0.2% | | **Total current liabilities** | $468,370 | $484,430 | -3.3% | | **Total liabilities** | $818,234 | $842,057 | -2.8% | | **Total stockholders' equity** | $1,519,988 | $1,491,484 | +1.9% | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | | **Net cash provided by operating activities** | $89,922 | $16,765 | | **Net cash used in investing activities** | $(49,316) | $(96,665) | | **Net cash (used in) provided by financing activities** | $(23,878) | $64,878 | | **Net increase (decrease) to cash** | $22,823 | $(17,713) | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, business overview, market conditions, and outlook, highlighting Q2 2025 revenue growth and significant net income increase for the first six months of 2025 [Overview of Business and Market Conditions](index=29&type=section&id=Overview%20of%20Business%20and%20Market%20Conditions) Expro is a global energy services provider operating in over 50 countries, with its business dependent on volatile oil and gas prices, yet expecting continued demand growth and long-term investment - The company operates through four geographic segments: North and Latin America (NLA), Europe and Sub-Saharan Africa (ESSA), Middle East and North Africa (MENA), and Asia-Pacific (APAC)[113](index=113&type=chunk) - Market conditions in Q2 2025 were volatile, with Brent crude prices ranging from **$60/bbl to $80/bbl**, but the company expects continued growth in oil and gas demand, supporting long-term energy sector investment[115](index=115&type=chunk)[116](index=116&type=chunk) - The U.S. Energy Information Administration (EIA) forecasts global liquid fuels demand to average **103.5 million b/d** in 2025, an increase of **0.8 million b/d** from 2024, with growth driven almost entirely by non-OECD countries[120](index=120&type=chunk) [Executive Overview and Results of Operations](index=34&type=section&id=Executive%20Overview%20and%20Results%20of%20Operations) This section details the company's financial performance, showing Q2 2025 sequential revenue growth of 8.2% to $422.7 million and a 153.4% year-over-year net income surge for the first six months Q2 2025 vs Q1 2025 Performance | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $422.7M | $390.9M | +8.2% | | **Net Income** | $18.0M | $13.9M | +29.1% | | **Adjusted EBITDA** | $94.5M | $76.2M | +23.9% | | **Adjusted EBITDA Margin** | 22.3% | 19.5% | +280 bps | H1 2025 vs H1 2024 Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $813.6M | $853.1M | -4.6% | | **Net Income** | $32.0M | $12.6M | +153.4% | | **Adjusted EBITDA** | $170.7M | $162.0M | +5.4% | | **Adjusted EBITDA Margin** | 21.0% | 19.0% | +200 bps | Segment Revenue (Six Months Ended June 30) | Segment | 2025 Revenue (M) | 2024 Revenue (M) | YoY Change | | :--- | :--- | :--- | :--- | | **NLA** | $276.9 | $287.4 | -3.7% | | **ESSA** | $244.7 | $290.2 | -15.7% | | **MENA** | $184.6 | $152.9 | +20.7% | | **APAC** | $107.4 | $122.7 | -12.4% | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Expro had total available liquidity of $343.1 million, including $207.5 million in cash, with management confident in meeting business needs for the next 12 months - Total available liquidity as of June 30, 2025, was **$343.1 million**, including **$207.5 million** in cash and cash equivalents[168](index=168&type=chunk) - Capital expenditures are estimated to be between **$65 million** and **$75 million** for the remainder of 2025[169](index=169&type=chunk) - Net cash from operating activities increased significantly to **$89.9 million** in H1 2025 from **$16.8 million** in H1 2024, driven by favorable working capital movements and higher Adjusted EBITDA[175](index=175&type=chunk)[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed since December 31, 2024, referring to its Annual Report on Form 10-K for detailed disclosures - There have been no material changes in the company's exposure to market risk since December 31, 2024[186](index=186&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[187](index=187&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2025[188](index=188&type=chunk) PART II. OTHER INFORMATION The second part of the report covers legal proceedings, risk factors, equity security sales, other information, and a list of exhibits [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 of the financial statements for information on commitments and contingencies, indicating no material accruals for loss contingencies as of June 30, 2025 - The company had no material accruals for loss contingencies as of June 30, 2025, and believes the probability of any material adverse effect from ongoing matters is remote[94](index=94&type=chunk)[190](index=190&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company advises investors to consider the risk factors discussed in its Annual Report on Form 10-K, stating no material changes from previously disclosed risks - The company refers to the 'Risk Factors' section of its Annual Report for a comprehensive discussion of risks, indicating no material changes from what was previously reported[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q2 2025, with 637,073 shares bought in April 2025 at an average price of $7.87 per share, and $60.8 million remaining authorized for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 637,073 | $7.87 | | May 2025 | - | - | | June 2025 | - | - | | **Total** | **637,073** | **$7.87** | - As of June 30, 2025, approximately **$60.8 million** remained authorized for share repurchases under the company's program[194](index=194&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section discloses a new $500 million senior secured revolving credit facility entered into on July 23, 2025, and details two non-executive directors adopting Rule 10b5-1 trading plans in June 2025 - On July 23, 2025, the company entered into a new senior secured revolving credit facility for up to **$500 million**, replacing its prior facility[195](index=195&type=chunk) - In June 2025, two non-executive directors adopted Rule 10b5-1 trading plans to sell shares in June 2026 to cover tax obligations from vesting RSUs[200](index=200&type=chunk)[201](index=201&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a letter agreement with an executive, the new Facility Agreement, and CEO/CFO certifications - Key exhibits filed include the new Facility Agreement (Exhibit 10.2) and CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2)[205](index=205&type=chunk)

Financial Data and Key Metrics Changes - The company reported revenue of $423 million for Q2 2025, an increase of $32 million or approximately 8% compared to the previous year [34] - EBITDA grew to $94 million, representing a sequential increase of approximately $18 million or 24% from Q1 2025, with an EBITDA margin of 22%, marking the best quarterly result in the company's history [35][36] - Free cash flow on an adjusted basis was $36 million, or 9% of revenue, with a commitment to repurchase $40 million in shares [7][36] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $143 million, up $8 million quarter over quarter, driven by higher well construction activity [42] - Europe and Sub-Saharan Africa (ESSA) revenue increased by $20 million to $132 million, primarily due to activity in the North Sea and Angola [43] - Middle East and North Africa (MENA) revenue was $91 million, slightly lower than Q1, driven by reduced well construction revenue in Saudi Arabia and the UAE [43] - Asia Pacific (APAC) revenue was $57 million, an increase of $6 million, reflecting higher well flow management activity in Malaysia, Indonesia, and Brunei [44] Market Data and Key Metrics Changes - The company secured new order awards of $595 million in Q2 2025, marking the second highest quarter of new order intakes in its history [10] - The backlog increased to approximately $2.3 billion at the end of Q2 2025, indicating a healthy pipeline of future work [11] - The Brent crude price fluctuated within a $20 per barrel range, peaking at $80 per barrel in June, impacting market dynamics [12][13] Company Strategy and Development Direction - The company is focused on maintaining cost and capital discipline while expanding EBITDA margins and free cash flow generation [15][46] - The strategic focus is on well intervention, production optimization, and digital services, aligning with market trends towards optimizing existing assets [14][15] - The company aims to leverage its strong international and offshore presence to navigate market fluctuations and capitalize on growth opportunities [15][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the oil and gas industry despite recent challenges, with expectations for new project approvals to return to growth in 2026 [14][26] - The company anticipates mid-single-digit revenue growth for 2025, supported by customer scheduled activities and product delivery [27] - Management highlighted the importance of customer engagement and operational execution in maintaining a positive outlook [96] Other Important Information - The company is implementing a cost optimization program called Drive 25, targeting $30 million in run rate cost savings [44] - Total available liquidity at the end of Q2 was approximately $343 million, with a new credit facility providing up to $500 million in available liquidity [45] Q&A Session Summary Question: Was the strong Q2 orders mostly timing or indicative of future growth? - Management indicated that the strong orders were a mix of contract renewals and timing, with robust bidding activity continuing [51][52] Question: What are the opportunities for improved free cash flow conversion? - Management emphasized ongoing margin expansion and cost efficiency initiatives, with flexibility in CapEx spending to enhance free cash flow [53][56] Question: How does the company view the segments for the remainder of the year? - Management expects continued margin expansion and stable performance across segments, with a solid execution quarter in Q2 [64] Question: What is the outlook for the subsea well access segment? - Management noted that the recent decline in revenue is not expected to be sustained, with a strong fourth quarter anticipated [78][80] Question: What are the dynamics in the MENA region? - Management highlighted that MENA remains the most profitable geography, with strong activity levels, particularly in Saudi Arabia and Algeria [86]

Financial Performance - Q2 2025 revenue reached $423 million, an 8% increase quarter-over-quarter[10, 13] - Adjusted EBITDA for Q2 2025 was $94 million, representing 22% of revenue[10] - Adjusted Free Cash Flow was $36 million, or 9% of revenue, highlighting margin improvements and capital discipline[10] - The company reaffirms its 2025 revenue expectation at approximately $17 billion and Adjusted EBITDA of at least $350 million[7, 48, 51] - The company targets shareholder returns of approximately one-third of Adjusted Free Cash Flow, or around $40 million[48, 51] Regional Performance - North & Latin America (NLA) revenue was $143 million, a 6% increase quarter-over-quarter[12, 13, 19] - Europe & Sub-Saharan Africa (ESSA) revenue was $132 million, an 18% increase quarter-over-quarter[12, 13, 27, 28] - Middle East & North Africa (MENA) revenue was $91 million, a 3% decrease quarter-over-quarter[12, 13, 33] - Asia Pacific (APAC) revenue was $57 million, a 12% increase quarter-over-quarter[12, 13, 39] Business Strategy and Outlook - The company is executing its Drive25 operating efficiency campaign, aiming to reduce steady-state support costs by over $30 million, with approximately 50% of the targeted annual savings expected to be reflected in 2025 financial results[8, 54, 60] - The company anticipates mid-single-digit revenue growth in the second half of the year compared to the first half, with Q3 revenue expected to be relatively flat compared to Q2, and revenue growth expected in Q4[49]

[Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted strong Q2 2025 results, record margins, and significant new orders driven by strategic execution - Achieved the best second quarter performance ever with an **Adjusted EBITDA margin of 22%**, marking the third consecutive quarter of record-high margins[4](index=4&type=chunk) - The company's strategy focuses on organic and inorganic investments, structural cost savings (Drive25), and capitalizing on its diverse geographic footprint in key offshore and international growth markets[5](index=5&type=chunk) - Recorded the **second-highest new order awards** in the company's history, reflecting strong customer trust and momentum in regional activity[7](index=7&type=chunk) - Remains committed to returning approximately **one-third of adjusted free cash flow**, or about $40 million, to shareholders annually[4](index=4&type=chunk)[8](index=8&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company exceeded revenue and Adjusted EBITDA guidance, achieving a record 22% margin and a $2.3 billion order backlog Q2 2025 Financial Performance Summary | Metric | Value | Note | | :--- | :--- | :--- | | Revenue | $423 million | Exceeded guidance of $410 million | | Net Income | $18 million | 4% margin | | Adjusted EBITDA | $94 million | Exceeded guidance of $90 million | | Adjusted EBITDA Margin | 22% | Third consecutive record high | | Cash Flow from Operations | $48 million | 11% of revenues | | Adjusted Free Cash Flow | $36 million | 9% margin | | Total Order Backlog | $2.3 billion | Includes $595 million in new awards | [Full-Year 2025 Guidance](index=1&type=section&id=Full-Year%202025%20Guidance) The company reaffirmed its full-year 2025 financial guidance for revenue, Adjusted EBITDA, and adjusted free cash flow Reaffirmed Full-Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenue | circa $1.7 billion | | Adjusted EBITDA | at least $350 million | | Adjusted Free Cash Flow | ~$110 million (~7% of revenues) | [Operational and Strategic Developments](index=2&type=section&id=Operational%20and%20Strategic%20Developments) [Notable Awards and Achievements](index=2&type=section&id=Notable%20Awards%20and%20Achievements) The company introduced three industry-first technologies and secured significant multi-year contracts across key global regions - **Technological Innovations (Industry Firsts):** - **BRUTE® Armor Packer:** A new technology to enhance deepwater well integrity, already deployed by two super majors in the Gulf of America - **Remote Clamp Installation System (RCIS):** A fully automated, hands-free system developed with a super major that improves safety and reduces installation time by ~50% - **Remote Five-Plug Cementing Operation:** The world's first fully remote operation using Generation-X™ and SkyHook™ technology, enhancing safety and expanding cementing services in the Middle East[11](index=11&type=chunk)[17](index=17&type=chunk) - **Key Contract Awards:** - **Guyana:** A multi-year, multi-rig contract with revenues **exceeding $120 million** for completion and TRS services - **Mexico:** A three-year contract with Woodside Energy for the country's first deepwater oil production facility - **Brazil:** **Over $50 million** in new contracts for production optimization and well decommissioning - **MENA:** A seven-year production contract for approximately **$100 million** and a six-month extension worth approximately **$60 million**[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Financial Condition and Shareholder Returns](index=3&type=section&id=Financial%20Condition%20and%20Shareholder%20Returns) [Free Cash Flow Analysis](index=3&type=section&id=Free%20Cash%20Flow%20Analysis) The company focuses on margin expansion and capital efficiency to drive free cash flow, generating $36 million in adjusted FCF in Q2 2025 - The company has redefined its adjusted free cash flow measure to align with market participants and peers, adjusting for one-time items to provide a clearer view of 'steady state' performance[18](index=18&type=chunk)[19](index=19&type=chunk) Free Cash Flow Reconciliation (in thousands) | | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,413 | $89,922 | | Less: Capital expenditures | $(21,204) | $(54,316) | | **Free cash flow** | **$27,209** | **$35,606** | | Add: Merger and integration expense | $2,267 | $4,007 | | Add: Severance and other expense | $6,711 | $12,793 | | **Adjusted free cash flow** | **$36,187** | **$52,406** | | **Adjusted free cash flow margin** | **9%** | **6%** | [Share Repurchases and Capital Structure](index=3&type=section&id=Share%20Repurchases%20and%20Capital%20Structure) The company repurchased $5 million in shares, maintained total liquidity of $343 million, and enhanced financial flexibility with a new credit facility - During Q2 2025, the company repurchased approximately **637,000 shares** for a total cost of about **$5 million**[26](index=26&type=chunk) - As of June 30, 2025, total liquidity stood at **$343 million**, including $136 million available under its revolving credit facility; total long-term borrowings were **$121 million**[24](index=24&type=chunk) - On July 23, 2025, the company entered into a new senior secured revolving credit facility, increasing available commitments to up to **$400 million**[27](index=27&type=chunk) [Segment Performance Analysis (Q2 2025 vs Q1 2025)](index=5&type=section&id=Segment%20Performance%20Analysis%20(Q2%202025%20vs%20Q1%202025)) [North and Latin America (NLA)](index=5&type=section&id=North%20and%20Latin%20America%20(NLA)) NLA segment revenue grew 6% sequentially to $143 million, with the EBITDA margin expanding to 24% due to higher-margin project activity NLA Segment Performance (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $143 million | $134 million | +6% | | Segment EBITDA | $34 million | $30 million | +12% | | Segment EBITDA Margin | 24% | 23% | +1 ppt | [Europe and Sub-Saharan Africa (ESSA)](index=5&type=section&id=Europe%20and%20Sub-Saharan%20Africa%20(ESSA)) ESSA segment revenue surged 18% to $132 million, driving a significant EBITDA margin improvement to 30% from a favorable product mix ESSA Segment Performance (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $132 million | $112 million | +18% | | Segment EBITDA | $40 million | $29 million | +36% | | Segment EBITDA Margin | 30% | 26% | +4 ppts | [Middle East and North Africa (MENA)](index=5&type=section&id=Middle%20East%20and%20North%20Africa%20(MENA)) MENA segment revenue decreased slightly by 3% to $91 million while maintaining a strong EBITDA margin of 36% MENA Segment Performance (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $91 million | $94 million | -3% | | Segment EBITDA | $33 million | $34 million | -5% | | Segment EBITDA Margin | 36% | 37% | -1 ppt | [Asia Pacific (APAC)](index=5&type=section&id=Asia%20Pacific%20(APAC)) APAC segment revenue increased 12% to $57 million, with the EBITDA margin expanding to 26% due to higher activity and favorable mix APAC Segment Performance (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Revenue | $57 million | $51 million | +12% | | Segment EBITDA | $15 million | $11 million | +36% | | Segment EBITDA Margin | 26% | 21% | +5 ppts | [Financial Statements and Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported Q2 2025 total revenue of $422.7 million and net income of $18.0 million Statement of Operations Summary (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $422,740 | $469,642 | | Operating income | $32,566 | $27,697 | | Net income | $18,003 | $15,286 | | Diluted EPS | $0.16 | $0.13 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company reported total assets of $2.34 billion and total stockholders' equity of $1.52 billion Balance Sheet Summary (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $206,831 | $183,036 | | Total current assets | $1,002,171 | $964,046 | | **Total assets** | **$2,338,222** | **$2,333,541** | | Total current liabilities | $468,370 | $484,430 | | **Total liabilities** | **$818,234** | **$842,057** | | **Total stockholders' equity** | **$1,519,988** | **$1,491,484** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2025, net cash from operations was $89.9 million, ending the period with a cash balance of $207.5 million Statement of Cash Flows Summary (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,922 | $16,765 | | Net cash used in investing activities | $(49,316) | $(96,665) | | Net cash (used in) provided by financing activities | $(23,878) | $64,878 | | Net increase (decrease) in cash | $22,823 | $(17,713) | | Cash at end of period | $207,486 | $135,453 | [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP measures, including Adjusted EBITDA and Adjusted Free Cash Flow, to their GAAP equivalents Adjusted EBITDA Reconciliation - Q2 2025 (in thousands) | | Three Months Ended June 30, 2025 | | :--- | :--- | | **Net income** | **$18,003** | | Income tax expense | $13,959 | | Depreciation and amortization expense | $46,716 | | Severance and other expense | $6,711 | | Merger and integration expense | $2,267 | | Other income, net | $(280) | | Stock-based compensation expense | $7,314 | | Foreign exchange (gain) loss | $(4,518) | | Interest and finance expense, net | $4,279 | | **Adjusted EBITDA** | **$94,451** |

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 2025 and 2024 are presented, covering operations, balance sheets, cash flows, and related notes Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenue** | $390,872 | $383,489 | | **Operating income** | $10,323 | $8,420 | | **Net income (loss)** | $13,948 | $(2,677) | | **Basic EPS** | $0.12 | $(0.02) | | **Diluted EPS** | $0.12 | $(0.02) | Condensed Consolidated Balance Sheet Highlights (Unaudited) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $948,605 | $964,046 | | **Total assets** | $2,293,086 | $2,333,541 | | **Total current liabilities** | $450,643 | $484,430 | | **Total liabilities** | $793,341 | $842,057 | | **Total stockholders' equity** | $1,499,745 | $1,491,484 | Condensed Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $41,509 | $29,938 | | **Net cash used in investing activities** | $(33,112) | $(30,739) | | **Net cash (used in) provided by financing activities** | $(15,104) | $14,891 | - The company acquired Coretrax on May 15, 2024, for an estimated fair value consideration of **$186.7 million**, including cash, equity, and contingent consideration. This acquisition is intended to expand the company's Well Construction and Well Intervention & Integrity solutions[43](index=43&type=chunk)[44](index=44&type=chunk) - During Q1 2025, the company repurchased approximately **1.0 million shares** for about **$10.0 million** under its extended stock repurchase program[24](index=24&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 financial condition and results, highlighting sequential revenue decline, year-over-year net income improvement, liquidity, capital, and Adjusted EBITDA reconciliation [Overview of Business and Market Conditions](index=29&type=section&id=Overview%20of%20Business%20and%20Market%20Conditions) Expro operates as a global energy services provider, anticipating modest growth despite near-term volatility, driven by resilient global demand and continued upstream investment - Expro's business is organized into four main service lines: Well Construction, Well Flow Management, Subsea Well Access, and Well Intervention and Integrity[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - The market faces near-term uncertainty from tariffs and OPEC+ production announcements, causing commodity price volatility. Brent crude averaged **$73/bbl** in March 2025[114](index=114&type=chunk)[115](index=115&type=chunk)[119](index=119&type=chunk) - The U.S. Energy Information Administration (EIA) predicts global liquids fuels demand will average **103.6 million b/d** in 2025, an increase of **0.9 million b/d** over 2024[120](index=120&type=chunk) - The company anticipates modest growth, assuming oil prices remain above a profitable level for operators (**$60-$65/bbl**), supported by energy security needs and continued investment in international and offshore activities[126](index=126&type=chunk)[127](index=127&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q1 2025 revenue was $390.9 million with $13.9 million net income, showing sequential declines due to seasonality but year-over-year growth and a shift from net loss to income Q1 2025 vs. Q4 2024 (Sequential) Performance | Metric | Q1 2025 (in millions) | Q4 2024 (in millions) | Change (in millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $390.9M | $436.8M | $(46.0)M | (10.5)% | | Net Income | $13.9M | $23.0M | $(9.1)M | (39.4)% | | Adjusted EBITDA | $76.2M | $100.4M | $(24.1)M | (24.0)% | Q1 2025 vs. Q1 2024 (Year-over-Year) Performance | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (in millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $390.9M | $383.5M | $7.4M | 2.0% | | Net Income (Loss) | $13.9M | $(2.7)M | $16.6M | N/A | | Adjusted EBITDA | $76.2M | $67.5M | $8.7M | 12.9% | - MENA segment revenue increased by **$22.1 million**, or **30.9%**, year-over-year, driven by the Coretrax acquisition and increased well flow management activity in Algeria, the UAE, and Iraq[156](index=156&type=chunk) - ESSA segment EBITDA margin improved to **26.0%** from **20.7%** year-over-year, despite a **7.7%** revenue decrease, due to a more favorable mix of higher-margin services[154](index=154&type=chunk)[155](index=155&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA and Adjusted EBITDA margin as key non-GAAP metrics, with Q1 2025 Adjusted EBITDA at $76.2 million and a 20% margin - Adjusted EBITDA is defined as net income (loss) adjusted for items including income tax, depreciation & amortization, severance, stock-based compensation, merger & integration expenses, interest, and foreign exchange gains/losses[135](index=135&type=chunk) Adjusted EBITDA Reconciliation Summary (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net income (loss)** | $13,948 | $(2,677) | | **Adjustments** | $62,280 | $70,137 | | **Adjusted EBITDA** | $76,228 | $67,460 | | **Adjusted EBITDA margin** | 20% | 18% | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Expro maintained a strong liquidity position of $315.8 million, sufficient for operations, with capital used for expenditures, acquisitions, and stock repurchases - Total available liquidity was **$315.8 million** as of March 31, 2025[162](index=162&type=chunk) - The company plans to spend between **$90.0 million and $100.0 million** on capital expenditures for the remainder of 2025[163](index=163&type=chunk) - In Q1 2025, the company used **$10.0 million** to repurchase **1.0 million shares** of its common stock[164](index=164&type=chunk) - Net cash from operating activities increased to **$41.5 million** in Q1 2025 from **$29.9 million** in Q1 2024, driven by higher Adjusted EBITDA and favorable working capital movements[169](index=169&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure has not materially changed since its Annual Report for the fiscal year ended December 31, 2024 - There has been no material change in the company's market risk exposure since December 31, 2024[178](index=178&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[179](index=179&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[180](index=180&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company had no material accruals for loss contingencies from legal proceedings as of March 31, 2025, as detailed in Note 17 of the financial statements - The company had no material accruals for loss contingencies from legal proceedings as of March 31, 2025[92](index=92&type=chunk)[182](index=182&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the company's Annual Report for a comprehensive discussion of risk factors that could materially affect business and financial results - The report refers readers to the 'Risk Factors' section in the company's Annual Report for a comprehensive discussion of potential risks[183](index=183&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details Q1 2025 stock repurchase activities, including 993,761 shares bought back in March at $10.08, with $65.8 million remaining for future repurchases Stock Repurchases in Q1 2025 | Period | Total Shares Purchased (shares) | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Jan 2025 | - | - | | Feb 2025 | - | - | | Mar 2025 | 993,761 | $10.08 | - As of March 31, 2025, approximately **$65.8 million** remained authorized for repurchases under the company's stock buyback program[186](index=186&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer of the Company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025[187](index=187&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with Form 10-Q, including CEO and CFO certifications and iXBRL formatted financial statements - The Exhibit Index lists required filings, including CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 1350, and iXBRL data files[188](index=188&type=chunk)[190](index=190&type=chunk) ```

Financial Data and Key Metrics Changes - Xpro's Q1 2025 revenue was $391 million with an adjusted EBITDA of $76 million, representing 20% of revenue, marking the highest first quarter performance since merging with Frank's in October 2021 [6][32] - Revenue decreased by $46 million or about 11% compared to Q4 2024, but increased by $7 million or approximately 2% year-over-year [30][31] - Adjusted EBITDA decreased by approximately $24 million or 24% sequentially but increased by $9 million or 13% year-over-year [32] Business Line Data and Key Metrics Changes - In North and Latin America (NLA), Q1 revenue was $134 million, down $5 million quarter-over-quarter, with an EBITDA margin improvement to 23% [33] - Europe and Sub-Saharan Africa (ESA) saw Q1 revenue of $112 million, a sequential decrease of $30 million, with an EBITDA margin at 26%, down 11 percentage points [34] - The Middle East and North Africa (MENA) reported Q1 revenue of $94 million, up 1% sequentially, with an EBITDA margin of 37%, up 1% quarter-over-quarter [35] - Asia Pacific (APAC) revenue was $51 million, a decrease of $12 million, with an EBITDA margin at 21%, down from the prior quarter [36] Market Data and Key Metrics Changes - The macro outlook indicates significant near-term uncertainty and volatility in global oil markets due to tariff announcements and OPEC+ production increases [8][9] - Global oil consumption is forecasted to increase by 900,000 barrels per day in 2025, with demand reaching an average of 103.6 million barrels per day [13] - The EIA projects global liquids production to grow by 1.3 million barrels per day in 2025, reaching 104.1 million barrels per day [14] Company Strategy and Development Direction - Xpro's strategy focuses on organic investment and M&A to enable margin expansion and improve customer relevance [7][21] - The company aims to maintain cost and capital discipline while adjusting CapEx based on awarded projects [21][29] - Xpro is positioned to benefit from long-term offshore project sanctioning, with about two-thirds of greenfield CapEx expected to be allocated to offshore developments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive multiyear outlook for energy services despite expected near-term moderation in upstream investment [5][9] - The company anticipates that 2025 will be a transition year, with a return to healthy sanctioning activity in 2026 and beyond [16][45] - Management noted that current macro conditions are influenced more by global trade issues than energy fundamentals, which remain strong [12] Other Important Information - Xpro's backlog at the end of Q1 was approximately $2.2 billion, in line with expectations [8] - The company has a zero net debt balance sheet, providing strategic and financial flexibility [21] - Xpro's Drive 25 efficiency campaign aims to achieve significant cost savings and improve operating leverage [36][37] Q&A Session Summary Question: Insights on MENA segment growth and margin sustainability - Management highlighted strong anchor contracts in Saudi Arabia and Algeria, indicating stability and growth potential in the MENA region [50][51] Question: Thoughts on equity valuation and buyback strategy - Management acknowledged the depressed equity valuation and indicated a willingness to utilize share repurchase authorization while considering other capital allocation opportunities [54][56] Question: Factors influencing full-year guidance and sensitivity - Management noted cautious customer sentiment and ongoing engagement to assess project timelines, indicating a wait-and-see approach [60][61] Question: Impact of tariffs on business - Management clarified that while tariffs may affect activity, the overall impact on financial results is expected to be minimal, with preliminary estimates suggesting less than a $5 million impact [78][82] Question: Automation and safety technology impact - Management emphasized that technologies like Centrify enhance safety and operational efficiency, allowing for reduced personnel on rig floors [87][90] Question: M&A market dynamics - Management indicated ongoing efforts to identify suitable M&A opportunities, emphasizing patience and strategic alignment with Xpro's goals [93]

Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $391 million, with adjusted EBITDA of $76 million, representing 20% of revenue, marking the highest first-quarter performance since merging with Frank's in October 2021 [6][32] - Revenue decreased by $46 million or approximately 11% compared to Q4 2024, but increased by $7 million or approximately 2% year-over-year compared to Q1 2024 [31][32] - Adjusted EBITDA decreased by $24 million or 24% sequentially from Q4 2024, but increased by $9 million or 13% year-over-year compared to Q1 2024 [32] Business Line Data and Key Metrics Changes - The North and Latin America (NLA) segment reported revenue of $134 million, down $5 million quarter-over-quarter, with an EBITDA margin improvement to 23% from 22% in Q4 2024 [33][34] - The Europe and Sub-Saharan Africa (ESA) segment saw revenue of $112 million, a sequential decrease of $30 million or 21%, with an EBITDA margin at 26%, down 11 percentage points sequentially [35] - The Middle East and North Africa (MENA) segment delivered revenue of $94 million, up 1% sequentially, with an EBITDA margin of 37%, up 1% quarter-over-quarter [36] - The Asia Pacific (APAC) segment reported revenue of $51 million, a decrease of $12 million, with an EBITDA margin at 21%, down from the prior quarter [36] Market Data and Key Metrics Changes - The company secured $272 million in new contract awards in Q1 2025, with a backlog of approximately $2.2 billion at the end of the quarter [7][8] - The macro outlook indicates significant near-term uncertainty and volatility in global oil markets due to tariff announcements and OPEC+ production increases [9][10] - Global oil consumption is forecasted to increase by 900,000 barrels per day in 2025, with demand reaching an average of 103.6 million barrels per day [14] Company Strategy and Development Direction - The company is focused on organic investment and a successful M&A strategy to enable margin expansion and improve customer relevance [7][22] - The long-term outlook for international onshore and offshore markets remains positive, with a shift towards offshore activities expected due to cost and carbon advantages [12][16] - The company plans to maintain cost and capital discipline while adjusting CapEx based on customer-sanctioned projects [22][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates a transition year in 2025, with expectations for revenue to be generally flat compared to 2024, but with improved activity mix and operating efficiency gains [45][46] - The geopolitical and oil supply disruptions have introduced market uncertainty, but the company remains bullish on long-cycle development driven by economic growth and energy security considerations [46] - Management acknowledges that while there is uncertainty in the market, they believe 2025 will be a better year than many investors currently assume [29][30] Other Important Information - The company has a zero net debt balance sheet, providing strategic and financial flexibility [22] - The Drive 25 efficiency campaign is expected to help protect margins and improve operating leverage [37][38] - The company plans to use about one-third of its annual free cash flow for share repurchases, with approximately $66 million available under the current repurchase program [39] Q&A Session Summary Question: Insights on MENA segment growth and margin sustainability - Management highlighted strong anchor contracts in Saudi Arabia and Algeria, indicating stability and growth potential in the MENA region [50][52] Question: Thoughts on buybacks versus inorganic opportunities - Management is considering share repurchases due to depressed valuations but remains open to exploring inorganic growth opportunities [56][58] Question: Factors influencing full-year guidance and sensitivity - Management noted cautious customer sentiment and ongoing engagement to assess project timelines, indicating a wait-and-see approach [63][64] Question: Potential delays in offshore FIDs - Management clarified that anticipated delays in FID sanctioning are based on customer caution rather than explicit indications from clients [78][79] Question: Impact of tariffs on business - Management believes the potential impact of U.S. tariffs will likely affect activity more than costs, estimating a less than $5 million impact from tariffs [85]

Financial Performance - Q1 2025 revenue reached $391 million, and Adjusted EBITDA was $76 million, representing 20% of revenue[12, 14] - Full-year 2025 revenue is expected to be over $1,700 million, with Adjusted EBITDA exceeding $350 million[50] - Q2 2025 revenue is projected to be between $400 million and $410 million, a sequential increase of approximately 4% from Q1[51] - Q2 2025 Adjusted EBITDA is expected to range from $80 million to $90 million, with an Adjusted EBITDA margin increase of +100 basis points sequentially[52] Regional Performance (Q1 2025) - North & Latin America (NLA) revenue was $134 million[16] - Europe & Sub-Saharan Africa (ESSA) revenue was $112 million[16] - Middle East & North Africa (MENA) revenue was $94 million[16] - Asia Pacific (APAC) revenue was $51 million[16] Business Strategy and Operations - The company has a robust backlog of $22 billion[13] - The company is implementing the Drive25 cost optimization program, with over 50% of cost improvement initiatives completed[12] - The company is targeting over $30 million in run-rate savings through Drive25, with approximately 50% expected to be reflected in 2025 financial results[57, 64]

Core Viewpoint - Expro Group Holdings (XPRO) reported quarterly earnings of $0.25 per share, significantly exceeding the Zacks Consensus Estimate of $0.10 per share, marking a 150% earnings surprise [1] - The company also posted revenues of $390.87 million for the quarter, surpassing the Zacks Consensus Estimate by 4.74% and showing an increase from $383.49 million year-over-year [2] Financial Performance - The earnings of $0.25 per share represent an increase from $0.09 per share a year ago [1] - Over the last four quarters, Expro Group Holdings has surpassed consensus EPS estimates two times and topped revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.27, with projected revenues of $437.42 million, and for the current fiscal year, the EPS estimate is $1 on revenues of $1.72 billion [7] Market Position - Expro Group Holdings shares have declined approximately 35.5% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3] - The Zacks Industry Rank for Oil and Gas - Production and Pipelines is currently in the top 15% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Expro Group Holdings is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]