HOUSTON--(BUSINESS WIRE)--Global energy services provider Expro (NYSE:XPRO) has successfully delivered the first deployment of its new ELITE Compositionâ"¢ service for a major oil and gas operator in an exploration well in Cyprus. Launched earlier this year, the innovative service delivers laboratory-standard fluid measurements directly at the rig site within approximately eight hours. This is designed to enable faster, better- informed decision-making and reduce rig time. Traditionally, confirmin. ...

Demand and Supply Forecast - Average daily global liquids demand in Q3 2025 exceeded previous quarter levels and is expected to remain steady through 2025, with a forecast of 104.0 million b/d in 2025, up 1.1 million b/d from 2024 [119]. - Global liquid fuels production is expected to grow by 2.7 million b/d in 2025, reaching an average of 105.9 million b/d, driven mainly by non-OECD markets [120]. - The EIA forecasts Henry Hub prices to average $3.40/MMBtu in 2025, up from $2.20/MMBtu in 2024, indicating a recovery in natural gas prices [124]. - The company anticipates that global crude oil demand and prices may lead to significant reductions in domestic oil and gas activity, affecting demand for its products and services [181]. Financial Performance - Revenue for Q3 2025 decreased by $11.4 million, or 2.7%, to $411.4 million compared to Q2 2025 revenue of $422.7 million, attributed to lower activity in the ESSA, MENA, and APAC segments [134]. - Net income for Q3 2025 was $14.0 million, a decrease of $4.0 million, or 22.4%, from $18.0 million in Q2 2025, resulting in a net income margin of 3.4% [134]. - Adjusted EBITDA for Q3 2025 decreased by $0.5 million, or 0.5%, to $94.0 million, with an adjusted EBITDA margin of 22.8%, up from 22.3% in Q2 2025 [134]. - Revenue for the nine months ended September 30, 2025, decreased by $51.0 million, or 4.0%, to $1,225.0 million compared to $1,276.0 million for the same period in 2024 [135]. - Net income for the nine months ended September 30, 2025, increased by $17.0 million, or 59.0%, to $45.9 million compared to $28.9 million for the same period in 2024, resulting in a net income margin of 3.7% [135]. - Adjusted EBITDA for the nine months ended September 30, 2025, increased by $17.6 million, or 7.1%, to $264.7 million, with an adjusted EBITDA margin of 21.6%, up from 19.4% in the same period of 2024 [135]. Segment Performance - Segment revenue for NLA in Q3 2025 was $150.9 million, representing 36.7% of total revenue, while ESSA revenue was $125.8 million, accounting for 30.6% [142]. - Segment EBITDA for NLA in Q3 2025 was $36.8 million with a margin of 24.4%, while ESSA segment EBITDA was $40.5 million with a margin of 32.2% [144]. - NLA segment revenue increased to $150.9 million for Q3 2025, up 5.8% from $142.6 million in Q2 2025, driven by higher well construction and flow management revenue in the Gulf of America [145]. - ESSA segment revenue decreased to $125.8 million in Q3 2025, down 4.9% from $132.4 million in Q2 2025, primarily due to lower well flow management revenue in the U.K. and Norway [147]. - MENA segment revenue fell to $86.1 million in Q3 2025, a decrease of 5.4% from $91.0 million in Q2 2025, attributed to lower well construction revenue in KSA, UAE, and Qatar [149]. - APAC segment revenue decreased to $48.6 million in Q3 2025, down 14.4% from $56.8 million in Q2 2025, driven by lower well construction revenue in Australia and Malaysia [151]. Cash Flow and Liquidity - Net cash provided by operating activities for Q3 2025 was $63.2 million, compared to $48.4 million in Q2 2025, driven by favorable working capital movements [134]. - Total available liquidity as of September 30, 2025, was $532.0 million, including $198.6 million in cash and cash equivalents, and $333.4 million available for borrowings [167]. - Net cash provided by operating activities was $153.1 million for the nine months ended September 30, 2025, compared to $72.1 million for the same period in 2024, reflecting an increase of $81.0 million [174]. - Net cash used in investing activities decreased by $47.2 million to $73.5 million for the nine months ended September 30, 2025, compared to $120.7 million for the same period in 2024, primarily due to a $20.6 million reduction in capital expenditures and non-repeating transactions from 2024 [175]. - Net cash used in financing activities was $72.1 million for the nine months ended September 30, 2025, a change of $134.1 million from net cash provided of $62.0 million in the same period of 2024, driven by $40.1 million for stock repurchases and $22.0 million for repayment of borrowings [176]. Strategic Focus and Risks - The company remains selective in pursuing low-carbon opportunities, including carbon capture and flare reduction solutions [122]. - The market for energy services is substantially dependent on oil prices, impacting customer spending on exploration and production activities [117]. - The company faces uncertainties regarding the timing and extent of economic recovery or recession, which could impact demand for crude oil and related services [181]. - The company is subject to risks associated with offshore operations, including the ability to recover and service equipment located on the seabed [181]. - The company must navigate political, economic, and regulatory uncertainties in international operations, particularly regarding OPEC+ production levels [181]. - The company acknowledges the impact of severe weather conditions and natural disasters on its operations, including potential interruptions [181]. - The company is aware of the ongoing transition in the global energy sector from fossil fuels to renewable energy sources, which may affect its business strategy [181]. - The company emphasizes the importance of developing new technologies and products while protecting its intellectual property rights [181]. - The company is focused on attracting, training, and retaining key employees and qualified personnel to support its operations [181].

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest recorded by the company to date [4][24] - EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its 2025 annual guidance for EBITDA and free cash flow, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][26] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [27] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [28] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35%, down about 100 basis points [28] - Asia-Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, down about 500 basis points from the prior quarter [29] Market Data and Key Metrics Changes - The company has a $2.3 billion backlog, providing solid revenue visibility and demonstrating a diverse portfolio across regions [6] - Despite a softer commodity price environment, the outlook for Expro's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing and sustainably generating free cash flow through industry cycles, with a commitment to operational excellence and disciplined capital allocation [20][22] - The company aims to expand its wallet share with existing customers and enhance service offerings while leveraging technology to drive profitability [12][13] - Expro is committed to investing in technology leadership and digital capabilities to deliver innovative solutions and enhance competitive positioning [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite softer market conditions, emphasizing a diversified business mix and strong customer relationships [33][35] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and margin-accretive growth [35] - Management highlighted the cautious sentiment among customers due to geopolitical factors and commodity pricing, which may impact activity levels in the first half of 2026 [51][52] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5][24] - The company received several industry awards for safety and technology innovation, reinforcing its commitment to operational excellence [15][16] Q&A Session Summary Question: Drivers of margin expansion for 2026 - Management indicated that the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies will contribute to margin expansion [37][38] Question: Offshore activity outlook - Management noted that Asia-Pacific may lag, while West Africa and the Gulf of Mexico are expected to see increased activity in the second half of 2026 [39][40] Question: Share repurchase plans for the rest of the year - Management confirmed that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [42][43] Question: Activity levels in 2026 - Management acknowledged potential softness in the first half of 2026 due to customer caution but expects a ramp-up in activity later in the year [48][52] Question: Production solutions services and regions - Management described production solutions as focusing on existing infrastructure and brownfield activities, with strong opportunities in the Middle East and West Africa [60][61] Question: Margin uplift drivers - Management emphasized that margin uplift will depend on geographic and product mix, particularly the contribution from the Middle East [70][72] Question: Scalability of new technologies - Management expressed optimism about the scalability of the remote clamp installation system, expecting increased market uptake in 2026 and 2027 [74][76]

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest in the company's history [4][24][23] - EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its annual guidance for EBITDA and free cash flow for 2025, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][24] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [27] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [28] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35%, down 100 basis points from the prior quarter [28] - Asia-Pacific (APAC) revenue was $49 million, a decrease of $8 million, with an EBITDA margin of 21%, down 500 basis points from the prior quarter [29] Market Data and Key Metrics Changes - Expro's backlog stands at $2.3 billion, providing solid revenue visibility and reflecting a diverse portfolio across regions [6] - The company anticipates that upstream investments will remain largely flat globally in 2026, with pockets of growth in international markets, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing free cash flow through operational efficiency, disciplined capital allocation, and targeted acquisitions [20][21] - The company aims to expand its wallet share with existing customers and enhance service offerings to drive profitability [12] - Expro is committed to technology leadership, investing in digitalization and artificial intelligence to deliver innovative solutions [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite a softer commodity market backdrop, with expectations for a strong fourth quarter [33][34] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and the maturation of its production solutions business [35] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5] - The company completed a $22 million voluntary prepayment of its revolving credit facility, reducing the outstanding balance [25] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management indicated that the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies will contribute to margin expansion [37][38] Question: What factors are contributing to expected softness in the first half of 2026? - Management noted cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal slowdowns in the northern hemisphere [51][52] Question: How will share repurchases be managed for the rest of the year? - Management stated that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [42][43] Question: What types of services are included in the production solutions opportunity? - Management explained that production solutions involve optimizing existing infrastructure and providing modular enhancements, primarily in the Middle East, West Africa, and South America [60][61] Question: How will the geographic mix impact margins moving into 2026? - Management highlighted that growth in high-margin regions like the Middle East could significantly influence overall margin performance, depending on the mix of activities [71][72]

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest in the company's history [4][23][24] - The EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its annual guidance for EBITDA and free cash flow for 2025, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][26] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [26] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [27] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35% [28] - Asia-Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, reflecting decreased activity [29] Market Data and Key Metrics Changes - The company has a $2.3 billion backlog, providing solid revenue visibility and demonstrating a diverse portfolio across regions [5][6] - Despite a softer commodity price environment, the outlook for Expro's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing free cash flow through operational efficiency, disciplined capital allocation, and targeted acquisitions [19][20] - The company aims to expand its wallet share with existing customers and enhance service offerings, leveraging technology to drive profitability [12][21] - Expro is committed to technology leadership, investing in digitalization and artificial intelligence to deliver innovative solutions [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite softer market conditions, emphasizing a diversified business mix and strong customer relationships [33][34] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and margin accretive growth [34] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5][24] - The company received several industry awards for safety and technology innovation, reinforcing its commitment to operational excellence [14][15] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management highlighted the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies as key drivers for margin expansion [36] Question: What regions are expected to see activity increase in the second half of 2026? - Management indicated that West Africa and the Gulf of Mexico are expected to see increased activity, while Asia-Pacific may lag behind [38][39] Question: What does the share repurchase achievement mean for future repurchases? - Management stated that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [40][41] Question: What is driving the expected softness in the first half of 2026? - Management noted cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal slowdowns in the northern hemisphere [46][48] Question: How will the production solutions business contribute to cash generation? - Management explained that projects transitioning from construction to operational phases will generate predictable cash flows, enhancing free cash flow generation [55][58] Question: What impact will the geographic mix have on margins in 2026? - Management emphasized that the mix of regions, particularly growth in the Middle East, will significantly influence margin expansion [66]

Financial Data and Key Metrics Changes - EXPAREL reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, which is an increase of about 50 basis points from the previous quarter and 270 basis points year-over-year [6][28] - Adjusted free cash flow reached $46 million, marking the highest quarterly free cash flow in the company's history, which is 11% of revenue [6][29] - The company has raised its annual guidance for EBITDA and free cash flow for 2025, reflecting anticipated performance [7][31] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [34] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [34] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35%, down 100 basis points from the prior quarter [34] - Asia Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, down 500 basis points from the prior quarter [34] Market Data and Key Metrics Changes - The company has a backlog of $2.3 billion, providing solid revenue visibility and demonstrating a diverse portfolio across regions [8] - Despite a softer commodity price environment, the outlook for EXPAREL's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond [11][12] Company Strategy and Development Direction - The company aims to maximize and sustainably generate free cash flow through industry cycles, focusing on margin expansion and robust free cash flow generation [25][26] - EXPAREL is committed to investing in technology and digital capabilities, ensuring innovation remains at the core of its value proposition [26][27] - The company is pursuing selective, highly accretive mergers and acquisitions to complement existing capabilities and expand market presence [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver resilient performance despite a softer market backdrop, with expectations for a strong fourth quarter [40][41] - The company anticipates continued growth in free cash flow generation in 2026, supported by a balanced approach to capital allocation [41] Other Important Information - The company repurchased approximately 2 million shares for about $25 million, achieving its annual target of $40 million ahead of schedule [7][30] - EXPAREL received several industry awards for safety and technology, highlighting its commitment to operational excellence [19][20] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management indicated that the full-year effect of the Drive 25 initiative, internationalization of recent acquisitions, and rollout of new technologies will contribute to margin expansion [44][45] Question: What regional activity levels are expected in 2026? - Management noted that Asia Pacific is expected to lag, while activity in the Gulf of Mexico, West Africa, and Saudi Arabia is anticipated to improve [48][49] Question: Will share repurchases continue for the rest of the year? - Management confirmed that they will evaluate opportunities to return more capital to shareholders, with the current repurchase plan still having headroom [51][53] Question: What is driving the expected softness in the first half of 2026? - Management attributed the softness to cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal effects in the Northern Hemisphere [60][61] Question: How will the mix of regions and products impact margins in 2026? - Management emphasized that the geographic mix and the rollout of new technologies will significantly influence margin expansion [84][86]

Q3 | 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- looking ...

Financial Performance - Revenue for Q3 2025 was $411 million, with a net income of $14 million and a net income margin of 3%[8] - Adjusted EBITDA for Q3 2025 was $94 million, resulting in an Adjusted EBITDA margin of 22.8%[8] - Total revenue for Q3 2025 was $411.356 million, a decrease of 2.4% from $422.740 million in Q2 2025[57] - Operating income for Q3 2025 was $26.453 million, down from $32.566 million in Q2 2025, representing a decline of 18.7%[57] - Net income for Q3 2025 was $13.963 million, compared to $18.003 million in Q2 2025, reflecting a decrease of 22.5%[57] - Total revenue for the three months ended September 30, 2025, was $411,356 thousand, a decrease from $422,740 thousand in the previous quarter[68] - Gross profit for the same period was $54,189 thousand, compared to $56,179 thousand in the prior quarter, resulting in a gross margin of 13%[68] - Adjusted EBITDA for the three months ended September 30, 2025, was $93,972 thousand, with an adjusted EBITDA margin of 23%[72] - Net income for the three months ended September 30, 2025, was $13,963 thousand, reflecting a net income margin of 3%[72] - Free cash flow for the three months ended September 30, 2025, was $38,983 thousand, resulting in a free cash flow margin of 9%[72] - Adjusted net income for the three months ended September 30, 2025, was $28,238 thousand, with an adjusted net income per diluted share of $0.24[74] Cash Flow and Liquidity - Adjusted free cash flow for Q3 2025 was $46 million, representing 11% of the quarter's revenue[4] - Total liquidity at the end of Q3 2025 was $532 million, including $333 million available for drawdowns under the revolving credit facility[24] - Net cash provided by operating activities increased significantly to $153,101 thousand for the nine months ended September 30, 2025, compared to $72,078 thousand in the prior year, marking a growth of 112%[62] - The company reported a net cash provided by operating activities of $63,179 thousand for the three months ended September 30, 2025[72] Guidance and Future Outlook - The company increased its full-year 2025 guidance for Adjusted EBITDA to between $350 million and $360 million, and for Adjusted free cash flow to between $110 million and $120 million[5] - Forward-looking statements indicate expectations for growth and financial strategy, but actual results may differ due to various risks and uncertainties[47][48] Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $24 million, with plans for $30 million to $40 million in the remaining months of 2025[25] - Capital expenditures for the nine months ended September 30, 2025, were $78,512 thousand, a decrease from $99,158 thousand in the same period of 2024[62] Order Backlog and Market Presence - Total order backlog as of September 30, 2025, stood at $2.3 billion[8] - The company has approximately 8,500 employees and operates in over 50 countries, indicating a broad market presence[44] Awards and Recognition - Expro was recognized with the Best Health, Safety or Environmental Contribution award for its VIGILANCE™ Intelligent Safety and Surveillance Solution at the Gulf Energy Awards[10] Assets and Liabilities - Total assets decreased to $2,305,180 thousand as of September 30, 2025, down from $2,333,541 thousand on December 31, 2024, representing a decline of approximately 1.2%[60] - The company reported a total stockholders' equity of $1,517,097 thousand as of September 30, 2025, an increase from $1,491,484 thousand at the end of 2024[60] - The company’s total liabilities decreased to $788,083 thousand as of September 30, 2025, down from $842,057 thousand on December 31, 2024, reflecting a reduction of approximately 6.4%[60] Other Financial Metrics - Total operating costs and expenses for Q3 2025 were $384.903 million, a slight decrease from $390.174 million in Q2 2025[57] - Total adjustments to net income for the three months ended September 30, 2025, amounted to $14,276 thousand before taxes[74] - The company incurred merger and integration expenses of $1,293 thousand for the three months ended September 30, 2025[74]

Core Insights - Expro has won the award for Best Health, Safety or Environmental Contribution – Upstream at the Gulf Energy Awards for its VIGILANCE™ Intelligent Safety and Surveillance Solution, highlighting its commitment to safety in the energy sector [2][4]. Company Achievements - Expro was nominated in 8 categories at the Gulf Energy Awards, showcasing its innovation across 10 different technologies [4]. - The VIGILANCE™ technology provides real-time tracking of equipment and personnel with 10-centimeter accuracy, addressing safety concerns for rig floor personnel [3][4]. - The company emphasizes its ongoing commitment to innovation and excellence, aiming to support a lower-carbon future for the energy industry [4]. Industry Context - The Gulf Energy Awards celebrate significant contributions to the energy sector, focusing on innovation, efficiency, and sustainability [4]. - Expro's extensive portfolio includes services across well construction, well flow management, subsea well access, and well intervention, positioning it as a leading provider in the energy services market [7][8].

Core Insights - Expro has successfully completed the first full deployment of its Remote Clamp Installation System (RCIS), enhancing offshore safety and efficiency [1] - The RCIS was developed by Expro's Frank's Tubular Running Services (TRS) and provides a unique solution for smart well completions [1] - The system allows for real-time monitoring and control of downhole tools from the surface via control lines [1]