Expro(US:XPRO)2025-04-30 11:00Financial Performance - Revenue for Q1 2025 was $391 million, a decrease of $46 million, or 11%, compared to Q4 2024 revenue of $437 million[7] - Adjusted EBITDA for Q1 2025 was $76 million, a sequential decrease of $24 million, or 24%, with an Adjusted EBITDA margin of 20% compared to 23% in Q4 2024[7] - Net income for Q1 2025 was $14 million, or $0.13 per diluted share, down from $23 million, or $0.17 per diluted share in Q4 2024, resulting in a net income margin of 4%[7] - Total revenue for Q1 2025 was $390.872 million, a decrease of 10.5% compared to $436.843 million in Q4 2024 and an increase of 1.0% from $383.489 million in Q1 2024[44] - Operating income for Q1 2025 was $10.323 million, down 67.7% from $31.932 million in Q4 2024 and up 22.6% from $8.420 million in Q1 2024[44] - Net income for Q1 2025 was $13.948 million, compared to $23.034 million in Q4 2024 and a loss of $2.677 million in Q1 2024[44] - Adjusted EBITDA for the three months ended March 31, 2025, was $76,228, with an adjusted EBITDA margin of 20%, compared to $67,460 and 18% in the same period of 2024[58] - Gross profit for the three months ended March 31, 2025, was $40,070, with a gross margin of 10%, compared to a gross profit of $34,932 and a margin of 9% in the same period of 2024[55] Guidance and Future Outlook - The company provided Q2 2025 revenue guidance in the range of $400 to $410 million and Adjusted EBITDA guidance of $80 to $90 million[4] - The company is focused on achieving anticipated synergies from the Coretrax acquisition, which is expected to enhance growth prospects[35] - The company continues to invest in new technologies and products to maintain competitive advantage in the oil and gas industry[35] - The company is monitoring market conditions and adjusting its strategies in response to the volatility of oil and gas prices[35] Segment Performance - Revenue for the North and Latin America segment was $134 million, a decrease of $5 million, or 4%, compared to Q4 2024[14] - Revenue for the Europe and Sub-Saharan Africa segment was $112 million, a decrease of $30 million, or 21%, compared to Q4 2024[16] - Revenue for the Middle East and North Africa segment was $94 million, an increase of $1 million, or 1%, compared to Q4 2024[18] - Segment revenue from NLA was $134,278, accounting for 34% of total revenue, while ESSA generated $112,373, representing 29% of total revenue[50] Cash and Liquidity - As of March 31, 2025, the company had consolidated cash and cash equivalents of $180 million and total liquidity of $316 million[24] - The company reported a decrease in cash and cash equivalents to $180,174 at the end of the period, down from $184,663 at the beginning[48] Expenses and Adjustments - Capital expenditures for Q1 2025 totaled $33 million, with plans for $90 million to $100 million for the remaining nine months of 2025[23] - Total current assets decreased to $948.605 million as of March 31, 2025, from $964.046 million as of December 31, 2024[46] - Total liabilities decreased to $793.341 million as of March 31, 2025, from $842.057 million as of December 31, 2024[46] - Cash provided by operating activities for the three months ended March 31, 2025, was $41,509, an increase from $29,938 in the same period of 2024[53] - Capital expenditures for the three months ended March 31, 2025, were $33,112, compared to $30,739 in the same period of 2024[48] - Total support costs for the three months ended March 31, 2025, were $85,180, representing 22% of total revenue[56] - Cash paid for merger and integration expenses was $1,556 for the three months ended March 31, 2025, compared to $2,280 in the same period of 2024[53] Net Income and Earnings Per Share - The company reported a basic net income per share of $0.12 for Q1 2025, compared to $0.20 in Q4 2024 and a loss of $0.02 in Q1 2024[44] - Adjusted net income for Q1 2025 was $28.673 million, a decrease of 32.9% from $42.765 million in Q4 2024[60] - Net income per diluted share for Q1 2025 was $0.12, down from $0.19 in Q4 2024, reflecting a decline of 36.8%[61] - Adjusted net income per diluted share for Q1 2025 was $0.25, down from $0.36 in Q4 2024, a decline of 30.6%[61] Tax and Other Adjustments - Total adjustments before taxes for Q1 2025 amounted to $14.790 million, compared to $20.089 million in Q4 2024, a decrease of 26.3%[60] - The company incurred merger and integration expenses of $1.740 million in Q1 2025, down from $3.947 million in Q4 2024[60] - Severance and other expenses were $6.082 million in Q1 2025, a reduction from $9.041 million in Q4 2024, representing a decline of 32.5%[60] - Stock-based compensation expense remained stable at $6.968 million in Q1 2025, compared to $7.101 million in Q4 2024[60] - The total adjustments net of taxes for Q1 2025 were $14.725 million, down from $19.731 million in Q4 2024, a decrease of 25.4%[60] - The diluted weighted average common shares outstanding for Q1 2025 were 116,929,082, compared to 118,129,232 in Q4 2024[61] - The tax benefit for Q1 2025 was minimal at $(65), compared to $(358) in Q4 2024[60]