Expro(XPRO) - 2025 Q3 - Quarterly Results

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]