Fourth quarter revenue of $437 million, up 3%
sequentially and up 7% year-over-year. Full-year 2024 revenue of
$1,713 million, up 13% year-over-year.
Fourth quarter Adjusted EBITDA1 of $100
million, up 18% both sequentially and year-over-year. Fourth
quarter Adjusted EBITDA margin1 of 23%, up sequentially from 20%
and up year-over-year from 21%. Full-year Adjusted EBITDA of $347
million as compared to $249 million for 2023, a 40% increase.
Full-year Adjusted EBITDA margin1 of 20% up from 16% for 2023.
Fourth quarter net income of $23 million as
compared to third quarter of 2024 net income of $16 million and
fourth quarter of 2023 net loss of $12 million. Full-year 2024 net
income of $52 million as compared to net loss of $23 million for
2023.
Board approved an extension of $100 million
stock repurchase program; Company repurchased 1.2 million shares in
the fourth quarter of 2024, or approximately 1% of total shares
outstanding, for a total cost of $14 million.
Management provides 2025 revenue and Adjusted
EBITDA margin outlook.
Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or
“Expro”) today reported financial and operational results for the
three months and year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
- Revenue was $437 million compared to revenue of $423 million in
the third quarter of 2024, a sequential increase of $14 million, or
3%, primarily driven by increased activity and revenue in Europe
and Sub-Saharan Africa (ESSA) and Middle East and North Africa
(MENA).
- Adjusted EBITDA was $100 million, a sequential increase of $15
million, or 18%, as compared to $85 million for the third quarter
of 2024, driven by higher subsea well access revenue in ESSA,
increased well flow management activity in MENA and a non-repeat of
losses recognized on our Congo production solutions project in the
third quarter of 2024. Adjusted EBITDA margin for the fourth and
third quarter of 2024 was 23% and 20%, respectively.
- Net income for the fourth quarter of 2024 was $23 million, or
$0.19 per diluted share, compared to net income of $16 million, or
$0.14 per diluted share, for the third quarter of 2024. Adjusted
net income1 for the fourth quarter of 2024 was $43 million, or
$0.36 per diluted share, an increase compared to adjusted net
income for the third quarter of 2024 of $28 million, or $0.23 per
diluted share.
- Net cash provided by operating activities for the fourth
quarter of 2024 was $97 million compared to net cash provided by
operating activities of $55 million for the third quarter of 2024.
The increase was primarily due to an increase in Adjusted EBITDA
and decreases in working capital and taxes paid during the
quarter.
Full Year 2024 Financial Highlights
- Revenue was $1,713 million for the year ended December 31,
2024, an increase of $200 million, or 13%, compared to $1,513
million for the year ended December 31, 2023. Activity and revenue
across all geography-based operating segments increased during the
year ended December 31, 2024, most notably in North and Latin
America (NLA), ESSA and MENA. Revenue for the year ended December
31, 2024 includes $88 million of revenue from the acquisition of
Coretrax.
- Adjusted EBITDA increased by $99 million, or 40%, to $347
million for the year ended December 31, 2024 from $249 million for
the prior year. The increase in Adjusted EBITDA is primarily
attributable to higher revenue, including revenue from the Coretrax
acquisition, and a more favorable activity mix. Adjusted EBITDA
margin was 20% in 2024, up year-over-year from 16% in 2023.
1. A non-GAAP measure.
Full Year 2024 Financial Highlights (continued)
- Net income was $52 million for the year ended December 31,
2024, or $0.45 per diluted share, compared to a net loss of $23
million, or $0.21 per diluted share, for the year ended December
31, 2023. Adjusted net income for the year ended December 31, 2024,
was $111 million, or $ 0.96 per diluted share, compared to adjusted
net income for the year ended December 31, 2023, of $20 million, or
$ 0.19 per diluted share.
- Net cash provided by operating activities for the year ended
December 31, 2024 was $169 million compared to $138 million for
year ended December 31, 2023, primarily due to an increase in
Adjusted EBITDA and lower taxes paid during the year, partially
offset by an increase in working capital and an increase in cash
paid for severance and other expenses.
Michael Jardon, Chief Executive Officer, noted “We are pleased
to report solid fourth quarter and full-year financial results,
reflecting the continued strength of our business and the
resilience of our team. Fourth quarter Adjusted EBITDA and Adjusted
EBITDA margin of $100 million and 23%, respectively, represent our
best quarterly performance since we completed the Expro/Frank’s
merger in the fourth quarter of 2021. Full-year 2024 Adjusted
EBITDA margin, at 20%, was up approximately 400 basis points
year-over-year and up approximately 800 basis points relative to
combined results for legacy Expro and Frank’s International over
the four quarters prior to our completing the merger. Organic
investment and a successful M&A strategy continue to enable
margin expansion and improve relevancy to our customers. As a
result, we should be well-positioned for the year ahead on a
relative basis, and we remain optimistic about the outlook for our
business over the next several years.
“We recently resolved outstanding variation orders related to
our Congo production solutions project, allowing us to successfully
close out the construction and commissioning phase of the project.
Our customer also approved an adjustment to the contract rate for
the multi-year operations and maintenance (O&M) phase of the
project to incentivize higher through-put from the Expro-built
onshore pre-treatment plant and our provision of additional
services for the facility. Our customers continue to highlight
their desire to optimize production from existing wells and assets
and reduce their emissions, and the Congo project is an excellent
example of how we enable our customers to achieve these objectives.
I congratulate our team on developing and delivering a
cost-competitive, differentiated solution for this important
customer, and doing so within a very ambitious timeline. With 800
team members working onsite for over 22 months, we also achieved
nearly 1.9 million man-hours without an HSE-related lost time
incident. This is a significant milestone in which all my Expro
colleagues can take pride.
“Expro continues to accelerate the development and
commercialization of technologies to increase automation and drive
demand for our services and solutions, which is reflected in fourth
quarter contract wins totaling $314 million across product lines.
Notable wins in our well construction business include tubular
running services (TRS) and cementing solutions to support a
multi-year, deepwater campaign on the Mexico side of the Gulf of
America, valued at approximately $35 million, and for TRS, flowback
and well clean up services for one of the largest gas fields in the
Norwegian Continental Shelf, valued at more than $40 million. In
our well intervention and integrity business, we were awarded
muti-year contracts to provide plug and perforation solutions in
Argentina, valued at more than $50 million. Finally, our Coretrax
team successfully won a contract onshore Australia for casing
remediation with the RelineMNS expandables solution, with an
initial value of more than $10 million. We are encouraged by these
positive trends, and we remain focused on executing our strategy to
drive sustainable growth and long-term value for our
stakeholders.
“We expect to make demonstrable progress in 2025 toward our
medium-term target of mid-20s Adjusted EBITDA margin and a ten
percent free cash flow margin, despite near-term headwinds
attributed to whitespace in deepwater activity and a full-year,
flattish revenue outlook. In the evolving macro environment, we are
currently focused on executing our “Drive25” operating efficiency
campaign, which combined with a continued positive shift in
activity mix, will support further margin expansion. Drive25 is
focused on standardizing practices across geo-markets, product
lines and job functions, resulting in improved profitability and
better operating leverage. A positive shift in activity mix will be
supported by a full-year contribution and pull-through revenue
opportunities from the acquired Coretrax business as well as
improved margins from the Congo production solutions project as we
shift to the O&M phase.
“For 2025, we currently anticipate full-year revenues to be
stable to up modestly year-on-year. Adjusted EBITDA margin is
expected to improve over 100 bps year-on-year. Like prior years,
first quarter revenue is expected to be down sequentially by
approximately 15% and relatively flat year-on-year. The quarterly
sequential decrease is largely due to Northern hemisphere
seasonality and the non-repeat of subsea well access projects
delivered in the fourth quarter of 2024. Adjusted EBITDA margin for
the first quarter of 2025 is expected to be sequentially lower by
about 400 bps but up 50-100 bps year-on-year. We expect the
traditionally softer first quarter to be followed by an activity
rebound in the second quarter. The international and offshore
markets should build momentum as the year progresses, and we
continue to expect that several significant offshore projects will
be sanctioned in late 2025 and throughout 2026. Fundamentally, the
multi-year outlook for the services and solutions that Expro
provides remains compelling.”
Notable Awards and
Achievements
In the fourth quarter, Expro signed a technology agreement with
Petrobras for the development of a new non-intrusive flowmeter.
This technology will provide flow rates and identify flow patterns,
generating online and real-time data availability for control and
monitoring of slug instabilities to increase efficiency and
optimize production of wells. The key requirement in this
technology development is the non-intrusive aspect of the clamp-on
design, as well as the absence of any radioactive source.
In the NLA region, well construction market share in the Gulf of
America remains robust having secured a three-rig, five-year
contract for the development of a deepwater field. Our services and
solutions will include TRS and cementing solutions, including our
proprietary cure technologies.
Good business momentum continued in ESSA in the fourth quarter
of 2024. In Ivory Coast, we successfully deployed iTONG™, the
industry’s most advanced tubular make-up solution that allows
operators to complete an entire connection makeup with a single
touch of the remote, digital control screen, significantly reducing
operational risk and keeping personnel out of the red zone while
ensuring connection integrity. While this is our first deployment
of iTONG in West Africa, in previous campaigns, our operator
customer came to value the technology and its ability to lower
costs through improved efficiency. In particular, using AI-enabled
technology, iTONG removes the human element of accepting or
rejecting each joint makeup and continuously looks for way to
improve efficiencies in real-time, reducing connection makeup times
by 50% and saving approximately 15 hours of rig time per month.
In MENA, despite recently announced curtailment of offshore
activities in the Kingdom of Saudi Arabia (KSA), Expro successfully
displaced conventional plug manifolds through its first deployment
of Blackhawk™ Wireless Plug Dropping Cement Head with SKYHOOK™ in
the Arabian Gulf. Like iTONG, the system creates operational
efficiencies while improving safety by removing personnel from the
red zone (in particular, by eliminating the need to send personnel
up the derrick). The technology enables cementing with full
tensile, torque and pressure capacity, alongside increased pumping
and displacement rates. This successful deployment has resulted in
additional opportunities, including planned 2025 projects aimed at
addressing well integrity and zonal isolation challenges across
critical offshore wells.
Lastly, in APAC, Expro secured an approximate $6 million
contract for the provision of upgrades to a client’s platform
topside to support incremental production over three years in
Malaysia. The project includes establishing a permanent facility to
increase the fields output to 30,000 barrels of oil per day by the
third quarter of 2025.
Segment Results
Unless otherwise noted, the following discussion compares the
quarterly results for the fourth quarter of 2024 to the results for
the third quarter of 2024.
North and Latin America (NLA)
Revenue for NLA was approximately $139 million for both the
three months ended December 31, 2024, and the three months ended
September 30, 2024. There was a decrease in well construction
revenue in the U.S., Canada, and Mexico and in Coretrax revenue,
mostly offset by an increase in well flow management revenue in the
U.S. and Brazil.
Segment EBITDA for NLA was $30 million, or 22% of revenue,
during the three months ended December 31, 2024, compared to $33
million, or 24% of revenue, during the three months ended September
30, 2024. The decrease of $3 million in Segment EBITDA was largely
attributable to a seasonal reduction in activity on higher margin
well construction projects in the Gulf of America during the three
months ended December 31, 2024.
Europe and Sub-Saharan Africa (ESSA)
Revenue for ESSA was $143 million for the three months ended
December 31, 2024, an increase of $11 million, or 9%, compared to
$131 million for the three months ended September 30, 2024. The
increase in revenue was primarily driven by higher subsea well
access revenue in Angola, partially offset by lower well flow
management in the U.K., Norway and Denmark, and lower well
construction revenue in Senegal and Angola.
Segment EBITDA for ESSA was $53 million, or 37% of revenue, for
the three months ended December 31, 2024, an increase of $21
million, or 65%, compared to $32 million, or 24% of revenue, for
the three months ended September 30, 2024. The increase in Segment
EBITDA and Segment EBITDA margin was primarily attributable to
higher subsea well access revenue in Angola and the resolution of
certain variation orders on our Congo project (as discussed
above).
Middle East and North Africa (MENA)
Revenue for MENA was $93 million for the three months ended
December 31, 2024, an increase of $6 million, or 7%, compared to
$87 million for the three months ended September 30, 2024. The
increase in revenue was driven by higher well flow management
services revenue in Algeria, Iraq and the KSA, partially offset by
lower well intervention and integrity revenue in Qatar.
Segment EBITDA for MENA was $33 million, or 35% of revenue, for
the three months ended December 31, 2024, an increase of $3
million, or 9%, compared to $30 million, or 35% of revenue, for the
three months ended September 30, 2024. The increase in Segment
EBITDA was primarily due to higher well flow management activity
during the three months ended December 31, 2024.
Asia Pacific (APAC)
Revenue for APAC was $62 million for the three months ended
December 31, 2024, a decrease of $3 million, or 5%, compared to $65
million for the three months ended September 30, 2024. The decrease
in revenue was primarily due to lower well flow management revenue
in Malaysia and Australia and lower well intervention and integrity
revenue in Brunei, partially offset by higher subsea well access
revenue in China and India.
Segment EBITDA for APAC was $15 million, or 25% of revenue, for
the three months ended December 31, 2024, a decrease of $1 million
compared to $16 million, or 25% of revenue, for the three months
ended September 30, 2024.
Other Financial
Information
The Company’s capital expenditures totaled $44 million in the
fourth quarter of 2024 and approximately $144 million for the full
year 2024. Expro plans for capital expenditures in the range of
approximately $120 million to $130 million for 2025.
As of December 31, 2024, Expro’s consolidated cash and cash
equivalents, including restricted cash, totaled $185 million. The
Company had outstanding debt of $121 million as of December 31,
2024. The Company’s total liquidity as of December 31, 2024 was
$320 million. Total liquidity includes $136 million available for
drawdowns as loans under the Company’s revolving credit
facility.
On December 12, 2024, the Company’s Board of Directors (the
“Board”) approved an extension to its stock repurchase program,
pursuant to which the Company is authorized to acquire up to $100
million of its outstanding common stock from October 25, 2023
through November 24, 2025 (the “Stock Repurchase Program”). Under
the Stock Repurchase Program, the Company may repurchase shares of
the Company’s common stock in open market purchases, in privately
negotiated transactions or otherwise. The Stock Repurchase Program
will continue to be utilized at management’s discretion and in
accordance with federal securities laws. The timing and actual
numbers of shares repurchased will depend on a variety of factors
including price, corporate requirements, and the constraints
specified in the Stock Repurchase Program along with general
business and market conditions. The Stock Repurchase Program does
not obligate the Company to repurchase any particular amount of
common stock, and it could be modified, suspended or discontinued
at any time. During the years ended December 31, 2024 and 2023, we
repurchased approximately 1.2 million shares in each year of our
common stock under the Stock Repurchase Program for a total cost of
approximately $14.2 million and $20.0 million, respectively.
Expro’s provision for income taxes was $9 million for the fourth
quarter of 2024 and $10 million for the prior quarter, the modest
decrease reflects a less favorable mix of taxable profits between
jurisdictions. The Company’s effective tax rate on a U.S. generally
accepted accounting principles (“GAAP”) basis for the three months
and year ended December 31, 2024, also reflects liability for taxes
in certain jurisdictions that tax on an other than pre-tax profits
basis, including so-called “deemed profits” regimes.
The financial measures provided that are not presented in
accordance with GAAP are defined and reconciled to their most
directly comparable GAAP measures. Please see “Use of Non-GAAP
Financial Measures” and the reconciliations to the nearest
comparable GAAP measures.
Additionally, downloadable financials are available on the
Investor section of www.expro.com.
Conference Call
The Company will host a conference call to discuss fourth
quarter 2024 results on Tuesday, February 25, 2025, at 10:00 a.m.
Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
US: +1 (833) 470-1428 International: +1 (404)
975-4839 Access ID: 257167
To listen via live webcast, please visit the Investor section of
www.expro.com.
The fourth quarter 2024 Investor Presentation is available on
the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor
section of the Company’s website approximately three hours after
the conclusion of the call and will remain available for a period
of two weeks.
To access the audio replay telephonically:
Dial-In: US +1 (866) 813-9403 or +1 (929)
458-6194 Access ID: 438374 Start Date: February 25, 2025, 1:00 p.m.
CT End Date: March 11, 2025, 10:59 p.m. CT
A transcript of the conference call will be posted to the
Investor relations section of the Company’s website after the
conclusion of the call.
ABOUT EXPRO
Working for clients across the entire well life cycle, Expro is
a leading provider of energy services, offering cost-effective,
innovative solutions and what the Company considers to be
best-in-class safety and service quality. The Company’s extensive
portfolio of capabilities spans well construction, well flow
management, subsea well access, and well intervention and
integrity.
With roots dating to 1938, Expro has approximately 8,500
employees and provides services and solutions to leading energy
companies in both onshore and offshore environments in
approximately 60 countries.
For more information, please visit: www.expro.com and connect
with Expro on X @ExproGroup and LinkedIn @Expro.
Forward Looking
Statements
This release 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 release that
address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Without limiting the generality of
the foregoing, forward-looking statements contained in this release
include statements, estimates and projections regarding the
Company’s future business strategy and prospects for growth, cash
flows and liquidity, financial strategy, budget, projections,
guidance, operating results, environmental, social and governance
goals, targets and initiatives, estimates and projections regarding
the benefits of the Coretrax acquisition, and the Company’s ability
to achieve the anticipated synergies as a result of the Coretrax
acquisition. These statements are based on certain assumptions made
by the Company based on management’s experience, expectations and
perception of historical trends, current conditions, anticipated
future developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of performance.
Although the Company believes the expectations reflected in its
forward-looking statements are reasonable and are based on
reasonable assumptions, no assurance can be given that these
assumptions are accurate or that any of these expectations will be
achieved (in full or at all) or will prove to have been correct.
Moreover, such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
the Company, which may cause actual results to differ materially
from those implied or expressed by the forward-looking statements.
Such assumptions, risks and uncertainties include the amount,
nature and timing of capital expenditures, the availability and
terms of capital, the level of activity in the oil and gas
industry, volatility of oil and gas prices, unique risks associated
with offshore operations (including the ability to recover, and to
the extent necessary, service and/or economically repair any
equipment located on the seabed), political, economic and
regulatory uncertainties in international operations, the ability
to develop new technologies and products, the ability to protect
intellectual property rights, the ability to employ and retain
skilled and qualified workers, the level of competition in the
Company’s industry, global or national health concerns, including
health epidemics, the possibility of a swift and material decline
in global crude oil demand and crude oil prices for an uncertain
period of time, future actions of foreign oil producers such as
Saudi Arabia and Russia, inflationary pressures, international
trade laws, tariffs, the impact of current and future laws,
rulings, governmental regulations, accounting standards and
statements, and related interpretations, and other guidance.
Such assumptions, risks and uncertainties also include the
factors discussed or referenced in the “Risk Factors” section of
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2024 to be filed with the SEC, as well as other risks
and uncertainties set forth from time to time in the reports the
Company files with the SEC. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events, historical practice or otherwise, except as required
by applicable law, and we caution you not to rely on them
unduly.
Use of Non-GAAP Financial
Measures
This press release and the accompanying schedules include the
non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA
margin, contribution, contribution margin, support costs, adjusted
net income (loss), and adjusted net income (loss) per diluted
share, which may be used periodically by management when discussing
financial results with investors and analysts. The accompanying
schedules of this press release provide a reconciliation of these
non-GAAP financial measures to their most directly comparable
financial measure calculated and presented in accordance with GAAP.
These non-GAAP financial measures are presented because management
believes these metrics provide additional information relative to
the performance of the business. These metrics are commonly
employed by financial analysts and investors to evaluate the
operating and financial performance of Expro from period to period
and to compare such performance with the performance of other
publicly traded companies within the industry. You should not
consider Adjusted EBITDA, Adjusted EBITDA margin, contribution,
contribution margin, support costs, adjusted net income (loss) and
adjusted net income (loss) per diluted share in isolation or as a
substitute for analysis of Expro’s results as reported under GAAP.
Because Adjusted EBITDA, Adjusted EBITDA margin, contribution,
contribution margin, support costs, adjusted net income (loss) and
adjusted net income (loss) per diluted share may be defined
differently by other companies in the industry, the presentation of
these non-GAAP financial measures may not be comparable to
similarly titled measures of other companies, thereby diminishing
their utility.
Expro defines Adjusted EBITDA as net income (loss) adjusted for
(a) income tax expense, (b) depreciation and amortization expense,
(c) severance and other expense, (d) merger and integration
expense, (e) gain on disposal of assets, (f) other (income)
expense, net, (g) stock-based compensation expense, (h) foreign
exchange (gains) losses and (i) interest and finance (income)
expense, net. Adjusted EBITDA margin reflects Adjusted EBITDA
expressed as a percentage of total revenue.
Contribution is defined as total revenue less cost of revenue
excluding depreciation and amortization expense, adjusted for
indirect support costs and stock-based compensation expense
included in cost of revenue. Contribution margin is defined as
contribution divided by total revenue, expressed as a percentage.
Support costs is defined as indirect costs attributable to
supporting the activities of the operating segments, research and
engineering expenses and product line management costs included in
cost of revenue, excluding depreciation and amortization expense,
and general and administrative expense, excluding depreciation and
amortization expense, which represent costs of running the
corporate head office and other central functions, including
logistics, sales and marketing and health and safety, and does not
include foreign exchange gains or losses and other non-routine
expenses.
The Company defines adjusted net income (loss) as net income
(loss) before merger and integration expense, severance and other
expense, stock-based compensation expense, and gain on disposal of
assets, adjusted for corresponding tax benefits of these items. The
Company defines adjusted net income (loss) per diluted share as net
income (loss) per diluted share before merger and integration
expense, severance and other expense, stock-based compensation
expense, and gain on disposal of assets, adjusted for corresponding
tax benefits of these items, divided by diluted weighted average
common shares.
Please see the accompanying financial tables for a
reconciliation of these non-GAAP measures to their most directly
comparable GAAP measures.
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Total revenue
$
436,843
$
422,828
$
406,750
$
1,712,802
$
1,512,764
Operating costs and expenses:
Cost of revenue, excluding depreciation
and amortization
(327,123
)
(331,235
)
(316,875
)
(1,333,365
)
(1,241,295
)
General and administrative expense,
excluding depreciation and amortization
(22,516
)
(20,467
)
(19,346
)
(88,421
)
(64,254
)
Depreciation and amortization expense
(42,284
)
(40,391
)
(62,874
)
(163,468
)
(172,260
)
Merger and integration expense
(3,947
)
(1,437
)
(5,432
)
(16,334
)
(9,764
)
Severance and other expense
(9,041
)
(3,181
)
(8,901
)
(17,048
)
(14,388
)
Total operating cost and expenses
(404,911
)
(396,711
)
(413,428
)
(1,618,636
)
(1,501,961
)
Operating income (loss)
31,932
26,117
(6,678
)
94,166
10,803
Other (expense) income, net
(1,186
)
262
4,774
(105
)
1,234
Interest and finance expense, net
(1,804
)
(3,895
)
(2,255
)
(12,517
)
(3,943
)
Income (loss) before taxes and equity
in income of joint ventures
28,942
22,484
(4,159
)
81,544
8,094
Equity in income of joint ventures
3,467
4,241
5,117
16,422
12,853
Income before income taxes
32,409
26,725
958
97,966
20,947
Income tax expense
(9,375
)
(10,450
)
(13,376
)
(46,048
)
(44,307
)
Net income (loss)
$
23,034
$
16,275
$
(12,418
)
$
51,918
$
(23,360
)
Net income (loss) per common
share:
Basic
$
0.20
$
0.14
$
(0.11
)
$
0.45
$
(0.21
)
Diluted
$
0.19
$
0.14
$
(0.11
)
$
0.45
$
(0.21
)
Weighted average common shares
outstanding:
Basic
117,277,836
117,467,994
110,325,863
114,762,477
109,161,453
Diluted
118,129,232
118,293,677
110,325,863
115,829,638
109,161,453
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
December 31,
December 31,
2024
2023
Assets
Current assets
Cash and cash equivalents
$
183,036
$
151,741
Restricted cash
1,627
1,425
Accounts receivable, net
517,570
469,119
Inventories
159,040
143,325
Income tax receivables
28,641
27,581
Other current assets
74,132
58,409
Total current assets
964,046
851,600
Property, plant and equipment, net
563,697
513,222
Investments in joint ventures
73,012
66,402
Intangible assets, net
298,856
239,716
Goodwill
348,918
247,687
Operating lease right-of-use assets
66,640
72,310
Non-current accounts receivable, net
7,432
9,768
Other non-current assets
10,940
12,302
Total assets
$
2,333,541
$
2,013,007
Liabilities and stockholders’
equity
Current liabilities
Accounts payable and accrued
liabilities
$
340,298
$
326,125
Income tax liabilities
52,436
45,084
Finance lease liabilities
2,234
1,967
Operating lease liabilities
17,253
17,531
Other current liabilities
72,209
98,144
Total current liabilities
484,430
488,851
Long-term borrowings
$
121,065
20,000
Deferred tax liabilities, net
44,310
22,706
Post-retirement benefits
10,430
10,445
Finance lease liabilities
14,006
16,410
Operating lease liabilities
48,488
54,976
Uncertain tax positions
74,526
59,544
Other non-current liabilities
44,802
44,202
Total liabilities
842,057
717,134
Stockholders’ equity:
Common stock
8,488
8,062
Treasury Stock
(83,420
)
(64,697
)
Additional paid-in capital
2,079,161
1,909,323
Accumulated other comprehensive loss
14,470
22,318
Accumulated deficit
(527,215
)
(579,133
)
Total stockholders’ equity
1,491,484
1,295,873
Total liabilities and stockholders’
equity
$
2,333,541
$
2,013,007
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended
December 31,
2024
2023
Cash flows from operating
activities:
Net income (loss)
$
51,918
$
(23,360
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
163,468
172,260
Equity in income of joint ventures
(16,422
)
(12,853
)
Stock-based compensation expense
26,352
19,574
Elimination of unrealized profit on sales
to joint ventures
4
4,159
Deferred taxes
(5,765
)
(10,478
)
Unrealized foreign exchange losses
5,861
5,658
Changes in fair value of contingent
consideration
(6,079
)
576
Changes in assets and liabilities:
Accounts receivable, net
(17,301
)
(34,895
)
Inventories
4,931
10,575
Other assets
(12,388
)
(16,745
)
Accounts payable and accrued
liabilities
(11,076
)
34,600
Other liabilities
(19,813
)
(18,275
)
Income taxes, net
11,905
8,798
Dividends received from joint ventures
8,231
8,329
Other
(14,347
)
(9,614
)
Net cash provided by operating
activities
169,479
138,309
Cash flows from investing
activities:
Capital expenditures
(143,576
)
(122,110
)
Payment for acquired businesses, net of
cash acquired
(31,967
)
(28,707
)
Proceeds from settlement of contingent
consideration
7,500
-
Proceeds from disposal of assets
2,900
2,013
Proceeds from sale / maturity of
investments
-
572
Net cash used in investing
activities
(165,143
)
(148,232
)
Cash flows from financing
activities:
Release of (cash pledged for) collateral
deposits
1,170
(217
)
Payment of contingent consideration
(13,873
)
-
Proceeds from long-term borrowings
117,269
50,000
Repayments of long-term borrowings
(44,351
)
(65,096
)
Repurchase of common stock
(14,155
)
(20,024
)
Payment of withholding taxes on
stock-based compensation plans
(3,431
)
(2,559
)
Repayment of financed insurance
premium
(10,920
)
(9,317
)
Repayments of finance leases
(2,137
)
(2,126
)
Net cash provided by (used in)
financing activities
29,572
(49,339
)
Effect of exchange rate changes on cash
and cash equivalents
(2,411
)
(6,032
)
Net increase (decrease) to cash and
cash equivalents and restricted cash
31,497
(65,294
)
Cash and cash equivalents and restricted
cash at beginning of year
153,166
218,460
Cash and cash equivalents and
restricted cash at end of year
$
184,663
$
153,166
Supplemental disclosure of cash flow
information:
Cash paid for income taxes net of
refunds
$
(39,250
)
$
(44,268
)
Cash paid for interest, net
(11,871
)
(2,177
)
Change in accounts payable and accrued
expenses related to capital expenditures
(2,311
)
(7,926
)
EXPRO GROUP HOLDINGS
N.V.
SELECTED OPERATING SEGMENT
DATA
(In thousands)
(Unaudited)
Segment Revenue and Segment Revenue as
Percentage of Total Revenue:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
NLA
$
139,272
32
%
$
139,397
33
%
$
145,490
36
%
$
566,048
33
%
$
511,800
34
%
ESSA
142,788
33
%
131,475
31
%
133,846
33
%
564,440
33
%
520,951
34
%
MENA
92,557
21
%
86,736
21
%
65,363
16
%
332,216
19
%
233,528
15
%
APAC
62,226
14
%
65,220
15
%
62,051
15
%
250,098
15
%
246,485
16
%
Total
$
436,843
100
%
$
422,828
100
%
$
406,750
100
%
$
1,712,802
100
%
$
1,512,764
100
%
Segment EBITDA(1), Segment EBITDA
Margin(2), Adjusted EBITDA and Adjusted EBITDA Margin(3):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
NLA
$
30,062
22
%
$
33,064
24
%
$
44,325
30
%
$
141,977
25
%
$
132,869
26
%
ESSA
53,002
37
%
32,175
24
%
40,990
31
%
145,375
26
%
136,007
26
%
MENA
32,591
35
%
30,032
35
%
21,271
33
%
115,772
35
%
71,201
30
%
APAC
15,453
25
%
16,193
25
%
5,337
9
%
57,680
23
%
1,805
1
%
Total Segment EBITDA
131,108
111,464
111,923
460,804
341,882
Corporate costs (4)
(34,218
)
(30,669
)
(31,894
)
(129,823
)
(105,855
)
Equity in income of joint ventures
3,467
4,241
5,117
16,422
12,853
Adjusted EBITDA
$
100,357
23
%
$
85,036
20
%
$
85,146
21
%
$
347,403
20
%
$
248,880
16
%
(1)
Expro evaluates its business
segment operating performance using Segment Revenue, Segment EBITDA
and Segment EBITDA Margin. Expro’s management believes Segment
EBITDA and Segment EBITDA Margin are useful operating performance
measures as they exclude transactions not related to its core
operating activities, corporate costs and certain non-cash items
and allows Expro to meaningfully analyze the trends and performance
of its core operations by segment as well as to make decisions
regarding the allocation of resources to segments.
(2)
Expro defines Segment EBITDA
Margin as Segment EBITDA divided by Segment Revenue, expressed as a
percentage.
(3)
Expro defines Adjusted EBITDA
Margin as Adjusted EBITDA divided by total revenue, expressed as a
percentage.
(4)
Corporate costs include the costs
of running our corporate head office and other central functions
that support the operating segments but are not attributable to a
particular operating segment, including central product line
management, research, engineering and development, logistics, sales
and marketing, and health and safety.
EXPRO GROUP HOLDINGS
N.V.
REVENUE BY AREAS OF
CAPABILITIES AND SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Revenue by areas of
capabilities:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Well construction
$
145,230
33
%
$
159,268
38
%
$
145,279
36
%
$
573,005
33
%
$
533,556
35
%
Well management (1)
291,613
67
%
263,560
62
%
261,471
64
%
1,139,797
67
%
979,208
65
%
Total
$
436,843
100
%
$
422,828
100
%
$
406,750
100
%
$
1,712,802
100
%
$
1,512,764
100
%
(1)
Well management consists of well
flow management, subsea well access, and well intervention and
integrity.
Supplementary information on specific
amounts included in cash provided by operating activities:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Net cash provided by operating
activities
$
97,401
$
55,313
$
32,781
$
169,479
$
138,309
Cash paid for interest, net
3,801
2,441
721
11,871
2,177
Cash paid for merger and integration
expense
2,751
2,212
4,389
16,955
17,403
Cash paid for severance and other
expense
11,325
5,490
5,525
26,297
12,304
EXPRO GROUP HOLDINGS
N.V.
GROSS PROFIT, GROSS MARGIN,
CONTRIBUTION, CONTRIBUTION MARGIN AND SUPPORT COSTS
(In thousands)
(Unaudited)
Gross Profit, Contribution(1), Gross
Margin and Contribution Margin(2):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Total revenue
$
436,843
$
422,828
$
406,750
$
1,712,802
$
1,512,764
Less: Cost of revenue, excluding
depreciation and amortization
(327,123
)
(331,235
)
(316,875
)
(1,333,365
)
(1,241,295
)
Less: Depreciation and amortization
related to cost of revenue
(42,205
)
(40,315
)
(62,874
)
(163,161
)
(171,963
)
Gross profit
67,515
51,278
27,001
216,276
99,506
Add: Indirect costs (included in cost of
revenue)
72,791
71,875
67,175
282,745
251,373
Add: Stock-based compensation expenses
2,360
2,266
1,755
9,057
6,967
Add: Depreciation and amortization related
to cost of revenue
42,205
40,315
62,874
163,161
171,963
Contribution
$
184,871
$
165,734
$
158,805
$
671,239
$
529,809
Gross margin
15
%
12
%
7
%
13
%
7
%
Contribution margin
42
%
39
%
39
%
39
%
35
%
Support Costs(4):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Cost of revenue (excluding depreciation
and amortization)
$
327,123
$
331,235
$
316,875
$
1,333,365
$
1,241,295
Direct costs (excluding depreciation and
amortization)
(251,972
)
(257,094
)
(247,945
)
(1,041,563
)
(982,955
)
Stock-based compensation expense
(2,360
)
(2,266
)
(1,755
)
(9,057
)
(6,967
)
Indirect costs (included in cost of
revenue)
72,791
71,875
67,175
282,745
251,373
General and administrative, (excluding
depreciation and amortization expense, foreign exchange, and other
non-routine costs)
15,514
13,123
11,782
57,717
42,531
Total support costs
$
88,305
$
84,998
$
78,957
$
340,462
$
293,904
Total support costs as a percentage of
revenue
20
%
20
%
19
%
20
%
19
%
(1)
Expro defines Contribution as
Total Revenue less Cost of Revenue, excluding depreciation and
amortization expense, adjusted for indirect support costs and
stock-based compensation expense included in Cost of Revenue.
(2)
Contribution margin is defined as
Contribution as a percentage of Revenue.
(3)
Direct costs include personnel
costs, sub-contractor costs, equipment costs, repairs and
maintenance, facilities, and other costs directly incurred to
generate revenue.
(4)
Support costs includes indirect
costs to support the activities of the operating segments,
research, engineering and development expenses and product line
management costs included in Cost of revenue, and General and
administrative expenses such as the costs of running our corporate
head office and other central functions, including, logistics,
sales and marketing and health and safety and does not include
foreign exchange gains or losses and other non-routine
expenses.
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted EBITDA Reconciliation and
Adjusted EBITDA Margin:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Total revenue
$
436,843
$
422,828
$
406,750
$
1,712,802
$
1,512,764
Net income (loss)
$
23,034
$
16,275
$
(12,418
)
$
51,918
$
(23,360
)
Income tax expense
9,375
10,450
13,376
46,048
44,307
Depreciation and amortization expense
42,284
40,391
62,874
163,468
172,260
Severance and other expense
9,041
3,181
8,901
17,048
14,388
Merger and integration expense
3,947
1,437
5,432
16,334
9,764
Other expense (income), net
1,186
(262
)
(4,774
)
105
(1,234
)
Stock-based compensation expense
7,101
6,831
4,892
26,352
19,574
Foreign exchange loss
2,585
2,838
4,608
13,613
9,238
Interest and finance expense, net
1,804
3,895
2,255
12,517
3,943
Adjusted EBITDA
$
100,357
$
85,036
$
85,146
$
347,403
$
248,880
Net income (loss) margin
5
%
4
%
(3
)%
3
%
(2
)%
Adjusted EBITDA margin
23
%
20
%
21
%
20
%
16
%
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands, except per
share amounts)
(Unaudited)
Reconciliation of Adjusted Net
Income:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Net income (loss)
$
23,034
$
16,275
$
(12,418
)
$
51,918
$
(23,360
)
Adjustments:
Merger and integration expense
3,947
1,437
5,432
16,334
9,764
Severance and other expense
9,041
3,181
8,901
17,048
14,388
Stock-based compensation expense
7,101
6,831
4,892
26,352
19,574
Total adjustments, before taxes
20,089
11,449
19,225
59,734
43,726
Tax benefit
(358
)
(27
)
-
(469
)
(43
)
Total adjustments, net of taxes
19,731
11,422
19,225
59,265
43,683
Adjusted net income
$
42,765
$
27,697
$
6,807
$
111,183
$
20,323
Reconciliation of Adjusted Net Income
per Diluted Share:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Net income (loss)
$
0.19
$
0.14
$
(0.11
)
$
0.45
$
(0.21
)
Adjustments:
Merger and integration expense
0.03
0.01
0.05
0.14
0.09
Severance and other expense
0.08
0.03
0.08
0.15
0.13
Stock-based compensation expense
0.06
0.06
0.04
0.23
0.18
Total adjustments, before taxes
0.17
0.10
0.17
0.52
0.40
Tax benefit
(0.00
)
(0.00
)
-
(0.00
)
(0.00
)
Total adjustments, net of taxes
0.17
0.10
0.17
0.51
0.40
Adjusted net income
$
0.36
$
0.23
$
0.06
$
0.96
$
0.19
As reported diluted weighted average
common shares outstanding
118,129,232
118,293,677
110,325,863
115,829,638
109,161,453
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225869446/en/
Chad Stephenson - Director Investor Relations +1 (713)
463-9776 InvestorRelations@expro.com
Expro Group Holdings NV (NYSE:XPRO)
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