HOUSTON--(BUSINESS WIRE)--July 28, 2026--
Expro Ltd (NYSE: XPRO) (the "Company" or "Expro") today reported financial and operational results for the three months ended June 30, 2026.
Second Quarter 2026 Highlights
-- Revenue was $393 million
-- Net income of $2 million
-- Adjusted EBITDA(1) of $76 million with an Adjusted EBITDA margin(1) of
19.3%
-- Cash flow from operations of $81 million, or 20.7% of revenue
-- Adjusted free cash flow(2) of $56 million
-- Share repurchases of approximately $20 million (1.3 million shares at
an average of $15.42 per share)
-- Liquidity at the end of the quarter stood at $492 million
Michael Jardon, Chief Executive Officer, commented, "Our second quarter results reflect a good sequential increase coming out of a seasonally low first quarter. This is despite the impacts caused by the Middle East conflict that tempered our second quarter results.
"During the quarter we continued to execute across our disciplined capital allocation framework. The Company's capital allocation centers around investing in the business, maintaining a solid financial position, M&A, and returning cash to shareholders through share repurchases. All of these were achieved during the second quarter of 2026. The Company invested roughly $30 million in capital expenditures funding accretive and high-return projects, announced the acquisition of Enhanced Drilling, and maintained a strong balance sheet. Specifically, on returning cash to shareholders, the Company repurchased approximately $20 million or 1.3 million shares during the second quarter. This brings the year-to-date repurchases to approximately 2.5 million shares, representing approximately $40 million of cash returned to shareholders. The significance is that Expro is already very close to achieving its annual goal of returning at least one-third of free cash flow to shareholders.
"With regards to the Middle East, the conflict and its impacts on our operations have persisted longer than we had previously anticipated. That said, we have been more positive on the developing medium-to-long-term outlook for our business. Increasing subsea trees orders and offshore rig utilization reinforce the view of a strengthening offshore market. We believe this will result in a more robust activity set for Expro in the coming years. Furthermore, operators are placing greater emphasis on technology-enabled efficiency gains, which I believe is one of our strengths and a reason why they chose Expro as their service provider. Along those lines, we recently closed on the Enhanced Drilling acquisition which adds a differentiated technological capability to our service portfolio. Finally, our commitment to driving efficiency gains does not stop with our customers. We are continually evaluating what we can do to drive further efficiency gains of our own, through cost control and other various internal initiatives."
Free Cash Flow
Expro generated $81 million in net cash provided by operating activities in the second quarter of 2026. After capital expenditures of $31 million, Expro generated $50 million of free cash flow and $56 million of Adjusted free cash flow in the second quarter of 2026.
Management believes that Adjusted free cash flow better reflects the Company's performance by excluding one-time items, in line with corporate finance principles.
Three Months Six Months
Ended Ended
-------------- ------------
June 30, June 30,
2026 2026
-------------- ------------
Total revenue $393,182 $760,755
Net cash provided by operating
activities $ 81,462 $ 106,746
Less: Capital expenditures (31,184) (56,948)
---------- --------
Free cash flow 50,278 49,798
Add: Merger and integration expense
(*) 3,634 3,922
Add: Severance and other expense (*) 2,572 5,798
---------- --------
Adjusted free cash flow $ 56,484 $ 59,518
========== ========
(*) Expenses directly referenced on the condensed consolidated statements of
operations.
Shareholder Return
During the second quarter of 2026, the Company repurchased approximately 1.3 million shares at an average price of $15.42 per share, resulting in approximately $20 million of share repurchases. After the share repurchases during the first and second quarters of 2026, the Company has approximately $60 million remaining under its current Board of Directors share repurchase authorization to acquire up to $100 million of outstanding shares. For the full year 2026, Expro remains committed to utilizing at least 33% of the annual Adjusted free cash flow generated for capital returns to shareholders.
Drive25 and Additional Cost Efficiency Programs
Expro has successfully completed all internal projects as part of the Company's Drive 25 self-help program. As expected, Expro expects to fully realize more than $40 million of structural cost removals in 2026.
Additionally, Expro remains focused on driving ongoing efficiency improvements and further optimizing its cost base. As part of its continuous portfolio review process, the Company is assessing targeted actions across selected geographies and product lines to improve returns, enhance operating leverage, and support sustained margin expansion and free cash flow growth.
Short-Term Outlook
While the geopolitical situation in the Middle East remains uncertain, volatile, and has temporarily moderated the pace of the projected activity growth for Expro in high-margin businesses in the region, we have been encouraged by the resilience of our MENA operations, which has performed strongly despite the ongoing disruption.
Importantly, the fundamental thesis underpinning our outlook for 2026 remains firmly intact. We continue to see a significant step-change in Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted free cash flow performance during the second half of the year. We expect these will be driven by the continued execution of our strategic initiatives, strong operating leverage across the business, and five months of contribution from the recently completed Enhanced Drilling acquisition.
While our outlook conservatively reflects the near-term impacts of the regional conflict and a gradual recovery in activity levels, we expect second-half of 2026 Adjusted EBITDA margins to exceed 24%, with fourth-quarter margins exceeding 26%, representing a substantial improvement versus the first half of the year. We remain focused on the factors within our control, including disciplined execution, portfolio optimization, and operational efficiency initiatives, all of which support our long-term objective of delivering sustainable earnings growth, expanding margins, and increasing free cash flow generation.
Financial Guidance
Based upon the prevailing conflict in the Middle East and the recent closing of the Enhanced Drilling acquisition we have updated our financial guidance. With regards to the disruptions from the Middle East conflict, we expect there will be quarterly impacts throughout the remainder of 2026; however, not to the same extent as experienced during the second quarter. With regards to the Enhanced Drilling acquisition, we will include five months of operations in our 2026 results.
For the second half of 2026, we still see tangible sequential increases in our quarterly results driven by:
1) our NLA segment in the fourth quarter with subsea well access and well
flow management work and tubular sales in the Gulf of America, and well
intervention and integrity work in Colombia,
2) our MENA segment with a sizeable production solutions project scheduled
in the fourth quarter in North Africa, as well as some equipment sales
in the region,
3) our APAC region with well construction and well flow management
projects, accompanied by subsea equipment sales in China, and
4) the inclusion of five months of Enhanced Drilling's operations during
the second half of 2026.
Previously, we had expected our operations in the Middle East countries to normalize during the back half of the year, which would have been additive to the results in the second half of 2026. As mentioned above, those expectations have changed with some of the impacts now expected through year end. Additionally, we had anticipated our Coretrax product line to generate incremental contributions across our geographic segments, particularly in Middle East where that product line has its largest exposure. Now however, the amount of the expected incremental contributions coming from Coretrax is lower than previously anticipated. Both of these factors serve to moderate our previous annual expectations.
To account for these uncertainties, we are taking a conservative approach to our revised guidance; however, we do expect to be able to capture some upside above these estimates in the second half of the year, particularly in the fourth quarter.
Current Guidance Prior Guidance
Three Months
Ended Full Year Ended Full Year Ended
----------------- ---------------- ---------------
September 30, December 31, December 31,
(in millions) 2026 2026 2026
----------------- ---------------- ---------------
Revenue $435-$455 $1,650-$1,700 $1,600 - $1,650
Adjusted EBITDA $90-$100 $355-$365 $355 - $375
Capital
expenditure $110-$120 $110 - $120
Adjusted free cash
flow $135-$145 $125 - $145
Other Financial Information
As of June 30, 2026, Expro's consolidated cash and cash equivalents, including restricted cash, totaled $200 million, and the Company's total liquidity stood at $492 million. Total liquidity includes $292 million available for drawdowns as loans under the Company's revolving credit facility. The Company had outstanding long-term borrowings of $79 million as of June 30, 2026.
On April 1, 2026, Expro's Board of Directors unanimously approved a plan to change the Company's corporate domicile from the Netherlands to the Cayman Islands (the "Redomicile"). The proposals related to the Redomicile were approved by a shareholder vote during the Company's Annual Shareholder Meeting on June 10, 2026. The Redomicile was completed on July 13, 2026.
On July 23, 2026, Expro closed on the acquisition of Enhanced Drilling. Under the terms of the agreement Expro purchased Enhanced Drilling for approximately 2 billion Norwegian kroner ("NOK") in cash (approximately $215 million) plus customary closing and working capital adjustments.
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 in the Investor section of www.expro.com.
Notable Awards and Achievements
Middle East and North Africa (MENA)
-- In Iraq, the Company secured a contract for its SONAR Flow
Surveillance. The SONAR solution enables a comprehensive field wide
production surveillance and evaluation, providing timely data to support
operational optimization and reservoir management.
-- In Oman, Expro secured a QPulseTM campaign on a gas condensate field to
provide production testing on existing infrastructure. QPulseTM delivers
well performance data without the operational disruption of conventional
production testing methods. This technology lowers the costs and risks of
production testing for customers.
North and Latin America (NLA)
-- In Canada, Expro was awarded a multi-product line contract for a
14-well campaign with options for additional wells by a customer
operating offshore Eastern Canada. The contract is expected to commence
during the first half of 2027.
-- In Brazil, the Company entered into two three-year contracts to provide
subsea landing string and tubular running services as well as cementing
accessories.
Europe and Sub-Saharan Africa $(ESSA)$
-- During the second quarter of 2026, this region secured over $250
million of contract awards -- some for the extension of existing work,
some for incremental work in the future.
-- In Azerbaijan, Expro extended existing contracts for subsea landing
string and tubular running services.
Asia Pacific $(APAC)$
-- In Malaysia, the Company secured a three-year contract to continue to
support a customer's deepwater subsea program.
Technologies
-- Expro's 1,250-ton XRDTM (Extended Range Drilling) Spider successfully
completed all field trials with a major Gulf of America operator,
culminating in a final wellbore cleanout run. The trials demonstrated
reliable performance in demanding offshore conditions and confirmed the
system's operational readiness for broader deployment.
-- The Company utilized its subsea systems to complete a well abandonment
campaign in the UK where Expro achieved 2,490 hours (104 days) with zero
non-productive time; highlighting the Company's equipment reliability and
service discipline.
-- Expro has extended its capabilities in Namibia with the commissioning
of a visual PVT system, which recently completed a major analysis
campaign, providing in-country data, allowing the operator to accelerate
the evaluation of their discovery.
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2026 to the results for the first quarter of 2026.
North and Latin America (NLA)
Revenue for the NLA segment was $129 million for the three months ended June 30, 2026, an increase of $1 million, or 1%, compared to $128 million for the three months ended March 31, 2026. The increase was primarily driven by higher well intervention revenue in Argentina and increased well construction activity in Brazil, partially offset by lower well intervention revenue in Colombia.
Segment EBITDA for the NLA segment was $26 million, or 20% of revenues, during the three months ended June 30, 2026, an increase of $0.1 million, or 1%, compared to $26 million, or 20%, of revenues during the three months ended March 31, 2026.
Europe and Sub-Saharan Africa (ESSA)
Revenue for the ESSA segment was $127 million for the three months ended June 30, 2026, an increase of $13 million, or 11%, compared to $114 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well flow management activities in the United Kingdom and Norway, partially offset by lower well flow management revenue in Republic of the Congo.
Segment EBITDA for the ESSA segment was $34 million, or 27% of revenues, for the three months ended June 30, 2026, an increase of $3 million, or 8%, compared to $32 million, or 28% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA was primarily attributable to higher revenue, partially offset by a decrease in segment EBITDA margin due to reduced work on higher margin projects.
Middle East and North Africa (MENA)
Revenue for the MENA segment was $90 million for the three months ended June 30, 2026, an increase of $8 million, or 10%, compared to $82 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well construction revenue in Egypt.
Segment EBITDA for the MENA segment was $33 million, or 36% of revenues, for the three months ended June 30, 2026, an increase of $9 million, or 39%, compared to $24 million, or 29% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA and Segment EBITDA margin is consistent with the increase in revenue and favorable activity mix.
Asia Pacific (APAC)
Revenue for the APAC segment was $47 million for the three months ended June 30, 2026, an increase of $3 million, or 7%, compared to $44 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well intervention activities in Brunei and Malaysia and higher subsea well access revenue in Malaysia, partially offset by lower subsea well access activities in Australia.
Segment EBITDA for the APAC segment was $9 million, or 18% of revenues, for the three months ended June 30, 2026, an increase of $1 million compared to $7 million, or 16% of revenues, for the three months ended March 31, 2026.
Conference Call
The Company will host a conference call to discuss second quarter 2026 results on Tuesday, July 28, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
U.S. Toll-Free: +1 (800) 715-9871
U.S./International: +1 (646) 307-1963
Access ID: 46235
To listen via live webcast, please visit the Investor section of www.expro.com.
The second quarter 2026 Investor Presentation is available in 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: U.S. Toll-Free:+1 (800) 770-2030 or U.S./International +1 (609) 800-9909
Access ID: 46235
Start Date: July 28, 2026, approximately 3:00 p.m. CT
End Date: August 11, 2026, 11:59 p.m. CT
A transcript of the conference call will be posted to the Investor relations section of the Company's website as soon as practicable 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 7,000 employees and provides services and solutions to leading energy companies in both onshore and offshore environments in more than 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 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 outcome and benefits of the Enhanced Drilling acquisition, the Company's ability to achieve the anticipated synergies as a result of the Enhanced Drilling acquisition, the Company's ability to realize the potential strategic opportunities provided by, and realize the potential benefits of the Redomicile, and the Company's future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections, guidance and operating results. 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 definitive Proxy Statement/Prospectus, dated April 21, 2026, and the Annual Report on Form 10-K of Expro Group Holdings N.V. ("Expro NV") for the year ended December 31, 2025, in each case filed with the SEC, as well as other risks and uncertainties set forth in other filings with the SEC by the Company and Expro NV. 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, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, 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, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, 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, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, 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.
(1) 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.
(2) Free cash flow is defined as cash provided by (used in) operating
activities less capital expenditures. Free cash flow margin is defined
as free cash flow divided by total revenue, expressed as a percentage.
Adjusted free cash flow is defined as cash provided by (used in)
operating activities less capital expenditures, adjusted for merger and
integration expense, severance and other expense (income) and other
adjustments. Adjusted free cash flow margin reflects adjusted free cash
flow expressed as a percentage of total revenue.
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 share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------------------------------ ---------------------------
June 30, March 31, June 30, June 30, June 30,
------------ ------------ ------------ ------------ ------------
2026 2026 2025 2026 2025
------------ ------------ ------------ ------------ ------------
Total revenue $393,182 $367,573 $422,740 $760,755 $813,612
------------ ------------ ------------ ------------ ------------
Operating costs
and expenses:
Cost of revenue,
excluding
depreciation
and
amortization
expense (311,158) (297,614) (319,981) (608,772) (625,473)
General and
administrative
expense,
excluding
depreciation
and
amortization
expense (19,655) (17,894) (14,499) (37,549) (36,313)
Depreciation and
amortization
expense (45,792) (45,395) (46,716) (91,187) (92,137)
Merger and
integration
expense (3,634) (288) (2,267) (3,922) (4,007)
Severance and
other expense (2,572) (3,226) (6,711) (5,798) (12,793)
----------- ----------- ----------- ----------- -----------
Total operating
cost and
expenses (382,811) (364,417) (390,174) (747,228) (770,723)
----------- ----------- ----------- ----------- -----------
Operating income 10,371 3,156 32,566 13,527 42,889
Other (expense)
income, net (242) 347 280 105 1,934
Interest and
finance
expense, net (2,712) (1,551) (4,279) (4,263) (7,730)
----------- ----------- ----------- ----------- -----------
Income before
taxes and
equity in
income of joint
ventures 7,417 1,952 28,567 9,369 37,093
Equity in income
of joint
ventures 2,763 3,231 3,395 5,994 7,101
----------- ----------- ----------- ----------- -----------
Income before
income taxes 10,180 5,183 31,962 15,363 44,194
Income tax
expense (8,152) (6,217) (13,959) (14,369) (12,243)
----------- ----------- ----------- ----------- -----------
Net income
(loss) $ 2,028 $ (1,034) $ 18,003 $ 994 $ 31,951
=========== =========== =========== =========== ===========
Earnings (loss)
per common
share:
Basic $ 0.02 $ (0.01) $ 0.16 $ 0.01 $ 0.28
Diluted $ 0.02 $ (0.01) $ 0.16 $ 0.01 $ 0.27
Weighted
average common
shares
outstanding:
Basic 113,098,653 113,624,307 115,444,915 113,360,028 115,829,219
Diluted 114,446,970 113,624,307 115,508,918 115,049,304 116,216,865
EXPRO GROUP HOLDINGS N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2026 2025
---------- --------------
Assets
Current assets
Cash and cash equivalents $ 199,531 $ 196,093
Restricted cash 35 1,380
Accounts receivable, net 477,237 477,026
Inventories 170,586 167,895
Income tax receivables 38,181 31,654
Other current assets 98,202 86,287
--------- ----------
Total current assets 983,772 960,335
--------- ----------
Property, plant and equipment, net 514,613 523,157
Investments in joint ventures 79,779 78,706
Intangible assets, net 227,974 251,329
Goodwill 348,558 348,558
Operating lease right-of-use assets 77,796 72,777
Non-current accounts receivable,
net 7,432 7,432
Post-retirement benefits 3,396 -
Other non-current assets 17,018 17,141
--------- ----------
Total assets $2,260,338 $ 2,259,435
========= ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued
liabilities $ 304,808 $ 268,588
Income tax liabilities 54,131 51,111
Finance lease liabilities 1,540 2,359
Operating lease liabilities 20,317 18,225
Other current liabilities 99,835 103,379
--------- ----------
Total current liabilities 480,631 443,662
--------- ----------
Long-term borrowings 79,065 79,065
Deferred tax liabilities, net 15,154 19,513
Post-retirement benefits - 314
Non-current finance lease
liabilities 12,124 12,762
Non-current operating lease
liabilities 58,259 56,103
Uncertain tax positions 73,355 77,890
Other non-current liabilities 36,198 36,003
--------- ----------
Total liabilities 754,786 725,312
--------- ----------
Common stock 8,570 8,559
Treasury stock (154,153) (127,137)
Additional paid-in capital 2,107,739 2,110,177
Accumulated other comprehensive
income 17,931 18,053
Accumulated deficit (474,535) (475,529)
--------- ----------
Total stockholders' equity 1,505,552 1,534,123
--------- ----------
Total liabilities and stockholders'
equity $2,260,338 $ 2,259,435
========= ==========
EXPRO GROUP HOLDINGS N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June 30,
-----------------------------
2026 2025
--------------- -----------
Cash flows from operating
activities:
Net income $ 994 $ 31,951
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization
expense 91,187 92,137
Equity in income of joint
ventures (5,994) (7,101)
Stock-based compensation expense 15,554 14,282
Elimination of unrealized loss on
sales to joint ventures 260 -
Deferred taxes (4,360) (16,049)
Unrealized foreign exchange loss
(gain) 3,127 (6,047)
Changes in assets and liabilities:
Accounts receivable, net (1,995) 15,118
Inventories (2,691) (9,020)
Other assets (11,921) (11,557)
Accounts payable and accrued
liabilities 34,852 (17,289)
Other liabilities (4,614) 12,931
Income taxes, net (8,042) (6,599)
Dividends received from joint
ventures 4,662 498
Other (4,273) (3,333)
----------- ----------
Net cash provided by operating
activities 106,746 89,922
----------- ----------
Cash flows from investing
activities:
Capital expenditures (56,948) (54,316)
Proceeds from disposal of assets - 5,000
----------- ----------
Net cash used in investing
activities (56,948) (49,316)
----------- ----------
Cash flows from financing
activities:
Release of (cash pledged for)
collateral deposits, net 113 (415)
Proceeds from borrowings 1,794 -
Repurchase of common stock (39,998) (15,033)
Payment of withholding taxes on
stock-based compensation plans (5,003) (2,588)
Repayment of financed insurance
premium (526) (4,955)
Repayments of finance leases (1,525) (887)
----------- ----------
Net cash used in financing
activities (45,145) (23,878)
----------- ----------
Effect of exchange rate changes on
cash and cash equivalents (2,560) 6,095
----------- ----------
Net increase to cash and cash
equivalents and restricted cash 2,093 22,823
Cash and cash equivalents and
restricted cash at beginning of
period 197,473 184,663
----------- ----------
Cash and cash equivalents and
restricted cash at end of period $ 199,566 $ 207,486
=========== ==========
Supplemental disclosure of cash
flow information:
Cash paid for income taxes, net of
refunds $ 27,234 $ 34,692
Cash paid for interest, net 4,598 5,243
Change in accounts payable and
accrued expenses related to capital
expenditures 2,341 6,967
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 Six Months Ended
--------------------------------------------------- --------------------------------
June 30, March 31, June 30, June 30, June 30,
------------- ------------- ------------- ------------- -------------
2026 2026 2025 2026 2025
------------- ------------- ------------- ------------- -------------
NLA $129,287 33% $128,183 34% $142,582 34% $257,470 34% $276,860 34%
ESSA 126,687 32% 113,919 31% 132,367 31% 240,606 32% 244,740 30%
MENA 90,135 23% 81,663 22% 91,016 22% 171,798 23% 184,570 23%
APAC 47,073 12% 43,808 12% 56,775 13% 90,881 12% 107,442 13%
------- --- ------- --- ------- --- ------- --- ------- ---
Total $393,182 100% $367,573 100% $422,740 100% $760,755 100% $813,612 100%
======= === ======= === ======= === ======= === ======= ===
Segment EBITDA(1) , Segment EBITDA Margin(2) , Adjusted EBITDA and Adjusted
EBITDA Margin(3) :
Three Months Ended Six Months Ended
--------------------------------------------------- --------------------------------
June 30, March 31, June 30, June 30, June 30,
------------- ------------- ------------- ------------- -------------
2026 2026 2025 2026 2025
------------- ------------- ------------- ------------- -------------
NLA $ 26,082 20% $ 25,937 20% $ 33,909 24% $ 52,019 20% $ 64,294 23%
ESSA 34,071 27% 31,505 28% 39,635 30% 65,576 27% $ 68,823 28%
MENA 32,716 36% 23,567 29% 32,571 36% 56,283 33% $ 66,739 36%
APAC 8,541 18% 7,196 16% 14,794 26% 15,737 17% $ 25,656 24%
------- ------- ------- ------- -------
Total
Segment
EBITDA 101,410 88,205 120,909 189,615 225,512
Corporate
costs(4) (28,130) (28,527) (29,853) (56,657) (61,934)
Equity in
income of
joint
ventures 2,763 3,231 3,395 5,994 7,101
------- ------- ------- ------- -------
Adjusted
EBITDA $ 76,043 19% $ 62,909 17% $ 94,451 22% $138,952 18% $170,679 21%
======= ======= ======= ======= =======
(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.
Revenue by areas of capabilities:
Three Months Ended Six Months Ended
--------------------------------------------------- --------------------------------
June 30, March 31, June 30, June 30, June 30,
------------- ------------- ------------- ------------- -------------
2026 2026 2025 2026 2025
------------- ------------- ------------- ------------- -------------
Well
Construction $132,483 34% $122,605 33% $141,623 34% $255,088 34% $272,036 33%
Well
Management
(1) 260,699 66% 244,968 67% 281,117 66% 505,667 66% 541,576 67%
------- ------- ------- ------- -------
Total $393,182 100% $367,573 100% $422,740 100% $760,755 100% $813,612 100%
======= ======= ======= ======= =======
(1) Well Management consists of well flow management, subsea well access,
and well intervention and integrity.
EXPRO GROUP HOLDINGS N.V.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION
(In thousands)
(Unaudited)
Gross Profit, Contribution(1) , Gross Margin and Contribution Margin(2) :
Three Months Ended Six Months Ended
--------------------------------------- ------------------------
June 30, March 31, June 30, June 30, June 30,
2026 2026 2025 2026 2025
--------- --------- --------- --------- ---------
Total revenue $ 393,182 $ 367,573 $ 422,740 $ 760,755 $ 813,612
Less: Cost of
revenue, excluding
depreciation and
amortization (311,158) (297,614) (319,981) (608,772) (625,473)
Less: Depreciation
and amortization
related to cost of
revenue (45,624) (45,232) (46,580) (90,856) (91,890)
-------- -------- -------- -------- --------
Gross profit 36,400 24,727 56,179 61,127 96,249
Add: Indirect costs
(included in cost
of revenue) 66,226 67,477 68,834 133,703 138,860
Add: Stock-based
compensation
expenses 4,508 2,896 2,633 7,404 4,827
Add: Depreciation
and amortization
related to cost of
revenue 45,624 45,232 46,580 90,856 91,890
-------- -------- -------- -------- --------
Contribution $ 152,758 $ 140,332 $ 174,226 $ 293,090 $ 331,826
======== ======== ======== ======== ========
Gross margin 9% 7% 13% 8% 12%
Contribution margin 39% 38% 41% 39% 41%
(1) Contribution is a non-GAAP measure and is defined as Total Revenue less
Cost of Revenue, excluding depreciation and amortization expense,
adjusted for indirect costs and stock-based compensation expense
included in Cost of Revenue.
(2) Contribution margin is a non-GAAP measure and is defined as
Contribution as a percentage of Revenue.
EXPRO GROUP HOLDINGS N.V.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin:
Three Months Ended Six Months Ended
------------------------------------ ---------------------
March June
June 30, 31, June 30, June 30, 30,
2026 2026 2025 2026 2025
-------- -------- -------- -------- -------
Total revenue $393,182 $367,573 $422,740 $760,755 813,612
------- ------- ------- ------- -------
Net income
(loss) $ 2,028 $ (1,034) $ 18,003 $ 994 31,951
Income tax
expense 8,152 6,217 13,959 14,369 12,243
Depreciation
and
amortization
expense 45,792 45,395 46,716 91,187 92,137
Severance and
other
expense 2,572 3,226 6,711 5,798 12,793
Merger and
integration
expense 3,634 288 2,267 3,922 4,007
Other expense
(income),
net 242 (347) (280) (105) (1,934)
Stock-based
compensation
expense 9,560 7,274 7,314 16,834 14,282
Foreign
exchange loss
(gain) 1,351 339 (4,518) 1,690 (2,530)
Interest and
finance
expense, net 2,712 1,551 4,279 4,263 7,730
------- ------- ------- ------- -------
Adjusted
EBITDA $ 76,043 $ 62,909 $ 94,451 $138,952 170,679
Net income
(loss)
margin 1% (0)% 4% 0% 4%
Adjusted
EBITDA
margin 19% 17% 22% 18% 21%
Free Cash Flow Reconciliation, Free Cash Flow Margin, Adjusted Free Cash Flow
Reconciliation and Adjusted Free Cash Flow Margin:
Three Months Ended Six Months Ended
------------------------------------ ----------------------
March
June 30, 31, June 30, June 30, June 30,
2026 2026 2025 2026 2025
-------- -------- -------- -------- --------
Total revenue $393,182 $367,573 $422,740 $760,755 $813,612
Net cash
provided by
operating
activities $ 81,462 $ 25,284 $ 48,413 $106,746 $ 89,922
Less: Capital
expenditures (31,184) (25,764) (21,204) (56,948) (54,316)
------- ------- ------- ------- -------
Free cash flow 50,278 (480) 27,209 49,798 35,606
Operating
cashflow
margin 21% 7% 11% 14% 11%
Free cash flow
margin 13% 0% 6% 7% 4%
Add: Merger
and
integration
expense (1) 3,634 288 2,267 3,922 4,007
Add: Severance
and other
expense (1) 2,572 3,226 6,711 5,798 12,793
------- ------- ------- ------- -------
Adjusted free
cash flow $ 56,484 $ 3,034 $ 36,187 $ 59,518 $ 52,406
======= ======= ======= ======= =======
Adjusted free
cash flow
margin 14% 1% 9% 8% 6%
(1) Expenses directly referenced on the condensed consolidated statements
of operations.
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 Six Months Ended
-------------------------- ----------------
June March June June June
30, 31, 30, 30, 30,
2026 2026 2025 2026 2025
------- ------- ------- ------- -------
Net income (loss) $ 2,028 $(1,034) $18,003 $ 994 $31,951
Adjustments:
Merger and
integration
expense 3,634 288 2,267 3,922 4,007
Severance and
other
expense 2,572 3,226 6,711 5,798 12,793
Stock-based
compensation
expense 9,560 7,274 7,314 16,834 14,282
------ ------ ------ ------ ------
Total
adjustments,
before taxes 15,766 10,788 16,292 26,554 31,082
------ ------ ------ ------ ------
Tax benefit (81) (58) (44) (139) (109)
Total
adjustments, net
of taxes 15,685 10,730 16,248 26,415 30,973
------ ------ ------ ------ ------
Adjusted net
income $17,713 $ 9,696 $34,251 $27,409 $62,924
====== ====== ====== ====== ======
Reconciliation of Adjusted Net Income per Diluted Share:
Three Months Ended Six Months Ended
----------------------------------------- --------------------------
June 30, March 31, June 30, June 30, June 30,
2026 2026 2025 2026 2025
------------ ------------ ------------ ------------ ------------
Net income (loss) $ 0.02 $ (0.01) $ 0.16 $ 0.01 $ 0.27
Adjustments:
Merger and
integration
expense 0.03 0.00 0.02 0.03 0.03
Severance and
other
expense 0.02 0.03 0.06 0.05 0.11
Stock-based
compensation
expense 0.08 0.06 0.06 0.15 0.12
----------- ----------- ----------- ----------- -----------
Total
adjustments,
before taxes 0.14 0.09 0.14 0.23 0.27
----------- ----------- ----------- ----------- -----------
Tax benefit (0.00) (0.00) (0.00) (0.00) (0.00)
----------- ----------- ----------- ----------- -----------
Total
adjustments, net
of taxes 0.14 0.09 0.14 0.23 0.27
----------- ----------- ----------- ----------- -----------
Adjusted net
income $ 0.15 $ 0.09 $ 0.30 $ 0.24 $ 0.54
=========== =========== =========== =========== ===========
As reported
diluted weighted
average common
shares
outstanding 114,446,970 113,624,307 115,508,918 115,049,304 116,216,865
View source version on businesswire.com: https://www.businesswire.com/news/home/20260728258805/en/
CONTACT: Dave Wilson - Vice President Investor Relations
+1 (281) 384-1544
InvestorRelations@expro.com
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