On February 25, 2025, Expro Group Holdings NV (XPRO, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, known for its comprehensive well life cycle services, reported significant growth in both revenue and earnings, surpassing analyst estimates.
Company Overview
Expro Group Holdings NV (XPRO, Financial) provides a wide range of products and services across the well life cycle, including well construction, well flow management, well intervention and integrity, and subsea well access. The company operates globally, with a strong focus on offshore production solutions, bolstered by its 2021 merger with Frank's International. Expro's business is heavily reliant on international and offshore markets, which account for approximately 80% and 70% of its annual revenue, respectively.
Performance and Challenges
Expro Group reported a fourth-quarter revenue of $437 million, marking a 3% sequential increase and a 7% year-over-year rise. The full-year revenue reached $1,713 million, a 13% increase from the previous year. This growth was driven by increased activity in regions such as Europe, Sub-Saharan Africa, and the Middle East. However, the company faces challenges such as seasonal reductions in activity and the need to optimize production from existing wells while reducing emissions.
Financial Achievements
Expro's financial achievements are noteworthy, particularly in the context of the oil and gas industry. The fourth-quarter Adjusted EBITDA was $100 million, an 18% increase both sequentially and year-over-year, with an Adjusted EBITDA margin of 23%. For the full year, Adjusted EBITDA rose by 40% to $347 million, with a margin of 20%, up from 16% in 2023. These metrics highlight Expro's ability to enhance profitability through strategic investments and acquisitions, such as the acquisition of Coretrax.
Key Financial Metrics
Expro's net income for the fourth quarter was $23 million, or $0.19 per diluted share, compared to a net income of $16 million in the previous quarter. The adjusted net income for the fourth quarter was $43 million, or $0.36 per diluted share. The company's net cash provided by operating activities increased to $97 million in the fourth quarter, driven by higher Adjusted EBITDA and reduced working capital and taxes.
| Metric | Q4 2024 | Full Year 2024 |
|---|---|---|
| Revenue | $437 million | $1,713 million |
| Adjusted EBITDA | $100 million | $347 million |
| Net Income | $23 million | $52 million |
Analysis and Outlook
Expro's performance in 2024 demonstrates its resilience and strategic growth in the oil and gas sector. The company's focus on expanding its service offerings and optimizing operations has resulted in improved financial metrics. The extension of the $100 million stock repurchase program further underscores Expro's commitment to enhancing shareholder value.
Michael Jardon, Chief Executive Officer, stated, "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. Our organic investment and successful M&A strategy continue to enable margin expansion and improve relevancy to our customers."
Looking ahead, Expro anticipates stable to modestly increasing revenues in 2025, with an expected improvement in Adjusted EBITDA margin. The company's strategic initiatives, such as the "Drive25" operating efficiency campaign, are expected to support further margin expansion and profitability.
Explore the complete 8-K earnings release (here) from Expro Group Holdings NV for further details.
