Expro Group’s Q2 2025 Earnings Call Highlights

Expro Group Holdings N.V. ((XPRO)) has held its Q2 earnings call. Read on for the main highlights of the call.

Expro Group Holdings N.V. recently held its Q2 2025 earnings call, where the sentiment was overwhelmingly positive. The company reported strong financial performance, with record-setting EBITDA margins and significant new order awards. Despite facing challenges such as volatility in commodity prices and a decline in subsea well access revenue, Expro’s strong market position and optimistic outlook contributed to the positive sentiment.

Record-Setting EBITDA Margin

Expro achieved a remarkable milestone with its third consecutive quarter of record-setting quarterly EBITDA margin at 22%. This marks the best EBITDA margin quarterly results in the company’s history, showcasing Expro’s operational efficiency and financial strength.

Strong Revenue and Free Cash Flow

The company reported robust financials for Q2 2025, with revenue reaching $423 million and an impressive $36 million in free cash flow on an adjusted basis, representing 9% of revenue. This strong performance underscores Expro’s ability to generate substantial cash flow and maintain financial stability.

Significant New Order Awards

Expro secured new order awards totaling $595 million in Q2, marking the second highest quarter of new order intakes in the company’s history. This achievement highlights Expro’s competitive edge and its ability to capture significant market opportunities.

Technological Innovation

In a bid to maintain its technological leadership, Expro deployed three new industry-first technologies: the BRUTE Armor Packer, Remote Clamp Installation System, and a fully remote five-plug cementing operation. These innovations demonstrate Expro’s commitment to advancing industry standards and enhancing operational efficiency.

Positive Market Outlook

Despite facing market challenges, Expro maintains a positive multiyear perspective on the overall opportunity set and its relative market position. The company remains confident in its ability to capitalize on future growth opportunities.

Volatility in Commodity Prices

The second quarter of 2025 was marked by significant commodity price fluctuations, with Brent crude trading within a $20 per barrel range. This volatility poses challenges but also opportunities for Expro to navigate the market effectively.

Subsea Well Access Revenue Decline

Expro experienced a 16% sequential decline in subsea well access revenue, with noted softness in Malaysia. This decline highlights the challenges in certain market segments, which Expro aims to address through strategic initiatives.

Caution in Short-Cycle Activities

There is observed caution from customers in pursuing short-cycle activities and incremental oil production opportunities. Expro is adapting to these market dynamics by focusing on long-term strategic growth.

Forward-Looking Guidance

Expro provided robust guidance for the fiscal year, expecting full-year revenue to reach approximately $1.7 billion, with EBITDA projected at least $350 million. The company anticipates generating about $110 million in adjusted free cash flow, maintaining a free cash flow conversion of approximately 7% of revenue. Despite market challenges, Expro’s strong backlog of $2.3 billion and steady demand for its services support this optimistic guidance. The Drive25 initiative aims for $30 million in annual run-rate cost savings, with at least 50% captured in the current year. Expro is also committed to shareholder returns, planning to repurchase about $40 million in stock in 2025.

In conclusion, Expro Group Holdings N.V.’s Q2 2025 earnings call reflected a positive sentiment, driven by record-setting financial performance and strategic initiatives. Despite facing market challenges, the company’s strong market position and forward-looking guidance provide confidence in its continued growth and success.