Expro Group Holdings N.V. has reported a solid performance in the first quarter of 2025 despite a dynamic operating environment and the impact of the winter season. The company's revenue for the first quarter was $391 million, marking a decrease of $46 million or 11% compared to the fourth quarter of 2024. However, it's worth noting that the adjusted EBITDA of $76 million is the highest first-quarter result since the completion of the Expro/Frank's merger in the fourth quarter of 2021. The adjusted EBITDA margin for the first quarter of 2025 was 20%, up from 18% for the same period in 2024, indicating a positive trend in margin improvement over the years.
The net income for the first quarter of 2025 was $14 million, with a net income margin of 4%, an improvement from the negative 1% margin in the first quarter of 2024. However, there was a sequential decrease in adjusted EBITDA of $24 million, or 24%, primarily due to lower revenue and a less favorable activity mix. Net cash provided by operating activities for the first quarter of 2025 was $42 million, a decrease from $97 million in the fourth quarter of 2024, mainly driven by a decrease in adjusted EBITDA and movements in working capital.
Looking ahead, the company has provided guidance for the second quarter of 2025, expecting revenue within a range of $400 to $410 million and adjusted EBITDA within a range of $80 to $90 million. Expro's CEO, Michael Jardon, expressed optimism about the company's outlook, highlighting the continued investment in technology and successful M&A strategy that is enabling margin expansion and increasing relevance with customers. The company remains focused on providing mission-critical services to drive sustainable growth and long-term value for stakeholders.
Notable achievements in the first quarter of 2025 include contract awards totaling $272 million across various product lines, showcasing the demand for Expro's services and solutions. The company also successfully deployed advanced technologies in various regions, emphasizing its commitment to innovation and efficiency.
Segment results for the first quarter of 2025 compared to the previous quarter showed varying performances across regions. In North and Latin America (NLA), revenue decreased by 4%, while in Europe and Sub-Saharan Africa (ESSA), revenue decreased by 21%. On the other hand, the Middle East and North Africa (MENA) segment saw an increase in revenue by 1%, and the Asia Pacific (APAC) segment experienced a 19% decrease in revenue.
Looking at other financial information, Expro's capital expenditures totaled $33 million in the first quarter of 2025, with plans for capital expenditures in the range of approximately $90 million to $100 million for the remaining nine months of the year. As of March 31, 2025, the company's consolidated cash and cash equivalents, including restricted cash, totaled $180 million, with outstanding long-term borrowings of $121 million and total liquidity of $316 million.
The market has reacted to these announcements by moving the company's shares -4.4% to a price of $7.68. For more information, read the company's full 8-K submission here.
