Expro Group Holdings N.V. (NYSE: XPRO) has recently announced its second-quarter 2025 results, displaying continued operational execution and financial performance exceeding expectations. The company reported revenue of $423 million, surpassing the top end of the guidance range of $410 million. Notably, this marks the third consecutive quarter of financial results above expectations.
The net income for the second quarter was $18 million, with a net income margin of 4%. Adjusted EBITDA stood at $94 million, surpassing the top end of the company's guidance range of $90 million. The adjusted EBITDA margin of 22% marks a third consecutive record high and ranks among the top in the peer group. Additionally, the company generated cash flow from operations of $48 million, constituting 11% of revenues.
Expro reported free cash flow of $27 million, with a free cash flow margin of 6%, and adjusted free cash flow of $36 million, and an adjusted free cash flow margin of 9%.
The company's total order backlog stands at $2.3 billion, with the second-highest new order awards of $595 million. Expro reaffirmed its full-year guidance with revenue of circa $1.7 billion, adjusted EBITDA of at least $350 million, and adjusted free cash flow of approximately $110 million, or ~7% of revenues. Expro remains committed to returning approximately one-third, or ~$40 million, of adjusted free cash flow to shareholders annually.
Expro's CEO, Michael Jardon, expressed satisfaction with the strong second-quarter financial results, emphasizing the company's resilience, outstanding team performance, and commitment to returning value to shareholders. The company's focus on operational execution and innovation, along with its diverse geographic footprint, has contributed to its success.
Expro also achieved notable industry firsts, introducing innovative technologies such as the Brute® Armor Packer, a fully automated remote clamp installation system (RCIS), and the world's first fully remote five-plug cementing operation using the Generation-X™ remote plug launcher combined with the Skyhook™ cement-line make-up device.
In the second quarter, Expro secured substantial contracts in various regions, including a multi-year, multi-rig contract in Guyana, a significant three-year contract in Mexico, and incremental activity in Brazil, among others.
The company is committed to generating significant free cash flow and plans to continue expanding its adjusted EBITDA margin while reducing the capital intensity of the business. Expro remains dedicated to returning value to shareholders through share repurchases.
Expro's consolidated cash and cash equivalents, including restricted cash, totaled $207 million as of June 30, 2025, with total liquidity standing at $343 million. The company had outstanding long-term borrowings of $121 million as of the same date.
In terms of segment results, the North and Latin America (NLA) segment saw an increase in revenue and segment EBITDA, while the Europe and Sub-Saharan Africa (ESSA) segment reported higher revenues and segment EBITDA. The Middle East and North Africa (MENA) segment experienced a decrease in revenue but maintained a strong segment EBITDA margin.
Expro's strong financial and operational performance in the second quarter of 2025 reflects its ongoing commitment to delivering value to its stakeholders and capitalizing on growth opportunities in key markets. The market has reacted to these announcements by moving the company's shares 4.05% to a price of $9.00. For more information, read the company's full 8-K submission here.
