10-Q: Expro Group Holdings N.V. Reports Net Income of $13.9 Million in Q1 2025, Announces Stock Repurchase Program

Expro Group Holdings N.V. announces its Q1 2025 financial results, reporting a net income of $13.9 million and highlighting its ongoing stock repurchase program.

Summary

• Expro Group Holdings N.V. reported a net income of $13.9 million for the three months ended March 31, 2025, compared to a net loss of $2.677 million for the same period in 2024.
• Total revenue for Q1 2025 was $390.872 million, up from $383.489 million in Q1 2024.
• The company's operating income increased to $10.323 million from $8.420 million year-over-year.
• Basic and diluted earnings per share were both $0.12, compared to a loss of $0.02 per share in the prior year.
• The company repurchased approximately 1.0 million shares at an average price of $10.08 per share, for a total cost of approximately $10.0 million during the three months ended March 31, 2025.
• Adjusted EBITDA for the three months ended March 31, 2025, decreased by $24.1 million, or 24.0%, to $76.2 million from $100.4 million for the three months ended December 31, 2024.
• Adjusted EBITDA margin was 20% for the three months ended March 31, 2025 compared to 23% for the three months ended December 31, 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While the company reports a net income, there's a decrease in Adjusted EBITDA and increased market uncertainty, balancing the positive and negative aspects.

Positives

• Expro Group Holdings N.V. achieved a net income of $13.9 million in Q1 2025, a significant improvement from the $(2.677) million loss in Q1 2024.
• Revenue increased to $390.872 million in Q1 2025 from $383.489 million in Q1 2024.
• Basic and diluted earnings per share were both $0.12, compared to a loss of $0.02 per share in the prior year.
• The company's operating income increased to $10.323 million from $8.420 million year-over-year.

Negatives

• Adjusted EBITDA decreased to $76.2 million from $100.4 million for the three months ended December 31, 2024.
• Adjusted EBITDA margin was 20% for the three months ended March 31, 2025 compared to 23% for the three months ended December 31, 2024.
• Revenue for the three months ended March 31, 2025, decreased by $46.0 million, or 10.5%, to $390.9 million, compared to $436.8 million for the three months ended December 31, 2024.

Risks

• The market is experiencing increasing near-term uncertainty and volatility resulting from recently announced tariffs and expected production increases, particularly by OPEC+ members.
• These developments have led to a decline in commodity prices due to concerns over a global recession and a potential deceleration in demand growth.
• The company acknowledges that the market for energy services is substantially dependent on the price of oil and gas, which impacts customer willingness to spend on exploration, development, and production activities.

Future Outlook

The company anticipates modest growth, assuming commodity prices remain above $60 to $65/bbl. Energy security requirements should also support sustained demand for hydrocarbons. These key factors continue to support investment and activity, driving at least modest medium-term growth for Expro.

Management Comments

• The company is dedicated to safely and sustainably delivering maximum value to our customers.
• The Stock Repurchase Program will continue to be utilized at managements discretion and in accordance with federal securities laws.

Industry Context

The report acknowledges the volatility in the energy market due to factors like tariffs, production increases by OPEC+, and geopolitical tensions. It also highlights the ongoing energy transition and the role of natural gas in that transition.

Comparison to Industry Standards

• The report mentions that Wall Street analysts generally expect oil prices of $60-$65/bbl over the medium-term, a level supportive of continued upstream investment by operators.
• The U.S. Energy Information Administration (EIA) predicts that global liquids fuels demand will average 103.6 million b/d in 2025.
• Rystad Energy forecasts prices at the European Title Transfer Facility (TTF) will average $13.8/MMBtu in 2025.

Related Party Transactions

• During the three months ended March 31, 2025, we provided goods and services to related parties totaling $0.3 million, and $4.3 million for the three months ended March 31, 2024.
• During the three months ended March 31, 2025 we received material goods and services from related parties totaling less than $0.1 million and $0.1 million for the three months ended March 31, 2024.
• As of March 31, 2025 and December 31, 2024 amounts receivable from related parties were $0.3 million and $0.8 million, respectively, and amounts payable to related parties were less than $0.1 million in both periods.

Stakeholder Impact

• The stock repurchase program may impact shareholders by potentially increasing the value of remaining shares.
• The company's performance and strategic decisions affect employees, customers, and suppliers.

Key Dates

Keywords

Expro, financial results, Q1 2025, net income, revenue, stock repurchase, Adjusted EBITDA, energy services, oil and gas