Expro Group Holdings N.V. ((XPRO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Expro Group Holdings N.V. recently held its earnings call, revealing a generally positive sentiment despite some regional challenges. The company showcased strong financial performance, highlighted by record-breaking free cash flow and robust EBITDA margins. Expro’s ability to secure significant contracts and its commitment to technological innovation were also emphasized, although a softer activity outlook in the Asia Pacific region and expectations of flat to slightly down activity in 2026 tempered the overall optimism.
Record-Breaking Free Cash Flow
Expro achieved a significant milestone by reporting its highest quarterly free cash flow ever, amounting to $46 million, which constitutes 11% of its revenue. This achievement underscores the company’s strong financial management and operational efficiency.
Strong EBITDA Performance
The company reported an impressive EBITDA of $94 million, with a margin of 22.8%. This reflects Expro’s ongoing efforts to enhance operational efficiency and maintain robust profitability.
Increased Annual Guidance
Based on its strong third-quarter performance, Expro raised its 2025 annual guidance for both EBITDA and free cash flow. This adjustment demonstrates confidence in its financial trajectory for the remainder of the year.
Significant Contract Wins
Expro secured major contracts, including a 5-year extension with Chevron in the Gulf of America and a significant deal with ConocoPhillips in Alaska. These wins highlight Expro’s competitive edge and strong market presence.
Technological Innovations and Awards
Expro’s commitment to innovation was recognized with several awards, including the OTC Brasil Spotlight on New Technology award and the Gulf Energy Awards, showcasing its leadership in technological advancements.
Softer Activity in Asia Pacific
The company experienced a revenue decrease of $8 million in the Asia Pacific region during the third quarter, attributed to reduced activity in Malaysia and Australia, indicating regional challenges.
Flat to Slightly Down Activity Outlook for 2026
Expro anticipates that activity levels in 2026 will be consistent with, or slightly lower than, those in 2025, with a slower start expected in the first quarter. This outlook suggests cautious optimism for the future.
Forward-Looking Guidance
During the earnings call, Expro provided updated guidance reflecting its strong third-quarter performance. The company raised its annual guidance for EBITDA to a range of $350 million to $360 million and adjusted free cash flow to between $110 million and $120 million for 2025. Expro also achieved its annual share repurchase target of $40 million ahead of schedule and increased its backlog to $2.3 billion, ensuring solid revenue visibility. Looking ahead to 2026, Expro expects consistent activity levels, with potential softness in the first half, but aims to expand EBITDA margins and free cash flow through operational efficiency and strategic technology deployments.
In summary, Expro’s earnings call highlighted a strong financial performance, driven by record-breaking free cash flow and robust EBITDA margins. The company’s strategic contract wins and technological innovations further bolster its market position. However, challenges in the Asia Pacific region and a cautious outlook for 2026 activity levels suggest a balanced approach to future growth. Overall, Expro remains well-positioned to navigate the evolving market landscape.