Expro Group Holdings N.V. Announces Third Quarter 2024 Results

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Revenue of $423 million, down 10% sequentially and up 14% year-over-year.

Net income of $16 million, as compared to net income of $15 million for the second quarter of 2024 and net loss of $14 million for the third quarter of 2023. Net income margin was 4% for the third quarter of 2024, compared to 3% for the second quarter of 2024 and up compared to (4)% for the third quarter of 2023.

Adjusted EBITDA1 of $85 million, which includes losses recognized on our Congo production solutions project of $7 million, down 10% sequentially and up 69% year-over-year. Adjusted EBITDA margin1 was 20%, for the third and second quarters of 2024, up six percentage points compared to 14% for the third quarter of 2023.

Refining full-year 2024 guidance range to $1.72 to $1.75 billion of revenue, $335 to $350 million of Adjusted EBITDA and Adjusted EBITDA Margin of approximately 20%.

HOUSTON, October 24, 2024--(BUSINESS WIRE)--Expro Group Holdings N.V. (NYSE: XPRO) (the "Company" or "Expro") today reported financial and operational results for the three and nine months ended September 30, 2024.

Third Quarter 2024 Highlights

  • Revenue was $423 million compared to revenue of $470 million in the second quarter of 2024, a decrease of $47 million, or 10%. Consistent with expectations, the decrease in revenue was a result of lower activity in the North and Latin America ("NLA") and Europe and Sub-Saharan Africa ("ESSA") segments, offset by modestly higher activity in the Middle East and North Africa ("MENA") and Asia Pacific ("APAC") segments. Third and second quarter operating results respectively include $33 million and $21 million of revenue attributable to Coretrax.

  • Net income for the third quarter of 2024 was $16 million, or $0.14 per diluted share, compared to net income of $15 million, or $0.13 per diluted share, for the second quarter of 2024. Net income margin (defined as net income as a percentage of revenue) was 4% for the three months ended September 30, 2024, up from 3% for the three months ended June 30, 2024. Adjusted net income1 for the third quarter of 2024 was $28 million, or $0.23 per diluted share, compared to adjusted net income for the second quarter of 2024 of $31 million, or $0.27 per diluted share.

  • Adjusted EBITDA for the third quarter was $85 million, a sequential decrease of $10 million, or 10%, primarily attributable to lower well flow management activity related to changes in our customers' drilling and completions programs in Mexico, and lower activity and a change in activity mix in the U.S. Gulf of Mexico. Additionally, the results for the three months ended September 30, 2024 and June 30, 2024 include losses on our Congo production solutions project of $7 million and $12 million, respectively, pending the resolution of several variation orders. Adjusted EBITDA margin for both the third and second quarters of 2024 was 20%.

  • Net cash provided by operating activities for the third quarter of 2024 was $55 million, an increase as compared to net cash used in operating activities of $13 million for the second quarter of 2024, primarily driven by a decrease in working capital. Consistent with historical seasonal patterns, the decrease in working capital is expected to continue in the fourth quarter of 2024, resulting in an improvement in net cash provided by operating activities.

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