Expro Group Holdings (XPRO) Barclays 38th Annual CEO Energy-Power Conference summary

Company overview and business model

• Operates as a technology-driven company with diverse product lines across well construction, well flow management, subsea well access, and well intervention integrity.

• Revenue is geographically balanced: one-third from North/Latin America, one-third from Europe/Sub-Saharan Africa, and one-third from Middle East/North Africa/Asia Pacific.

• 80% of business is international and 70% is offshore, with minimal exposure to U.S. land drilling.

• Maintains a strong balance sheet with zero net debt and a 95% service quality performance.

Industry trends and macro outlook

• Offshore and deepwater final investment decisions (FIDs) are returning to 2012-2014 levels, with over $100 billion in FIDs for 2024.

• West Africa's deepwater investment is about half of its previous peak, but future projects are expected to be long-term and sizable.

• Industry CapEx is shifting from North America to international and offshore markets, aligning with the company’s business mix.

• Order backlogs for offshore equipment signal sustained sector activity through the decade.

Financial performance and targets

• Updated 2024 guidance: $1.7–$1.75 billion in revenue and 20–22% EBITDA margin.

• Near-term goal: $2 billion in revenue, mid-20s EBITDA margin, and 10% free cash flow margin.

• Operating leverage improved by reducing support costs from 27% to under 20% of revenue since 2014.

• Efficiency gains and technology investments are key to margin expansion.