Expro Group Holdings (XPRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $391 million, up 2% year-over-year, with adjusted EBITDA of $76 million (20% margin), the highest Q1 since the Expro/Frank's merger.

• Net income for Q1 2025 was $14 million (4% margin), a turnaround from a net loss in Q1 2024.

• The business model's resilience is supported by a diversified portfolio, global presence, and limited exposure to contracting markets.

• Over 50% of Drive25 cost optimization initiatives completed, targeting $30 million in run-rate savings, with half expected to impact 2025 results.

• $272 million in new contract awards were secured in Q1, with a healthy backlog of $2.2 billion.

Financial highlights

• Q1 2025 revenue: $391 million (up 2% year-over-year, down 11% sequentially from Q4 2024).

• Adjusted EBITDA: $76 million (20% margin), up 13% year-over-year, but down from $100.4 million (23% margin) in Q4 2024.

• Net income: $14 million in Q1 2025 vs. net loss of $2.7 million in Q1 2024 and $23 million in Q4 2024.

• Free cash flow for Q1 was $20 million; cash flow from operations was $41.5 million; cash conversion rate was 69%.

• Capital expenditures were $33 million, with 90% supporting customer activities; $10 million was used for share repurchases.

Outlook and guidance

• Q2 2025 revenue guidance: $400–$410 million; Adjusted EBITDA: $80–$90 million, with margin up 100 bps sequentially.

• Full-year 2025 revenue is expected to be flat or slightly up versus 2024, exceeding $1.7 billion, with stable or modestly higher margins.

• Adjusted EBITDA for 2025 is expected to meet or exceed 2024 results; free cash flow margin should be around 7% (~$120 million).

• H2 2025 is expected to see mid-single-digit revenue growth over H1, supported by new project startups.

• Guidance assumes no further tariff-driven uncertainty and stable commodity prices.