Expro Group Holdings (XPRO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $470 million, up 22% sequentially and 18% year-over-year, exceeding guidance and marking a record since the Expro Frank's merger, with all segments contributing and Coretrax adding $21 million.

• Adjusted EBITDA rose to $95 million, up 40% sequentially and 32% year-over-year, with margin improving to 20%.

• Net income for Q2 2024 was $15 million ($0.13 per diluted share), up from $9 million in Q2 2023, reversing a Q1 net loss.

• Order backlog stood at $2.2 billion at quarter-end, supported by $196 million in new contract awards.

• Coretrax acquisition closed in May, enhancing technology offerings and supporting segment and margin expansion.

Financial highlights

• Q2 2024 revenue: $470 million (22% sequential growth, 18% year-over-year); Adjusted EBITDA: $95 million (40% sequential, 32% year-over-year); margin: 20%.

• Adjusted net income for Q2 2024 was $31 million ($0.27 per share), up from $19 million in Q2 2023.

• Q2 Adjusted cash flow from operations was $6 million, down from $36 million in Q2 2023, due to a $72 million net working capital build.

• Total liquidity at quarter-end: $271 million (cash and equivalents $135 million, $136 million available credit); long-term borrowings: $121 million.

• Capital expenditures for Q2 totaled $36 million; full-year 2024 capex expected at $65–$75 million for H2.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $1.7–$1.75 billion, with Adjusted EBITDA expected at $350–$375 million and margin around 21%.

• Q3 2024 revenue expected at $410–$430 million (14% year-over-year growth, 10% sequential decline), with Adjusted EBITDA of $85–$95 million and margin of 21–22%.

• Free cash flow margin for 2024 expected in the high single digits, weighted to H2.

• Medium-term targets: $2 billion revenue, mid-20s Adjusted EBITDA margin, 10% free cash flow margin.

• Sequential Q3 revenue decrease expected, followed by a Q4 rebound, reflecting project timing and strong Q2 results.