Expro Group Holdings (XPRO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $437 million, up 3% sequentially and 7% year-over-year, with Adjusted EBITDA of $100 million (23% margin), marking the best quarterly performance since the Expro-Frank's merger in 2021.

• Full-year 2024 revenue was $1,713 million, up 13% year-over-year, and Adjusted EBITDA rose 40% to $347 million (20% margin).

• Net income for Q4 was $23 million versus $16 million in Q3 and a net loss of $12 million in Q4 2023; full-year net income was $52 million compared to a net loss of $23 million in 2023.

• Major operational highlights included the acquisition and integration of Coretrax, contributing $88 million in revenue for 2024 with accretive margins, and completion of the Congo Production Solutions project’s construction and commissioning phase.

• Deployed new technologies to drive automation, safety, and emissions reduction, including iTONG, Coretrax expandables, DFOS, RCIS, and Blackhawk Wireless Plug Dropping Cement Head.

Financial highlights

• Q4 revenue increased $14 million sequentially and $30 million year-over-year, driven by Subsea Well Access and well flow management services.

• Q4 Adjusted EBITDA: $100 million (23% margin), up 18% sequentially and year-over-year; full-year Adjusted EBITDA: $347 million (20% margin, up from 16% in 2023).

• Adjusted Cash Flow from operations was $115 million in Q4 and $225 million for the year; Free Cash Flow was $75 million in Q4 and $87 million for the year.

• Backlog stood at $2.3 billion at year-end, with $314 million in new contract awards during the year.

• Q4 net income: $23 million ($0.19 per diluted share); full-year net income: $52 million ($0.45 per diluted share).

Outlook and guidance

• 2025 revenue is expected to be stable to modestly up, guided at $1.7–$1.75 billion, with Adjusted EBITDA of $350–$370 million and margin up over 100 basis points.

• Q1 2025 revenue is forecast at $370–$380 million, down 15% sequentially due to seasonality and project timing, with a rebound expected in Q2.

• Free Cash Flow margin is targeted at 7% for 2025, with a long-term goal of 10%.

• Management targets mid-20s Adjusted EBITDA margin and 10% free cash flow margin in the medium term.

• "Drive25" efficiency campaign and Coretrax acquisition expected to support margin expansion.