Expro's Q1 2025: Navigating Market Volatility and Contradictions in Financial Projections

Market volatility and customer caution, free cash flow and margin expansion, 2025 revenue and EBITDA margin targets, expected EBITDA impact of U.S. tariffs, and market conditions and customer confidence are the key contradictions discussed in Expro's latest 2025Q1 earnings call.



Revenue and Margin Performance:
- Expro Group Holdings N.V. reported revenue of $391 million for Q1 2025, with an adjusted EBITDA of $76 million, marking the highest first-quarter performance since the merger with Frank in 2021.
- The strong financial performance was attributed to a robust business model, comprehensive service portfolio, and global presence, despite exposure to markets expected to contract in 2025.

Contract Awards and Backlog:
- Expro secured $272 million in new contract awards in Q1 2025, including significant contracts in the U.S., Brazil, and Indonesia.
- The awards were driven by safety, service delivery, and cost-effective technology-enabled services, maintaining a healthy backlog of approximately $2.2 billion.

Macroeconomic Outlook and Market Uncertainty:
- Expro expressed caution due to tariff announcements and OPEC+ supply increases, which introduced near-term uncertainty and volatility in global oil markets.
- Despite uncertainty, Expro remains bullish on long-term international and offshore markets, with natural gas expected to be a critical clean fuel and LNG in a major expansion phase.

Regional Performance and Growth Opportunities:
- The Middle East and North Africa (MENA) segment saw revenue increase by 1% sequentially, with an EBITDA margin of 37%.
- Growth in MENA was driven by strong anchor contracts and market penetration with recent acquisitions, notably Coretrax, which has strengthened Expro's position in unconventional gas activities.

Cost Optimization and Financial Outlook:
- Expro's Drive 25 efficiency campaign aims to reduce support costs by $30 million in run rate savings, with a target of achieving this by the fourth quarter of 2025.
- The company expects full-year 2025 revenue to be comparable to 2024, with adjusted EBITDA meeting or exceeding 2024 results, reflecting cost discipline and strategic flexibility.