--- title: "Expro Announces Second Quarter 2026 Results | XPRO Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/294052469.md" description: "Expro Ltd (NYSE: XPRO) reported Q2 2026 results with revenue of $393 million, net income of $2 million, and adjusted EBITDA of $76 million. The company generated $81 million in operating cash flow and repurchased approximately $20 million in shares. CEO Michael Jardon noted sequential growth despite Middle East conflicts, highlighting strong subsea orders and the acquisition of Enhanced Drilling. Expro remains committed to returning at least one-third of annual free cash flow to shareholders." datetime: "2026-07-28T02:45:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294052469.md) - [en](https://longbridge.com/en/news/294052469.md) - [zh-HK](https://longbridge.com/zh-HK/news/294052469.md) generator: "portal-rs" --- # Expro Announces Second Quarter 2026 Results | XPRO Stock News See more from StockTitan in Google Search and AI answers.Adds StockTitan as a preferred source · opens Google Add on Google HOUSTON--(BUSINESS WIRE)--Expro Ltd (NYSE: XPRO) (the “Company” or “Expro”) today reported financial and operational results for the three months ended June 30, 2026. **Second Quarter 2026 Highlights** - Revenue was $393 million - Net income of $2 million - Adjusted EBITDA(1) of $76 million with an Adjusted EBITDA margin(1) of 19.3% - Cash flow from operations of $81 million, or 20.7% of revenue - Adjusted free cash flow(2) of $56 million - Share repurchases of approximately $20 million (1.3 million shares at an average of $15.42 per share) - Liquidity at the end of the quarter stood at $492 million Michael Jardon, Chief Executive Officer, commented, “Our second quarter results reflect a good sequential increase coming out of a seasonally low first quarter. This is despite the impacts caused by the Middle East conflict that tempered our second quarter results. “During the quarter we continued to execute across our disciplined capital allocation framework. The Company’s capital allocation centers around investing in the business, maintaining a solid financial position, M&A, and returning cash to shareholders through share repurchases. All of these were achieved during the second quarter of 2026. The Company invested roughly $30 million in capital expenditures funding accretive and high-return projects, announced the acquisition of Enhanced Drilling, and maintained a strong balance sheet. Specifically, on returning cash to shareholders, the Company repurchased approximately $20 million or 1.3 million shares during the second quarter. This brings the year-to-date repurchases to approximately 2.5 million shares, representing approximately $40 million of cash returned to shareholders. The significance is that Expro is already very close to achieving its annual goal of returning at least one-third of free cash flow to shareholders. “With regards to the Middle East, the conflict and its impacts on our operations have persisted longer than we had previously anticipated. That said, we have been more positive on the developing medium-to-long-term outlook for our business. Increasing subsea trees orders and offshore rig utilization reinforce the view of a strengthening offshore market. We believe this will result in a more robust activity set for Expro in the coming years. Furthermore, operators are placing greater emphasis on technology-enabled efficiency gains, which I believe is one of our strengths and a reason why they chose Expro as their service provider. Along those lines, we recently closed on the Enhanced Drilling acquisition which adds a differentiated technological capability to our service portfolio. Finally, our commitment to driving efficiency gains does not stop with our customers. We are continually evaluating what we can do to drive further efficiency gains of our own, through cost control and other various internal initiatives.” **Free Cash Flow** Expro generated $81 million in net cash provided by operating activities in the second quarter of 2026. After capital expenditures of $31 million, Expro generated $50 million of free cash flow and $56 million of Adjusted free cash flow in the second quarter of 2026. Management believes that Adjusted free cash flow better reflects the Company’s performance by excluding one-time items, in line with corporate finance principles. **Three Months Ended** **Six Months Ended** **June 30,** **June 30,** **2026** **2026** **Total revenue** $393,182 $760,755 **Net cash provided by operating activities** $ 81,462 $ 106,746 Less: Capital expenditures (31,184 ) (56,948 ) **Free cash flow** 50,278 49,798 Add: Merger and integration expense (\*) 3,634 3,922 Add: Severance and other expense (\*) 2,572 5,798 **Adjusted free cash flow** $ 56,484 $ 59,518 *(\*)* *Expenses directly referenced on the condensed consolidated statements of operations.* **Shareholder Return** During the second quarter of 2026, the Company repurchased approximately 1.3 million shares at an average price of $15.42 per share, resulting in approximately $20 million of share repurchases. After the share repurchases during the first and second quarters of 2026, the Company has approximately $60 million remaining under its current Board of Directors share repurchase authorization to acquire up to $100 million of outstanding shares. For the full year 2026, Expro remains committed to utilizing at least 33% of the annual Adjusted free cash flow generated for capital returns to shareholders. **Drive25 and Additional Cost Efficiency Programs** Expro has successfully completed all internal projects as part of the Company’s Drive 25 self-help program. As expected, Expro expects to fully realize more than $40 million of structural cost removals in 2026. Additionally, Expro remains focused on driving ongoing efficiency improvements and further optimizing its cost base. As part of its continuous portfolio review process, the Company is assessing targeted actions across selected geographies and product lines to improve returns, enhance operating leverage, and support sustained margin expansion and free cash flow growth. **Short-Term Outlook** While the geopolitical situation in the Middle East remains uncertain, volatile, and has temporarily moderated the pace of the projected activity growth for Expro in high-margin businesses in the region, we have been encouraged by the resilience of our MENA operations, which has performed strongly despite the ongoing disruption. Importantly, the fundamental thesis underpinning our outlook for 2026 remains firmly intact. We continue to see a significant step-change in Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted free cash flow performance during the second half of the year. We expect these will be driven by the continued execution of our strategic initiatives, strong operating leverage across the business, and five months of contribution from the recently completed Enhanced Drilling acquisition. While our outlook conservatively reflects the near-term impacts of the regional conflict and a gradual recovery in activity levels, we expect second-half of 2026 Adjusted EBITDA margins to exceed 24%, with fourth-quarter margins exceeding 26%, representing a substantial improvement versus the first half of the year. We remain focused on the factors within our control, including disciplined execution, portfolio optimization, and operational efficiency initiatives, all of which support our long-term objective of delivering sustainable earnings growth, expanding margins, and increasing free cash flow generation. **Financial Guidance** Based upon the prevailing conflict in the Middle East and the recent closing of the Enhanced Drilling acquisition we have updated our financial guidance. With regards to the disruptions from the Middle East conflict, we expect there will be quarterly impacts throughout the remainder of 2026; however, not to the same extent as experienced during the second quarter. With regards to the Enhanced Drilling acquisition, we will include five months of operations in our 2026 results. For the second half of 2026, we still see tangible sequential increases in our quarterly results driven by: 1) our NLA segment in the fourth quarter with subsea well access and well flow management work and tubular sales in the Gulf of America, and well intervention and integrity work in Colombia, 2) our MENA segment with a sizeable production solutions project scheduled in the fourth quarter in North Africa, as well as some equipment sales in the region, 3) our APAC region with well construction and well flow management projects, accompanied by subsea equipment sales in China, and 4) the inclusion of five months of Enhanced Drilling’s operations during the second half of 2026. Previously, we had expected our operations in the Middle East countries to normalize during the back half of the year, which would have been additive to the results in the second half of 2026. As mentioned above, those expectations have changed with some of the impacts now expected through year end. Additionally, we had anticipated our Coretrax product line to generate incremental contributions across our geographic segments, particularly in Middle East where that product line has its largest exposure. Now however, the amount of the expected incremental contributions coming from Coretrax is lower than previously anticipated. Both of these factors serve to moderate our previous annual expectations. To account for these uncertainties, we are taking a conservative approach to our revised guidance; however, we do expect to be able to capture some upside above these estimates in the second half of the year, particularly in the fourth quarter. **Current Guidance** **Prior Guidance** **Three Months Ended** **Full Year Ended** **Full Year Ended** **September 30,** **December 31,** **December 31,** *(in millions)* **2026** **2026** **2026** Revenue $435-$455 $1,650-$1,700 $1,600 - $1,650 Adjusted EBITDA $90-$100 $355-$365 $355 - $375 Capital expenditure $110-$120 $110 - $120 Adjusted free cash flow $135-$145 $125 - $145 **Other Financial Information** As of June 30, 2026, Expro’s consolidated cash and cash equivalents, including restricted cash, totaled $200 million, and the Company’s total liquidity stood at $492 million. Total liquidity includes $292 million available for drawdowns as loans under the Company’s revolving credit facility. The Company had outstanding long-term borrowings of $79 million as of June 30, 2026. On April 1, 2026, Expro’s Board of Directors unanimously approved a plan to change the Company’s corporate domicile from the Netherlands to the Cayman Islands (the “Redomicile”). The proposals related to the Redomicile were approved by a shareholder vote during the Company’s Annual Shareholder Meeting on June 10, 2026. The Redomicile was completed on July 13, 2026. On July 23, 2026, Expro closed on the acquisition of Enhanced Drilling. Under the terms of the agreement Expro purchased Enhanced Drilling for approximately 2 billion Norwegian kroner (“NOK”) in cash (approximately $215 million) plus customary closing and working capital adjustments. The financial measures provided that are not presented in accordance with GAAP are defined and reconciled to their most directly comparable GAAP measures. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures. Additionally, downloadable financials are available in the Investor section of www.expro.com. **Notable Awards and Achievements** **Middle East and North Africa (MENA)** - In Iraq, the Company secured a contract for its SONAR Flow Surveillance. The SONAR solution enables a comprehensive field wide production surveillance and evaluation, providing timely data to support operational optimization and reservoir management. - In Oman, Expro secured a QPulseTM campaign on a gas condensate field to provide production testing on existing infrastructure. QPulseTM delivers well performance data without the operational disruption of conventional production testing methods. This technology lowers the costs and risks of production testing for customers. **North and Latin America (NLA)** - In Canada, Expro was awarded a multi-product line contract for a 14-well campaign with options for additional wells by a customer operating offshore Eastern Canada. The contract is expected to commence during the first half of 2027. - In Brazil, the Company entered into two three-year contracts to provide subsea landing string and tubular running services as well as cementing accessories. **Europe and Sub-Saharan Africa (ESSA)** - During the second quarter of 2026, this region secured over $250 million of contract awards – some for the extension of existing work, some for incremental work in the future. - In Azerbaijan, Expro extended existing contracts for subsea landing string and tubular running services. **Asia Pacific (APAC)** - In Malaysia, the Company secured a three-year contract to continue to support a customer’s deepwater subsea program. **Technologies** - Expro’s 1,250-ton XRDTM (Extended Range Drilling) Spider successfully completed all field trials with a major Gulf of America operator, culminating in a final wellbore cleanout run. The trials demonstrated reliable performance in demanding offshore conditions and confirmed the system’s operational readiness for broader deployment. - The Company utilized its subsea systems to complete a well abandonment campaign in the UK where Expro achieved 2,490 hours (104 days) with zero non-productive time; highlighting the Company’s equipment reliability and service discipline. - Expro has extended its capabilities in Namibia with the commissioning of a visual PVT system, which recently completed a major analysis campaign, providing in-country data, allowing the operator to accelerate the evaluation of their discovery. **Segment Results** Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2026 to the results for the first quarter of 2026. **North and Latin America (NLA)** Revenue for the NLA segment was $129 million for the three months ended June 30, 2026, an increase of $1 million, or 1%, compared to $128 million for the three months ended March 31, 2026. The increase was primarily driven by higher well intervention revenue in Argentina and increased well construction activity in Brazil, partially offset by lower well intervention revenue in Colombia. Segment EBITDA for the NLA segment was $26 million, or 20% of revenues, during the three months ended June 30, 2026, an increase of $0.1 million, or 1%, compared to $26 million, or 20%, of revenues during the three months ended March 31, 2026. **Europe and Sub-Saharan Africa (ESSA)** Revenue for the ESSA segment was $127 million for the three months ended June 30, 2026, an increase of $13 million, or 11%, compared to $114 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well flow management activities in the United Kingdom and Norway, partially offset by lower well flow management revenue in Republic of the Congo. Segment EBITDA for the ESSA segment was $34 million, or 27% of revenues, for the three months ended June 30, 2026, an increase of $3 million, or 8%, compared to $32 million, or 28% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA was primarily attributable to higher revenue, partially offset by a decrease in segment EBITDA margin due to reduced work on higher margin projects. **Middle East and North Africa (MENA)** Revenue for the MENA segment was $90 million for the three months ended June 30, 2026, an increase of $8 million, or 10%, compared to $82 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well construction revenue in Egypt. Segment EBITDA for the MENA segment was $33 million, or 36% of revenues, for the three months ended June 30, 2026, an increase of $9 million, or 39%, compared to $24 million, or 29% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA and Segment EBITDA margin is consistent with the increase in revenue and favorable activity mix. **Asia Pacific (APAC)** Revenue for the APAC segment was $47 million for the three months ended June 30, 2026, an increase of $3 million, or 7%, compared to $44 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well intervention activities in Brunei and Malaysia and higher subsea well access revenue in Malaysia, partially offset by lower subsea well access activities in Australia. Segment EBITDA for the APAC segment was $9 million, or 18% of revenues, for the three months ended June 30, 2026, an increase of $1 million compared to $7 million, or 16% of revenues, for the three months ended March 31, 2026. **Conference Call** The Company will host a conference call to discuss second quarter 2026 results on Tuesday, July 28, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Participants may also join the conference call by dialing: U.S. Toll-Free: +1 (800) 715-9871 U.S./International: +1 (646) 307-1963 Access ID: 46235 To listen via live webcast, please visit the Investor section of www.expro.com. The second quarter 2026 Investor Presentation is available in the Investor section of www.expro.com. An audio replay of the webcast will be available on the Investor section of the Company’s website approximately three hours after the conclusion of the call and will remain available for a period of two weeks. To access the audio replay telephonically: Dial-In: U.S. Toll-Free:+1 (800) 770-2030 or U.S./International +1 (609) 800-9909 Access ID: 46235 Start Date: July 28, 2026, approximately 3:00 p.m. CT End Date: August 11, 2026, 11:59 p.m. CT A transcript of the conference call will be posted to the Investor relations section of the Company’s website as soon as practicable after the conclusion of the call. **About Expro** Working for clients across the entire well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity. With roots dating to 1938, Expro has approximately 7,000 employees and provides services and solutions to leading energy companies in both onshore and offshore environments in more than 60 countries. For more information, please visit: www.expro.com and connect with Expro on X @ExproGroup and LinkedIn @Expro. **Forward Looking Statements** This release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this release include statements, estimates and projections regarding the outcome and benefits of the Enhanced Drilling acquisition, the Company’s ability to achieve the anticipated synergies as a result of the Enhanced Drilling acquisition, the Company’s ability to realize the potential strategic opportunities provided by, and realize the potential benefits of the Redomicile, and the Company’s future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections, guidance and operating results. These statements are based on certain assumptions made by the Company based on management’s experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties include the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations (including the ability to recover, and to the extent necessary, service and/or economically repair any equipment located on the seabed), political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Company’s industry, global or national health concerns, including health epidemics, the possibility of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, future actions of foreign oil producers such as Saudi Arabia and Russia, inflationary pressures, international trade laws, tariffs, the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations, and other guidance. Such assumptions, risks and uncertainties also include the factors discussed or referenced in the “Risk Factors” section of the definitive Proxy Statement/Prospectus, dated April 21, 2026, and the Annual Report on Form 10-K of Expro Group Holdings N.V. (“Expro NV”) for the year ended December 31, 2025, in each case filed with the SEC, as well as other risks and uncertainties set forth in other filings with the SEC by the Company and Expro NV. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, historical practice or otherwise, except as required by applicable law, and we caution you not to rely on them unduly. **Use of Non-GAAP Financial Measures** This press release and the accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss), and adjusted net income (loss) per diluted share, which may be used periodically by management when discussing financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. These non-GAAP financial measures are presented because management believes these metrics provide additional information relative to the performance of the business. These metrics are commonly employed by financial analysts and investors to evaluate the operating and financial performance of Expro from period to period and to compare such performance with the performance of other publicly traded companies within the industry. You should not consider Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss) and adjusted net income (loss) per diluted share in isolation or as a substitute for analysis of Expro’s results as reported under GAAP. Because Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, free cash flow, free cash flow margin, adjusted free cash flow, adjusted free cash flow margin, adjusted net income (loss) and adjusted net income (loss) per diluted share may be defined differently by other companies in the industry, the presentation of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. (1) Expro defines Adjusted EBITDA as net income (loss) adjusted for (a) income tax expense, (b) depreciation and amortization expense, (c) severance and other expense, (d) merger and integration expense, (e) gain on disposal of assets, (f) other (income) expense, net, (g) stock-based compensation expense, (h) foreign exchange (gains) losses and (i) interest and finance (income) expense, net. Adjusted EBITDA margin reflects Adjusted EBITDA expressed as a percentage of total revenue. (2) Free cash flow is defined as cash provided by (used in) operating activities less capital expenditures. Free cash flow margin is defined as free cash flow divided by total revenue, expressed as a percentage. Adjusted free cash flow is defined as cash provided by (used in) operating activities less capital expenditures, adjusted for merger and integration expense, severance and other expense (income) and other adjustments. Adjusted free cash flow margin reflects adjusted free cash flow expressed as a percentage of total revenue. Please see the accompanying financial tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures. **EXPRO GROUP HOLDINGS N.V.** **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** **(In thousands, except share data)** **(Unaudited)** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Total revenue** $393,182 $367,573 $422,740 $760,755 $813,612 **Operating costs and expenses:** Cost of revenue, excluding depreciation and amortization expense (311,158 ) (297,614 ) (319,981 ) (608,772 ) (625,473 ) General and administrative expense, excluding depreciation and amortization expense (19,655 ) (17,894 ) (14,499 ) (37,549 ) (36,313 ) Depreciation and amortization expense (45,792 ) (45,395 ) (46,716 ) (91,187 ) (92,137 ) Merger and integration expense (3,634 ) (288 ) (2,267 ) (3,922 ) (4,007 ) Severance and other expense (2,572 ) (3,226 ) (6,711 ) (5,798 ) (12,793 ) Total operating cost and expenses (382,811 ) (364,417 ) (390,174 ) (747,228 ) (770,723 ) **Operating income** 10,371 3,156 32,566 13,527 42,889 Other (expense) income, net (242 ) 347 280 105 1,934 Interest and finance expense, net (2,712 ) (1,551 ) (4,279 ) (4,263 ) (7,730 ) **Income before taxes and equity in income of joint ventures** 7,417 1,952 28,567 9,369 37,093 Equity in income of joint ventures 2,763 3,231 3,395 5,994 7,101 **Income before income taxes** 10,180 5,183 31,962 15,363 44,194 Income tax expense (8,152 ) (6,217 ) (13,959 ) (14,369 ) (12,243 ) **Net income (loss)** $ 2,028 $ (1,034 ) $ 18,003 $ 994 $ 31,951 **Earnings (loss) per common share:** Basic $ 0.02 $ (0.01 ) $ 0.16 $ 0.01 $ 0.28 Diluted $ 0.02 $ (0.01 ) $ 0.16 $ 0.01 $ 0.27 **Weighted average common shares outstanding:** Basic 113,098,653 113,624,307 115,444,915 113,360,028 115,829,219 Diluted 114,446,970 113,624,307 115,508,918 115,049,304 116,216,865 **EXPRO GROUP HOLDINGS N.V.** **CONDENSED CONSOLIDATED BALANCE SHEETS** **(In thousands)** **(Unaudited)** **June 30,** **December 31,** **2026** **2025** **Assets** **Current assets** Cash and cash equivalents $ 199,531 $ 196,093 Restricted cash 35 1,380 Accounts receivable, net 477,237 477,026 Inventories 170,586 167,895 Income tax receivables 38,181 31,654 Other current assets 98,202 86,287 **Total current assets** 983,772 960,335 Property, plant and equipment, net 514,613 523,157 Investments in joint ventures 79,779 78,706 Intangible assets, net 227,974 251,329 Goodwill 348,558 348,558 Operating lease right-of-use assets 77,796 72,777 Non-current accounts receivable, net 7,432 7,432 Post-retirement benefits 3,396 - Other non-current assets 17,018 17,141 **Total assets** $ 2,260,338 $ 2,259,435 **Liabilities and stockholders’ equity** **Current liabilities** Accounts payable and accrued liabilities $ 304,808 $ 268,588 Income tax liabilities 54,131 51,111 Finance lease liabilities 1,540 2,359 Operating lease liabilities 20,317 18,225 Other current liabilities 99,835 103,379 **Total current liabilities** 480,631 443,662 Long-term borrowings 79,065 79,065 Deferred tax liabilities, net 15,154 19,513 Post-retirement benefits - 314 Non-current finance lease liabilities 12,124 12,762 Non-current operating lease liabilities 58,259 56,103 Uncertain tax positions 73,355 77,890 Other non-current liabilities 36,198 36,003 **Total liabilities** 754,786 725,312 Common stock 8,570 8,559 Treasury stock (154,153 ) (127,137 ) Additional paid-in capital 2,107,739 2,110,177 Accumulated other comprehensive income 17,931 18,053 Accumulated deficit (474,535 ) (475,529 ) **Total stockholders’ equity** 1,505,552 1,534,123 **Total liabilities and stockholders’ equity** $ 2,260,338 $ 2,259,435 **EXPRO GROUP HOLDINGS N.V.** **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** **(In thousands)** **(Unaudited)** **Six Months Ended June 30,** **2026** **2025** **Cash flows from operating activities:** Net income $ 994 $ 31,951 *Adjustments to reconcile net income to net cash provided by operating activities:* Depreciation and amortization expense 91,187 92,137 Equity in income of joint ventures (5,994 ) (7,101 ) Stock-based compensation expense 15,554 14,282 Elimination of unrealized loss on sales to joint ventures 260 - Deferred taxes (4,360 ) (16,049 ) Unrealized foreign exchange loss (gain) 3,127 (6,047 ) *Changes in assets and liabilities:* Accounts receivable, net (1,995 ) 15,118 Inventories (2,691 ) (9,020 ) Other assets (11,921 ) (11,557 ) Accounts payable and accrued liabilities 34,852 (17,289 ) Other liabilities (4,614 ) 12,931 Income taxes, net (8,042 ) (6,599 ) Dividends received from joint ventures 4,662 498 Other (4,273 ) (3,333 ) **Net cash provided by operating activities** 106,746 89,922 **Cash flows from investing activities:** Capital expenditures (56,948 ) (54,316 ) Proceeds from disposal of assets - 5,000 **Net cash used in investing activities** (56,948 ) (49,316 ) **Cash flows from financing activities:** Release of (cash pledged for) collateral deposits, net 113 (415 ) Proceeds from borrowings 1,794 - Repurchase of common stock (39,998 ) (15,033 ) Payment of withholding taxes on stock-based compensation plans (5,003 ) (2,588 ) Repayment of financed insurance premium (526 ) (4,955 ) Repayments of finance leases (1,525 ) (887 ) **Net cash used in financing activities** (45,145 ) (23,878 ) Effect of exchange rate changes on cash and cash equivalents (2,560 ) 6,095 **Net increase to cash and cash equivalents and restricted cash** 2,093 22,823 Cash and cash equivalents and restricted cash at beginning of period 197,473 184,663 **Cash and cash equivalents and restricted cash at end of period** $ 199,566 $ 207,486 **Supplemental disclosure of cash flow information:** Cash paid for income taxes, net of refunds $ 27,234 $ 34,692 Cash paid for interest, net 4,598 5,243 Change in accounts payable and accrued expenses related to capital expenditures 2,341 6,967 **EXPRO GROUP HOLDINGS N.V.** **SELECTED OPERATING SEGMENT DATA** **(In thousands)** **(Unaudited)** ***Segment Revenue and Segment Revenue as Percentage of Total Revenue:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** NLA $ 129,287 *33* *%* $ 128,183 *34* *%* $ 142,582 *34* *%* $ 257,470 *34* *%* $ 276,860 *34* *%* ESSA 126,687 *32* *%* 113,919 *31* *%* 132,367 *31* *%* 240,606 *32* *%* 244,740 *30* *%* MENA 90,135 *23* *%* 81,663 *22* *%* 91,016 *22* *%* 171,798 *23* *%* 184,570 *23* *%* APAC 47,073 *12* *%* 43,808 *12* *%* 56,775 *13* *%* 90,881 *12* *%* 107,442 *13* *%* **Total** $ 393,182 *100* *%* $ 367,573 *100* *%* $ 422,740 *100* *%* $ 760,755 *100* *%* $ 813,612 *100* *%* ***Segment EBITDA(1), Segment EBITDA Margin***(2)***, Adjusted EBITDA and Adjusted EBITDA Margin***(3)***:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** NLA $ 26,082 *20* *%* $ 25,937 *20* *%* $ 33,909 *24* *%* $ 52,019 *20* *%* $ 64,294 *23* *%* ESSA 34,071 *27* *%* 31,505 *28* *%* 39,635 *30* *%* 65,576 *27* *%* $ 68,823 *28* *%* MENA 32,716 *36* *%* 23,567 *29* *%* 32,571 *36* *%* 56,283 *33* *%* $ 66,739 *36* *%* APAC 8,541 *18* *%* 7,196 *16* *%* 14,794 *26* *%* 15,737 *17* *%* $ 25,656 *24* *%* **Total Segment EBITDA** 101,410 88,205 120,909 189,615 225,512 Corporate costs(4) (28,130 ) (28,527 ) (29,853 ) (56,657 ) (61,934 ) Equity in income of joint ventures 2,763 3,231 3,395 5,994 7,101 **Adjusted EBITDA** $ 76,043 *19* *%* $ 62,909 *17* *%* $ 94,451 *22* *%* $ 138,952 *18* *%* $ 170,679 *21* *%* *(1)* *Expro evaluates its business segment operating performance using Segment Revenue, Segment EBITDA and Segment EBITDA margin. Expro*’*s management believes Segment EBITDA and Segment EBITDA margin are useful operating performance measures as they exclude transactions not related to its core operating activities, corporate costs and certain non-cash items and allows Expro to meaningfully analyze the trends and performance of its core operations by segment as well as to make decisions regarding the allocation of resources to segments.* *(2)* *Expro defines Segment EBITDA margin as Segment EBITDA divided by Segment Revenue, expressed as a percentage.* *(3)* *Expro defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue, expressed as a percentage.* *(4)* *Corporate costs include the costs of running our corporate head office and* *other central functions that support the operating segments but are not attributable to a particular operating segment,* *including central product line management, research, engineering and development, logistics, sales and marketing, and health and safety.* ***Revenue by areas of capabilities:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** Well Construction $ 132,483 *34* *%* $ 122,605 *33* *%* $ 141,623 *34* *%* $ 255,088 *34* *%* $ 272,036 *33* *%* Well Management (1) 260,699 *66* *%* 244,968 *67* *%* 281,117 *66* *%* 505,667 *66* *%* 541,576 67 % **Total** $ 393,182 *100* *%* $ 367,573 *100* *%* $ 422,740 100 % $ 760,755 *100* *%* $ 813,612 100 % *(1)* *Well Management consists of* *well flow management, subsea well access, and well intervention and integrity.* **EXPRO GROUP HOLDINGS N.V.** **NON-GAAP FINANCIAL MEASURES AND RECONCILIATION** **(In thousands)** **(Unaudited)** ***Gross Profit, Contribution(1), Gross Margin*** ***and Contribution Margin(2):*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Total revenue** $ 393,182 $ 367,573 $ 422,740 $ 760,755 $ 813,612 Less: Cost of revenue, excluding depreciation and amortization (311,158 ) (297,614 ) (319,981 ) (608,772 ) (625,473 ) Less: Depreciation and amortization related to cost of revenue (45,624 ) (45,232 ) (46,580 ) (90,856 ) (91,890 ) **Gross profit** 36,400 24,727 56,179 61,127 96,249 Add: Indirect costs (included in cost of revenue) 66,226 67,477 68,834 133,703 138,860 Add: Stock-based compensation expenses 4,508 2,896 2,633 7,404 4,827 Add: Depreciation and amortization related to cost of revenue 45,624 45,232 46,580 90,856 91,890 **Contribution** $ 152,758 $ 140,332 $ 174,226 $ 293,090 $ 331,826 **Gross margin** 9 % 7 % 13 % 8 % 12 % **Contribution margin** 39 % 38 % 41 % 39 % 41 % *(1)* *Contribution is a non-GAAP measure and is defined as Total Revenue less Cost of Revenue, excluding depreciation and amortization expense, adjusted for indirect costs and stock-based compensation expense included in Cost of Revenue.* *(2)* *Contribution margin is a non-GAAP measure and is defined as Contribution as a percentage of Revenue.* **EXPRO GROUP HOLDINGS N.V.** **NON-GAAP FINANCIAL MEASURES AND RECONCILIATION** **(In thousands)** **(Unaudited)** ***Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Total revenue** $ 393,182 $ 367,573 $ 422,740 $ 760,755 813,612 Net income (loss) $ 2,028 $ (1,034 ) $ 18,003 $ 994 31,951 Income tax expense 8,152 6,217 13,959 14,369 12,243 Depreciation and amortization expense 45,792 45,395 46,716 91,187 92,137 Severance and other expense 2,572 3,226 6,711 5,798 12,793 Merger and integration expense 3,634 288 2,267 3,922 4,007 Other expense (income), net 242 (347 ) (280 ) (105 ) (1,934 ) Stock-based compensation expense 9,560 7,274 7,314 16,834 14,282 Foreign exchange loss (gain) 1,351 339 (4,518 ) 1,690 (2,530 ) Interest and finance expense, net 2,712 1,551 4,279 4,263 7,730 Adjusted EBITDA $ 76,043 $ 62,909 $ 94,451 $ 138,952 170,679 **Net income (loss) margin** 1 % (0 )% 4 % 0 % 4 % Adjusted EBITDA margin 19 % 17 % 22 % 18 % 21 % ***Free Cash Flow Reconciliation, Free Cash Flow Margin, Adjusted Free Cash Flow Reconciliation and Adjusted Free Cash Flow Margin:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Total revenue** $ 393,182 $ 367,573 $ 422,740 $ 760,755 $ 813,612 **Net cash provided by operating activities** $ 81,462 $ 25,284 $ 48,413 $ 106,746 $ 89,922 Less: Capital expenditures (31,184 ) (25,764 ) (21,204 ) (56,948 ) (54,316 ) **Free cash flow** 50,278 (480 ) 27,209 49,798 35,606 Operating cashflow margin 21 % 7 % 11 % 14 % 11 % Free cash flow margin 13 % 0 % 6 % 7 % 4 % Add: Merger and integration expense (1) 3,634 288 2,267 3,922 4,007 Add: Severance and other expense (1) 2,572 3,226 6,711 5,798 12,793 **Adjusted free cash flow** $ 56,484 $ 3,034 $ 36,187 $ 59,518 $ 52,406 Adjusted free cash flow margin 14 % 1 % 9 % 8 % 6 % *(1)* *Expenses directly* *referenced* *on* *the condensed consolidated* s*tatements* *of* o*perations.* **EXPRO GROUP HOLDINGS N.V.** **NON-GAAP FINANCIAL MEASURES AND RECONCILIATION** **(In thousands, except per share amounts)** **(Unaudited)** ***Reconciliation of Adjusted Net Income:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Net income (loss)** $ 2,028 $ (1,034 ) $ 18,003 $ 994 $ 31,951 Adjustments: Merger and integration expense 3,634 288 2,267 3,922 4,007 Severance and other expense 2,572 3,226 6,711 5,798 12,793 Stock-based compensation expense 9,560 7,274 7,314 16,834 14,282 Total adjustments, before taxes 15,766 10,788 16,292 26,554 31,082 Tax benefit (81) (58 ) (44 ) (139) (109 ) Total adjustments, net of taxes 15,685 10,730 16,248 26,415 30,973 **Adjusted net income** $ 17,713 $ 9,696 $ 34,251 $ 27,409 $ 62,924 ***Reconciliation of Adjusted Net Income per Diluted Share:*** **Three Months Ended** **Six Months Ended** **June 30,** **March 31,** **June 30,** **June 30,** **June 30,** **2026** **2026** **2025** **2026** **2025** **Net income (loss)** $ 0.02 $ (0.01 ) $ 0.16 $ 0.01 $ 0.27 Adjustments: Merger and integration expense 0.03 0.00 0.02 0.03 0.03 Severance and other expense 0.02 0.03 0.06 0.05 0.11 Stock-based compensation expense 0.08 0.06 0.06 0.15 0.12 Total adjustments, before taxes 0.14 0.09 0.14 0.23 0.27 Tax benefit (0.00) (0.00 ) (0.00 ) (0.00) (0.00 ) Total adjustments, net of taxes 0.14 0.09 0.14 0.23 0.27 **Adjusted net income** $ 0.15 $ 0.09 $ 0.30 $ 0.24 $ 0.54 As reported diluted weighted average common shares outstanding 114,446,970 113,624,307 115,508,918 115,049,304 116,216,865 View source version on businesswire.com: https://www.businesswire.com/news/home/20260728258805/en/ Dave Wilson - Vice President Investor Relations +1 (281) 384-1544 InvestorRelations@expro.com Source: Expro ### Related Stocks - [XPRO.US](https://longbridge.com/en/quote/XPRO.US.md) ## Related News & Research - [Expro shortlisted in seven categories at Gulf Energy Awards 2026](https://longbridge.com/en/news/295683607.md) - [XPRO: Q2 2026 delivered strong growth and margin expansion, with robust H2 guidance despite regional risks](https://longbridge.com/en/news/294092440.md) - [SpaceX Has Big Investors Like Nvidia, Google, and AMD. 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