Merger Synergies and Strong Production Activity Drive Expro’s Strong Q2; Raising FVE to $18

Expro beat expectations this quarter, posting sequential revenue growth of 12% and an adjusted EBITDA margin of 16%, compared with prior guidance of 10% and 14%, respectively. The firm also approved up to $50 million in share buybacks through 2023 and repurchased $13 million worth of shares this quarter. We’re slightly raising our fair value estimate to $18 from $17 as global offshore investment picks up speed. Our no-moat rating, stable trend, and Morningstar Uncertainty Rating of High are unchanged following results.