Expro Earnings: Robust Long-Run Offshore Market Should Outweigh Impact of Near-Term Challenges

Expro Group underwhelmed in the third quarter due to a handful of operational challenges that led to a 7% sequential drop in revenue. Firmwide adjusted EBITDA margin fared even worse, contracting over 500 basis points quarter over quarter to 13% (following a nearly 600-basis-point sequential increase last quarter). A late-September operating incident in Australia has left the firm’s recently introduced vessel-deployed lightwell intervention, or LWI, equipment on the bottom of the ocean, resulting in a suspension of all LWI operations until further notice.