Expro Earnings: Offshore Market and Acquisition Synergies Support Profitable Growth

Expro Group reported strong 2023 fourth-quarter results, with total revenue growing 16% year on year, exceeding previous guidance by approximately 9%. Adjusted EBITDA grew 10% to $85 million, at the high end of the $75 million-$85 million guidance range. Its 70% sequential growth rate reveals Expro’s nearly full recovery from operational challenges, such as the light well intervention mishap, in the third quarter. Management released 2024 full-year revenue and adjusted EBITDA guidance of $1,650 million and $350 million at the midpoint, respectively. Both are in line with our estimates. We maintain our $22 fair value estimate and no-moat rating. We view High Uncertainty Expro Group as slightly undervalued.