Expro Earnings: Favorable Market Dynamics and Acquisition Synergies Support Profitable Growth

Expro Group reported strong 2024 first-quarter results, with total revenue growing 13% year on year to $383 million, exceeding the high end of the $365 million-$375 million guidance range. Adjusted EBITDA grew 61% year on year to $67 million, at the midpoint of management’s previous guidance. The firm’s diversified international presence proved favorable: although most geographic segments saw sequential declines in activity, that was partially offset by well flow management revenue in Middle East and North Africa. Management reaffirmed 2024 full-year revenue and adjusted EBITDA guidance of $1.650 billion 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 Expro Group as slightly undervalued.