Expro Earnings: Lackluster 2025 Outlook Doesn’t Damp Our Long-Term Perspective

No-moat Expro Group posted third-quarter results that somewhat disappointed our expectations. Revenue dipped 10% sequentially to $423 million from $470 million. Lower activity in the firm's North and Latin Americas and Europe and Sub-Saharan Africa segments drove this change, though it was partly offset by higher activity in the Middle East and North Africa and Asia Pacific segments. Adjusted EBITDA similarly dipped to $85 million from $88 million last quarter. Despite a tough outlook next year, where management doesn't expect customer interest to pick up until mid-year, we maintain our $22 fair value estimate. As we've previously highlighted, we will discontinue coverage of Expro shares on or about Nov. 6, 2024.