Company Reports

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.

We will discontinue analyst coverage of Expro Group on or about Nov. 6, 2024. We provide analyst research and ratings on over 1,600 companies globally and periodically adjust our coverage according to investor interest and staffing.

No-moat Expro Group recently released an investment thesis that provided updated revenue and EBITDA guidance for the second half of 2024 and 2025. The firm's updated guidance lowers our revenue expectations in the latter half of our forecast period, bringing our fair value estimate down to $22 from $24. The majority of this decrease is due to a drop in our previous forecast's revenue expectations for the Europe and sub-Saharan Africa segment, which is 35% of Expro's business.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

No-moat Expro International Group posted decent second-quarter financial results, with revenue increasing 22% quarter over quarter to $470 million from $383 million. Adjusted EBITDA jumped 40% sequentially to $95 million from $68 million. The company’s North and Latin America and Europe and Sub-Saharan Africa segments drove overall revenue increases, while higher revenue and better activity mix across all segments propelled higher companywide EBITDA. We’re encouraged by these trends. We also increase our fair value estimate to $24 per share from $22 after updating our forecast for the firm's higher full-year revenue guidance and refining its full-year EBITDA guidance.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

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.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

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.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

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.

Expro International performed very well in the second quarter, posting sequential revenue growth of 17% (up 27% year over year) while expanding the firmwide adjusted EBITDA margin nearly 600 basis points (up 175 basis points year over year) quarter over quarter to 18%. We maintain our $22 per share fair value estimate and no-moat rating following results.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro posted a solid first quarter, with revenue increasing 21% year over year, while the firmwide adjusted EBITDA margin contracted less than 100 basis points to 12%. On a sequential basis, revenue and margins both contracted by 3% and 760 basis points, respectively. We maintain our no-moat rating and $22 per share fair value estimate following results.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.

Expro’s product portfolio spans the well cycle, from exploration and appraisal through abandonment. Product lines include well flow management, well intervention and integrity, subsea well access, and well construction. Expro is a leader in well testing, a small but crucial component of well construction, and holds a strong reputation in niche subsea equipment and services markets.