Expro (XPRO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $470 million, up 22% sequentially and 18% year-over-year, exceeding guidance and marking a record since the Expro Frank's merger, with all segments contributing and Coretrax adding $21 million.

• Adjusted EBITDA rose to $95 million, up 40% sequentially and 32% year-over-year, with margin improving to 20% from 18% a year ago; Coretrax contributed $7 million to EBITDA.

• Net income for Q2 2024 was $15 million ($0.13 per diluted share), up from $9 million ($0.08 per share) in Q2 2023, reversing a Q1 net loss.

• Adjusted net income (excluding non-recurring items) was $31 million ($0.27 per share), up from $19 million ($0.17 per share) in Q2 2023.

• Strong performance was driven by increased activity across all regions and product lines, especially in offshore markets.

Financial highlights

• Q2 2024 revenue: $470 million (22% sequential growth, 18% year-over-year); Adjusted EBITDA: $95 million (40% sequential, 32% year-over-year); margin 20%.

• Q2 2024 net income: $15 million (up from $9 million in Q2 2023); diluted EPS: $0.13.

• Q2 adjusted cash flow from operations was $6 million, down from $36 million in Q2 2023, mainly due to a $72 million increase in net working capital.

• Total available liquidity at quarter end was $271 million, with $135 million in cash and $121 million in long-term borrowings.

• Capital expenditures for Q2 were $36 million; full-year 2024 capex expected at $65–$75 million for H2.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $1.7–$1.75 billion; Adjusted EBITDA guidance increased to $350–$375 million.

• Q3 2024 revenue expected at $410–$430 million, with Adjusted EBITDA of $85–$95 million and margin of 21–22%.

• Free cash flow margin for 2024 expected in the high single digits, weighted to the second half.

• Medium-term targets: $2 billion revenue, mid-20s Adjusted EBITDA margin, and 10% free cash flow margin.

• Sequential Q3 revenue decrease expected, followed by a Q4 rebound, reflecting project timing.