Expro (XPRO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $393 million, with adjusted EBITDA of $76 million (19.3% margin) and adjusted free cash flow of $56 million, reflecting strong sequential growth despite Middle East conflict impacts.

• Enhanced Drilling acquisition completed for approximately $215 million, adding differentiated MPD technology and expected to be immediately accretive.

• Shareholders approved re-domicile from the Netherlands to the Cayman Islands, with a legal name change to Expro Limited.

• Drive25 self-help program completed, delivering over $40 million in structural cost removals for 2026.

• Continued execution on shareholder returns, including $20 million in Q2 share repurchases.

Financial highlights

• Revenue: $393 million, up 7% sequentially from Q1 2026, but down 7% year-over-year.

• Adjusted EBITDA: $76 million, margin 19.3%, up 223 basis points quarter-over-quarter.

• Adjusted free cash flow: $56 million, margin 14%.

• Total liquidity at quarter end was $492 million, including $200 million in cash and $79 million drawn on the revolver.

• Net cash position was approximately $121 million after the Enhanced Drilling acquisition.

Outlook and guidance

• Full-year 2026 revenue guidance: $1.65–$1.7 billion; Adjusted EBITDA: $355–$365 million; Adjusted free cash flow: $135–$145 million.

• Q3 2026 revenue guidance: $435–$455 million; Adjusted EBITDA: $90–$100 million.

• Adjusted EBITDA margin projected to exceed 24% in H2 and 26% in Q4.

• Guidance assumes Middle East conflict persists through year-end, with conservative estimates for regional recovery and lower Coretrax contributions.

• Capital expenditures expected at $110–$120 million for 2026.