Expro (XPRO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $423 million, up 14% year-over-year but down 10% sequentially, driven by acquisitions and international activity, with net income of $16 million versus a net loss of $14 million a year ago.

• Adjusted EBITDA was $85 million, up 69% year-over-year but down 10% sequentially, with a margin of 20%.

• Order backlog stood at $2.3 billion, with $354 million in new contract awards during Q3.

• Integration of Coretrax and PRT Offshore is progressing, contributing to revenue synergies and operational efficiencies.

• The company is recognized for innovation, winning industry awards for its Centri-FI solution and being a finalist in multiple categories.

Financial highlights

• Adjusted EBITDA margin was 20% in Q3 2024, up from 14% a year ago.

• Adjusted net income for Q3 2024 was $16 million ($0.14 per diluted share), compared to a net loss of $14 million in Q3 2023.

• Q3 adjusted cash flow from operations was $65 million, with total available liquidity of $303 million at quarter end.

• Capital expenditures for Q3 were $32 million, with 90% supporting customer activities.

• Backlog included $100 million from Coretrax and PRT.

Outlook and guidance

• Full-year 2024 revenue guidance refined to $1.72–$1.75 billion, with Adjusted EBITDA expected between $335–$350 million and a margin of ~20%.

• Q4 2024 revenue expected at $440–$470 million, with Adjusted EBITDA of $90–$105 million and margin of 20–22%.

• Medium-term targets of $2 billion revenue and mid-20s EBITDA margin now expected by 2026, delayed from prior expectations due to market headwinds.

• 2025 is anticipated to start slow, with a stronger second half as activity ramps up and international/offshore markets drive growth.

• Capital expenditures for the remainder of 2024 are estimated at $30–$40 million.