Education
About Us
Working with TipRanks
Follow Us
Expro Group Holdings (XPRO)
NYSE:XPRO
Top Page
Expro Group Holdings
(NYSE:XPRO)
65Neutral
Positive Factors
Market Position
XPRO operates a formidable niche of proprietary technology, with strong moats in well test services and tubular running services that represent strategic assets within the broader OFS ecosystem.
Valuation
Despite the challenging 3Q results, the stock is now trading at just ~3.8x below-consensus '25 EBITDA forecast, which is considered too low for a company with differentiated businesses in offshore TRS and well testing.
Negative Factors
Investor Sentiment
Investors appear to be losing patience with XPRO after its 3Q EBITDA miss, FY24 EBITDA guide-down, and more subdued outlook for next year.
Revenue Target
White space concerns may limit the ability to drive similar pricing improvements in 2025, which will likely lead to the company falling short of reaching its $2bn mid-term revenue target on a run-rate basis.
Expro Group Holdings (XPRO) vs. S&P 500 (SPY)
Market Cap
$979.90M
Dividend YieldN/A
Average Volume (3M)1.54M
Price to Earnings (P/E)17.4
Beta (1Y)1.58
Revenue Growth13.22%
EPS GrowthN/A
CountryUS
Employees8,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.44
Shares Outstanding116,377,930
10 Day Avg. Volume1,806,694
30 Day Avg. Volume1,540,933
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)N/A
Price to Sales (P/S)0.70
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside107.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Expro Group Holdings Business Overview & Revenue Model
Company DescriptionExpro Group Holdings (XPRO) is a global provider of energy services, specializing in well flow optimization. The company operates across various sectors within the energy industry, offering a comprehensive range of services that include well construction, well flow management, subsea well access, and production services. Expro is dedicated to delivering innovative solutions that enhance the efficiency and safety of oil and gas operations worldwide.
How the Company Makes MoneyExpro Group Holdings generates revenue primarily through the provision of specialized energy services to oil and gas companies. The company's key revenue streams include contracts for well construction services, where they assist in the drilling and completion of wells, and well flow management, which involves optimizing the production and flow of oil and gas from reservoirs. Additionally, Expro provides subsea well access services, ensuring safe and efficient intervention in offshore wells, and production services, which include data collection and analysis to optimize production operations. Significant partnerships with major oil and gas operators and technological innovation also play a crucial role in driving Expro's earnings by enhancing service effectiveness and expanding their client base.
Expro Group Holdings Financial Statement Overview
Summary
Expro Group Holdings shows strong revenue and profit growth, supported by effective financial management and a solid balance sheet. While cash flow generation is improving, high capital expenditures remain a challenge. The company is positioned well within its industry, but operational efficiency and cash flow management should be monitored closely.Income Statement
Expro Group Holdings has demonstrated strong revenue growth over the past few years, with a significant increase from $675M in 2020 to $1.7B in 2024. The gross profit margin improved substantially, reflecting effective cost management. The net profit margin turned positive in 2024, indicating improved profitability. However, the negative EBITDA in 2024 is a concern, suggesting potential operational inefficiencies.72
Positive
Balance Sheet
The company's balance sheet shows a healthy equity ratio with equity representing a significant portion of total assets. The debt-to-equity ratio is low, indicating strong leverage management. Return on equity has improved, reflecting better profitability. The overall asset base has grown steadily, supporting the company's expansion.78
Positive
Cash Flow
Operating cash flow has increased, showcasing improved cash generation capabilities. Free cash flow growth has been positive, although still modest, indicating room for improvement. The operating cash flow to net income ratio is robust, demonstrating the company's ability to convert earnings into cash. However, the capital expenditure remains high, which could pressure free cash flow in the long term.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.71B | 1.51B | 1.28B | 825.76M | 675.03M | Gross Profit |
| 215.97M | 99.21M | 82.30M | 731.00K | -5.54M | EBIT |
| 94.17M | 10.80M | 45.35M | -18.73M | -322.29M | EBITDA |
| -94.44M | 197.15M | 166.41M | 17.04M | 88.12M | Net Income Common Stockholders |
| 51.92M | -23.36M | -20.14M | -131.89M | -307.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 183.04M | 151.74M | 214.79M | 235.39M | 116.92M | Total Assets |
| 2.33B | 2.01B | 1.94B | 1.85B | 1.04B | Total Debt |
| 81.98M | 110.88M | 94.72M | 110.30M | 90.84M | Net Debt |
| -101.06M | -40.86M | -120.06M | -125.09M | -26.09M | Total Liabilities |
| 842.06M | 717.13M | 651.26M | 557.07M | 427.77M | Stockholders Equity |
| 1.49B | 1.30B | 1.29B | 1.30B | 611.98M |
| Cash Flow | Free Cash Flow | |||
| 25.90M | 16.20M | -9.70M | -65.37M | -42.00M | Operating Cash Flow |
| 169.48M | 138.31M | 80.17M | 16.14M | 70.39M | Investing Cash Flow |
| -165.14M | -148.23M | -71.21M | 112.05M | -96.77M | Financing Cash Flow |
| 29.57M | -49.34M | -25.61M | -7.18M | -625.00K |
Expro Group Holdings Technical Analysis
Negative
7.70
Price Trends
11.20
Negative
12.07
Negative
15.47
Negative
Market Momentum
-0.49
Negative
34.66
Neutral
16.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPRO, the sentiment is Negative. The current price of 7.7 is below the 20-day moving average (MA) of 9.68, below the 50-day MA of 11.20, and below the 200-day MA of 15.47, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 34.66 is Neutral, neither overbought nor oversold. The STOCH value of 16.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XPRO.
Expro Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.04B | 19.31 | 3.68% | ― | 5.34% | ― | |
71 Outperform | $1.83B | 11.33 | 21.97% | ― | 9.75% | 50.93% | |
70 Outperform | $1.06B | 11.52 | 8.55% | 3.26% | -12.52% | -52.79% | |
70 Outperform | $1.02B | 28.25 | 3.91% | 3.06% | -8.41% | -58.49% | |
67 Neutral | $890.10M | 34.87 | 10.01% | ― | -9.17% | -71.36% | |
65 Neutral | $979.90M | 17.45 | 3.73% | ― | 13.22% | ― | |
57 Neutral | $7.72B | 4.32 | -3.75% | 6.33% | -0.11% | -64.75% |
* Energy Sector Average
Performance Comparison
XPRO
Expro Group Holdings
7.70
-11.86
-60.63%
HLX
Helix Energy
6.32
-5.28
-45.52%
MRC
MRC Global
10.05
-2.03
-16.80%
OII
Oceaneering International
16.32
-7.65
-31.91%
RES
RPC
4.66
-3.01
-39.24%
WTTR
Select Energy Services
8.00
-0.98
-10.91%
Expro Group Holdings Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -40.86% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance and growth driven by strategic acquisitions and operational initiatives like Drive 25. However, challenges such as lower Q1 2025 projections and regional market difficulties were noted. Overall, the sentiment of the call is positive due to the outweighing highlights.Highlights
Record Financial Performance
Q4 2024 revenue of $437 million and adjusted EBITDA of $100 million, marking the best financial performance since the Expro Franks merger in 2021.
Significant Year-over-Year Growth
Full-year 2024 revenue of $1.7 billion, up 13% from the previous year, with adjusted EBITDA up 40% year-over-year.
CoreTrax Acquisition Impact
CoreTrax acquisition contributed to growth in the Middle East North Africa regions and positioned Expro as the only service company capable of delivering a full suite of remediation solutions.
Strong Contract Awards
Secured $314 million in new contracts, including $50 million for Argentina, $35 million in Norway, and $25 million in the UK.
Drive 25 Initiative
A campaign to reduce support costs by 7%-8%, with expected cost savings of $25 million by Q4 2025.
Lowlights
Lower than Expected Q1 2025 Guidance
Q1 2025 revenue expected to be down about 15% sequentially from Q4 2024 due to seasonality and the completion of the Congo project's construction phase.
Challenges in North and Latin America
Lower than expected well construction activity and tubular sales in the Gulf of America impacted revenue.
Continued Working Capital Challenges
Significant working capital issues with higher accounts receivable and inventory levels.
Company Guidance
In the Expro Group Holdings N.V. 2024 Q4 earnings call, the company reported robust financial performance, with Q4 revenue of $437 million and an adjusted EBITDA of $100 million, representing 23% of revenue. Compared to the same quarter in the previous year, revenue increased by $30 million, primarily due to heightened activity in the Subsea Well Access business and well flow management services in regions like Angola, Algeria, Iraq, and Saudi Arabia. The full-year revenue for 2024 reached $1.7 billion, a 13% increase year over year, with an adjusted EBITDA of $347 million, marking a 40% rise. The company highlighted a healthy backlog of approximately $2.3 billion and outlined a positive multiyear outlook supported by increased project sanctioning in offshore markets, particularly expecting growth in regions such as Brazil, Argentina, and onshore Saudi Arabia. For 2025, Expro anticipates stable to modest revenue growth, forecasting revenues between $1.7 billion and $1.75 billion, with adjusted EBITDA expected to rise by more than 100 basis points, aiming for a range of $350 to $370 million. The company's strategic focus includes operational efficiencies, notably through its Drive 25 campaign, which targets a 7% to 8% reduction in run-rate support costs, alongside continued investment in high-return projects and technology-enabled service expansions.Expro Group Holdings Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Expro Group Holdings Reports Strong 2024 Financial Performance
Positive
Feb 25, 2025
Expro Group Holdings reported a strong financial performance for the fourth quarter and full year 2024, with a 13% increase in annual revenue to $1,713 million and a 40% rise in adjusted EBITDA to $347 million. The company achieved significant contract wins, including projects in the Gulf of Mexico and the Norwegian Continental Shelf, and resolved issues related to its Congo production solutions project, contributing to improved margins and positioning for future growth. Expro also extended its $100 million stock repurchase program and anticipates stable to modestly increasing revenues in 2025, with a focus on operational efficiency and margin expansion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.