Expro Group Holdings N.V.

Expro reported Q1 2026 revenue of $368 million and adjusted EBITDA of $63 million, implying a 17.1% margin. Adjusted free cash flow was $3 million, which management said was hurt by working-capital timing; Sergio said those working-capital changes were roughly $20 million worse than expected. Regional revenue was North and Latin America $128 million, Europe and Sub-Saharan Africa $114 million, Middle East and North Africa $82 million, and Asia Pacific $44 million. For Q2, management said the Middle East conflict could reduce revenue by $10 million to $15 million if it resolves by the end of Q2, with elevated decrementals. Full-year 2026 guidance was unchanged, with management still expecting sequential improvement through the year and a stronger second half.

Mike Jardon framed the quarter as a normal seasonal dip, with only minor disruption from the Middle East conflict and employees in the region remaining safe. He emphasized a constructive outlook for offshore, deepwater, and brownfield optimization, saying these trends should support Expro’s well construction, well management, and production optimization businesses. Jardon also positioned Enhanced Drilling as a strategic step to broaden Expro’s relevance, expand market share in deepwater MPD, and extend the company’s technology into new geographies.

Sergio Maiworm said Q1 adjusted EBITDA was $63 million with a 17.1% margin, down sequentially but in line with the midpoint of prior ranges and consistent with first-quarter seasonality. He said adjusted free cash flow of $3 million was light because working capital was about $20 million worse than expected, mainly due to receivables and prepaid balances, but noted collections improved after quarter-end. Liquidity was $517 million at quarter end, including $171 million of cash, $79 million drawn on the revolver, and net cash of about $92 million; he also said net debt remains well below 1x adjusted EBITDA. On capital allocation, he said Expro repurchased about 1.2 million shares for roughly $20 million in Q1 and remains on track to return at least one-third of free cash flow to shareholders.

Analysts focused on how Enhanced Drilling expands Expro’s addressable market, whether MPD penetration is still low enough to grow, and how quickly the technology can be rolled out geographically. Jardon said the deal is more about market share expansion than wallet share, estimated Enhanced Drilling’s current share at less than 10% of roughly 130 floating assets, and said the technology can apply across all 130 rigs, especially in basins like Guyana and Brazil. Questions also centered on the Middle East conflict and Q2 shape; management said Q2 will still be better than Q1 but carry about $10 million to $15 million of revenue impact with high decrementals, and they expect the recovery to show more clearly in Q3. On Drive 25, Sergio said savings are now close to $40 million and should create operating leverage as volumes improve.