Expro Group (NYSE:XPRO) reported fourth-quarter and full-year 2025 results that management said reflected ongoing margin expansion, cost efficiencies and higher free cash flow generation, while providing an outlook that calls for roughly flat revenue in 2026 alongside continued improvements in profitability and cash generation.
Fourth-quarter and full-year results
Chief Executive Officer Mike Jardon said Expro generated “just over” $1.6 billion in revenue in 2025 and $353 million of adjusted EBITDA, representing a 22% margin. Jardon said results were within the company’s previously provided guidance ranges and showed progress toward a longer-term goal of 25% EBITDA margins.
Chief Financial Officer Sergio Maiworm added that fourth-quarter adjusted EBITDA margin of 23.1% was up about 30 basis points sequentially and 10 basis points year-over-year, while full-year adjusted EBITDA margin rose 170 basis points year-over-year to 22%.
Free cash flow and balance sheet
Management emphasized free cash flow outperformance. Jardon said adjusted free cash flow totaled $127 million in 2025, more than double 2024’s level. Maiworm noted this exceeded the high end of the company’s $110 million to $120 million guidance range.
Maiworm said Expro ended the quarter with $551 million in total liquidity, including $198 million in cash. He said the company made a $20 million voluntary prepayment on its revolving credit facility during the quarter, reducing revolver borrowings from $99 million to $79 million as of Dec. 31, 2025, which he said enhanced the company’s net cash position.
Backlog, market view, and 2026 guidance
Jardon said backlog totaled $2.5 billion, up $196 million during the fourth quarter. He highlighted a four-year, $380 million contract in North Africa for production optimization and well management services, describing it as one of the company’s largest single-customer awards. He cautioned that backlog is not a guarantee, but said it provides “robust revenue visibility heading into 2026.”
Looking at the broader market, Jardon said global oil and gas demand remains resilient and that Expro expects a “modest recovery” in upstream investment with growth concentrated in international and offshore projects, particularly deepwater developments. He said that backdrop should support demand for Expro’s well construction, well flow management, subsea and digital solutions, while brownfield optimization and production enhancement work could support well intervention, production optimization and digital offerings.
For 2026, Jardon said Expro expects revenue at similar levels to 2025, but remains focused on expanding EBITDA margins and free cash flow generation. He said 2026 capital expenditures are expected to be similar to 2025 levels, with a full-year benefit from the company’s Drive 2025 cost efficiency initiative, increased capital efficiency, and improving “wallet share” with existing customers.
Management also warned of a seasonally weaker first quarter. Jardon said activity in the U.S. and offshore areas such as the U.K./Norwegian North Sea and U.S. Gulf typically declines due to winter weather, and he added that some customers’ spending is lower at the start of annual budget cycles, particularly national oil companies. He said the expected first-quarter dip is normal seasonality and “not representative” of the company’s expectations for the full year.
In the Q&A, Jardon said the company’s guidance was framed around visibility at current activity levels rather than assuming a major second-half step-up, while still targeting margin and cash flow improvement even in a “flattish” climate.
Operational highlights and technology deployments
Management highlighted several customer and technology milestones in the quarter:
- North Africa contract: Jardon reiterated the four-year, $380 million award covering multiple fields for production optimization and well management services.
- XRD Spider deployment: Expro deployed its proprietary extended range drilling “XRD Spider,” which Jardon described as the first and only 1,250-ton spider of its kind. He said it supports drilling, tripping and landing string operations, reducing tool change-outs, saving rig time and minimizing “Red Zone” exposure to enhance safety and efficiency. Jardon said Expro plans additional deployments and fleet expansion in line with demand.
- Australia offshore campaign: Jardon said Expro supported a major operator on one of the region’s largest offshore campaigns, completing multiple subsea wells with zero QHSE incidents. He said the effort included integrated subsea well testing and sampling, more than 2,200 man-days of activity, and job performance review scores of 100%.
- Indonesia CaTS ATX system: Jardon said the company’s CaTS ATX system enabled real-time wireless downhole data and remote valve control during drill stem testing, which he said demonstrated Expro’s focus on innovation and risk reduction.
Jardon also addressed Venezuela, saying Expro does not see near-term opportunities but believes it is positioned to participate if opportunities arise. He said the company previously operated in Venezuela and still has a facility and “stranded equipment” related to tubular running services and well flow management.
Segment performance and capital allocation
Maiworm provided a regional breakdown for the fourth quarter:
- North & Latin America (NLA): Revenue of $130 million, down $21 million sequentially due to lower subsea well access and well construction revenue in the U.S. as projects shifted into 2026, partly offset by higher well intervention and integrity revenue in Argentina. Segment EBITDA margin was 24%, flat sequentially.
- Europe & Sub-Saharan Africa (ESSA): Revenue of $116 million, down $10 million sequentially, driven by lower subsea well access and well construction revenue in Angola and Central/West Africa, partly offset by higher well flow management revenue in Bulgaria. Segment EBITDA margin was 34%, up about 120 basis points sequentially due to favorable mix.
- Middle East & North Africa (MENA): Revenue of $93 million, up sequentially on higher well flow management revenue in Algeria and Saudi Arabia. Segment EBITDA margin was 39%, up 400 basis points sequentially, reflecting activity and mix.
- Asia Pacific (APAC): Revenue of $43 million, down $6 million sequentially, reflecting lower well flow management in Indonesia and India and lower well construction in Australia, partially offset by higher subsea well access activity in Australia. Segment EBITDA margin was 16%, down about 400 basis points sequentially due to lower activity and mix.
On capital allocation, Maiworm said Expro’s framework balances four priorities—organic investment, acquisitions, shareholder returns and balance sheet strength—with each competing for capital based on risk-adjusted returns. He said the company targets returning at least one-third of free cash flow to shareholders annually, primarily through share repurchases, but noted that in the fourth quarter Expro was unable to repurchase as many shares as intended, leaving the full-year return “just short of 32%.”
In closing remarks, Jardon said the company expects sequential improvement through 2026 after a seasonally softer start, and reiterated management’s goal to improve margins and free cash flow while executing on its strategic pillars.
About Expro Group (NYSE:XPRO)
Expro Group plc is a global energy services company that specializes in well flow management and well testing solutions for the oil and gas industry. The company’s core offerings include wellhead and pressure control systems, downhole well construction tools, subsea intervention services, and integrated tubular running services. These capabilities enable exploration and production companies to optimize well performance, enhance safety and mitigate operational risk throughout the drilling, completion and intervention phases of the well life cycle.
Founded in 1973, Expro has grown both organically and through targeted acquisitions to establish a presence in more than 30 countries.
