Expro Group Holdings N.V.

Company Overview

Business Model: Expro Group Holdings N.V. is a leading global provider of energy services, offering cost-effective, innovative solutions across the entire well life cycle. Its extensive portfolio includes well construction, well flow management, subsea well access, and well intervention and integrity solutions. Revenue is primarily generated from equipment service charges, personnel charges, run charges, and consumables, with additional revenue from the design, manufacture, and sale of equipment, often linked to operations and maintenance arrangements, and the sale of certain well construction products.

Market Position: Expro Group Holdings N.V. maintains a strong competitive position, differentiating itself through a portfolio of technology-enabled products and services, high levels of customer service, innovative solutions, and global support. The Company serves a diverse and relatively stable customer base, including national oil companies, international oil companies, independent exploration and production companies, and service partners, with decades-long relationships with several major clients.

Recent Strategic Developments: Expro Group Holdings N.V.'s corporate strategy for 2026 focuses on relevancy, resilience, and results. Key objectives include exceeding industry expectations in safety and operational performance, advancing its product and service portfolio to offer cost-effective, innovative solutions for more efficient and lower-carbon oil, gas, and geothermal resource production, driving efficiency and asset utilization, nurturing its culture, and leveraging data for business improvement and customer value. The Company is committed to delivering above-market revenue growth, strong profitability, and sustained free cash flow. Strategic acquisitions include CTL UK Holdco Limited (Coretrax) in May 2024 to expand Well Construction and Well Intervention & Integrity solutions, and Professional Rental Tools, LLC (PRT Offshore) in October 2023 to enhance subsea well access in North and Latin America and grow surface equipment offerings in Europe and Sub-Saharan Africa and Asia-Pacific.

Geographic Footprint: Expro Group Holdings N.V. operates in over 50 countries, with its operations organized into four geographic reporting segments: North and Latin America (NLA), Europe and Sub-Saharan Africa (ESSA), Middle East and North Africa (MENA), and Asia-Pacific (APAC). In 2025, approximately 81% of total revenue was generated outside the United States, with 63% derived from offshore oil and gas operations. Drilling and completions-related activities accounted for approximately 65% of revenue, while production optimization activities contributed 35%.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 5.05% (2025) vs. 5.50% (2024)
• Net Margin: 3.22% (2025) vs. 3.03% (2024)
• Adjusted EBITDA: $353.0 million (2025) vs. $347.4 million (2024) (+1.6% YoY)
• Adjusted EBITDA Margin: 22.0% (2025) vs. 20.3% (2024)

Investment in Growth:

• R&D Expenditure: $13.4 million (0.83% of revenue) in 2025 vs. $17.2 million (1.00% of revenue) in 2024
• Capital Expenditures: $112.4 million in 2025 vs. $143.6 million in 2024
• Strategic Investments:
  • CTL UK Holdco Limited (Coretrax) acquisition in May 2024 for an estimated fair value of consideration of $186.7 million.
  • Professional Rental Tools, LLC (PRT Offshore) acquisition in October 2023 for an estimated fair value of consideration of $90.8 million.

Business Segment Analysis

North and Latin America (NLA)

Financial Performance:

• Revenue: $558.0 million (-1.4% YoY) in 2025 vs. $566.0 million in 2024
• Segment EBITDA: $132.9 million (-6.4% YoY) in 2025 vs. $142.0 million in 2024
• Operating Margin (Segment EBITDA margin): 23.8% (2025) vs. 25.1% (2024)
• Key Growth Drivers: The decrease in revenue was primarily due to lower well construction revenue in the U.S. and Mexico, lower well flow management revenue in Mexico, and lower well intervention and integrity revenue in Brazil. This was partially offset by higher subsea well access revenue in the U.S. and higher well flow management revenue in the U.S. and Brazil. The decrease in Segment EBITDA and margin was largely attributable to lower activity and a less favorable product mix. Product Portfolio: Provides products and services in well construction, well flow management, subsea well access, and well intervention and integrity. Market Dynamics: North American drilling activity is projected to decline by 2% in 2026, reflecting the volatile, short-cycle nature of shale production. In contrast, Central and South American drilling activity is projected to increase by 3% in 2026, driven by large-scale deepwater plays in Brazil, Guyana, and Suriname, as well as continued recovery in Pemex-funded activity.

Europe and Sub-Saharan Africa (ESSA)

Financial Performance:

• Revenue: $486.9 million (-13.7% YoY) in 2025 vs. $564.4 million in 2024
• Segment EBITDA: $149.4 million (+2.8% YoY) in 2025 vs. $145.4 million in 2024
• Operating Margin (Segment EBITDA margin): 30.7% (2025) vs. 25.8% (2024)
• Key Growth Drivers: The decrease in revenue was primarily due to lower well flow management revenue in Congo and lower subsea well access revenue in Angola, resulting from non-recurring projects in 2024. This was partially offset by higher well construction revenue in Cyprus and higher subsea well access revenue in the U.K. and Norway. The increase in Segment EBITDA and margin, despite lower revenue, was primarily attributable to an increase in activities on higher margin services. Product Portfolio: Provides products and services in well construction, well flow management, subsea well access, and well intervention and integrity. Market Dynamics: European drilling activity is expected to increase by 1% in 2026, concentrated in the Black Sea and mature North Sea. African drilling activity is projected to grow by 2% in 2026, with offshore activity expected to jump by 7%, supported by fiscal and legislative reforms and significant offshore discoveries.

Middle East and North Africa (MENA)

Financial Performance:

• Revenue: $363.6 million (+9.5% YoY) in 2025 vs. $332.2 million in 2024
• Segment EBITDA: $132.7 million (+14.6% YoY) in 2025 vs. $115.8 million in 2024
• Operating Margin (Segment EBITDA margin): 36.5% (2025) vs. 34.8% (2024)
• Key Growth Drivers: The increase in revenue was driven by higher well flow management revenue in Iraq, Saudi Arabia, and Algeria, and higher well construction revenue in Saudi Arabia and the UAE. The increase in Segment EBITDA and margin was primarily due to higher well flow management activity and a resulting more favorable activity mix. Product Portfolio: Provides products and services in well construction, well flow management, subsea well access, and well intervention and integrity. Market Dynamics: Middle Eastern drilling activity is expected to increase by 1% in 2026, with growth drivers including Abu Dhabi, Iraq, Kuwait, and Oman, partially offsetting a slowdown in Saudi Arabian activity. E&P activity is focused on leveraging vast, low-cost reserves to expand oil and gas production, with a dominant role for state-owned enterprises and an ongoing emphasis on developing natural gas reserves.

Asia-Pacific (APAC)

Financial Performance:

• Revenue: $198.5 million (-20.6% YoY) in 2025 vs. $250.1 million in 2024
• Segment EBITDA: $42.7 million (-26.0% YoY) in 2025 vs. $57.7 million in 2024
• Operating Margin (Segment EBITDA margin): 21.5% (2025) vs. 23.1% (2024)
• Key Growth Drivers: The decrease in revenue was primarily due to lower subsea well access activity in China and Australia, and lower well flow management activity in Australia. This was partially offset by higher well construction activity in Australia and Brunei. The decrease in Segment EBITDA and margin was largely attributable to decreased activity and a less favorable product mix. Product Portfolio: Provides products and services in well construction, well flow management, subsea well access, and well intervention and integrity. Market Dynamics: Drilling activity in Asia-Pacific is forecast to increase by 3% in 2026, with India, Indonesia, and Thailand being the most active drillers. The region is characterized by a strong governmental push to boost domestic oil and gas production and a major focus on the natural gas segment, with rising investment in deepwater and ultra-deepwater drilling.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Expro Group Holdings N.V. repurchased approximately 3.7 million shares for $40.1 million in 2025, following 1.2 million shares for $14.2 million in 2024.
• Future Capital Return Commitments: A new stock repurchase program was approved on October 30, 2025, authorizing the acquisition of up to $100.0 million of outstanding common stock through December 31, 2026. Approximately $100.0 million remained authorized as of December 31, 2025.

Balance Sheet Position:

• Cash and Equivalents: $196.1 million as of December 31, 2025.
• Total Debt: $79.1 million in long-term borrowings as of December 31, 2025.
• Net Cash Position: $117.0 million as of December 31, 2025.
• Debt Maturity Profile: The New Credit Facility matures on July 30, 2029.

Cash Flow Generation:

• Operating Cash Flow: $210.2 million in 2025, an increase of $40.7 million compared to $169.5 million in 2024. This increase was primarily driven by a lower consumption of working capital.

Operational Excellence

Production & Service Model: Expro Group Holdings N.V. designs, manufactures, and services proprietary equipment to support its global operations. Its largest manufacturing facilities are located in Aberdeen, Scotland, and Lafayette, Louisiana, where a substantial portion of its service equipment is designed, manufactured, and/or assembled. The Company provides services and products in over 50 countries.

Supply Chain Architecture: Expro Group Holdings N.V. sources component parts, products, and raw materials from a range of suppliers, including foundries, forge shops, and original equipment and pipe manufacturers. The Company has developed broad international sourcing capabilities and maintains quality assurance and testing programs to manage the cost-effectiveness and quality of raw materials and components. Certain equipment utilized in its product lines is available from a limited number of suppliers.

Facility Network:

• Manufacturing: Aberdeen, United Kingdom; Lafayette, Louisiana.
• Research & Development: Hyderabad, India (engineering); Aberdeen, United Kingdom; Lafayette, Louisiana.
• Distribution: Key regional operations and administrative offices are located in Houston, Texas; Reading, United Kingdom; Georgetown, Guyana; Macaé, Brazil; Neuquen, Argentina; Broussard, Louisiana; Villahermosa, Mexico; Den Helder, the Netherlands; Stavanger, Norway; Al Khobar, Kingdom of Saudi Arabia; Riyadh, KSA; Dubai, United Arab Emirates; Hassi Messaoud, Algeria; Kuala Lumpur, Malaysia; Labuan, Malaysia; Perth, Australia.

Operational Metrics:

• Lost Time Injury Frequency (LTIF) rate: 0.00 in 2025, 0.00 in 2024, and 0.06 in 2023.
• Total Recordable Case Frequency (TRCF) rate: 0.37 in 2025, 1.05 in 2024, and 0.61 in 2023.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels: Expro Group Holdings N.V. primarily delivers its services and products through direct service purchase orders or master service agreements, often supplemented by individual call-out provisions. The Company also procures third-party products and services on behalf of its customers. Digital Platforms: Expro Group Holdings N.V. aims to leverage the power of data to enhance its business practices and deliver increased value to its customers.

Customer Portfolio: Enterprise Customers: Expro Group Holdings N.V. serves a diverse and relatively stable global customer base, including national oil companies, international oil companies, independent exploration and production companies, and service partners. It maintains strong, long-standing relationships with several of the world's largest national oil companies and international oil companies. Customer Concentration: No single customer accounted for more than 10% of total revenue for the year ended December 31, 2025. In prior years, one customer in the ESSA segment accounted for approximately 10.5% of revenue in 2024 and 12.5% in 2023.

Geographic Revenue Distribution:

• United States: 19.3% of total revenue in 2025.
• North and Latin America (NLA): 34.7% of total revenue in 2025.
• Europe and Sub-Saharan Africa (ESSA): 30.3% of total revenue in 2025.
• Middle East and North Africa (MENA): 22.6% of total revenue in 2025.
• Asia-Pacific (APAC): 12.4% of total revenue in 2025.
• Growth Markets: Demand growth in 2026 is expected to be driven almost entirely by non-OECD countries, with Asia (led by China and India) accounting for the majority of incremental consumption, alongside growth in Africa and the Middle East.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The markets in which Expro Group Holdings N.V. operates are highly competitive and characterized by continual technological developments. The energy services market is cyclical and sensitive to fluctuations in oil and gas prices, global economic conditions, and geopolitical events. Global liquids demand grew by 1.2 million b/d in 2025 and is expected to grow a further 1.1 million b/d in 2026. Despite softer fundamentals, global oil and gas demand continues to grow, reinforcing the need for sustained investment. Upstream investment is expected to recover modestly in 2026, primarily driven by international and offshore spending, particularly deepwater projects. Brownfield activity is also expected to gain momentum, with operators focusing on efficiency, cost reduction, and production optimization.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Expro Group Holdings N.V. competes with several companies, some of which possess greater financial and other resources. The Company's peer group for performance comparison includes Baker Hughes Company, Core Laboratories, Inc., Innovex International, Inc., TechnipFMC plc, Halliburton Company, Helix Energy Solutions Group Inc., National Energy Services Reunited Corp., Patterson-UTI Energy, Inc., Oceaneering International, Inc., NOV Inc., and SLB.

Emerging Competitive Threats: The industry faces threats from alternative products and services, new market entrants, disruptive technologies, and the increasing competitiveness of alternative energy sources such as wind, solar, geothermal, tidal, and biofuels. The integration of Artificial Intelligence (AI) tools by competitors or third-party service providers also presents potential competitive challenges.

Competitive Response Strategy: Expro Group Holdings N.V.'s strategy is to position itself as a solutions provider with a technologically differentiated offering. This includes advancing its product and service portfolio to provide innovative, cost-effective solutions, sustaining a drive for efficiency, and leveraging data to improve business practices and deliver customer value.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: Expro Group Holdings N.V.'s business is highly dependent on the level of activity in oil and gas exploration, development, and production, which is significantly influenced by volatile oil and gas prices, global economic conditions, and geopolitical events (e.g., the Russian war in Ukraine, Middle East conflicts). Offshore activity is particularly cyclical and sensitive to factors such as adverse weather, terrorist attacks, piracy, equipment failures, political instability, and the cost of exploration. Technology Disruption: The industry is characterized by continual technological developments. There is a risk that competitors may introduce new products or obtain patents before Expro Group Holdings N.V., or that alternative products and services could displace its offerings, adversely affecting its ability to meet customer demands. Customer Concentration: Consolidation among major customers could lead to reduced capital spending or renegotiated contract terms. The loss of one or more larger customers, or their financial difficulties, could materially and adversely affect the Company's business, financial condition, and results of operations.

Operational & Execution Risks

Physical Dangers & Operating Hazards: Operations involve inherent physical dangers and operating hazards, such as equipment malfunctions, explosions, blowouts, and natural disasters, which can lead to personal injury, loss of life, operational suspensions, increased costs, and environmental damage. Insurance and contractual indemnities may not fully protect the Company against all risks or in all circumstances. Supply Chain Vulnerabilities: Certain product lines rely on a limited number of third-party suppliers. Significant disruptions affecting the price, quality, availability, or timely delivery from these key suppliers could negatively impact the Company's business and operations.

Financial & Regulatory Risks

Demand Volatility: Seasonal weather conditions (e.g., North Sea winters, South and Southeast Asia monsoons) and significant weather events (e.g., hurricanes, typhoons) can temporarily disrupt operations and affect demand. Customer spending patterns can also lead to quarterly fluctuations in activity. Foreign Exchange: Expro Group Holdings N.V. is exposed to foreign currency risk due to operations in multiple countries, with primary cash flow exposures to the British pound and Norwegian kroner. Fluctuations in exchange rates can impact reported consolidated statements of operations and cash flows. Credit & Liquidity: The Company faces credit risk from its customer base, which is concentrated in the oil and natural gas industry, making it susceptible to changes in economic and industry conditions. Restrictions in its Revolving Credit Facility could limit future financing or capital needs, and variable interest rates expose it to interest rate risk. Regulatory & Compliance Risks: Operations are subject to numerous stringent foreign, federal, state, and local environmental, occupational health and safety, and other governmental regulations. Non-compliance can result in significant sanctions, penalties, and costly remedial actions. The trend towards stricter environmental regulations, climate change legislation (e.g., GHG emission limits, carbon taxes), and regulations on hydraulic fracturing and offshore drilling could increase costs and reduce demand for services. Data Privacy: The Company is subject to evolving regulations related to privacy, data protection, and information security (e.g., GDPR). Non-compliance could lead to fines, sanctions, and reputational damage.

Geopolitical & External Risks

Geopolitical Exposure: Operating in over 50 countries exposes Expro Group Holdings N.V. to political, social, and economic instability, potential expropriation, contract deprivation, inflation, increased operating costs, inability to collect revenue, civil unrest, import/export quotas, tariffs, confiscatory taxation, currency exchange controls, and restrictions on fund repatriation. Geopolitical tensions (e.g., Russian war in Ukraine, Middle East conflicts) contribute to oil and gas price volatility. Trade Relations: The Company is subject to extensive international trade laws and regulations, including import/export controls and economic sanctions (e.g., U.S. anti-boycott laws). Failure to comply can result in criminal and civil penalties, debarment, and seizure of shipments. AI Risks: The integration of Artificial Intelligence (AI) tools presents risks such as perceived breaches of privacy or security, inaccurate or unexpected results, and potential non-compliance with rapidly evolving regulatory or industry standards, which could harm the business, customers, or reputation.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Expro Group Holdings N.V. focuses its research and development on its core capabilities: well construction, well flow management, subsea well access, and well intervention and integrity solutions. Innovation Pipeline: The Company is committed to advancing its product and service portfolio to provide cost-effective, innovative solutions that enable more efficient production of oil, gas, and geothermal resources with a lower carbon footprint. It also emphasizes leveraging the power of data to improve business practices and deliver greater value to customers. In 2025, R&D expenditure was $13.4 million.

Intellectual Property Portfolio: Expro Group Holdings N.V. owns and controls a variety of intellectual property, including patents, proprietary information, trade secrets, and software tools and applications. It holds multiple U.S. and international patents and has a number of pending patent applications. While important in aggregate, no single patent or license is considered critical to the business. The Company employs confidentiality agreements with employees, customers, and suppliers to protect its technology and trade secrets.

Leadership & Governance

Executive Leadership Team

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 8,500 employees worldwide as of December 31, 2025.
• Geographic Distribution: Approximately 13% of employees are located in the United States. Approximately 20% of employees are subject to collective bargaining agreements, with 10% under agreements expiring within one year.

Talent Management: Acquisition & Retention: Expro Group Holdings N.V. offers competitive benefit packages tailored to local markets to attract and retain talent. The Company strives to be an employer of choice by providing challenging careers, training, fair pay, and rewarding work. Employee Value Proposition: The Company is committed to improving its work environment to ensure employee safety, minimize environmental impact, and provide robust and transparent governance.

Diversity & Development:

• Diversity Metrics: Expro Group Holdings N.V. is committed to equal treatment for all employees and job applicants, regardless of race, color, nationality, sex, disability, age, or religion. It aims to create a work environment free of harassment and bullying, where diversity and inclusion are valued for providing varied experiences and insights.
• Development Programs: The Company invests in learning and development programs to reinforce and update existing skill sets and develop new competencies. Employees are empowered to drive career progression through various learning platforms, supported by a strong performance management culture that informs development plans and succession planning.
• Culture & Engagement: Employee feedback is actively solicited, including through the 2024 Global Employee Survey, to positively influence and develop the Company's culture. An ownership mindset is fostered to encourage accountability and creativity.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: Expro Group Holdings N.V. is committed to advancing its products and services portfolio to provide customers with cost-effective, innovative solutions that enable the production of oil, gas, and geothermal resources more efficiently and with a lower carbon footprint.

Social Impact Initiatives: Expro Group Holdings N.V. encourages and celebrates participation in diverse community activities across its global operations, aligning with its core values of People, Performance, Partnerships, and Planet. A company-wide social steering committee champions these social efforts, acting as a conduit for employee input to enhance the Company's culture.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Seasonal weather changes and significant weather events can temporarily affect the delivery of products and services. Examples include winter months in the North Sea, monsoon season in South and Southeast Asia, and hurricanes/typhoons disrupting coastal and offshore operations.
• Economic Sensitivity: Customer spending patterns can lead to higher or lower activity in the fourth quarter (based on year-to-date spending relative to annual budgets) and first quarter (based on new year's budget approval). The business is sensitive to global economic conditions and oil and gas prices.
• Industry Cycles: The level of offshore activity is historically cyclical and characterized by large fluctuations.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Expro Group Holdings N.V. is subject to numerous stringent foreign, federal, state, and local environmental and other governmental and regulatory requirements globally. Compliance with these laws and regulations, or failure to obtain/comply with permits, can result in sanctions, penalties, investigatory/remedial actions, required capital expenditures, and operational restrictions. The trend in environmental regulation is towards stricter standards, which could increase compliance costs. International Compliance: The Company operates in over 50 countries and is subject to diverse international laws and regulations, including those that may encourage or require hiring local contractors or purchasing supplies from specific jurisdictions.

Trade & Export Controls: Expro Group Holdings N.V. is subject to extensive trade laws and regulations governing the shipment of goods, services, and technology across international borders. This includes unique customs laws in each operating country, controls on imports/exports, and economic sanctions imposed by governments (e.g., U.S. anti-boycott laws). Non-compliance can result in criminal and civil penalties, fines, debarment from government contracts, seizure of shipments, and loss of import/export privileges.

Legal Proceedings: Information related to legal proceedings is included in Note 18 "Commitments and contingencies" to the consolidated financial statements. As of December 31, 2025, and December 31, 2024, Expro Group Holdings N.V. had no material accruals for loss contingencies, individually or in the aggregate, and believes the probability is remote that the ultimate outcome of these matters would have a material adverse effect on its financial position, results of operations, or cash flows.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 40.14% in 2025, 46.99% in 2024, and 211.52% in 2023.
• Geographic Tax Planning: Expro Group Holdings N.V. operates in over 50 countries and is subject to numerous domestic and foreign taxing jurisdictions, agreements, and treaties. Taxable income determination requires interpretation of tax laws and regulations and estimates regarding future events.
• Tax Reform Impact: The Company has considered the OECD’s Pillar 2 rules for global minimum tax and does not expect them to have a material impact on its financial statements.
• Uncertain Tax Positions: As of December 31, 2025, unrecognized tax benefits totaled $77.9 million (including $18.5 million in penalties and interest), which would positively impact the future tax rate if resolved in the Company's favor.

Insurance & Risk Transfer

Risk Management Framework: Expro Group Holdings N.V. maintains insurance coverage, including general liability, umbrella liability, sudden and accidental pollution, personal property, vehicle, workers’ compensation, and employer’s liability, which it believes to be customary and reasonable for its size and operations. However, it does not maintain insurance coverage against all operating risks and generally does not procure business interruption insurance. Therefore, there is a risk that its insurance program may not be sufficient to cover all losses.