Expro's Q3 Net Income Dips 14%, But YTD Profit Soars 59%

TL;DR

**XPRO's Q3 was soft, but the year-to-date numbers and aggressive buyback make it a compelling long-term play in energy services.**

AI Summary

EXPRO GROUP HOLDINGS N.V. (XPRO) reported a net income of $13.963 million for the three months ended September 30, 2025, a decrease from $16.275 million in the same period of 2024, representing a 14.2% decline. Total revenue also decreased by 2.7%, from $422.828 million in Q3 2024 to $411.356 million in Q3 2025. However, for the nine months ended September 30, 2025, net income significantly increased to $45.914 million from $28.884 million in the prior year, a 59% rise, despite a 4% revenue dip from $1,275.959 million to $1,224.968 million. Operating income saw a slight increase to $26.453 million in Q3 2025 from $26.117 million in Q3 2024. The company repurchased approximately 3.7 million shares for $40.1 million during the nine months ended September 30, 2025, under its $100.0 million stock repurchase program, which extends through November 24, 2025. Cash provided by operating activities surged to $153.101 million for the nine months ended September 30, 2025, up from $72.078 million in the prior year, indicating improved operational efficiency.

Why It Matters

For investors, the mixed financial results present a nuanced picture: a quarterly revenue and net income decline suggests near-term headwinds, while strong year-to-date net income growth and robust operating cash flow indicate underlying operational strength and potential for future returns. The significant share repurchase program, with $40.1 million spent on 3.7 million shares, signals management's confidence and commitment to shareholder value, potentially boosting EPS. Employees might see stability given the improved cash flow, but the revenue dip could hint at market pressures. In the competitive energy services sector, Expro's ability to increase year-to-date profit despite revenue contraction suggests effective cost management and strategic positioning, which could impact its market share against rivals.

Risk Assessment

Risk Level: medium — The company faces medium risk due to declining quarterly revenue from $422.828 million in Q3 2024 to $411.356 million in Q3 2025, and a 14.2% drop in quarterly net income from $16.275 million to $13.963 million. While year-to-date net income is up significantly, the recent quarter's performance suggests potential market or operational challenges that could impact future profitability.

Analyst Insight

Investors should consider XPRO's long-term potential, given the strong year-to-date net income growth of 59% and increased operating cash flow of $153.101 million. The ongoing $100.0 million stock repurchase program, with $40.1 million already executed, indicates management's commitment to shareholder returns, making it an attractive option for value-oriented investors.

Financial Highlights

revenue

$411.356M

operating Margin

6.43%

total Assets

$1,697.000M

net Income

$13.963M

eps

$0.12

cash Position

$197.876M

revenue Growth

-2.7%

Key Numbers

• $411.356M — Total revenue for Q3 2025 (Decreased from $422.828 million in Q3 2024)
• $13.963M — Net income for Q3 2025 (Decreased from $16.275 million in Q3 2024)
• $1,224.968M — Total revenue for YTD Q3 2025 (Decreased from $1,275.959 million in YTD Q3 2024)
• $45.914M — Net income for YTD Q3 2025 (Increased from $28.884 million in YTD Q3 2024)
• $153.101M — Net cash provided by operating activities for YTD Q3 2025 (Increased from $72.078 million in YTD Q3 2024)
• $40.1M — Cost of common stock repurchased YTD Q3 2025 (Part of the $100.0 million stock repurchase program)
• 3.7M — Shares repurchased YTD Q3 2025 (Average price of $10.81 per share)
• 113,560,421 — Common shares outstanding as of October 16, 2025 (Reflects impact of share repurchases)

Key Players & Entities

• EXPRO GROUP HOLDINGS N.V. (company) — global provider of energy services
• PRT Offshore (company) — acquired by Expro in October 2023
• New York Stock Exchange (regulator) — exchange where XPRO common stock is registered
• Securities and Exchange Commission (regulator) — regulates financial filings
• Financial Accounting Standards Board (regulator) — establishes U.S. GAAP
• Bloomberg (company) — financial news and data provider

FAQ

Risk Factors

• Fluctuations in Operating Costs [medium — operational]: Cost of revenue decreased by $20.093 million in Q3 2025 compared to Q3 2024, and by $69.627 million year-to-date. However, depreciation and amortization expense increased by $5.804 million in Q3 2025 and $17.148 million year-to-date, indicating potential shifts in asset utilization or capital expenditures.
• Increased Severance and Other Expenses [medium — operational]: Severance and other expense rose significantly from $3.181 million in Q3 2024 to $5.782 million in Q3 2025, and from $8.007 million to $18.575 million year-to-date. This suggests restructuring or workforce adjustments impacting short-term profitability.
• Income Tax Expense Volatility [low — regulatory]: Income tax expense decreased by $4.355 million in Q3 2025 compared to Q3 2024, and by $9.625 million year-to-date. While this boosted net income, significant fluctuations in tax expense can indicate changes in tax regulations or effective tax rates, requiring careful monitoring.
• Declining Revenue Trends [high — market]: Total revenue for Q3 2025 was $411.356 million, a 2.7% decrease from $422.828 million in Q3 2024. Year-to-date revenue also declined by 4.0% from $1,275.959 million to $1,224.968 million. This indicates a challenging market environment or reduced demand for services.
• Share Repurchase Program [low — financial]: The company repurchased approximately 3.7 million shares for $40.1 million during the nine months ended September 30, 2025. While this can return value to shareholders, it reduces cash available for other investments or debt reduction.

Industry Context

Expro Group Holdings N.V. operates in the oil and gas services sector, which is highly cyclical and dependent on global energy prices and exploration activity. The industry faces increasing pressure to adopt sustainable practices and technologies, alongside competition from both established players and new entrants. Recent trends show a cautious approach to new project investments by oil majors, impacting demand for services.

Regulatory Implications

The company operates under various international and national regulations related to environmental protection, safety standards, and financial reporting. Changes in these regulations, particularly concerning emissions or operational safety, could lead to increased compliance costs or operational restrictions.

What Investors Should Do

1. Monitor revenue trends and drivers
2. Analyze operating cost management
3. Evaluate the impact of joint ventures
4. Assess the effectiveness of the share repurchase program

Key Dates

• 2025-11-24: Stock repurchase program expiration — Investors will monitor if the company continues or initiates new repurchase programs, impacting share count and potentially shareholder returns.

Glossary

Equity in income of joint ventures

The portion of profit or loss from a joint venture that is recognized by the company based on its ownership stake. (This line item significantly contributes to the company's pre-tax income, showing the impact of its joint venture operations.)

Other comprehensive income (loss)

Unrealized gains or losses on certain investments and foreign currency translations that are not included in net income but affect total equity. (While minor in this filing, it represents potential future impacts on the company's equity not reflected in current earnings.)

Weighted average common shares outstanding

The average number of a company's common shares that have been issued and are outstanding over a specific period, used for EPS calculations. (This metric is crucial for calculating Earnings Per Share (EPS) and reflects the impact of share issuances or repurchases.)

Year-Over-Year Comparison

Compared to the prior year, Expro Group Holdings N.V. experienced a mixed performance. While Q3 2025 net income declined by 14.2% to $13.963 million on a 2.7% revenue decrease, the nine-month period showed a substantial 59% net income increase to $45.914 million, despite a 4% revenue dip. Operating income saw a slight increase year-to-date. Notably, cash provided by operating activities surged by over 100% year-to-date, indicating improved cash generation, while income tax expense decreased significantly.

Filing Documents

• xpro20250930_10q.htm (10-Q) — 1813KB
• ex_845701.htm (EX-10.1) — 61KB
• ex_845703.htm (EX-31.1) — 12KB
• ex_845704.htm (EX-31.2) — 12KB
• ex_845705.htm (EX-32.1) — 5KB
• ex_845706.htm (EX-32.2) — 5KB
• 0001437749-25-031623.txt ( ) — 8986KB
• xpro-20250930.xsd (EX-101.SCH) — 76KB
• xpro-20250930_cal.xml (EX-101.CAL) — 72KB
• xpro-20250930_def.xml (EX-101.DEF) — 445KB
• xpro-20250930_lab.xml (EX-101.LAB) — 377KB
• xpro-20250930_pre.xml (EX-101.PRE) — 490KB
• xpro20250930_10q_htm.xml (XML) — 1759KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 1 Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 2 Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 3 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024 5 Notes to the Unaudited Condensed Consolidated Financial Statements 6 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 5. Other Information 45 Item 6. Exhibits 46

Signatures

Signatures 47 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Expro Group Holdings N.V. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share data) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Total revenue $ 411,356 $ 422,828 $ 1,224,968 $ 1,275,959 Operating costs and expenses: Cost of revenue, excluding depreciation and amortization expense ( 311,142 ) ( 331,235 ) ( 936,615 ) ( 1,006,242 ) General and administrative expense, excluding depreciation and amortization expense ( 20,491 ) ( 20,467 ) ( 56,804 ) ( 65,905 ) Depreciation and amortization expense ( 46,195 ) ( 40,391 ) ( 138,332 ) ( 121,184 ) Merger and integration expense ( 1,293 ) ( 1,437 ) ( 5,300 ) ( 12,387 ) Severance and other expense ( 5,782 ) ( 3,181 ) ( 18,575 ) ( 8,007 ) Total operating cost and expenses ( 384,903 ) ( 396,711 ) ( 1,155,626 ) ( 1,213,725 ) Operating income 26,453 26,117 69,342 62,234 Other income, net 524 262 2,458 1,081 Interest and finance expense, net ( 4,106 ) ( 3,895 ) ( 11,836 ) ( 10,713 ) Income before taxes and equity in income of joint ventures 22,871 22,484 59,964 52,602 Equity in income of joint ventures 5,897 4,241 12,998 12,955 Income before income taxes 28,768 26,725 72,962 65,557 Income tax expense ( 14,805 ) ( 10,450 ) ( 27,048 ) ( 36,673 ) Net income $ 13,963 $ 16,275 $ 45,914 $ 28,884 Earnings per common share: Basic $ 0.12 $ 0.14 $ 0.40 $ 0.25 Diluted $ 0.12 $ 0.14 $ 0.40 $ 0.25 Weighted average common shares outstanding: Basic 114,804,684 117,467,994 115,483,955 113,887,885 Diluted 115,447,110 118,293,677 115,956,527 115,605,215 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 1 Table of Contents Expro Group Holdings N.V. Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in thousands) Three Months Ended September 30, Nin

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