Expro Group Holdings N.V. Q1 FY2026 earnings call

Mike Darden began by reviewing Q1 2026 financial results, commented on the macro environment, Middle East and North Africa region, announced acquisition of Enhanced Drilling, revisited outlook, and mentioned operational highlights. Sergio Mayworm provided details on financial performance by geographic region and capital allocation framework. Highlighted seasonality impact, Middle East conflict minor impact, acquisition of Enhanced Drilling adding technology solution, $2 billion NOK purchase price, expected EBITDA margin expansion, 2026 guidance unchanged, and customer technology highlights like remote completion joint makeup, Itong milestone, SOLUS launch, and multi-trace gas tracing.

During the quarter, the company generated $368 million of revenue and $63 million of adjusted EBITDA. For North and Latin America, first quarter revenue was $128 million, segment EBITDA margin 20%; Europe and Sub-Saharan Africa, revenue $114 million, segment EBITDA margin 28%; Middle East and North Africa, revenue $82 million, segment EBITDA margin 29%; Asia Pacific, revenue $44 million, segment EBITDA margin 16%.

No change to 2026 annual guidance. Assuming Middle East conflict resolution by end of Q2, impact on Q2 revenue $10 - $15 million, totaling ~1% of annual revenue. Confident in second half 2026 ramp in revenue and adjusted EBITDA, with opportunities in various regions.

Forward-looking statements subject to risks and uncertainties. Middle East conflict could have longer-term impacts. Working capital changes in Q1 affected free cash flow, though subsequent improvement seen.

Q: Caitlin Donohue from Goldman Sachs asked about growth prospects and Drive 25 initiative.

A: Mike and Sergio responded on acquisition's market expansion, Drive 25 cost efficiencies.

Q: Eddie Kim from Barclays asked about customer conversations and MPD market penetration.

A: Mike and Sergio discussed customer focus on production projects, energy security, and MPD market share.

Q: Keith Beckman from Pickering Energy Partners asked about technology deployment and Middle East recovery.

A: Mike and Sergio talked about technology efficiency, Middle East participation in recovery.

Q: Josh Jane from Daniel Energy Partners asked about positioning for longer conflict and acquisition diversification.

A: Mike and Sergio discussed service-dependent business in Middle East, acquisition deployment timeline.

Q: Derek Podheiser from Piper Sandler asked about 2Q guidance and consolidation.

A: Sergio and Mike responded on 2Q shape, consolidation in offshore space.