Overview

• Global energy services firm's Q1 revenue slightly beat analyst expectations

• Company posted a small net loss, citing seasonality and Middle East disruptions

• Expro agreed to acquire Enhanced Drilling for about $215 mln to expand drilling tech portfolio

Outlook

• Expro reaffirms 2026 revenue guidance of $1.6 bln to $1.65 bln

• Company expects $10 mln to $15 mln Q2 revenue impact from Middle East disruptions

Result Drivers

• SEASONALITY & CUSTOMER SPENDING - Q1 results were affected by typical seasonality and lower customer budgetary spending, especially in the North Sea and Gulf of America

• LESS FAVORABLE ACTIVITY MIX - Lower margin project mix contributed to declines in segment EBITDA and margins in NLA and ESSA regions

Company press release: ID:nBw8qtv7La

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Expro Group Holdings NV is $16.00, about 11.4% below its May 4 closing price of $18.06

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

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