Q2 2024 Expro Group Holdings NV Earnings Call Transcript
Key Points
- Expro Group Holdings NV (XPRO) reported a strong Q2 2024 with revenue of $470 million and adjusted EBITDA of $95 million, both exceeding guidance.
- The company saw a sequential revenue increase of 22% and a year-over-year increase of 18%, driven by increased activity across all regions and product lines.
- Expro Group Holdings NV (XPRO) successfully closed the acquisition of CoreTrax earlier than expected, contributing positively to revenue and EBITDA.
- The company has a healthy backlog of approximately $2.2 billion, indicating strong future revenue potential.
- Expro Group Holdings NV (XPRO) raised its full-year 2024 guidance, expecting revenue between $1.7 billion and $1.75 billion and adjusted EBITDA between $350 million and $375 million.
- The ESSA segment's EBITDA margin was flat sequentially and down approximately 4 percentage points year-over-year due to lower margins on the Congo Production Solutions project.
- Q3 2024 revenue is expected to decline sequentially by approximately 10%, reflecting the transition of the Congo project to the operations and maintenance phase and the timing of subsea well access projects.
- Net income for Q2 2024 was $15 million, which, although an improvement, still indicates room for growth in profitability.
- Adjusted cash flow from operations was only $6 million in Q2 2024, significantly lower than the $36 million in Q2 2023, primarily due to an increase in net working capital.
- The company faces challenges in maintaining high EBITDA margins in the Asia Pacific region, which has historically underperformed compared to other regions.
Hello, and welcome to the Expro Q2 2024 earnings presentation. My name is Elliot, and I'll be coordinating your call today. (Operator Instructions)
I would now like to hand over to Chad Stevenson, Director of Investor Relations. Please go ahead.
Welcome to Expro's second quarter 2024 conference call. I am joined today by Expro's CEO, Mike Jardon, and Expro's CFO, Quinn Fanning.
First, Mike and Quinn will have some prepared remarks. Then we will open it up for questions. We have an accompanying presentation our second quarter results that is posted on Expro's website, expro.com under the Investors section. In addition, supplemental financial information for the second quarter results is downloadable on the Expro website. Likewise, under the Investors section.
I'd like to remind everyone that some of today's comments may refer to or contain forward looking statements. Such remarks are subject to risks and uncertainties that could cause actual results to differ
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