Second Quarter 2026 Highlights
- Revenue was $393 million
- Net income of $2 million
- Adjusted EBITDA(1) of $76 million with an Adjusted EBITDA margin(1) of 19.3%
- Cash flow from operations of $81 million, or 20.7% of revenue
- Adjusted free cash flow(2) of $56 million
- Share repurchases of approximately $20 million (1.3 million shares at an average of $15.42 per share)
- Liquidity at the end of the quarter stood at $492 million
Michael Jardon, Chief Executive Officer, commented, “Our second quarter results reflect a good sequential increase coming out of a seasonally low first quarter. This is despite the impacts caused by the Middle East conflict that tempered our second quarter results.
“During the quarter we continued to execute across our disciplined capital allocation framework. The Company’s capital allocation centers around investing in the business, maintaining a solid financial position, M&A, and returning cash to shareholders through share repurchases. All of these were achieved during the second quarter of 2026. The Company invested roughly $30 million in capital expenditures funding accretive and high-return projects, announced the acquisition of Enhanced Drilling, and maintained a strong balance sheet. Specifically, on returning cash to shareholders, the Company repurchased approximately $20 million or 1.3 million shares during the second quarter. This brings the year-to-date repurchases to approximately 2.5 million shares, representing approximately $40 million of cash returned to shareholders. The significance is that Expro is already very close to achieving its annual goal of returning at least one-third of free cash flow to shareholders.
“With regards to the Middle East, the conflict and its impacts on our operations have persisted longer than we had previously anticipated. That said, we have been more positive on the developing medium-to-long-term outlook for our business. Increasing subsea trees orders and offshore rig utilization reinforce the view of a strengthening offshore market. We believe this will result in a more robust activity set for Expro in the coming years. Furthermore, operators are placing greater emphasis on technology-enabled efficiency gains, which I believe is one of our strengths and a reason why they chose Expro as their service provider. Along those lines, we recently closed on the Enhanced Drilling acquisition which adds a differentiated technological capability to our service portfolio. Finally, our commitment to driving efficiency gains does not stop with our customers. We are continually evaluating what we can do to drive further efficiency gains of our own, through cost control and other various internal initiatives.”
Free Cash Flow
Expro generated $81 million in net cash provided by operating activities in the second quarter of 2026. After capital expenditures of $31 million, Expro generated $50 million of free cash flow and $56 million of Adjusted free cash flow in the second quarter of 2026.
Management believes that Adjusted free cash flow better reflects the Company’s performance by excluding one-time items, in line with corporate finance principles.
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2026 | 2026 | |||||||
| Total revenue | $393,182 | $760,755 | ||||||
| Net cash provided by operating activities | $ | 81,462 | $ | 106,746 | ||||
| Less: Capital expenditures | (31,184 | ) | (56,948 | ) | ||||
| Free cash flow | 50,278 | 49,798 | ||||||
| Add: Merger and integration expense (*) | 3,634 | 3,922 | ||||||
| Add: Severance and other expense (*) | 2,572 | 5,798 | ||||||
| Adjusted free cash flow | $ | 56,484 | $ | 59,518 | ||||
| (*) | Expenses directly referenced on the condensed consolidated statements of operations. |
Shareholder Return
During the second quarter of 2026, the Company repurchased approximately 1.3 million shares at an average price of $15.42 per share, resulting in approximately $20 million of share repurchases. After the share repurchases during the first and second quarters of 2026, the Company has approximately $60 million remaining under its current Board of Directors share repurchase authorization to acquire up to $100 million of outstanding shares. For the full year 2026, Expro remains committed to utilizing at least 33% of the annual Adjusted free cash flow generated for capital returns to shareholders.
Drive25 and Additional Cost Efficiency Programs
Expro has successfully completed all internal projects as part of the Company’s Drive 25 self-help program. As expected, Expro expects to fully realize more than $40 million of structural cost removals in 2026.
Additionally, Expro remains focused on driving ongoing efficiency improvements and further optimizing its cost base. As part of its continuous portfolio review process, the Company is assessing targeted actions across selected geographies and product lines to improve returns, enhance operating leverage, and support sustained margin expansion and free cash flow growth.
Short-Term Outlook
While the geopolitical situation in the Middle East remains uncertain, volatile, and has temporarily moderated the pace of the projected activity growth for Expro in high-margin businesses in the region, we have been encouraged by the resilience of our MENA operations, which has performed strongly despite the ongoing disruption.
Importantly, the fundamental thesis underpinning our outlook for 2026 remains firmly intact. We continue to see a significant step-change in Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted free cash flow performance during the second half of the year. We expect these will be driven by the continued execution of our strategic initiatives, strong operating leverage across the business, and five months of contribution from the recently completed Enhanced Drilling acquisition.
While our outlook conservatively reflects the near-term impacts of the regional conflict and a gradual recovery in activity levels, we expect second-half of 2026 Adjusted EBITDA margins to exceed 24%, with fourth-quarter margins exceeding 26%, representing a substantial improvement versus the first half of the year. We remain focused on the factors within our control, including disciplined execution, portfolio optimization, and operational efficiency initiatives, all of which support our long-term objective of delivering sustainable earnings growth, expanding margins, and increasing free cash flow generation.
Financial Guidance
Based upon the prevailing conflict in the Middle East and the recent closing of the Enhanced Drilling acquisition we have updated our financial guidance. With regards to the disruptions from the Middle East conflict, we expect there will be quarterly impacts throughout the remainder of 2026; however, not to the same extent as experienced during the second quarter. With regards to the Enhanced Drilling acquisition, we will include five months of operations in our 2026 results.
For the second half of 2026, we still see tangible sequential increases in our quarterly results driven by:
- our NLA segment in the fourth quarter with subsea well access and well flow management work and tubular sales in the Gulf of America, and well intervention and integrity work in Colombia,
- our MENA segment with a sizeable production solutions project scheduled in the fourth quarter in North Africa, as well as some equipment sales in the region,
- our APAC region with well construction and well flow management projects, accompanied by subsea equipment sales in China, and
- the inclusion of five months of Enhanced Drilling’s operations during the second half of 2026.
Previously, we had expected our operations in the Middle East countries to normalize during the back half of the year, which would have been additive to the results in the second half of 2026. As mentioned above, those expectations have changed with some of the impacts now expected through year end. Additionally, we had anticipated our Coretrax product line to generate incremental contributions across our geographic segments, particularly in Middle East where that product line has its largest exposure. Now however, the amount of the expected incremental contributions coming from Coretrax is lower than previously anticipated. Both of these factors serve to moderate our previous annual expectations.
To account for these uncertainties, we are taking a conservative approach to our revised guidance; however, we do expect to be able to capture some upside above these estimates in the second half of the year, particularly in the fourth quarter.
|
| Current Guidance | Prior Guidance | |||
Three Months Ended |
| Full Year Ended | Full Year Ended | |||
September 30, |
| December 31, | December 31, | |||
| (in millions) | 2026 |
| 2026 | 2026 | ||
| Revenue | $435-$455 |
| $1,650-$1,700 | $1,600 - $1,650 | ||
| Adjusted EBITDA | $90-$100 |
| $355-$365 | $355 - $375 | ||
| Capital expenditure | $110-$120 | $110 - $120 | ||||
| Adjusted free cash flow | $135-$145 | $125 - $145 |
Other Financial Information
As of June 30, 2026, Expro’s consolidated cash and cash equivalents, including restricted cash, totaled $200 million, and the Company’s total liquidity stood at $492 million. Total liquidity includes $292 million available for drawdowns as loans under the Company’s revolving credit facility. The Company had outstanding long-term borrowings of $79 million as of June 30, 2026.
On April 1, 2026, Expro’s Board of Directors unanimously approved a plan to change the Company’s corporate domicile from the Netherlands to the Cayman Islands (the “Redomicile”). The proposals related to the Redomicile were approved by a shareholder vote during the Company’s Annual Shareholder Meeting on June 10, 2026. The Redomicile was completed on July 13, 2026.
On July 23, 2026, Expro closed on the acquisition of Enhanced Drilling. Under the terms of the agreement Expro purchased Enhanced Drilling for approximately 2 billion Norwegian kroner (“NOK”) in cash (approximately $215 million) plus customary closing and working capital adjustments.
The financial measures provided that are not presented in accordance with GAAP are defined and reconciled to their most directly comparable GAAP measures. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures.
Additionally, downloadable financials are available in the Investor section of www.expro.com.
Notable Awards and Achievements
Middle East and North Africa (MENA)
- In Iraq, the Company secured a contract for its SONAR Flow Surveillance. The SONAR solution enables a comprehensive field wide production surveillance and evaluation, providing timely data to support operational optimization and reservoir management.
- In Oman, Expro secured a QPulseTM campaign on a gas condensate field to provide production testing on existing infrastructure. QPulseTM delivers well performance data without the operational disruption of conventional production testing methods. This technology lowers the costs and risks of production testing for customers.
North and Latin America (NLA)
- In Canada, Expro was awarded a multi-product line contract for a 14-well campaign with options for additional wells by a customer operating offshore Eastern Canada. The contract is expected to commence during the first half of 2027.
- In Brazil, the Company entered into two three-year contracts to provide subsea landing string and tubular running services as well as cementing accessories.
Europe and Sub-Saharan Africa (ESSA)
- During the second quarter of 2026, this region secured over $250 million of contract awards – some for the extension of existing work, some for incremental work in the future.
- In Azerbaijan, Expro extended existing contracts for subsea landing string and tubular running services.
Asia Pacific (APAC)
- In Malaysia, the Company secured a three-year contract to continue to support a customer’s deepwater subsea program.
Technologies
- Expro’s 1,250-ton XRDTM (Extended Range Drilling) Spider successfully completed all field trials with a major Gulf of America operator, culminating in a final wellbore cleanout run. The trials demonstrated reliable performance in demanding offshore conditions and confirmed the system’s operational readiness for broader deployment.
- The Company utilized its subsea systems to complete a well abandonment campaign in the UK where Expro achieved 2,490 hours (104 days) with zero non-productive time; highlighting the Company’s equipment reliability and service discipline.
- Expro has extended its capabilities in Namibia with the commissioning of a visual PVT system, which recently completed a major analysis campaign, providing in-country data, allowing the operator to accelerate the evaluation of their discovery.
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2026 to the results for the first quarter of 2026.
North and Latin America (NLA)
Revenue for the NLA segment was $129 million for the three months ended June 30, 2026, an increase of $1 million, or 1%, compared to $128 million for the three months ended March 31, 2026. The increase was primarily driven by higher well intervention revenue in Argentina and increased well construction activity in Brazil, partially offset by lower well intervention revenue in Colombia.
Segment EBITDA for the NLA segment was $26 million, or 20% of revenues, during the three months ended June 30, 2026, an increase of $0.1 million, or 1%, compared to $26 million, or 20%, of revenues during the three months ended March 31, 2026.
Europe and Sub-Saharan Africa (ESSA)
Revenue for the ESSA segment was $127 million for the three months ended June 30, 2026, an increase of $13 million, or 11%, compared to $114 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well flow management activities in the United Kingdom and Norway, partially offset by lower well flow management revenue in Republic of the Congo.
Segment EBITDA for the ESSA segment was $34 million, or 27% of revenues, for the three months ended June 30, 2026, an increase of $3 million, or 8%, compared to $32 million, or 28% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA was primarily attributable to higher revenue, partially offset by a decrease in segment EBITDA margin due to reduced work on higher margin projects.
Middle East and North Africa (MENA)
Revenue for the MENA segment was $90 million for the three months ended June 30, 2026, an increase of $8 million, or 10%, compared to $82 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well construction revenue in Egypt.
Segment EBITDA for the MENA segment was $33 million, or 36% of revenues, for the three months ended June 30, 2026, an increase of $9 million, or 39%, compared to $24 million, or 29% of revenues, for the three months ended March 31, 2026. The increase in Segment EBITDA and Segment EBITDA margin is consistent with the increase in revenue and favorable activity mix.
Asia Pacific (APAC)
Revenue for the APAC segment was $47 million for the three months ended June 30, 2026, an increase of $3 million, or 7%, compared to $44 million for the three months ended March 31, 2026. The increase in revenue was primarily attributable to higher well intervention activities in Brunei and Malaysia and higher subsea well access revenue in Malaysia, partially offset by lower subsea well access activities in Australia.
Segment EBITDA for the APAC segment was $9 million, or 18% of revenues, for the three months ended June 30, 2026, an increase of $1 million compared to $7 million, or 16% of revenues, for the three months ended March 31, 2026.
Conference Call
The Company will host a conference call to discuss second quarter 2026 results on Tuesday, July 28, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
U.S. Toll-Free: +1 (800) 715-9871
U.S./International: +1 (646) 307-1963
Access ID: 46235
To listen via live webcast, please visit the Investor section of www.expro.com.
The second quarter 2026 Investor Presentation is available in the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor section of the Company’s website approximately three hours after the conclusion of the call and will remain available for a period of two weeks.
To access the audio replay telephonically:
Dial-In: U.S. Toll-Free:+1 (800) 770-2030 or U.S./International +1 (609) 800-9909
Access ID: 46235
Start Date: July 28, 2026, approximately 3:00 p.m. CT
End Date: August 11, 2026, 11:59 p.m. CT
A transcript of the conference call will be posted to the Investor relations section of the Company’s website as soon as practicable after the conclusion of the call.
