Expro Group Holdings (XPRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $368 million, with adjusted EBITDA of $63 million (17.1% margin), reflecting typical seasonality, slow operator spending, and a net loss of $1 million.

• Announced agreement to acquire Enhanced Drilling for ~$215 million, adding $275 million in backlog and >$50 million annual adjusted EBITDA at >30% margin.

• Share repurchases totaled 1.2 million shares for $20 million in Q1 2026.

• Announced proposal to redomicile from the Netherlands to the Cayman Islands, pending shareholder approval.

• Maintains constructive outlook for 2026 and beyond, expecting activity to strengthen in H2 2026.

Financial highlights

• Q1 2026 revenue: $368 million; adjusted EBITDA: $63 million (17.1% margin); adjusted free cash flow: $3 million, impacted by working capital.

• Net loss of $1 million in Q1 2026; liquidity at quarter-end was $517 million, including $171 million in cash.

• Net cash position of ~$92 million; long-term borrowings outstanding were $79 million at 8.9% interest.

• Share repurchases since 2024 totaled $74 million, representing 24% of adjusted free cash flow in 2024 and 32% in 2025.

• Capital expenditures were $25.8 million in Q1 2026, with 90% supporting customer-related activities.

Outlook and guidance

• 2026 full-year revenue guidance is $1.6–$1.65 billion; adjusted EBITDA projected at $355–$375 million.

• Sequential improvements in revenue and EBITDA expected each quarter; margin expansion anticipated in H2 2026.

• Middle East conflict projected to impact Q2 revenue by $10–$15 million, with total annual impact ~1% of revenue.

• Capital expenditures for 2026 expected at $110–$120 million; adjusted free cash flow guidance is $125–$145 million.

• Guidance to be updated to include Enhanced Drilling after acquisition closes.