The following is a summary of the Expro Group Holdings N.V. (XPRO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Expro Group reported Q1 2024 revenue of $383 million, representing a year-over-year increase of 13%.
Adjusted EBITDA was $67 million, a 61% increase compared to Q1 2023.
The revenue showed a sequential decrease of 6%, aligning with usual first-quarter trends.
Net loss improved from $6 million in Q1 2023 to $3 million in Q1 2024.
The projected contribution of the Coretrax acquisition to revenue is $70 to $80 million.
Long-term financial goals include achieving $2 billion revenue, adjusted EBITDA margin in the mid-20s, and a free cash flow margin of 10%.
Business Progress:
New contracts worth around $230 million were secured, including subsea contracts worth $40 million in Africa.
The acquisition of Coretrax for around $210 million is expected to bolster Expro's capabilities.
The company is actively exploring opportunities for future acquisitions.
Expro entered into a carbon capture and storage contract with INPEX Corporation for Japan's first clean hydrogen production demonstration project.
Despite a temporary slow-down in well construction, Expro foresees an improvement post maintenance and an upswing in activity in the Gulf of Mexico.
A strategic focus on growth through acquisitions and contracts is maintained.
Expro has reduced support costs from 31% to 19.4%, bolstering confidence in revenue and EBITDA margin targets.
The company has developed an integration playbook for streamlining future mergers and acquisitions.
More details: Expro Group IR
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