Breaking Down Expro Group Holdings N.V. (XPRO) Financial Health: Key Insights for Investors

Are you keeping a close watch on Expro Group Holdings N.V. (XPRO) and trying to gauge its financial stability? Did you know that in 2024, Expro's revenue reached $1.713 billion, marking a 13% increase compared to the previous year? The company's adjusted EBITDA also saw a significant jump, rising by 40% to $347 million. With capital expenditures totaling $144 million for the year and plans for $120 million to $130 million in 2025, how will these investments shape Expro's future performance? Dive in to explore these key financial insights and more, helping you make informed decisions about XPRO.

Expro Group Holdings N.V. (XPRO) Revenue Analysis

Understanding Breaking Down Expro Group Holdings N.V. (XPRO) Financial Health: Key Insights for Investors is crucial for investors. A key aspect of this understanding lies in analyzing the company's revenue streams.

Here's a breakdown of Expro Group Holdings N.V. (XPRO) revenue streams:

Breakdown of Primary Revenue Sources:

• Well Construction: This segment contributed $159.3 million.
• Well Flow Management: This segment contributed $263.6 million.
• The company's revenue is also derived from subsea well access, and well intervention and integrity services.

Year-over-Year Revenue Growth Rate:

• Full-year 2024 revenue reached $1,713 million, marking a 13% increase compared to $1,513 million in 2023.
• In the year 2024, Expro Group Holdings had annual revenue of $1.71B with 13.22% growth.
• For the quarter ending December 31, 2024, revenue was $437 million, a 7% increase year-over-year.

Historical Revenue Growth:

Contribution of Different Business Segments to Overall Revenue:

• Offshore Services: 52% of total revenue
• Onshore Production: 33% of total revenue
• Technology Solutions: 15% of total revenue

Geographical Performance:

• North and Latin America (NLA): Generated $139.4 million in Q3 2024.
• Europe and Sub-Saharan Africa (ESSA): Generated $131.5 million in Q3 2024.
• Middle East and North Africa (MENA): Generated $86.7 million in Q3 2024.
• Asia-Pacific (APAC): Generated $65.2 million in Q3 2024.

Analysis of Significant Changes in Revenue Streams:

• The acquisition of Coretrax contributed $88 million to the full-year 2024 revenue.
• Increased activity and revenue were reported across all geography-based operating segments, particularly in NLA, ESSA and MENA.
• A sequential increase of 3% in revenue for Q4 2024 was primarily driven by increased activity and revenue in Europe and Sub-Saharan Africa (ESSA) and Middle East and North Africa (MENA).

Expro Group Holdings N.V. (XPRO) Profitability Metrics

Analyzing Expro Group Holdings N.V. (XPRO)'s profitability involves examining several key metrics to understand the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which provide insights into how effectively Expro manages its costs and generates earnings.

To assess Expro's financial performance, one can evaluate the trends in profitability over time. By comparing these profitability ratios with industry averages, it's possible to gauge how well Expro is performing relative to its competitors. Additionally, analyzing operational efficiency, such as cost management and gross margin trends, can offer a deeper understanding of the company's ability to control expenses and maximize profits.

Here's what you should consider when evaluating the profitability of Expro Group Holdings N.V. (XPRO):

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold. A higher gross profit margin suggests that Expro is efficient in managing its production costs.
• Operating Profit Margin: This ratio measures the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses. It reflects Expro's profitability from its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue remaining after deducting all expenses, including taxes and interest. It provides an overall view of Expro's profitability.

For a comprehensive understanding, it's essential to compare these margins against industry benchmarks and track their changes over several periods. This analysis helps in determining whether Expro's profitability is improving, declining, or remaining stable.

For instance, let's consider some hypothetical data for Expro Group Holdings N.V. (XPRO) (Note: The values provided below are purely illustrative and not based on actual financial data):

In this hypothetical scenario, all three margins show an increasing trend from 2022 to 2024, suggesting improved profitability. However, to gain a complete picture, these figures should be compared with the industry averages and analyzed in conjunction with other financial metrics.

Keep in mind that a thorough analysis of Expro Group Holdings N.V. (XPRO)'s profitability requires a detailed examination of its financial statements and a comparison with its peers in the industry.

Learn more about Expro Group Holdings N.V. (XPRO): Exploring Expro Group Holdings N.V. (XPRO) Investor Profile: Who’s Buying and Why?

Expro Group Holdings N.V. (XPRO) Debt vs. Equity Structure

Understanding how Expro Group Holdings N.V. (XPRO) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial stability and risk profile. The balance between debt and equity financing plays a significant role in the company's ability to invest in future opportunities and weather economic downturns.

As of the fiscal year 2024, Expro Group Holdings N.V. (XPRO) exhibits the following debt characteristics:

• Long-term debt: Detailed analysis of long-term debt helps in understanding the company's long-term solvency and its ability to meet its obligations over an extended period.
• Short-term debt: Examination of short-term debt provides insights into the company's immediate liquidity and its capacity to cover its current liabilities.

The debt-to-equity ratio is a key metric in evaluating Expro Group Holdings N.V. (XPRO)'s financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. A lower ratio generally suggests a more conservative financing approach and lower financial risk, while a higher ratio may indicate a more aggressive approach with potentially higher returns but also greater risk. Comparing this ratio to industry standards provides context on whether Expro Group Holdings N.V. (XPRO)'s leverage is typical or deviates significantly.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact Expro Group Holdings N.V. (XPRO)'s financial health. For example:

• New debt issuances might provide capital for expansion but also increase the company's debt burden.
• Improved credit ratings can lower borrowing costs, while downgrades may increase them.
• Refinancing activities could extend debt maturities or reduce interest rates, improving cash flow.

Balancing debt and equity is essential for sustainable growth. Expro Group Holdings N.V. (XPRO) strategically manages its capital structure to optimize financial flexibility and minimize risk. Equity funding can reduce reliance on debt, but it may also dilute existing shareholders' ownership. The optimal mix depends on the company's growth strategy, market conditions, and risk tolerance.

Here is a table summarizing key aspects of Expro Group Holdings N.V. (XPRO)'s debt and equity structure:

For further insights into Expro Group Holdings N.V. (XPRO)'s financial health, you can explore: Breaking Down Expro Group Holdings N.V. (XPRO) Financial Health: Key Insights for Investors

Expro Group Holdings N.V. (XPRO) Liquidity and Solvency

Analyzing Expro Group Holdings N.V.'s (XPRO) financial health requires a close look at its liquidity and solvency, which are key indicators of its ability to meet short-term and long-term obligations. These metrics provide insights into the company's financial stability and its capacity to manage its assets and liabilities effectively.

Assessing Expro Group Holdings N.V.'s Liquidity:

Liquidity ratios measure a company's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A current ratio of greater than 1 indicates that a company has more current assets than current liabilities, suggesting good liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is calculated by dividing the most liquid assets (excluding inventory) by current liabilities. This ratio provides a more conservative view of a company's ability to meet its short-term obligations.

Analysis of Working Capital Trends:

Working capital, defined as the difference between a company's current assets and current liabilities, is a measure of its short-term financial health. Monitoring trends in working capital can reveal whether a company is efficiently managing its short-term resources. A positive and increasing working capital balance generally indicates improving liquidity, while a negative or declining balance may signal potential liquidity issues.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations. A positive cash flow from operations is generally a sign of a healthy and sustainable business.
• Investing Activities: Cash flow from investing activities includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow from financing activities involves cash flows related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, investors can identify potential liquidity concerns or strengths. For instance, a high level of debt or inconsistent cash flow from operations may raise concerns about a company's ability to meet its short-term obligations.

Here is additional information about Expro Group Holdings N.V. (XPRO) that might be interesting for investors: Exploring Expro Group Holdings N.V. (XPRO) Investor Profile: Who’s Buying and Why?

Expro Group Holdings N.V. (XPRO) Valuation Analysis

Assessing whether Expro Group Holdings N.V. (XPRO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives.

To determine if Expro Group Holdings N.V. (XPRO) is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A high P/E ratio might suggest overvaluation, while a low P/E could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio may suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is often used to value companies, especially those with significant debt. It compares the total value of the company (equity plus debt) to its earnings before interest, taxes, depreciation, and amortization. A lower ratio might indicate undervaluation.

Analyzing Expro Group Holdings N.V. (XPRO)'s stock price trends provides context on market sentiment and investor confidence:

• Stock Price Trends: Examining the stock price movement over the last 12 months, or longer, can reveal patterns and trends. A consistent upward trend might reflect positive market sentiment, while a downward trend could indicate concerns about the company's performance or industry outlook.

Dividend yield and payout ratios are also important:

• Dividend Yield and Payout Ratios: If Expro Group Holdings N.V. (XPRO) distributes dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (percentage of earnings paid out as dividends) shows the sustainability of the dividend payments.

Finally, consider analyst consensus:

• Analyst Consensus: Evaluate the consensus among financial analysts regarding Expro Group Holdings N.V. (XPRO)'s stock valuation. A consensus of 'buy' ratings suggests that analysts believe the stock is undervalued, while 'hold' or 'sell' ratings may indicate overvaluation or potential risks.

To gain more insight into Expro Group Holdings N.V. (XPRO), explore Mission Statement, Vision, & Core Values of Expro Group Holdings N.V. (XPRO).

Expro Group Holdings N.V. (XPRO) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of Expro Group Holdings N.V. (XPRO). These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's an overview of key risks:

• Industry Competition: The energy services sector is highly competitive. Expro faces competition from other well-established companies, which could pressure pricing and market share.
• Regulatory Changes: Changes in environmental regulations, safety standards, or other government policies can increase compliance costs and affect Expro's ability to operate in certain regions.
• Market Conditions: The cyclical nature of the oil and gas industry exposes Expro to fluctuations in demand and pricing, impacting revenue and profitability.

Operational, financial, and strategic risks are often highlighted in Expro's earnings reports and filings. These include:

• Operational Risks: Equipment failures, project delays, and supply chain disruptions can lead to increased costs and reduced revenue.
• Financial Risks: Fluctuations in currency exchange rates, interest rate changes, and access to capital markets can impact Expro's financial performance.
• Strategic Risks: Failure to innovate, adapt to technological changes, or successfully integrate acquisitions can hinder Expro's long-term growth.

Mitigation strategies are crucial for managing these risks. While specific plans vary, common strategies include:

• Diversification: Expanding into new markets or service lines can reduce reliance on specific regions or sectors.
• Technology Investment: Investing in new technologies and processes can improve efficiency, reduce costs, and enhance competitiveness.
• Risk Management Programs: Implementing comprehensive risk management programs can help identify, assess, and mitigate potential risks.

For instance, Expro's Form 10-K filing for the fiscal year ended December 31, 2023, outlines various risk factors in detail. These include discussions on market and economic conditions, operational risks, and financial risks associated with international operations. The document also describes how the company manages these risks through insurance, compliance programs, and internal controls.

Understanding these risks and mitigation strategies is essential for investors assessing Expro's financial health and future prospects. For more insights into Expro's values, refer to Mission Statement, Vision, & Core Values of Expro Group Holdings N.V. (XPRO).

Expro Group Holdings N.V. (XPRO) Growth Opportunities

For Expro Group Holdings N.V. (XPRO), several factors point towards potential future growth. These encompass product innovations, strategic market expansions, acquisitions, and key partnerships.

While specific revenue growth projections and earnings estimates beyond fiscal year 2024 are not available in the provided search results, examining Expro's strategic initiatives offers insights into potential future performance. These initiatives include:

• Product Innovations: Development and deployment of new technologies and services.
• Market Expansion: Extending its reach into new geographic regions or sectors within the energy industry.
• Acquisitions: Strategic acquisitions to broaden its service offerings and market presence.
• Partnerships: Forming alliances to enhance technological capabilities and market access.

These factors collectively play a crucial role in shaping Expro's growth trajectory, influencing its ability to capitalize on emerging opportunities and navigate industry dynamics. An assessment of Expro’s competitive advantages is also vital to understand its growth potential. These advantages may include:

• Technological Expertise: Specialized knowledge and proprietary technologies that differentiate Expro from competitors.
• Global Presence: A widespread operational footprint that enables it to serve clients in diverse markets.
• Customer Relationships: Strong, established relationships with key clients in the energy sector.
• Operational Efficiency: Streamlined processes and cost-effective operations that enhance profitability.

Here is a table illustrating potential growth drivers for Expro:

To gain more insight into the company's values, take a look at: Mission Statement, Vision, & Core Values of Expro Group Holdings N.V. (XPRO).