Expro Group (NYSE:XPRO) reported second-quarter 2026 revenue of $393 million, adjusted EBITDA of $76 million and adjusted free cash flow of $56 million, as the company rebounded sequentially from what it described as a seasonally weaker first quarter.
Adjusted EBITDA margin was approximately 19%, up nearly 220 basis points from the prior quarter, according to CFO Sergio Maiworm. The company said free cash flow improved by more than $50 million sequentially, following first-quarter working-capital timing effects.
Middle East uncertainty shapes outlook
Expro updated its 2026 outlook to incorporate cumulative impacts from Middle East disruptions experienced during the first half, as well as expected impacts for the remainder of the year. Jardon said the company has assumed the conflict will continue through year-end because of limited visibility into when activity may normalize.
“We’ve taken a pretty cautious approach here on it because there’s just too much ambiguity,” Jardon said in response to an analyst question. He cited Iraq and the United Arab Emirates as markets that have been particularly affected and said activity could take several months to recover even if conditions improve before year-end.
The company still expects a significant improvement in revenue, adjusted EBITDA and margins during the second half, especially in the fourth quarter. Maiworm said Expro expects adjusted EBITDA margins above 24% in the second half and above 26% in the fourth quarter.
Expected fourth-quarter contributors include subsea well access, well flow-management projects and tubular sales in the U.S. Gulf; well intervention and integrity work in Colombia; a sizable production-solutions project in North Africa; equipment sales in the MENA region; well construction and well management activity in Asia-Pacific; and subsea equipment sales in China.
However, Expro said ongoing Middle East disruption will limit some expected growth, including activity within its high-margin Coretrax business. The company expects Coretrax to improve during the second half, but less than originally anticipated, with some activity moving into 2027.
Enhanced Drilling acquisition closes
Expro completed its acquisition of Enhanced Drilling during the quarter. The acquired business provides managed pressure drilling technology, including controlled mud level drilling, or CML, which Jardon said can help customers address technical challenges during well planning and reduce operational risk, improve execution consistency and lower total well costs.
Jardon said that drilling a well with one fewer casing string could potentially save approximately five to seven days of drilling time. Enhanced Drilling currently deploys its technology primarily in Norway and the U.S. Gulf, while Expro sees potential expansion into West Africa, South America including Brazil, and Asia-Pacific.
The updated 2026 guidance includes five months of contribution from Enhanced Drilling. Maiworm declined to provide a specific EBITDA contribution estimate for the year, noting that the acquired company’s results are not expected to be linear throughout the second half.
Maiworm said Enhanced Drilling currently has margins above 30% and that deploying its technology across Expro’s international footprint could support broader company margin expansion.
Cost savings and cash-flow focus
Expro said it has completed all internal projects associated with its Drive25 self-help program and expects to fully realize more than $40 million of structural cost removals in 2026. The initiative had initially targeted about $30 million in annual savings, Jardon said.
Management said it is continuing to assess targeted actions across selected geographies and product lines to improve returns, operating leverage, margins and free cash flow. Maiworm said the company’s emphasis on cash generation includes reducing capital intensity and improving working-capital efficiency.
“There are a number of things that we’re working towards to gain that efficiency in working capital,” Maiworm said. “It’s mainly a combination of those two items that despite our conservative view on the EBITDA for the remainder of the year, we still think that the cash flow generation is going to be there.”
Expro ended the quarter with total liquidity of $492 million, including $200 million of cash. The company had $79 million outstanding under its revolving credit facility, resulting in a net cash position of approximately $121 million at quarter-end. Maiworm said that, on a pro forma basis following the Enhanced Drilling acquisition, Expro has less than half a turn of net leverage.
The company repurchased approximately 2.5 million shares for roughly $40 million in the first half of 2026. It reiterated its goal of returning at least one-third of annual free cash flow to shareholders, while also maintaining capital for organic investments, acquisitions and balance-sheet strength.
Offshore market remains constructive
Jardon said Expro continues to see a supportive backdrop for offshore and international energy markets, citing increased subsea tree orders and offshore rig utilization. He said energy security, supply diversification and resilient infrastructure have become increasingly important following instability in the Middle East.
Looking beyond 2026, Jardon said the company expects strengthening activity in well construction, drilling and completions. He identified Latin America, the U.S. Gulf, West Africa and eventually the Middle East as areas with potential growth, while saying he was less optimistic about an Asia-Pacific recovery before the middle to later part of 2027.
During the quarter, Expro also said shareholders approved and the company completed its re-domicile from the Netherlands to the Cayman Islands. Its legal name changed from Expro Group Holdings to Expro Limited.
About Expro Group (NYSE:XPRO)
Expro Group plc is a global energy services company that specializes in well flow management and well testing solutions for the oil and gas industry. The company’s core offerings include wellhead and pressure control systems, downhole well construction tools, subsea intervention services, and integrated tubular running services. These capabilities enable exploration and production companies to optimize well performance, enhance safety and mitigate operational risk throughout the drilling, completion and intervention phases of the well life cycle.
Founded in 1973, Expro has grown both organically and through targeted acquisitions to establish a presence in more than 30 countries.
