Expro Group Q2 adjusted EPS misses estimates on Middle East conflict 

Overview

• Energy services provider's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Company repurchased $20 mln in shares and closed Enhanced Drilling acquisition in Q2

Outlook

• Expro sees full-year 2026 revenue of $1.65-$1.7 bln, up from prior $1.6-$1.65 bln

• Company expects second-half 2026 Adjusted EBITDA margin to exceed 24%, Q4 margin above 26%

• Expro says Middle East conflict to impact results through 2026, but less than in Q2

Result Drivers

• MIDDLE EAST DISRUPTION - Co said ongoing conflict in the Middle East continued to impact operations and tempered Q2 results

• REGIONAL GROWTH - Higher well construction revenue in Egypt and increased well intervention in Argentina and Brazil contributed to Q2 revenue gains

• COST EFFICIENCY INITIATIVES - Completion of Drive25 program and other internal measures expected to deliver over $40 mln in structural cost removals in 2026

Company press release: ID:nBwYkfHfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Expro Ltd is $16.00, about 2.1% above its July 27 closing price of $15.67

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 27 - Italy's Saipem cuts 2026 earnings guidance on Middle East crisis

• July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

• July 27 - Noble Q2 adjusted net income misses estimates; guidance cut on Brazil rig suspensions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)