XPRO

Expro is a recently-rehabilitated offshore-focused oilfield services name (deepwater tubular running, subsea well access, well intervention) that only turned GAAP-profitable in FY2024 after the -$132M/-$20M/-$23M loss string of FY2021-23. FY2025 shows the recovery stalling: revenue fell 6.2% to $1.61B after four years of growth, operating income dropped 13.8% to $81.1M, and net income was essentially flat at $51.7M only because D&A ($192M, +17.5%) and capex ($112M, -21.7%) swung the other way. ROE is just 3.4% and the accumulated deficit is still -$476M — this is a thin-margin (5.0% operating), capital-intensive, cyclical business, not a compounder.

What keeps it out of sell territory is the balance sheet and cash generation. Liabilities/equity is a conservative 0.47x, long-term debt is only $79.1M (-34.7%) against $196M cash, and operating cash flow jumped 24% to $210M — roughly $98M of free cash flow, a ~6% FCF yield on the $1.62B cap. Stripping the heavy depreciation, EV/EBITDA sits near mid-single digits, which is undemanding for the sector and far more flattering than the optically rich 31.6x P/E. Management is returning cash, with buybacks up 183% to $40.1M and the share count down 2.2%.