Good morning or good afternoon all. Thank you for joining us for the Expro Q4 2025 Earnings Conference Call. My name is Carly, I'll be your conference call coordinator today. [Operator Instructions] I'll now hand over to our host David Wilson, Investor Relations, the floor is yours.

Thank you, operator. Good morning, everyone, and welcome to Expro's fourth quarter call for the year ended 2025. I'm joined today by Mike Jardon, CEO; and Sergio Maiworm, CFO. Both Mike and Sergio will have some prepared remarks, after which we'll open the call for questions. As part of today's call, we have an accompanying presentation and supplemental financial information on our fourth quarter and full year results. Both of these are posted on the Expro website, expro.com, under the Investors section. Before we begin today's call, I'll remind everyone that some of today's comments may refer to or contain forward-looking statements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These statements speak only as of today's date, and the company assumes no responsibility to make such forward-looking statements. The company has included in its SEC filing cautionary language identifying important risk factors that could cause actual results to be materially different from those set forth in any forward-looking statements. A more complete discussion of these risks is included in the company's SEC filings, which can be found on the SEC website, sec.gov, or on our website, again, expro.com. Please note that any non-GAAP financial measures discussed during this call are defined and reconciled to the most directly comparable GAAP financial measures in our fourth quarter and full year 2025 earnings release, which was issued this morning and can also be found on our website. With that said, I'd like to turn the call over to Mike.

Good morning, everyone, and welcome to Expro's fourth quarter call. I'll begin by reviewing the fourth quarter and full year 2025 financial results from today's press release. Next, I'll cover Expro's strong backlog, the macro environment and our current outlook for the year ahead as well as give some input on some guidance. We will conclude with operational highlights for the quarter. Sergio will then provide some further details on our financial performance and address the company's ongoing capital allocation framework. So let's begin on Slide #3. For the year, 2025 marked another year with several successes for the company. We delivered on expanding margins, cost efficiencies, higher free cash flow generation, a strong balance sheet, technology deployments and not least of all, returning cash to shareholders. The company generated just over $1.6 billion of revenue and $353 million of adjusted EBITDA, representing a 22% margin. This financial performance was within the guidance ranges previously provided. Additionally, it represents the progress we have made in expanding our margins, moving us closer to our longer-term goal of EBITDA margins at 25%. A key metric that registered above the guidance range was adjusted free cash flow, which came in at $127 million for the year, more than doubling the amount generated in 2024. Going forward into 2026, we expect another sequential increase in the amount of free cash flow that the company can generate. For the quarter, the company reported quarterly revenue of $382 million and adjusted EBITDA of $88 million, representing a 23% margin in the quarter. Adjusted free cash flow for the quarter was $28 million or 7% of revenue. These quarterly and annual financial results reflect the ongoing operational efficiency gains, technological product advancements and their impact on margins and cash flow and the continued impact of our globalization…

Thank you, Mike, and good morning to everyone on the call. As Mike noted, Expro executed well on its financial results for both the quarter and full year. While annual revenue was at the lower end of guidance, the free cash flow generated surpassed expectations and exceeded the high end of guidance. Specifically to Q4, our adjusted EBITDA was $88 million with a margin of 23.1% up about 30 basis points from last quarter and 10 basis points year-over-year. For the year 2025, adjusted EBITDA was $353 million with a margin of 22%, up 170 basis points year-over-year. Slide 9 illustrates our annual margin growth for the past few years. We remain confident that we will experience further margin expansion in 2026 driven by a full year impact of our DRIVE25 cost efficiency initiative, increased customer wallet share at higher margins and continued international growth resulting from previous acquisitions like Coretrax. Moving to Slide 10. Longer term, EBITDA margin expansion is not the goal in and of itself, but rather a means of increasing free cash flow generation. And in Q4, Expro posted its quarterly free cash flow generation of $28 million on an adjusted basis, bringing full year 2025 free cash flow generated to $127 million. which, again, was above the high end of the $110 million and $120 million guidance and more than double the amount generated in the prior year. Along those lines, we expect even stronger free cash flow in 2026, both as a percentage of revenue and in absolute terms as we plan to further reduce the capital intensity of the business, holding 2026 projected CapEx relatively flat. Turning to liquidity. The company closed the quarter with $551 million in total liquidity. That includes $198 million in cash in the balance sheet after accounting for…

Thank you, Sergio. As we conclude our prepared remarks and before opening for questions, I'd like to conclude with the following comments. I'm excited about what was achieved by Expro's employees in 2025. I'll reiterate, we collectively implemented cost efficiencies as part of our DRIVE25 initiative, increased our EBITDA margins moving closer to our long-term goal, successfully deployed new and innovative technologies, generated a high level of free cash flow and return of cash to shareholders and improve the company's net cash position. We executed on multiple priorities that Sergio just referred to in our capital allocation framework. Looking ahead, I'm also excited about what the company plans to achieve in 2026 even in a macro environment where we are cautiously optimistic. We acknowledge a somewhat softer start to the year related to the normal seasonal factors that impact both the industry and Expro. But we expect sequential improvements in the latter quarters, especially as we head into 2027 and beyond. We do expect to generate improved EBITDA margins and free cash flow in 2026 and anticipate executing again across our strategic pillars. I remain confident in Expro's resilience and ability to continue to deliver on operational and financial performance. Finally, we thank our employees, our customers and our shareholders for their continued support and look forward to building on our momentum in the quarters and years ahead. With that, we can open up the call for questions.

[Operator Instructions] Our first question comes from Ati Modak from Goldman Sachs.

Mike, can you talk more about the increase in wallet share comment? It sounded like there's some inherent cross-selling opportunities? What exactly are those opportunities? And is this a little bit more geographical expansion? Any color you can provide around it?

No, Ati, thanks for joining us and appreciate the question. This really is especially in some of our well construction operations, where we're providing TRS services, and we're also providing cementation services. We're adding additional services in there. Some of our Cure Technologies is a great example where we're already on the rig. We're already running TRS operations. We run our cementation operations significantly reduces the weighting on cement cure time. And we use the same personnel that are out there running our TRS services. So it's -- when I say expanding the wallet, it's we're already on the rig. We're already providing services. We provide some incremental services or products to our customers that help drive efficiency for them, and we're utilizing the same what we call installed base, but really the same personnel on the ground. So it's something that we can do across geographies. We're doing similar things in well construction. We're also doing that across our well flow management product lines as well.

That's very helpful. And then as you think about the EBITDA range you provided for '26, what are the puts and takes that you're focused on, whether it's activity-wise or idiosyncratic for you as you think about the bottom and the high end of the range?

Yes. I mean, I guess how I would frame it Ati is, the market's going to do what the market is going to do this year. We're going to maintain our market share. We're going to expand our customer wallet exactly how many offshore floating assets are going to be operational in Q3 and Q4, that can always ebb and flow. We're just really focused on -- laser focused on making sure that even if we're in a flattish climate, we can still expand our margins. And that's really kind of what our guidance is framed up to give. It's not that we look at a massive step-up in activity in the second half of the year. It's more around the visibility we see today, and that's why we've given the guidance range that we have in there.

Our next question comes from Eddie Kim from Barclays. Eddie.

Just staying on the full year 2026 guidance, EBITDA of $365 million at the midpoint, which reflects a modest improvement year-on-year. Just wanted to understand better understand the market assumptions behind that guide. Is the guidance sort of, I guess, valid at Brent in this kind of $60 to $70 range for the year? And could there even be further upside if commodity prices firm up from here. And on the flip side, if market conditions were to deteriorate, is there an oil price at which you expect operators might maybe push back or delay some programs? I know there was lot in there, but any color that would be great.

No, Eddie, thanks for joining us and really, really good question. It's one that we talk a lot about internally. I guess how I would try to frame it up for you is our activity set is really based on what we're seeing with current commodity prices. I still think we've got a range here where even if commodity prices were to be compressed a little bit more, I don't know that we're so active in offshore deepwater projects that have a long investment cycle. And our customers are not going to throttle that down significantly here in the short term. I do think that we're cautious on how we're viewing the total activity set this year. I do quite frankly, think that there could be some potential things are going to ramp up more. We've heard some positive commentary from the drilling guys and those kind of things. It really depends on how that some activity translate into turning to the right, so to speak. So I think there could be some upside in the back end of the year. We're not going to rely on that. We're going to get our fair share. We're going to stay focused on technology rollouts and those kind of things. We'll kind of look at that as upside potentially, I guess, is how I'd frame it up. But we are laser-focused on even if we're in a situation in 2026, and I hope I'm wrong, but even if we're in a situation in 2026, where we're in a flattish revenue climate to even slightly down meaning the market is flat to slightly down. We're still going to be able to expand our margins modestly, and we're going to expand our cash generation as well. That's what we're really focused on.

Got it. Got it. That's very helpful color. And just wanted to touch on the offshore activity inflection. As you mentioned, there's kind of growing maybe consensus or optimism about an activity and collection back half of this year into 2027. Just from a regional perspective, could you talk about which regions you expect will sort of drive the recovery in which you expect or remain flattish or maybe take longer to ramp up.

Sure. No, it's -- so I think one of the -- and this is something we've been consistent about talking about for a number of quarters. I think the subsea tree outlook has continued to be very positive and very strong and very robust. You look at the order backlog that some of our peers are adding in, that's been quite positive. That's a good leading indicator of what's to come. But those are things when they add backlog today, they're not -- those aren't trees that are going to be installed tomorrow. Those are trees that are going to be installed 9, 12, 18 months down the road. So I think that's been a good set of breadcrumbs that's been laid out there. And it's one of the reasons why we've been consistent. We think the second half of this year is more robust, especially going into 2027. And I think you're going to see this -- the U.S. Gulf is probably going to be a flattish year in 2026. I think good potential as we go into 2027 for some expanded investments. South America is going to be strong. West Africa is always the one that -- it's going to take a little bit more time to ramp up, but that's the one that will really kind of help start to move the needle when that happens. So I think West Africa in particular is why we're going to start to see the '27 and beyond, that's when we're going to start to see more of that real inflection point. And those are bigger projects. Those are multi-rig campaigns, those are significant drilling and completion -- drilling complete operations.

[Operator Instructions] Our next question comes from Colby Sasso from Daniel Energy Partners.

I just wanted to ask, given the current administration has been favorable to pushing deals through, have you got other meaningful deals announced in the offshore space a few weeks ago. I'm curious seeing the increased transactions go through. Has that changed your strategy at all? Or maybe could you update on the surrounding thoughts given M&A that you've done, and they haven't done anything in a while.

Sure. No, Colby, it's a great question. I mean I think it's -- yes, the current administration is probably more amenable to M&A and those types of things. Quite frankly, our -- the things that we have an appetite in and we have an interest in aren't -- they're going to have a global nature. They're going to have a global presence and we don't have a significant concern around our ability to -- for those that go through antitrust or those kind of things. So for us as a company, the type of things we're interested in looking at aren't really being influenced heavily by whether the administration is more or less amenable. I think there continues to be -- they're still over the last 5, 6 years, there still has only been a handful of consolidations of size in the services space, whether that was hours back in 2021 or what Patterson has done, it was nice to see the rig and the Valaris transaction here. I think that's a good move for the industry. I think we'll continue to see those type of things happen. And we are working on those kind of things every day of the week because it really is about helping us become more relevant to our customers, helping them more solutions and more efficiencies and those type of things. And we're absolutely convinced if we're more relevant to our customers then we're going to become more relevant to our shareholders as well. So it fits in, but it's something we continue to work really, really hard on because we have a great platform. We're offshore, we're international, we have touch points with our customers all the way from exploration through appraisal, through development, through production all through P&A. So we have a lot of flexibility and latitude on a type of things that would fit into our portfolio and that we could help drive value with.

And just another follow-up. One of the themes over the last 2 quarters of large operator calls has been increased need for exploration offshore. Any thoughts on what you're seeing in the areas geographically that could surprise the upside over the next couple of years? And how do you see yourself taking advantage of what you're seeing and hearing?

No. Colby, it's a great question. It's a really perceptive question. So kudos for you for picking up on that. Our customers, yes, we're having more and more exploration project discussions. Part of that's because they need to add more and more into their portfolio for future production and future reserves. We provide a lot of services in the exploration activity set. So whether it's well construction or it's well flow management, when we start flowing these wells back to evaluate the reservoirs or it's being able to help provide the connectivity in a subsea application from the rig to the sea floor. So it's a great opportunity for us. We play a lot of those kind of services. And I think as we see more and more of that translate into activity, I think we'll continue to see more exploration opportunities, and that means more exploration revenue in dollars for us. So it's -- we've been really over the course of the last really since 2012, there hasn't been a lot of meaningful exploration activity going on globally. So I'm excited to see that potential. We'll see how much of it translates into 2026. I think more of what we're going to see in 2027.

Our next question comes from Derek Podhaizer from Piper Sandler.

I just want to go back to the conversations around the 2026 guidance. So just going up to the top line revenue here. I know the prior guide was for '26 to be flat, but down now the new guidance is flat to up. So I was hoping you could help us understand some of the puts and takes there. Why our outlook has improved maybe from a regional standpoint? And then just thinking about how the guidance ties to the implied sequential growth on the top line, the second, third, fourth quarter because it looks pretty meaningful.

Yes. And Derek, thanks for joining. I guess what I would -- we're more -- and I kind of alluded to it in one of the earlier questions, we are laser-focused on if the market grows, 2% or 5% or 10%, we will absolutely get our fair share of projects. We have a very high bid win rate. we have great customer relationships. So what the market does, we're going to benefit from that as well as anybody else. And I don't want to say we don't have any control over that, but we -- the timing of somebody adding a rig in Angola or the timing of additional rigs and activity in the U.S. Gulf, we're not going to have an influence over that, but we're going to be able to provide those services. So it's not so much that our view has become more positive or more negative. What I have the organization focused on is execution, service delivery, HSE performance, continuing to win our fair share of activity and fundamentally driving more efficient operations. We expanded margins in 2025, and we expanded cash flow generation significantly in 2025 because we were focused on the things we could control, and we're going to do that again in 2026 and even if the market is flat to slightly down, that's not to say I think it's going to be slightly down. My message is even if the market is under a little bit more pressure, we will still expand our margins and expand our cash flow generation. So that's -- really that's a little bit of a subtle difference, but it's much more around I want my team and myself to focus on what we can control. And if the market grows, that's fantastic. We'll have some upside potential to what our forecast looks like going forward.

Yes. That makes sense. And I appreciate the color. Maybe just follow-up there is, could you maybe break down the geographies, where do you see maybe the points of strength as we work second, third, fourth quarter, maybe you can rank order them just your geographic regions?

Sure. So I do think that for us, Middle East, North Africa is going to be solid this year. We're going to have some projects that will deliver in the fourth quarter that we're already actively engaged in. So I think that's going to give us some -- that's part of the reason why we see and anticipate a solid Q4. South America, we've got some similar just projects and activity that's going to happen there as well. I suspect that when we do a look back on 2026, I would be very surprised if there's not some surprise to the upside in the U.S. Gulf. I think for operators access to those reservoirs, the carbon advantage nature of it, the ability to get access to rigs that are working for one operator today, and they come to another operator tomorrow. So I think that's going to be another one that could be strong potential. I would probably put Asia Pacific is continuing to be just because of the cycle time and some of the -- where they're at in the sequence of activity in places like Australia, I think that's going to be more of a 2027 phenomenon. I kind of view Asia Pacific in that same kind of context. It's going to be a little bit more -- it's going to be a little bit more of a laggard than the others. And then West Africa is one in which I think by the time we're talking in 2027, it's going to be quite robust, and it's really, for me, it's the transition of does that start to happen in the third quarter of 2026 or the middle of the fourth quarter, the end of the fourth quarter, I think that's just a little bit more of a timing for when they take delivery of rigs and when they really kind of start solid drilling and completions activity.

[Operator Instructions] Our next question comes from Josh Jayne from Daniel Energy Partners.

I apologize if you covered this earlier. I just wanted to hit on pricing quickly. So we've been in this period, I guess, over the last 24 months where we saw a pretty sharp acceleration in rig rates. And then things have come off, but I would say, stabilized over the last 6 months. How does potentially a tightening rig rate environment frame your pricing conversations and allow customers to see some more value in a lot of the things that you offer. Maybe you could just elaborate on that a little bit.

Sure. No, Josh, thanks and appreciate that. I guess, how I would frame it up is I think it's been a -- I think the pricing climate we have had, although we're not getting, we don't have a lot of ability to raise prices right now. I think there's not been downward pressure on pricing. And I think a lot of it has been the rig guys and the rig rates and those kind of things, they really kind of -- they kind of set the tone, so to speak, they kind of set expectations for customers. And so the fact that those guys have been extremely disciplined. They've demonstrated a willingness, they're going to stack rigs or they're going to retire rigs or those kind of things before they're going to move rates down materially. I think that's been helpful and constructive, our prices aren't indexed or directly correlated to the rigs, but I think it kind of sets an expectation or a tone within the space and within the sector. So I think as we're seeing consolidation with those guys and we're seeing more demand for those rigs, hopefully, we go back to a climate which there's actually some discussions around rising rig rates. And I think that kind of conversely starts to set some of the -- starts to set some of the opportunities there as well. I think the other flip side for us is really around as we expand and roll out new technology, our new technology, especially the ones that help us -- that allow us to expand our wallet share. Those typically come at more of a premium because we're generally out there servicing it with the same crews we have who are already running services. So when you add incremental services, that's what helps us expand the wallet share and also really kind of helps us expand the margins. So -- at the same time, we're very disciplined on we're going to roll out technology at the right rate. We have pricing expectations, we have value creation expectations. When you run Cure Technologies in an offshore application, you save almost 24 hours of rig time not waiting on cement, we have a value expectation of the time savings and we're not going to try to increase the technology adoption rate by lowering our prices. We're going to stay disciplined. We'll take a longer period of time because over the course of the next couple of years, rig rates will rise, things will tighten and you get an opportunity to price things only once. So we're going to be disciplined about that.

And then just one, if I may. And again, if you covered this already, apologies, understanding that offshore Venezuela isn't projected to be something massive. I'm just curious as things calm down geopolitically within that country. How does that potentially open up areas like Colombia or Trinidad or Guyana, just given the geographical proximity to those areas? Any thoughts there.

Yes. No. It's -- and Josh, thanks for bringing it up. I commented in the prepared remarks earlier that for myself, having lived and worked in Venezuela, my kid spent a number of years growing up and going to school in Venezuela, it is -- I'm really, really excited to see the opportunities that are going to happen in country. It's going to be interesting. It's going to be unique because you're going to have land opportunities. You're going to have shallow water Lake Maracaibo opportunities. You're going to have potentially deepwater offshore, there's FPSOs, there's infrastructure that already exists with Guyana and what's going to happen with Suriname. I mean I think it's tremendously positive. I'm really excited about it. And especially for us as a company because we're really, really good at the high technology component, the things that are difficult producing environments or difficult drilling environments. That's where we really can shine. So I'm super excited about it for us. The question is, when is that going to happen? It's not the question of if there's an opportunity, it's when is it going to materialize? So no, I think it's fantastic. I think it will really provide a real growth engine for the industry because of the close linkage between Guyana, Suriname, Trinidad even into French Guyana, I think it's just -- it's a great opportunity. So I'm super excited about it as you can probably pick up.

We currently have no further questions. So I'd like to hand back to the management team for any closing remarks.

Okay, everybody, thanks for joining us today. This is Dave Wilson. If you have any follow-up calls, please reach out to me. Again, I appreciate your participation. Thank you.

As we conclude today's call, we'd like to thank everyone for joining. You may disconnect your lines.