EXPRO GROUP HOLDINGS N.V. Segments Disclosure

5.	Business segment reporting

 

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s Chief Operating Decision Maker (“CODM”), which is our chief executive officer (“CEO”), in deciding how to allocate resources and assess performance. Our operations are comprised of four operating segments which also represent our reportable segments and are aligned with our geographic regions as below:

 

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North and Latin America (“NLA”),

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Europe and Sub-Saharan Africa (“ESSA”),

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Middle East and North Africa (“MENA”), and

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Asia-Pacific (“APAC”).

 

Each reportable segment provides products and services in well construction, well flow management, subsea well access and well intervention and integrity to operators within their respective geographic regions. The reportable segments are separately managed business units consistent with the way our CODM manages the business. Activity in each region may vary and may not be responsive to changes in the broader global oil and gas market, and demand for our various offerings will generally benefit all product lines in that region. Assets used in support of our operations can in many instances be moved from country to country within a region, with relative ease as compared to moving between regions, in order to address demand.

 

The accounting policies of the segments are the same as those described in Note 2 “Basis of presentation and significant accounting policies.” 

 

Our CODM regularly evaluates the performance of our operating segments using Segment EBITDA, which we define as income (loss) before income taxes adjusted for corporate costs, equity in income of joint ventures, depreciation and amortization expense, impairment expense, severance and other expense, gain (loss) on disposal of assets, foreign exchange (gains) losses, merger and integration expense, other income (expenses), net, interest and finance expense, net and stock-based compensation expense.

 

The CODM uses Segment EBITDA to allocate resources (including employees, property and capital resources) to each segment predominantly in the annual budget and forecasting process. Our CODM assesses the performance using Segment EBITDA to compare the results of each segment with one another and considers budget-to-actual variances on a monthly basis. Our CODM also uses segment EBITDA to evaluate product pricing and determine the compensation of certain employees.

 

The following tables presents our revenue, significant segment expenses and Segment EBITDA disaggregated by our operating segments and reconciliation to income before income taxes (in thousands):

 

		Year Ended December 31, 2025
		NLA				ESSA				MENA				APAC				Consolidated
Revenue		$	558,033			$	486,900			$	363,616			$	198,546			$	1,607,095
Compensation and related cost			(226,541	)			(188,579	)			(123,040	)			(82,272	)
Cost of product, materials, and supplies			(144,621	)			(109,262	)			(83,755	)			(57,327	)
Other (1)			(53,940	)			(39,694	)			(24,099	)			(16,290	)
Total Segment EBITDA		$	132,931			$	149,365			$	132,722			$	42,657			$	457,675
Corporate costs (2)																			(121,487	)
Equity in income of joint ventures																			16,836
Depreciation and amortization expense																			(192,106	)
Merger and integration expense																			(6,161	)
Severance and other expense																			(28,527	)
Stock-based compensation expense																			(29,172	)
Foreign exchange gain																			916
Other income, net																			2,646
Interest and finance expense, net																			(14,281	)
Income before income taxes																		$	86,339

 

		Year Ended December 31, 2024
		NLA				ESSA				MENA				APAC				Consolidated
Revenue		$	566,048			$	564,440			$	332,216			$	250,098			$	1,712,802
Compensation and related cost			(214,182	)			(194,237	)			(119,892	)			(94,514	)
Cost of product, materials, and supplies			(157,197	)			(181,415	)			(72,598	)			(82,483	)
Other (1)			(52,692	)			(43,413	)			(23,954	)			(15,421	)
Total Segment EBITDA		$	141,977			$	145,375			$	115,772			$	57,680			$	460,804
Corporate costs (2)																			(129,823	)
Equity in income of joint ventures																			16,422
Depreciation and amortization expense																			(163,468	)
Merger and integration expense																			(16,334	)
Severance and other expense																			(17,048	)
Stock-based compensation expense																			(26,352	)
Foreign exchange losses																			(13,613	)
Other expenses, net																			(105	)
Interest and finance expense, net																			(12,517	)
Income before income taxes																		$	97,966

 

		Year Ended December 31, 2023
		NLA				ESSA				MENA				APAC				Consolidated
Revenue		$	511,800			$	520,951			$	233,528			$	246,485			$	1,512,764
Compensation and related cost			(186,449	)			(171,110	)			(85,447	)			(94,655	)
Cost of product, materials, and supplies			(139,228	)			(172,670	)			(55,739	)			(133,773	)
Other (1)			(53,254	)			(41,164	)			(21,141	)			(16,252	)
Total Segment EBITDA		$	132,869			$	136,007			$	71,201			$	1,805			$	341,882
Corporate costs (2)																			(105,855	)
Equity in income of joint ventures																			12,853
Depreciation and amortization expense																			(172,260	)
Merger and integration expense																			(9,764	)
Severance and other expense																			(14,388	)
Stock-based compensation expense																			(19,574	)
Foreign exchange losses																			(9,238	)
Other income, net																			1,234
Interest and finance expense, net																			(3,943	)
Income before income taxes																		$	20,947

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(1)	Other segment expenses consists primarily of facilities, sales and purchase tax, motor vehicles, insurance, professional and other costs.
(2)	Corporate costs include the costs of running our corporate head office and other central functions that support the operating segments but are not attributable to a particular operating segment, including central product line management, research, engineering and development, logistics, sales and marketing and health and safety.

 

We are a Netherlands based company and we derive our revenue from services and product sales to customers primarily in the oil and gas industry. No single customer accounted for more than 10% of our revenue for the year ended December 31, 2025. One customer in our ESSA segment accounted for 10.5% and 12.5% of our revenue in the years ended December 31, 2024 and 2023, respectively. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2025, 2024 and 2023. The revenue generated in the U.S. was 19.3%, 17.6% and 18.4% of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Other than the U.S., no individual country represented more than 10% of our revenue for the years ended December 31, 2025, 2024 and 2023.

 

The following table presents total assets by geographic region and assets held centrally. Assets held centrally includes certain property plant and equipment, investments in joint ventures, collateral deposits, income tax related balances, corporate cash and cash equivalents, accounts receivable and other current and non-current assets, which are not included in the measure of segment assets reviewed by the CODM:

 

		December 31,
		2025				2024
NLA		$	801,318			$	793,666
ESSA			569,518				581,866
MENA			391,038				425,266
APAC			200,786				221,601
Assets held centrally			296,775				311,142
Total		$	2,259,435			$	2,333,541

 

The following table presents our capital expenditures disaggregated by our operating segments (in thousands):

 

		Year Ended December 31,
		2025				2024
NLA		$	40,355			$	63,719
ESSA			20,788				28,226
MENA			26,574				33,518
APAC			17,502				12,073
Assets held centrally			7,168				6,040
Total		$	112,387			$	143,576