NCS Multistage Holdings, Inc. (NASDAQ: NCSM) has reported a notable 22.8% year-over-year increase in total revenues for the second quarter of 2025, reaching $36.5M. This performance outstrips broader industry activity levels, with growth primarily fueled by heightened fracturing systems activity and frac plug sales across Canada and the U.S. Despite a seasonal revenue dip in Canada due to spring break-up, the company's strategic maneuvers, including the acquisition of ResMetrics LLC, underscore its resilience and adaptability in fluctuating markets.
The acquisition of ResMetrics, a leader in chemical tracer diagnostics, for $5.9M plus potential earn-outs, marks a pivotal step in NCSM's expansion into high-margin diagnostics markets. ResMetrics' contribution is expected to bolster NCSM's revenue by $4–5M and EBITDA by $1–1.5M for the remainder of FY25, enhancing the company's diagnostics portfolio and extending its reach in the U.S. and Middle East markets. This move aligns with NCSM's broader strategy to diversify its offerings and strengthen its international presence.
Financially, NCSM maintains a robust position with $25.4M in cash and an additional $17.2M available under its undrawn revolving credit facility, totaling $42.6M in liquidity. This financial health is complemented by a modest total debt of $7.7M, consisting solely of lease obligations. The company's adjusted gross margins, however, saw a decline to 35.7% from 40.3% in the previous year, reflecting the dynamic challenges and opportunities within the sector.
Looking ahead, NCSM has updated its full-year revenue guidance to $172.0M to $181.0M, with adjusted EBITDA projected between $22.0M and $25.5M. These figures, coupled with the strategic acquisition of ResMetrics, position NCSM for sustained growth and margin improvement through FY25 and beyond. The company's ability to navigate market volatilities while capitalizing on strategic growth opportunities underscores its potential as a resilient player in the energy sector.
For more information on NCS Multistage Holdings, Inc., visit https://www.ncsmultistage.com.
