NCS Multistage Holdings Reports Strong Q4 Performance with International Revenue Surge
TL;DR
NCS Multistage Holdings, Inc. saw a 28% Y/Y increase in total revenues, driven by international sales growth in 4Q24.
NCSM's strong revenue growth in 4Q24 was due to increased product sales and services across all geographic segments.
NCSM's focus on high-margin international projects positions it well for continued growth, benefiting the global economy.
Stonegate Capital Partners updates coverage on NCSM; 4Q24 saw impressive revenue growth driven by international projects and expanded gross margins.
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NCS Multistage Holdings (NASDAQ: NCSM) reported robust financial results for the fourth quarter of 2024, highlighting substantial international market penetration and improved financial performance. The company's total revenues reached $45.0 million, representing a 28% year-over-year increase driven primarily by international market expansion.
The company's international revenues surged dramatically, increasing 279.8% to $4.4 million. This growth was notably fueled by strategic projects in the Middle East tracer diagnostics and North Sea frac systems markets. While U.S. market performance was mixed, with product sales increasing 29.1% and service revenues declining 9.5%, the overall international performance demonstrated significant potential.
Financial metrics showed marked improvement across key indicators. Consolidated gross margins expanded from 36.6% in the fourth quarter of 2023 to 43.1% in the same period of 2024. The company's earnings per share were $1.36, contrasting with $15.96 in the same quarter of the previous year.
The company's balance sheet and liquidity position remained strong, with net working capital of $56.4 million and a total liquidity position of $46.0 million. Free cash flow for the year-to-date period reached $9.5 million, approximately 14% of the current market capitalization.
Looking forward, NCS Multistage Holdings anticipates a full-year revenue range of $165.0 million to $175.0 million, with an adjusted EBITDA guidance of $20.0 million to $23.0 million. The company expects to maintain its strategic focus on high-margin international projects, particularly in accommodative markets like Argentina.
Valuation analyses using discounted cash flow and enterprise value to EBITDA comparisons suggest a potential share price range between $31.76 and $39.15, indicating positive market sentiment and growth potential for the company.
Curated from Reportable
