NCS Multistage Holdings Sees Robust Q1 Revenue Growth Driven by International Markets
TL;DR
NCS Multistage Holdings, Inc. reported a 14% revenue increase in 1Q25 driven by product sales in Canada and services revenue globally.
NCSM's revenue growth in 1Q25 was due to increased product sales in Canada, services revenue worldwide, and expanded gross margins.
NCSM's growth in revenue and margins indicate a positive trend in the company's ability to generate profits and provide valuable services globally.
NCS Multistage Holdings, Inc. saw a 26% sequential increase in Canadian sales offsetting a 34% decline in international revenue in 1Q25.
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NCS Multistage Holdings (NASDAQ: NCSM) demonstrated substantial financial performance in the first quarter of 2025, reporting total revenues of $50.0 million, marking a 14% increase from the previous year and representing its highest quarterly revenue since 2020.
The company's revenue growth was primarily driven by increased product sales in Canada and service revenues across multiple geographic regions. While U.S. product sales declined due to project delays, Canadian market activity remained strong, particularly in fracturing system completions. International revenue was bolstered by tracer diagnostics work in the Middle East and product and service sales in the North Sea.
Financially, the company reported quarterly earnings per share of $1.58, compared to $0.83 in the same quarter of the previous year. Consolidated gross margins expanded from 40.1% to 43.7%, indicating improved operational efficiency.
The company's liquidity position also strengthened, ending the quarter with $23.0 million in cash and approximately $26.8 million in undrawn revolving credit, totaling $49.8 million in liquidity. This represents a significant improvement from the previous year's liquidity of $34.4 million.
Looking forward, NCS Multistage Holdings has provided full-year guidance of $167.0 million to $175.0 million in revenue, with an adjusted EBITDA projection of $20.0 million to $24.0 million. The company remains focused on high-margin international opportunities, particularly in the Middle East and North Sea markets.
Stonegate Capital Partners' valuation analysis suggests a potential share price range between $32.17 and $38.36, with mid-point valuations of $34.36 and $34.96 using discounted cash flow and enterprise value to EBITDA methodologies.
Curated from Reportable
