NCS Multistage Holdings Reports Strong Q1 Performance with International Growth
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) reported a promising first quarter in 2025, with total revenues reaching $50.0 million, representing a 14% year-over-year increase and marking the company's highest quarterly revenue since 2020.
Key financial highlights include a notable expansion in consolidated gross margins from 40.1% in Q1 2024 to 43.7% in Q1 2025. The company's earnings per share surged from $0.83 to $1.58, underscoring strong operational performance across global markets.
International revenues demonstrated significant potential, growing 33.8% year-over-year to $2.9 million. This growth was primarily supported by tracer diagnostics projects in the Middle East and increased activity in the North Sea, despite a sequential quarterly decline due to project timing.
Canadian market activity remained particularly robust, with substantial growth in fracturing system completions. Meanwhile, U.S. product sales experienced challenges due to project delays, highlighting the company's geographic diversification strategy.
The company's financial position appears strong, ending the quarter with $23.0 million in cash and approximately $26.8 million in undrawn revolver capacity, totaling $49.8 million in liquidity. This represents a significant improvement from the previous year's $34.4 million.
Management has provided full-year guidance projecting revenues between $167.0 million and $175.0 million, with adjusted EBITDA expected to range from $20.0 million to $24.0 million. Analysts' valuation models suggest a stock price range between $32.17 and $38.36, indicating potential value and market confidence.
The company's strategic focus on high-margin international markets, particularly in the Middle East and North Sea, suggests a proactive approach to navigating complex global energy service landscapes.
Curated from Reportable
