NCS Multistage Holdings, Inc. Reports Strong Q2 Growth and Strategic Acquisition

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 52% sequential revenue dip in Canada due to spring break-up, the company's U.S. revenues saw a 45% sequential increase as delayed projects resumed. Internationally, while year-over-year revenues declined due to reduced tracer diagnostics work in the Middle East, a 67.2% sequential uptick was observed, supported by increased equipment sales in the North Sea.

Adjusted Gross margins stood at 35.7%, a decrease from 40.3% in the same quarter the previous year. However, NCSM anticipates modest revenue and margin growth throughout FY25, bolstered by the resilience of its core product lines and the recent acquisition of ResMetrics LLC. This strategic move, finalized on July 31, 2025, for $5.9M plus potential earn-outs, integrates ResMetrics' leading chemical tracer diagnostics capabilities into NCSM's portfolio, enhancing its diagnostics offerings and expanding its footprint in the U.S. and Middle East markets.

The company's financial health remains robust, with a net working capital of $64.0M at the end of 2Q25, up 13% sequentially from year-end 2024. NCSM reported $25.4M in cash and an additional $17.2M available under its undrawn revolving credit facility, culminating in a total liquidity position of $42.6M. This strong liquidity backdrop is set against minimal total debt of $7.7M, entirely comprised of lease obligations.

Looking ahead, NCSM has updated its full-year revenue guidance to a range of $172.0M to $181.0M, with adjusted EBITDA expected between $22.0M and $25.5M. The acquisition of ResMetrics is projected to contribute $4–5M in revenue and $1–1.5M in EBITDA for the remainder of FY25, underscoring the strategic importance of this deal in NCSM's growth trajectory. Valuation analyses, including DCF and EV/EBITDA comparisons, suggest a promising outlook for NCSM, with mid-point valuations of $40.89 and $42.06, respectively.

For more information on NCS Multistage Holdings, Inc., visit https://www.ncsmultistage.com.