Stonegate Capital Partners has updated its coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM), detailing the company's financial performance for fiscal year 2025. The report indicates that NCSM grew revenue by 13% to $183.6 million despite a challenging market environment, driven by product strength across multiple regions and strategic acquisitions. This growth demonstrates the company's ability to execute effectively and gain market share even when broader industry conditions remain difficult.
The quality of NCSM's growth was notable, with revenue excluding contributions from the ResMetrics acquisition still increasing by 10%. Adjusted EBITDA rose 20% to $26.7 million, while EBITDA margin expanded approximately 80 basis points to 15%. Adjusted gross margin held steady at 41% despite some pressure from service mix, indicating disciplined cost management. Free cash flow after non-controlling interests nearly doubled to $18.9 million, reinforcing the benefits of the company's asset-light business model and supporting the view that FY25 outperformance was driven more by share gains, product execution, and targeted expansion than by a stronger underlying market.
Stonegate's analysis suggests that NCSM's fourth quarter performance materially outpaced expectations as U.S. fracturing demand accelerated and international markets remained constructive. The company's momentum in fracturing systems and its Repeat Precision business contributed significantly to results, along with continued traction in the North Sea and Middle East regions. The $5.2 million contribution from ResMetrics following its July acquisition provided additional growth, with the full announcement available at https://www.stonegateinc.com.
NCSM exits FY25 with a strong balance sheet that supports continued reinvestment, integration execution, and flexibility for tuck-in mergers and acquisitions. This financial strength positions the company to capitalize on strategic opportunities while maintaining operational momentum. The report emphasizes that NCSM's performance reflects real execution rather than simply benefiting from favorable market conditions, with share gains and product traction driving results.
The implications of this performance extend beyond NCSM's immediate financial results. For the energy services industry, NCSM's success demonstrates that companies can achieve growth through strategic execution even in challenging market environments. The company's asset-light model and focus on product innovation have proven effective in generating cash flow and margin expansion. For investors, the strong balance sheet and free cash flow generation provide confidence in the company's ability to navigate market cycles while pursuing strategic initiatives.
Stonegate Capital Partners' updated coverage provides valuable insight into NCSM's operational and financial trajectory. The firm's analysis highlights how targeted expansion, product execution, and strategic acquisitions have combined to drive meaningful growth. As NCSM continues to execute its strategy, the company appears well-positioned to build on its FY25 momentum while maintaining financial discipline and operational efficiency.
