Stonegate Updates Coverage on NCS Multistage Holdings, Inc. (NCSM) 2025 Q1

Rhea-AI Summary

NCS Multistage Holdings (NASDAQ: NCSM) reported strong financial results for Q1 2025, with total revenues reaching $50.0M, marking a 14% year-over-year increase and the highest quarterly revenue since Q1 2020. The company saw significant growth in Canadian operations and services revenue across all regions, though U.S. product sales declined due to project delays. Canadian activity was particularly strong in fracturing system completions, while international revenue benefited from tracer diagnostics work in the Middle East and sales in the North Sea. Gross margins improved from 40.1% to 43.7% year-over-year. The company's liquidity position strengthened to $49.8M, up from $34.4M in Q1 2024, and Adjusted EBITDA reached $8.2M, a $2.1M improvement year-over-year.

Positive

• Revenue growth of 14% year-over-year to $50.0M, highest since Q1 2020
• Gross margin expansion from 40.1% to 43.7%
• Improved liquidity position to $49.8M from $34.4M year-over-year
• Adjusted EBITDA increased by $2.1M to $8.2M
• Strong performance in Canadian operations with 26% sequential growth

Negative

• U.S. product sales declined due to project delays
• 34% sequential decline in international revenue
• Potential impact from increasing tariffs threat
• 13% sequential drop in U.S. revenue

Dallas, Texas--(Newsfile Corp. - May 2, 2025) - NCS Multistage Holdings, Inc. (NASDAQ: NCSM): Stonegate Capital Partners updates their coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM). In 1Q25, NCSM reported total revenues of $50.0M, a 14% year-over-year increase and its highest quarterly revenue since 1Q20. Growth was primarily driven by increased product sales in Canada and services revenue across all geographies, partially offset by a decline in U.S. product sales due to project delays. Canadian activity remained robust, particularly for fracturing system completions, while international revenue was supported by continued tracer diagnostics work in the Middle East and product and service sales in the North Sea. Compared to 4Q24, total revenues rose 11%, with a 26% sequential increase in Canadian sales offsetting a 34% decline in international revenue due to timing of tracer work and a 13% drop in U.S. revenue. Going forward we expect that the Company will continue to see modest revenue growth through FY25 despite the threat of increasing tariffs. Consolidated gross margins expanded from 40.1% in 1Q24 to 43.7% in 1Q25.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Total revenues of $50.0M, a 14% year-over-year improvement.
• NCSM reported a liquidity position of $49.8M, an increase from $34.4M (1Q24).
• Adjusted EBITDA of$8.2M, a $2.1M year-over-year improvement.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250609

FAQ

What were NCSM's Q1 2025 revenue and growth numbers?

NCSM reported Q1 2025 revenues of $50.0M, representing a 14% year-over-year increase and 11% sequential growth from Q4 2024.

How did NCSM's gross margins perform in Q1 2025?

NCSM's gross margins expanded from 40.1% in Q1 2024 to 43.7% in Q1 2025.

What was NCSM's liquidity position in Q1 2025?

NCSM reported a liquidity position of $49.8M in Q1 2025, up from $34.4M in Q1 2024.

How did NCSM perform in different geographical regions during Q1 2025?

Canadian operations showed strong growth with 26% sequential increase, while international revenue declined 34% sequentially, and U.S. revenue dropped 13%.

What was NCSM's Adjusted EBITDA for Q1 2025?

NCSM reported Adjusted EBITDA of $8.2M, representing a $2.1M improvement year-over-year.