Financial Data and Key Metrics Changes - The first quarter revenue was $50 million, exceeding the high end of the guided range by $4 million, marking the highest quarterly revenue since Q1 2020 [4][12] - Adjusted gross margin was 44%, up from 40% year-over-year, reflecting strong operating leverage [5][12] - Adjusted EBITDA was $8.2 million, an increase from $6.1 million in Q1 2024 [12] Business Line Data and Key Metrics Changes - Canadian revenue reached $38 million, a 19% increase compared to Q1 2024, driven by the fracturing systems product line [6][12] - International revenue increased by 34%, primarily from activities in the Middle East and North Sea [12] - U.S. revenue declined by 6%, indicating challenges in that market [12] Market Data and Key Metrics Changes - The average rig count in Canada increased by 3%, but NCS's revenue growth outpaced this, indicating strong market performance [6] - International revenue accounted for 10% of total revenue in 2024, with expectations for continued growth in the North Sea and Middle East [7][8] Company Strategy and Development Direction - The company aims to build on its leading market positions, capitalize on international opportunities, and commercialize innovative solutions [6][9] - NCS is focusing on technology development and expanding its addressable market through new product introductions [10][21] - The company is evaluating M&A opportunities while maintaining a strong balance sheet for strategic investments [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to geopolitical uncertainties and potential impacts from tariffs [17][19] - The company maintains a revenue guidance of $165 million to $175 million for 2025, reflecting a 5% year-over-year growth at the midpoint [18] - There is an expectation for free cash flow of $7 million to $11 million, which will strengthen the balance sheet [18][21] Other Important Information - Selling, general, and administrative costs increased by $2.4 million due to higher incentive bonuses and stock-based compensation [13] - The company had a cash balance of $23 million and total liquidity of approximately $50 million at the end of Q1 [14][21] Q&A Session Summary Question: Are there any capacity constraints on the horizon? - Management indicated no significant breakpoints in capacity, with sufficient supply chain capacity to support growth [26][28] Question: What is the current sales pipeline like? - The company noted ongoing scenario planning among customers, with expectations for decisions impacting market activity in the near term [30][32] Question: How do you see product sales in the U.S. playing out for the remainder of 2025? - Management highlighted deferred opportunities in frac systems and successful customer trials converting into regular activity [34][35] Question: Will the company pursue M&A opportunities given the strong balance sheet? - Management confirmed active evaluation of M&A opportunities while also considering internal investment options [40][41] Question: How is the pricing environment affected by tariffs and commodity prices? - Management acknowledged challenges in passing through costs due to low commodity prices but emphasized the differentiation of their products [54][58]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $50 million, exceeding the high end of the guided range by $4 million, marking the highest quarterly revenue since Q1 2020 [4][12] - Adjusted gross margin improved to 44%, up from 40% year-over-year, benefiting from operating leverage and higher margin international activity [5][12] - Adjusted EBITDA for Q1 2025 was $8.2 million, surpassing the estimated range of $4.5 million to $6.5 million, and representing a year-over-year increase of $2.1 million [5][12] Business Line Data and Key Metrics Changes - Revenue in Canada for Q1 2025 was $38 million, a 19% increase compared to Q1 2024, driven by the adoption of fracturing systems [6][12] - International revenue increased by 34%, primarily due to activity in the Middle East and North Sea, while U.S. revenue declined by 6% [12] Market Data and Key Metrics Changes - The average rig count in Canada increased by 3%, but the company's revenue growth outpaced this, indicating strong market performance [6] - The company anticipates a seasonal decline in Canadian revenue for Q2 2025 due to spring breakup, projecting total revenue in the range of $26 million to $29 million [15] Company Strategy and Development Direction - The company aims to build on its leading market positions, capitalize on international opportunities, and commercialize innovative solutions to customer challenges [6][8] - The company is focusing on expanding its presence in international markets, particularly in the North Sea and the Middle East, and plans to establish a local entity in the UK [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to geopolitical uncertainties and potential impacts from tariffs, while maintaining a revenue guidance of $165 million to $175 million for the year [17][19] - The company expects to generate positive free cash flow in 2025, strengthening its balance sheet and providing opportunities for strategic investments [19][22] Other Important Information - The company reported a net income of $4.1 million for Q1 2025, with diluted earnings per share of $1.51, an improvement from $2.1 million and $0.82 per share in Q1 2024 [12] - The company maintains a strong liquidity position with $23 million in cash and total liquidity of approximately $50 million [22] Q&A Session Summary Question: Are there any capacity constraints to be aware of? - Management indicated no significant breakpoints in capacity, citing a robust supply chain and infrastructure to support growth [27][29] Question: What is the current sales pipeline like? - Management noted ongoing scenario planning among customers and anticipated decisions that could affect market activity, particularly in North America [30][32] Question: How does the company view M&A opportunities? - Management is open to evaluating M&A opportunities but also sees strong internal investment potential if suitable external opportunities do not arise [39][40] Question: How is the pricing environment affected by tariffs and commodity prices? - Management acknowledged challenges in passing through increased costs due to low commodity prices but emphasized the differentiation of their products [54][56]

[NCS Multistage Holdings, Inc. First Quarter 2025 Results](index=1&type=section&id=NCS%20Multistage%20Holdings%2C%20Inc.%20First%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) NCS reported strong Q1 2025 results, with revenue reaching **$50.0 million**, net income **$4.1 million**, and Adjusted EBITDA **$8.2 million** Q1 2025 Key Financial Metrics (YoY, in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $50.0 | $43.9 | +14% | | Net Income | $4.1 | $2.1 | +95% | | Diluted EPS | $1.51 | $0.82 | +84% | | Adjusted EBITDA | $8.2 | $6.1 | +35% | | Adjusted Gross Margin | 44% | 40% | +400 bps | - The CEO noted that Q1 2025 total revenues and Adjusted EBITDA surpassed prior guidance, primarily led by strong performance in Canada[3](index=3&type=chunk) - The company's cash balance was **$23.0 million** with a total liquidity of **$49.8 million** as of March 31, 2025, an increase of **$15.4 million** from the previous year[8](index=8&type=chunk) - NCS has not experienced a significant impact from global trade tensions but acknowledges potential risks to commodity prices and activity levels for the second half of 2025 if tensions escalate[9](index=9&type=chunk) [Detailed Financial Review](index=2&type=section&id=Financial%20Review) Q1 2025 revenues increased 14% to **$50.0 million**, driven by Canadian and international sales, improving gross margin to 42% and net income to **$4.1 million** - YoY revenue growth was driven by increased Canadian product sales and higher services revenue across all geographic regions, partially offset by a decline in U.S. product sales due to project delays[12](index=12&type=chunk) - Sequentially, total revenues increased by 11% from Q4 2024, with a 26% rise in Canada offset by declines of 34% in international revenue and 13% in U.S. revenue[13](index=13&type=chunk) - Gross margin improved to **42%** (Adjusted Gross Margin to **44%**) due to higher-margin international work in the Middle East and North Sea, increased Canadian sales, and supply chain efficiencies[14](index=14&type=chunk) - SG&A expenses increased by **$2.4 million** YoY to **$16.2 million**, reflecting higher annual incentive bonus accruals, professional fees, and share-based compensation expense[15](index=15&type=chunk) [Liquidity and Capital Position](index=2&type=section&id=Liquidity%20and%20Capital%20Position) NCS maintained a strong balance sheet as of March 31, 2025, with **$23.0 million** cash, **$49.8 million** total liquidity, and **$64.4 million** net working capital Liquidity and Debt Profile (as of March 31, 2025, in millions) | Metric | Value | | :--- | :--- | | Cash | $23.0 | | Total Indebtedness | $7.6 | | ABL Facility Availability | $26.8 | | Total Liquidity | $49.8 | | Working Capital | $85.2 | - Net working capital increased to **$64.4 million** at the end of Q1 2025 from **$56.4 million** at year-end 2024, mainly due to higher accounts receivable and lower accrued expenses after paying 2024 incentive bonuses[21](index=21&type=chunk) - Cash flow from operating activities was a use of **$(1.6) million**, a **$0.2 million** improvement from Q1 2024 Free cash flow was a use of **$(2.1) million**[19](index=19&type=chunk) - Net capital expenditures were **$0.5 million** for the first quarter of 2025, compared to **$0.1 million** in the same period of 2024[22](index=22&type=chunk) [Geographic Performance](index=8&type=section&id=Geographic%20Performance) Canada led Q1 2025 performance with 19% revenue growth to **$37.7 million**, comprising 75% of total revenue, while U.S. revenue declined and international grew 34% Revenues by Geographic Area (in thousands) | Region | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | United States | $9,372 | $10,011 | -6.4% | | Canada | $37,718 | $31,669 | +19.1% | | Other Countries | $2,915 | $2,178 | +33.8% | | **Total Revenues** | **$50,005** | **$43,858** | **+14.0%** | - Canada's contribution to total revenue increased to **75.4%** in Q1 2025 from **72.2%** in Q1 2024[36](index=36&type=chunk) - The increase in international service revenues was driven by Middle East tracer diagnostics projects and North Sea fracturing systems sales and services[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Q1 2025 financial statements detail 14% revenue growth to **$50.0 million**, net income of **$4.5 million**, total assets of **$155.1 million**, and total equity of **$120.8 million** [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $50,005 | $43,858 | | Gross Profit | $21,140 | $16,955 | | Income from Operations | $4,289 | $2,501 | | Net Income | $4,454 | $2,553 | | Net Income Attributable to NCS | $4,056 | $2,070 | | Diluted EPS | $1.51 | $0.82 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,997 | $25,880 | | Total Current Assets | $109,041 | $105,570 | | Total Assets | $155,118 | $152,812 | | Total Current Liabilities | $23,865 | $25,419 | | Total Liabilities | $34,282 | $36,703 | | Total Equity | $120,836 | $116,109 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 Cash Flow Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Net cash used in investing activities | $(451) | $(136) | | Net cash used in financing activities | $(790) | $(630) | | Net change in cash | $(2,883) | $(2,716) | | Cash at end of period | $22,997 | $14,004 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) NCS provides non-GAAP measures including Adjusted Gross Profit, Adjusted EBITDA, Free Cash Flow, and Net Working Capital to assess core business performance [Reconciliation of Adjusted Gross Profit](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Gross%20Profit) Adjusted Gross Profit Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $21,140 | $16,955 | | Gross Margin (GAAP) | 42% | 39% | | Add: D&A in cost of sales | $715 | $616 | | **Adjusted Gross Profit** | **$21,855** | **$17,571** | | **Adjusted Gross Margin** | **44%** | **40%** | [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (GAAP) | $4,454 | $2,553 | | D&A, Interest, Taxes | $1,884 | $1,827 | | EBITDA | $6,540 | $4,380 | | Adjustments (Share-based comp, etc.) | $1,674 | $1,697 | | **Adjusted EBITDA** | **$8,214** | **$6,077** | | **Adjusted EBITDA Margin** | **16%** | **14%** | [Reconciliation of Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free Cash Flow Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,645) | $(1,880) | | Less: Purchases of property & equipment | $(464) | $(312) | | Plus: Proceeds from sales of property & equipment | $13 | $176 | | **Free Cash Flow** | **$(2,096)** | **$(2,016)** | [Reconciliation of Net Working Capital](index=9&type=section&id=Reconciliation%20of%20Net%20Working%20Capital) Net Working Capital Reconciliation (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Working capital (GAAP) | $85,176 | $80,151 | | Less: Cash and cash equivalents | $(22,997) | $(25,880) | | Add: Current maturities of long term debt | $2,250 | $2,141 | | **Net working capital** | **$64,429** | **$56,412** |

First Quarter Results Total revenues of $50.0 million, a 14% year-over-year improvementGross margin improved to 42% from 39%; adjusted gross margin improved to 44% from 40% in the first quarter of 2024Net income of $4.1 million and diluted earnings per share of $1.51, an improvement compared to $2.1 million and diluted earnings per share of $0.82 one year agoAdjusted EBITDA of $8.2 million, a $2.1 million year-over-year improvement$23.0 million in cash and $7.6 million of total debt as of March 31, 2025 HOU ...

Core Viewpoint - NCS Multistage Holdings, Inc. will discuss its first quarter 2025 results in a conference call scheduled for May 1, 2025, at 7:30 a.m. Central Time [1] Company Overview - NCS Multistage Holdings, Inc. is a leading provider of engineered products and support services for optimizing oil and natural gas well construction, completions, and field development strategies [3] - The company primarily serves exploration and production companies for both onshore and offshore wells, focusing on those drilled with horizontal laterals in unconventional and conventional formations [3] - NCS's products and services are utilized across North America and selected international markets, including the North Sea, Middle East, Argentina, and China [3] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "NCSM" [3]

Company Overview - NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services for optimizing oil and natural gas well construction, completions, and field development strategies [2] - The company primarily serves exploration and production companies for both onshore and offshore wells, focusing on those drilled with horizontal laterals in unconventional and conventional formations [2] - NCS's products and services are utilized across North America and selected international markets, including the North Sea, Middle East, Argentina, and China [2] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "NCSM" [2] Upcoming Events - Ryan Hummer, the Chief Executive Officer of NCS, is scheduled to present at the Emerging Growth Conference on March 27, 2025, at 11:35 a.m. Central Time [1] - Interested parties can register for the presentation via a provided link, and a webcast will be available on the company's website for approximately 90 days following the event [1]

Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported a 28% year-over-year increase in total revenues for Q4 2024, reaching $45.0 million [1][6] - The growth was primarily driven by a significant rise in international revenues, particularly from the Middle East tracer diagnostics projects, and a 19.5% increase in Canada [1] - U.S. results were mixed, with product sales increasing by 29.1% while services revenues decreased by 9.5% [1] - The company expects modest revenue growth through FY25 despite potential tariff increases [1] - Consolidated gross margins improved from 36.6% in Q4 2023 to 43.1% in Q4 2024 [1] Financial Performance - Total revenues for Q4 2024 were $45.0 million, marking a 28% year-over-year improvement [6] - The liquidity position of the company increased to $46.0 million from $37.0 million in Q3 2024 [6] - Adjusted EBITDA for the quarter was $8.2 million, reflecting a $5.7 million year-over-year improvement [6]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $45.0 million, a 20% increase year-over-year, with international revenue up by 280%, Canada up by 20%, and the U.S. up by 18% [21][22] - For the full year 2024, revenues reached $162.6 million, a 14% increase compared to 2023, with adjusted gross margin improving to 41% from 39% [23] - Adjusted EBITDA for Q4 2024 was $8.2 million, up from $2.5 million in Q4 2023, while full-year adjusted EBITDA was $22.3 million, significantly higher than $11.9 million in 2023 [26][27] Business Line Data and Key Metrics Changes - The company achieved its highest ever revenue outside of North America in 2024, with international revenue doubling from 5% to 10% of total revenue [12] - Adjusted gross profit for Q4 2024 was $19.4 million, with an adjusted gross margin of 43%, up from 37% in Q4 2023, driven by higher margin international revenues [22] Market Data and Key Metrics Changes - The company reported a significant increase in international revenue, which reached an all-time high of $16.5 million in 2024 [23] - The U.S. revenue for Q1 2025 is expected to be between $8 million and $9 million, while Canadian revenue is projected to be between $32 million and $34 million [28] Company Strategy and Development Direction - The company aims to grow revenue in excess of underlying market activity in 2025, focusing on international markets and new technology introductions [18] - Strategic objectives include enhancing operational efficiency, improving employee engagement, and generating free cash flow [19] - The company is actively looking for M&A opportunities to integrate small tech-related businesses that align with its strategic goals [56] Management's Comments on Operating Environment and Future Outlook - Management expects customer activity in 2025 to be flat to down in the U.S., with slight increases in Canada and core international markets [30] - The strengthening of the U.S. dollar is anticipated to negatively impact revenue and adjusted EBITDA for 2025 [31] - The company is monitoring potential trade actions and has plans to mitigate impacts from increased tariffs [33] Other Important Information - The company ended 2024 with a cash balance of nearly $26 million and expects to generate positive free cash flow in 2025 [36][37] - Capital expenditures for 2025 are expected to be between $1.5 million and $2 million, with free cash flow after distributions projected at $7 million to $10 million [34] Q&A Session Summary Question: Insights on the cadence for the year and spring breakup in Canada - Management expects 2025 seasonality to mimic 2024, with typical activity patterns anticipated [43][44] Question: Factors driving margin expansion - Margin expansion was driven by international growth, operating leverage, and cost reduction actions taken in 2023 [48][50] Question: Interest in small tech-related businesses for M&A - The company is actively looking for M&A opportunities that align strategically and operationally [56][58] Question: R&D developments and upcoming market introductions - Exciting technologies are in development, with some nearing prototype stage and potential market introduction [60][61]

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $45 million, a 20% increase year-over-year, with contributions from all regions [21] - Full year 2024 revenues reached $162.6 million, a 14% improvement compared to 2023 [23] - Adjusted gross margin for Q4 2024 was 43%, up from 37% in Q4 2023, driven by higher margin international revenues [22] - Adjusted EBITDA for Q4 2024 was $8.2 million, significantly up from $2.5 million in Q4 2023 [26] - Full year adjusted EBITDA was $22.3 million, a substantial increase from $11.9 million in 2023 [27] Business Line Data and Key Metrics Changes - International revenue doubled from 5% to 10% of total revenue in 2024, reaching an all-time high of $16.5 million [12][23] - The company advanced the use of its fracturing systems technology, particularly in the North Sea and deepwater applications [11] Market Data and Key Metrics Changes - Canadian revenue increased by 20%, while U.S. revenue grew by 18% in Q4 2024 [21] - International revenue saw a remarkable increase of 280% year-over-year [21] Company Strategy and Development Direction - The company aims to grow revenue in excess of underlying market activity in 2025, focusing on Canada, the U.S., and international markets [18] - Strategic objectives include obtaining field trials for new technology and driving commercial success in new markets [18] - The company is actively pursuing M&A opportunities to enhance its technology and market presence [56] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 customer activity in the U.S. to be flat to down, with slight increases in Canada and core international markets [30] - The strengthening U.S. dollar is anticipated to negatively impact revenue and adjusted EBITDA in 2025 [31] - The company plans to maintain a strong balance sheet and liquidity position, expecting to generate positive free cash flow in 2025 [36][37] Other Important Information - The company ended 2024 with a cash balance of nearly $26 million and a positive net cash position of $17.7 million [27][36] - Adjusted gross margin for the full year 2024 improved to 41% from 39% in 2023 [23] Q&A Session Summary Question: Insights on the cadence for the year and spring breakup in Canada - Management expects 2025 seasonality to mimic 2024, with typical activity patterns anticipated [43][44] Question: Factors driving margin expansion - Margin expansion was driven by international growth, operating leverage, and cost reduction actions taken in 2023 [48][50] Question: M&A opportunities and technology integration - The company is actively looking for small tech-related businesses that can complement its operations and enhance growth [56] Question: R&D developments and upcoming products - Exciting technologies are in development, with some nearing the prototype stage for market introduction [60]

Investor Update March 2025 Disclaimer Forward-Looking Statements The information in this presentation includes "forward-looking statements" that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this presentation, regarding NCS Multistage Holdings, Inc.'s (the "Company," "NCS", "NCSM", "we" or "us") strategy, financial guidance, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of ...