NCS Multistage Holdings, Inc. Announces First Quarter 2025 Results

Core Viewpoint - NCS Multistage Holdings, Inc. reported strong financial results for the first quarter of 2025, with total revenues and Adjusted EBITDA exceeding expectations, primarily driven by performance in Canada [3][4]. Financial Performance - Total revenues reached $50.0 million, marking a 14% increase year-over-year and an 11% increase sequentially, the highest quarterly revenue since Q1 2020 [4][12]. - Adjusted EBITDA was $8.2 million, reflecting a 35% year-over-year improvement, with an Adjusted EBITDA margin of 16%, up from 14% in Q1 2024 [6][19]. - Net income attributable to NCS was $4.1 million, or $1.51 per diluted share, compared to $2.1 million and $0.82 per diluted share in the same period of 2024 [7][18]. Revenue Breakdown - Revenue growth was primarily driven by increased Canadian product sales and service revenue across all geographic regions, despite a decline in U.S. product sales due to project delays [13]. - Canadian revenues increased by 26% compared to Q4 2024, while international revenues declined by 34%, mainly due to the timing of service work in the Middle East [14]. Margin and Cost Analysis - Adjusted gross margin improved to 44% from 40% year-over-year, benefiting from higher-margin international work and efficiencies in supply chain and manufacturing [5][15]. - Selling, general and administrative expenses rose to $16.2 million, an increase of $2.4 million year-over-year, attributed to higher bonuses and professional fees [16]. Liquidity and Capital Expenditures - As of March 31, 2025, the company had a cash balance of $23.0 million and a net cash position of $15.4 million, with total liquidity of $49.8 million [8][21]. - Capital expenditures for the quarter were $0.5 million, up from $0.1 million in the same period of 2024 [23]. Market Outlook - The company has not faced significant impacts from global trade tensions but acknowledges potential risks to commodity prices and drilling activity due to escalating trade issues and tariffs [9]. - The CEO expressed cautious optimism for the remainder of 2025, emphasizing the company's strong balance sheet and strategic positioning [10].