NCS Multistage Holdings, Inc. Announces Second Quarter 2025 Results

Core Viewpoint - NCS Multistage Holdings, Inc. reported strong operational and financial performance in Q2 2025, with revenues and Adjusted EBITDA exceeding expectations and demonstrating a year-over-year revenue growth of 23% [2][3]. Financial Performance - Total revenues for Q2 2025 were $36.5 million, a 23% increase from $29.7 million in Q2 2024, driven by increased fracturing systems activity and frac plug sales in North America [8][9]. - Net income for Q2 2025 was $0.9 million, or $0.34 per diluted share, compared to a net loss of $(3.1) million, or $(1.21) per share, in Q2 2024 [15][9]. - Adjusted EBITDA for Q2 2025 was $2.2 million, reflecting a $1.3 million improvement year-over-year, with an Adjusted EBITDA margin of 6% compared to 3% in the same period last year [16][9]. Operational Highlights - The company maintained a strong balance sheet with over $25 million in cash and only $8 million in debt as of June 30, 2025 [4][9]. - The acquisition of Reservoir Metrics, LLC for $5.9 million is expected to enhance NCS's tracer diagnostics service line, with ResMetrics generating over $10 million in revenue and an EBITDA margin exceeding 30% [5][22]. Market Conditions - The company remains cautiously optimistic about the second half of 2025, despite deteriorating market conditions, including declining U.S. rig counts and potential oversupply in the oil market [6][2]. Geographic Revenue Breakdown - In Q2 2025, U.S. revenues totaled $13.6 million, while Canadian revenues reached $18 million, reflecting strong product sales despite a decline in Canadian rig counts [36][37]. - International revenues decreased primarily due to reduced tracer diagnostics activity in the Middle East, although there was an increase in sales of well construction products in other regions [8][10]. Cash Flow and Capital Expenditures - Cash flow from operating activities for the first half of 2025 was a source of cash of $1.9 million, a decrease from $4.1 million in the same period of 2024 [17]. - Capital expenditures for the first half of 2025 were $0.5 million, slightly up from $0.4 million in the same period of 2024 [20]. Liquidity and Working Capital - As of June 30, 2025, NCS had a working capital of $87.2 million, an increase from $80.2 million at the end of 2024, with net working capital at $64.0 million [18][19].