Investor Update March 2026 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 ...

Forward-Looking Statements Investor Update March 2026 Disclaimer 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 ...

NCS Multistage Conference Call Summary Company Overview - **Company**: NCS Multistage (Ticker: NCSM) - **Industry**: Oil field services and equipment - **Market Capitalization**: Approximately $115 million - **Trailing 12-month EBITDA**: Approximately $26 million - **Free Cash Flow**: Approximately $20 million - **Revenue for 2025**: Expected to be close to $180 million, representing about 2% market share in a nearly $10 billion addressable market for oil field services in 2025 [5][18] Core Business and Product Lines - **Focus**: Technology-driven solutions for oil and natural gas producers, including major companies like Chevron, BP, and Saudi Aramco [2][3] - **Product Lines**: 1. **Fracturing Systems**: Accounts for about 60% of revenue; helps maximize resource recovery [5][6] 2. **Repeat Precision**: Second largest product line, known for high-performance composite frac plugs [8][9] 3. **Tracer Diagnostics**: Provides cost-effective services to improve well designs and optimize field development [10][11] 4. **Well Construction**: Features the AirLock casing buoyancy system, aiding in drilling longer laterals [12][13] Strategic Focus and Growth Opportunities - **Market Positioning**: Aims to build on leadership in fracturing systems and capitalize on high-margin growth opportunities, particularly in international markets [15][19] - **International Revenue Growth**: More than doubled in 2024 compared to 2023, increasing from about 5% to 10% of total revenue [17] - **Acquisition of ResMetrics**: Enhances Tracer Diagnostics capabilities, with trailing 12-month revenues of over $10 million and an EBITDA margin of over 30% [20][22] Financial Performance and Projections - **Revenue Growth**: Grew by 14% or $20 million in 2024; projected 8% growth in 2025, with 5% from organic initiatives and 3% from ResMetrics acquisition [27] - **Gross Margin**: Approximately 40%, improved by about 250 basis points in 2024 compared to 2023 [28] - **Free Cash Flow Generation**: Expected to convert about 50%-60% of Adjusted EBITDA to free cash flow [30] Market Dynamics and Competitive Landscape - **Challenging Market Environment**: Despite a flat-to-lower completion count and reduced rig count in the U.S., NCS is gaining market share through differentiated products [35][36] - **International Expansion**: Significant growth opportunities identified in unconventional markets like Argentina (Vaca Muerta) and the Middle East [42][44] Investor Considerations - **Valuation**: Currently trading at about four times enterprise value to 2025 EBITDA, which is a discount compared to peers [31] - **Shareholder Support**: Advent International holds over 50% of shares and has been supportive of management and strategic initiatives [46][48] Conclusion - **Investment Opportunity**: NCS Multistage presents a compelling investment case with strong organic growth, innovative technology, and a capital-light business model that generates free cash flow through industry cycles [32][33]

Financial Data and Key Metrics Changes - The company's Q3 2025 revenue was $46.5 million, a 6% year-over-year improvement, exceeding the midpoint of guidance, including contributions from ResMetrix since acquisition [16][4] - Adjusted EBITDA for Q3 was $7 million, exceeding guidance and including ResMetrix's contribution [18] - Free cash flow for the first nine months of 2025 improved by $6.8 million compared to the prior year, reaching $6.8 million after distributions to non-controlling interest [6][19] - The company reported a net income of $3.8 million for Q3, with diluted earnings per share of $1.37, compared to $4.1 million and $1.60 in the same quarter last year [18] Business Line Data and Key Metrics Changes - U.S. revenue increased by 26% sequentially and 54% year-over-year, with a 37% increase excluding ResMetrix [5][6] - Canadian revenue increased by 9% year-to-date despite a 6% decline in average rig count, indicating strong customer value [8] - International revenue reached 10% of total revenue, marking a significant milestone for the company [8] Market Data and Key Metrics Changes - The North Sea market continues to show strong collaboration with customers, supporting technical papers and hosting workshops [9] - The Canadian market has seen a pullback in activity, with a 15% year-over-year decline in rig count, but the company remains optimistic about future growth [46][48] Company Strategy and Development Direction - The company is focused on organic growth initiatives and new product development, aiming to maximize financial flexibility and free cash flow [7] - Core strategies include building on leading market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [7][10] - The integration of ResMetrix is progressing well, with early successes in operational and financial performance [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed caution moving into Q4 due to challenging market conditions, including stagnating U.S. rig counts and declines in Canada [21] - The company expects annual revenue for 2025 to be between $174 million and $178 million, representing 8% year-over-year growth [22] - Free cash flow expectations for the year have been increased to $11 million to $13 million, reflecting favorable working capital balances [23][24] Other Important Information - The company has a strong liquidity position with total liquidity of approximately $45 million [24] - A recent legal matter in Canada was resolved favorably for the company, overturning a prior judgment against it [14] Q&A Session Summary Question: What does the opportunity set look like for ResMetrix in the Middle East going forward? - Management highlighted that ResMetrix brought long-term contracts and expanded the company's portfolio in the Middle East, particularly in Oman and Saudi Arabia [26][27] Question: Would free cash flow expectations remain similar in a flat growth environment for 2026? - Management indicated that they typically convert 50% to 60% of adjusted EBITDA to free cash flow, suggesting a stable profile in a flat growth scenario [28][29] Question: How is the integration of ResMetrix progressing and what are the synergy expectations? - Integration is on track, with potential synergies of $1 million to $2 million expected from improved efficiencies in operations [35][36] Question: What does the pipeline look like for the North Sea going into 2026? - Management expects robust activity in the North Sea next year, with several orders already in hand for sliding sleeves [38][39] Question: Given the weakness in Canadian rigs, how will the company defend its margins? - Management noted that while there has been a pullback in activity, they have historically gained market share and will adapt their cost structure if necessary [45][48] Question: What is the competitive environment for tracer diagnostics in international markets? - Management described the competitive landscape as manageable, with a few global competitors in tracer diagnostics, allowing for a focus on value delivery [54][55]

Summary of NCS Multistage (NCSM) Conference Call - August 21, 2025 Company Overview - NCS Multistage is an oilfield-focused technology company serving the oilfield services and equipment market, selling directly to major oil and natural gas producers such as Chevron, Conoco, and BP [2][4] - The company competes with larger established firms like Schlumberger and Halliburton, focusing on areas where it can achieve leadership and attractive margins [2] Business Model and Financials - NCS operates with a capital-light business model, outsourcing manufacturing to minimize capital investment and convert EBITDA into free cash flow [3][4] - The company reported a market capitalization and enterprise value just below $85 million, with trailing twelve-month EBITDA of $26 million and free cash flow of $10 million, indicating a low trading multiple and robust free cash flow yield [4] - Revenue grew by 14% or $20 million in 2024, with expectations for continued growth in 2025 despite a challenging market environment [8] Strategic Focus - NCS has three core business strategies: 1. Build on leading market positions, particularly in fracturing systems and Canadian completions [6] 2. Capitalize on offshore and international opportunities, as these markets are growing faster than North America [6] 3. Commercialize innovative solutions to complex customer challenges, enhancing customer value [7] Acquisition of ResMetrix - The strategic acquisition of ResMetrix, a provider of tracer diagnostics technologies, was announced in July 2025 [9][10] - ResMetrix has trailing twelve-month unaudited revenue of over $10 million and an EBITDA margin exceeding 30% [13] - The acquisition aims to create a leading global tracer diagnostics business, enhancing NCS's service offerings and expanding its geographic footprint, particularly in the Middle East [12][10] - NCS plans to integrate ResMetrix carefully, focusing on optimizing chemical usage and realizing economies of scale [12] Market Position and Future Outlook - NCS believes that as the North American exploration and production business matures, oilfield service providers will need to engage in strategic combinations to remain competitive [14] - The company is positioned well for organic growth and complementary acquisitions, with a strong balance sheet and approximately $25 million in cash available for strategic transactions [16] - NCS aims to continue delivering revenue, gross profit, and EBITDA growth with strong incremental margins, focusing on innovative technology for technically demanding applications [15][14] Conclusion - NCS Multistage presents a compelling investment opportunity with a solid growth track record and a focus on expanding its presence in growth markets for unconventional resource development [14]

Summary of NCS Multistage Holdings Conference Call Company Overview - NCS Multistage Holdings is a technology-focused oilfield services and equipment company, selling directly to oil and natural gas producers such as Chevron, Conoco, and BP [4][5] - Competes with larger companies like Schlumberger and Halliburton, focusing on areas where it can achieve leadership and attractive margins [5] - Operates a capital-light business model, outsourcing manufacturing to minimize capital investment and generate free cash flow [6] Financial Highlights - Recent market capitalization and enterprise value are just below $90 million, with trailing twelve-month EBITDA of $26 million and free cash flow of $10 million [7] - Revenue grew by 14% or $20 million in 2024, with expectations for continued growth in 2025 despite a challenging market [23] - Gross margin approximately 40%, with an improvement of 200 basis points in 2024 compared to 2023 [24] - Free cash flow generation expected to be between $7 million and $11 million for the year [49] Product Lines - **Fracturing Systems**: Represents about 60% of revenue, helping customers maximize resource recovery [8][10] - **Repeat Precision**: Second-largest product line, expanding its offerings to capture additional market share [11][12] - **Tracer Diagnostics**: Acquired in 2017, provides cost-effective services to improve well designs and field development strategies [13][14] - **Well Construction**: Focuses on technologies that assist in drilling longer laterals, enhancing economic returns [15][16] Strategic Initiatives - Three core business strategies introduced in late 2022: 1. Build on leading market positions in fracturing systems and tracer diagnostics [17] 2. Capitalize on offshore and international opportunities, with international revenue doubling from 5% to 10% of total revenue [20] 3. Commercialize innovative solutions to complex customer challenges [19][21] - Recent acquisition of ResMetrix enhances tracer diagnostics capabilities and expands market presence in the Middle East [28][30] Market Dynamics - North American market for unconventional development is maturing, with customers focusing on value over volume [40] - International markets, particularly in the North Sea and Middle East, are seen as growth opportunities [41][42] - Tracer diagnostics is a discretionary service, but its use is expected to grow as operators seek to optimize production profiles [44][46] Cash Management and Future Outlook - The company maintains a strong balance sheet with approximately $25 million in cash and $17 million available through a revolving credit facility [35] - Limited capital expenditure (CapEx) of about 1-2% of revenue, allowing for operational leverage and free cash flow generation [52][54] - The management is open to strategic acquisitions but also considers stock buybacks if suitable opportunities do not arise [56][59] Conclusion - NCS Multistage Holdings presents a compelling investment opportunity with a strong growth track record, innovative technology, and a capital-light business model that supports free cash flow generation [33][34]