Core Insights - NCS Multistage Holdings, Inc. reported total revenues of $46.5 million in Q3 2025, reflecting a 6.0% year-over-year increase, driven by stronger U.S. and international sales, particularly in fracturing systems and wellbore construction [1][5] - Adjusted Gross margins decreased slightly to 41.7% from 42.1% in Q3 2024, indicating a minor decline in profitability [1][5] - The company expects modest revenue and margin growth for the remainder of FY25, supported by resilience in core product lines and contributions from the recent acquisition of ResMetrics [1] Revenue Breakdown - U.S. revenue grew approximately 36.0% year-over-year, while international revenue saw an increase of around 38.0% during the same period [1][5] - Canadian product sales were softer due to lower rig counts, although Canada experienced a 32% sequential growth as spring break-up effects eased [1][5] Financial Performance - As of Q3 2025, Adjusted EBITDA was reported at $7.0 million, and diluted EPS was $1.37 [5] - The integration of ResMetrics is ahead of plan, contributing approximately $2 million to U.S. tracer diagnostics in Q3 2025 [5]

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 [18] - Adjusted EBITDA for the first nine months of 2025 was $17.5 million, representing a 24% increase year-over-year [7] - Free cash flow after distributions to non-controlling interest improved by $6.5 million compared to the same period in 2024, totaling $6.8 million for the first nine months of 2025 [7][20] - Net income for Q3 2025 was $3.8 million, or diluted earnings per share of $1.37, compared to $4.1 million or $1.60 per share in the same quarter last year [19] Business Line Data and Key Metrics Changes - U.S. revenue increased by 26% sequentially and 54% year-over-year, with a 37% increase when excluding Resmetrics [6][18] - Canadian revenue increased by 9% for the first nine months of 2025 despite a 6% decline in average rig count [10] - International revenue reached 10% of total revenue in 2024, with continued growth expected [10] Market Data and Key Metrics Changes - Canadian revenue saw a 19% decline in Q3 2025 due to a general slowdown in activity levels and lower rig counts [18] - U.S. and international revenues increased by 37% and 38% respectively for Q3 2025, driven by increased fracturing system sales [18] Company Strategy and Development Direction - The company aims to build upon its leading market positions, particularly in fracturing systems and tracer diagnostics [9] - The strategy includes capitalizing on high-margin growth opportunities worldwide, with a focus on the North Sea and other international markets [10][11] - The company is committed to commercializing innovative solutions to complex customer challenges, with ongoing product development and field trials [12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution moving into Q4 2025 due to challenging market conditions, including a stagnating U.S. rig count and activity declines in Canada [22] - 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 guidance for the year has been increased to $11 to $13 million, reflecting more favorable working capital balances [24] Other Important Information - The integration of Resmetrics is progressing well, with early successes noted in operational and financial performance [14][15] - A recent legal matter in Canada was resolved favorably for the company, with the Federal Court of Appeal overturning a prior judgment against NCS [16] Q&A Session Summary Question: What does the opportunity set look like for Resmetrics in the Middle East going forward? - Management highlighted that Resmetrics brought long-term contracts and expanded market presence in the Middle East, particularly in Oman and Saudi Arabia [31] Question: Would free cash flow remain similar in a flat growth environment in 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 [33] Question: How is the integration of Resmetrics progressing and what synergies are expected? - Integration is on track, with expected synergies of $1.5 million from improved efficiencies in operations and cost of sales [41][42] Question: What is the outlook for the North Sea market and new product developments? - The North Sea remains a strong market, with ongoing projects and new product developments expected to enhance opportunities [44][46] Question: How is the competitive environment in international markets, particularly in the Middle East? - Management noted that competition varies by market, with a focus on delivering value through insights and reports to customers [67]

Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported total revenues of $36.5 million in Q2 2025, reflecting a 22.8% year-over-year increase, driven by strong fracturing systems activity and frac plug sales in the U.S. and Canada [1][5] - The company experienced a 52% sequential revenue decline in Canada due to spring break-up, while international revenues decreased year-over-year but increased 67.2% sequentially, supported by higher equipment sales in the North Sea [1][5] - U.S. revenues rose 45% sequentially as previously delayed projects resumed, with adjusted gross margins at 35.7%, down from 40.3% in Q2 2024 [1][5] Financial Performance - Adjusted EBITDA improved to $2.2 million, and earnings per share (EPS) was reported at $0.34, which includes a $1.4 million tax benefit [5] - The acquisition of ResMetrics was completed in Q2 2025, expected to contribute $4-5 million in revenue and $1-1.5 million in EBITDA for FY25 [5] Future Outlook - The company anticipates modest revenue and margin growth through FY25, supported by resilience in core product lines and contributions from the recent acquisition of ResMetrics [1]

Financial Data and Key Metrics Changes - The company's second quarter revenue for 2025 was $36,500,000, representing a year-over-year improvement of 23% [18] - Adjusted EBITDA for the second quarter was $2,200,000, an improvement compared to $900,000 for the same period in 2024 [21] - Net income for the second quarter was $900,000, or diluted earnings per share of $0.34, compared to a net loss of $3,100,000 or a loss per share of $1.21 in the prior year [20] Business Line Data and Key Metrics Changes - Revenue in Canada for 2025 was $56,000,000, increasing 27% compared to the same period in 2024, driven by strong performance in fracturing systems [7] - U.S. revenues improved by 15%, reflecting an increase in fracturing system sales and higher frac plug sales at Repeat Precision [18] - International revenues decreased by 17%, primarily due to the timing of tracer diagnostic projects in the Middle East [18] Market Data and Key Metrics Changes - The Canadian rig count was approximately 10% to 15% below the previous year, impacting the company's performance [34] - The company expects continued success in the North Sea, with an increase in customers from two in 2022 to seven in 2025 [10] Company Strategy and Development Direction - The company aims to build upon its leading market positions, particularly in Canada, and capitalize on international and offshore opportunities [8][9] - The acquisition of ResMetrics is expected to enhance the company's tracer diagnostics capabilities and expand its market presence in the Middle East [15][16] - The company is focused on commercializing innovative solutions to complex customer challenges, with ongoing field trials for new products [11] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half of 2025 due to deteriorating market conditions, including a decline in U.S. rig counts and potential oversupply in the oil market [24] - The company maintains a strong balance sheet and liquidity position, expecting to generate positive free cash flow in 2025 [27] Other Important Information - The total purchase price for ResMetrics is up to $7,150,000, with an earn-out component of up to $1,250,000 to be paid in 2026 [21] - The company expects third quarter total revenue in the range of $42,000,000 to $46,000,000 [22] Q&A Session Summary Question: Opportunities for cross-selling post-acquisition - Management indicated that there are distinct customer bases for ResMetrics and the existing tracer diagnostics business, suggesting potential revenue synergy opportunities as they integrate offerings [30] Question: Targeting new geographies - Management expressed excitement about expanding in the North Sea and the Middle East, while also considering other offshore markets [32] Question: Factors to tighten guidance range - Management noted that the Canadian rig count is a key factor, with a need for it to recover to provide more confidence in tightening guidance [34] Question: Margin improvement opportunities - Management highlighted that operational synergies could lead to cost reductions, but refrained from specifying margin percentages [40] Question: Customer mindset in volatile market conditions - Management observed a cautiously optimistic tone among customers, with a wait-and-see approach regarding oil prices and market conditions [44]

Core Insights - NCS Multistage Holdings, Inc. (NCSM) reported total revenues of $50.0 million in Q1 2025, marking a 14% year-over-year increase and the highest quarterly revenue since Q1 2020 [1][5] - The growth was primarily driven by increased product sales in Canada and services revenue across all geographies, despite a decline in U.S. product sales due to project delays [1] - The company expects modest revenue growth through FY25, despite potential threats from increasing tariffs [1] Revenue Breakdown - Canadian sales saw a 26% sequential increase, while international revenue experienced a 34% decline due to timing of tracer work and a 13% drop in U.S. revenue compared to Q4 2024 [1] - International revenue was supported by tracer diagnostics work in the Middle East and product and service sales in the North Sea [1] Financial Metrics - Consolidated gross margins improved from 40.1% in Q1 2024 to 43.7% in Q1 2025 [1] - NCSM reported a liquidity position of $49.8 million, up from $34.4 million in Q1 2024 [5] - Adjusted EBITDA reached $8.2 million, reflecting a $2.1 million year-over-year improvement [5]