NCS Multistage Holdings Reports Significant Revenue Growth and Strategic Acquisition
TL;DR
NCS Multistage Holdings, Inc. outperforms industry with a 22.8% revenue increase, offering investors a competitive edge through strategic acquisitions and international market expansion.
NCSM's 2Q25 financials show a 22.8% year-over-year revenue growth to $36.5M, with adjusted gross margins at 35.7%, detailed by product line and geographic performance.
NCSM's growth and strategic acquisitions like ResMetrics enhance global energy efficiency, contributing to a sustainable future through advanced diagnostics and digital platforms.
Discover how NCSM's 67.2% sequential international revenue surge and the ResMetrics acquisition are reshaping the energy sector's diagnostic landscape.
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NCS Multistage Holdings, Inc. (NASDAQ: NCSM) has announced a remarkable 22.8% increase in total revenues for the second quarter of 2025, achieving $36.5M. This growth is attributed to increased activity in fracturing systems and frac plug sales across Canada and the U.S., demonstrating the company's ability to thrive in varying market conditions. While seasonal factors led to a revenue decrease in Canada, the U.S. market experienced a 45% sequential revenue boost as postponed projects were reactivated.
The company's strategic acquisition of ResMetrics LLC for $5.9M, plus potential earn-outs, is set to enhance NCSM's diagnostics portfolio and extend its reach into high-margin markets. ResMetrics, with its impressive trailing 12-month revenue of over $10M and EBITDA margins exceeding 30%, is anticipated to make a substantial contribution to NCSM's revenue and EBITDA for the rest of FY25. This move not only broadens NCSM's service capabilities but also solidifies its position in the U.S. and Middle East, in line with its growth strategy.
Financially, NCSM is in a strong position with $42.6M in available liquidity and a modest total debt of $7.7M. The company has updated its full-year revenue guidance to between $172.0M and $181.0M, with adjusted EBITDA projected to be in the range of $22.0M to $25.5M. These projections reflect NCSM's positive outlook and its adeptness at managing global market challenges through strategic acquisitions and operational improvements.
According to Stonegate Capital Partners, NCSM's valuation is estimated to be between $38.09 and $44.52, with a midpoint of $40.89, based on DCF and EV/EBITDA valuation methods. This valuation highlights the market's belief in NCSM's potential for growth and its strategic efforts to increase its international market share. For further information on NCS Multistage Holdings, Inc.'s performance and strategic initiatives, visit https://www.ncsmultistage.com.
Curated from Reportable
