NCS Multistage Holdings Reports Strong Q3 2025 Growth Driven by International Expansion and Strategic Acquisition

NCS Multistage Holdings, Inc. reported third quarter 2025 total revenues of $46.5 million, representing a 6.0% year-over-year increase that outperformed broader industry activity levels. The growth was primarily driven by higher U.S. and international product sales, particularly in fracturing systems including the North Sea region and wellbore construction activities in the Middle East. International revenue showed particularly strong performance with approximately 38.0% year-over-year growth, while U.S. revenue increased by approximately 36.0% during the same period.

The company's services segment outperformed expectations, contributing to revenue of $46.5 million, gross profit of $19.4 million, and adjusted EBITDA of $7.0 million. These results compared favorably to Stonegate Capital Partners' estimates of $46.1 million, $18.9 million, and $7.3 million respectively. Adjusted gross margins came in at 41.7%, slightly down from 42.1% in the third quarter of 2024, while earnings per share was $1.47 compared to $1.67 in the same quarter last year.

NCSM ended the quarter with a strong liquidity position of $44.7 million, consisting of $25.3 million in cash and $19.4 million available under its undrawn revolving credit facility. This substantial liquidity compares favorably to total debt of only $7.4 million, consisting entirely of finance lease obligations. The company reported net working capital of $63.0 million, an increase of 12.6% from $56.4 million at year-end 2024, driven by higher accounts receivable and inventory.

The integration of ResMetrics, acquired in late July 2025, is progressing ahead of plan according to company management. Early results showed approximately $2.0 million in diagnostic services revenue from ResMetrics in the U.S. market during the third quarter. The combination of ResMetrics' chemical tracer lab capabilities and PetroXY web portal with NCS's existing tracer portfolio and international footprint is expected to create a category-leading diagnostics platform. Management anticipates medium-term synergy potential from best-practice adoption and scaled product development across global markets.

For the fourth quarter of 2025, management provided revenue guidance of $41-45 million, adjusted gross margin of 40-42%, and adjusted EBITDA of $5.0-6.5 million. Full-year 2025 guidance includes revenue of $174-178 million and adjusted EBITDA of $22.5-24.0 million. The company also forecasts free cash flow less distributions to non-controlling interest of $11-13 million and gross capital expenditures of $1.3-1.5 million for the full year.

Stonegate Capital Partners' valuation analysis using both discounted cash flow and EV/EBITDA comparison methods produced valuation ranges of $48.26 to $56.97 and $46.61 to $56.91 respectively, with mid-points of $52.05 and $51.76. The firm expects NCSM to maintain reasonably strong margins through the remainder of fiscal year 2025, supported by increasing market capture in international markets and contributions from the ResMetrics acquisition.