NCS Multistage (NCSM) Emerging Growth Virtual Conference summary

Company overview and market positioning

• Focuses on technology-driven oilfield services and equipment for E&P customers, competing with larger firms by targeting niche leadership positions and attractive margins.

• Operates a capital-light business model by outsourcing manufacturing, enabling low capex (1%-2% of revenue) and strong free cash flow.

• Revenue in 2024 was over $160 million, with EBITDA of $22 million and free cash flow of $12 million; no customer exceeds 10% of revenue.

• Trades on NASDAQ with a market cap and enterprise value just below $100 million.

• Over 200 customers in 2024, with limited shareholder concentration.

Product lines and innovation

• Four main product lines: fracturing systems (65% of revenue), Repeat Precision, Tracer Diagnostics, and well construction.

• Fracturing systems are consumable, used in 30% of Canadian wells, and expanding internationally; recent wells use up to 290 sleeves per well.

• Repeat Precision offers high-performance composite and dissolvable frac plugs, with new features for simul-frac operations and growing Canadian market share.

• Tracer Diagnostics provides cost-effective tracer studies for well optimization, with labs in Tulsa and Calgary, supporting operational decisions and field development.

• Well construction features the AirLock Casing Buoyancy System, supporting longer laterals and capital efficiency.

Strategic direction and growth

• Strategy centers on building market leadership, expanding internationally (especially offshore), and commercializing innovative solutions.

• International revenue more than doubled in 2024, now over 10% of total revenue, driven by North Sea and Middle East growth.

• Revenue grew 14% in 2024 ($20 million increase), with expectations for further growth in 2025 despite a flat North American market.

• Gross margin improved by 250 basis points in 2024, aided by international mix; SG&A remains controlled and relatively fixed.

• Adjusted EBITDA margin incrementally reached 35% from 2020 to 2024, with long-term incremental margins targeted at 25%-35%.