NCS Multistage (NCSM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $50 million, up 14% year-over-year and 11% sequentially, marking the highest quarterly revenue since Q1 2020, driven by strong Canadian and international sales.

• Net income rose to $4.1 million ($1.51 per diluted share), nearly doubling from $2.1 million ($0.82 per share) a year ago.

• Adjusted EBITDA improved to $8.2 million, up $2.1 million year-over-year, with margin rising to 16% from 14%.

• Gross margin improved to 44% from 40% a year ago, reflecting higher-margin international work and Canadian sales.

• The company operates in one reportable segment, focusing on engineered products and services for oil and gas well construction and completions.

Financial highlights

• Product sales were $35.1 million (up 10.4%) and services $14.9 million (up 23.5%) year-over-year.

• Adjusted gross profit was $21.9 million, with adjusted gross margin rising to 44% from 40% a year ago.

• SG&A expenses increased, mainly due to higher incentive bonuses and share-based compensation.

• Cash and cash equivalents were $23 million as of March 31, 2025; total liquidity was approximately $50 million.

• Free cash flow after distributions projected at $7–$11 million for 2025.

Outlook and guidance

• Q2 2025 revenue expected between $26–$29 million, with Canadian revenue $12–$13 million, U.S. $10.5–$11.5 million, and international $3.5–$4.5 million.

• Q2 adjusted gross margin expected at 37–39%, and adjusted EBITDA between negative $2 million and break even.

• Full-year 2025 revenue guidance maintained at $165–$175 million, with adjusted EBITDA range increased to $20–$24 million.

• Management remains cautiously optimistic for 2025, but notes risks from tariffs, commodity prices, and global trade tensions.

• Free cash flow after distributions projected at $7–$11 million for 2025.