NCS Multistage (NCSM) Q4 2024 earnings summary

Executive summary

• Achieved record international revenue of $16.5 million in 2024, doubling its share to 10% of total revenue and supporting a 250 basis point improvement in adjusted gross margin year-over-year.

• Revenue grew 14% year-over-year to $162.6 million, with all regions contributing to growth; adjusted EBITDA nearly doubled to $22.3 million.

• Ended 2024 with a strong net cash position of $17.7 million and total liquidity of $46 million.

• Leadership in energy technology with a differentiated product and service portfolio, focusing on efficiency and customer returns.

• Strategic focus on expanding international presence, commercializing innovative technologies, and maintaining financial flexibility.

Financial highlights

• Q4 2024 revenue was $45.0 million, up 28% year-over-year and 2% sequentially; full-year revenue reached $162.6 million, up 14%.

• Adjusted gross margin improved to 43% in Q4 (from 37% prior year) and 41% for the full year (from 39%).

• Net income for Q4 was $3.5 million (EPS $1.32); full-year net income was $6.6 million (EPS $2.55), reversing a prior year net loss.

• Adjusted EBITDA for Q4 was $8.2 million (vs. $2.5 million prior year); full-year adjusted EBITDA was $22.3 million (vs. $11.9 million prior year).

• Free cash flow for 2024 was $12 million (54% of adjusted EBITDA); $10 million after distributions, representing 15% of market cap.

Outlook and guidance

• 2025 revenue guidance: $165–$175 million; adjusted EBITDA: $20–$23 million.

• Q1 2025 revenue expected at $42–$46 million; adjusted gross margin 39–42%; adjusted EBITDA $4.5–$6.5 million.

• Revenue growth expected in Canada and international markets, flat to down in the U.S.; FX headwinds expected to reduce revenue and EBITDA by $4 million and $2.5–$3 million, respectively.

• Free cash flow after distributions projected at $7–$10 million for 2025; capex $1.5–$2 million.

• EBITDA and free cash flow expected to be weighted toward the second half of the year.