NCS Multistage (NCSM) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with revenue up 13% year-over-year to $183.6 million, exceeding guidance and driven by leadership in well construction, completion technologies, and the ResMetrics acquisition.

• Q4 2025 revenue reached $50.6 million, up 13% year-over-year, with operating income up 78% and net income of $15.0 million, including a $9.8 million deferred tax valuation allowance benefit.

• Maintained a capital-light, asset-light business model, generating robust free cash flow and supporting strategic acquisitions and organic growth.

• Integration of ResMetrics enhanced tracer diagnostics capabilities, expanded market reach in the U.S. and Middle East, and contributed to revenue and cost synergies.

• Continued investment in technology, operational efficiency, and product innovation, including new solutions such as ATRS AICV, RapidTrace, Lumen8, and SmartProp tracer.

Financial highlights

• Full-year 2025 revenue was $183.6 million, up from $162.6 million in 2024; adjusted EBITDA rose 20% to $26.7 million (margin 15%).

• Free cash flow after distributions to non-controlling interest totaled $18.9 million, with over 70% conversion from adjusted EBITDA.

• Net income for 2025 was $23.7 million, or $8.65 per diluted share, including $11.5 million benefit from deferred tax valuation allowance release.

• Ended 2025 with $36.7 million in cash, $7.6 million in debt, and $29.1 million net cash position; total liquidity was $61.1 million.

• Adjusted gross margin for 2025 was 41%; Q4 gross margin was 40%, with adjusted Q4 margin at 42%.

Outlook and guidance

• 2026 revenue guidance: $184–$194 million; adjusted EBITDA: $26–$29 million; free cash flow after distributions: $12–$16 million.

• Q1 2026 revenue expected at $49–$53 million; adjusted gross margin 39–41%; adjusted EBITDA $6.5–$8.5 million.

• Capital expenditures for 2026 expected at $1.5–$2 million.

• Revenue growth anticipated in U.S. and international markets, with Canadian revenue expected to decline due to lower rig count and customer consolidation.

• Market environment expected to remain challenging in North America, with international growth weighted to the second half of 2026.