NCS Multistage Holdings, Inc. (NASDAQ: NCSM) has announced a remarkable 22.8% year-over-year increase in total revenues for the second quarter of 2025, achieving $36.5M. This growth is attributed to increased activity in fracturing systems and sales of frac plugs in both Canada and the U.S., demonstrating the company's ability to thrive in varying market conditions. While seasonal factors led to a revenue decrease in Canada, the U.S. market experienced a 45% sequential revenue boost as postponed projects were reactivated.
The company's strategic acquisition of ResMetrics LLC for $5.9M, plus potential earn-outs, is a pivotal step towards enhancing its diagnostics portfolio and entering higher-margin markets. ResMetrics, with its impressive trailing 12-month revenue of over $10M and EBITDA margins exceeding 30%, is poised to make a substantial contribution to NCSM's revenue and EBITDA for the rest of FY25. This move not only broadens NCSM's service range but also solidifies its position in the U.S. and Middle East, in line with its growth strategy.
Financially, NCSM is in a strong position with $42.6M in available liquidity and a modest total debt of $7.7M. The company has updated its full-year revenue guidance to between $172.0M and $181.0M, with adjusted EBITDA projected to be from $22.0M to $25.5M. These projections reflect NCSM's positive outlook and its adeptness at managing global market challenges through strategic acquisitions and operational improvements.
An analysis by Stonegate Capital Partners, employing DCF and EV/EBITDA valuation techniques, estimates NCSM's valuation to be in the range of $38.09 to $44.52, with a midpoint of $40.89. This valuation highlights the market's belief in NCSM's growth potential and its strategic efforts to increase its international market presence. For further information on NCS Multistage Holdings, Inc.'s performance and strategic initiatives, visit https://www.ncsmultistage.com.
