NCS Multistage Holdings, Inc. (NASDAQ: NCSM) has reported a significant milestone in its first-quarter financial results for 2025, achieving total revenues of $50.0 million. This marks a 14% increase compared to the same period last year and represents the company's highest quarterly revenue since early 2020. The growth was fueled by heightened product sales in Canada and an uptick in service revenues across various geographic markets, underscoring the company's expanding footprint and operational efficiency.
The Canadian market emerged as a particularly strong performer, with notable activity in fracturing system completions. Internationally, the company benefited from ongoing tracer diagnostics projects in the Middle East and increased product and service sales in the North Sea. Sequentially, total revenues saw an 11% rise, with Canadian sales jumping 26% from the previous quarter. This performance not only highlights the company's ability to capitalize on market opportunities but also its strategic focus on high-margin segments.
Financial metrics further illustrate NCS Multistage Holdings' upward trajectory. Gross margins improved from 40.1% in Q1 2024 to 43.7% in Q1 2025, with gross profit reaching $21.9 million. Adjusted EBITDA stood at $8.2 million, and earnings per share (EPS) more than doubled to $1.58 from $0.83 in the prior year's quarter. These figures reflect the company's enhanced profitability and operational leverage.
The company's balance sheet and liquidity position have also strengthened, with net working capital increasing to $64.4 million, up 12.4% from year-end. Cash reserves and undrawn revolver totaled $49.8 million, a significant improvement over the $34.4 million reported in Q1 2024. International revenues, despite a sequential decline of 34% due to the timing of tracer service work, grew 33.8% year-over-year to $2.9 million, demonstrating the company's resilience and strategic focus on lucrative markets.
Looking ahead, NCS Multistage Holdings has set full-year revenue guidance between $167.0 million and $175.0 million, with adjusted EBITDA expected to range from $20.0 million to $24.0 million. Valuation analyses suggest a target price range of $32.17 to $38.36, with mid-point valuations around $34.66, indicating confidence in the company's growth prospects and financial stability. For more information, visit https://www.ncsmultistage.com.
