NCS Multistage Holdings Reports $38.4 Million Revenue with Increased Service Sales and Net Loss in Q2 2026

NCS Multistage Holdings, Inc. reported a total revenue of $38.4 million for the three months ended June 30, 2026, reflecting a 5.2% increase from $36.5 million in the same period last year. The company's product sales remained relatively stable at $27.7 million, while service revenues increased significantly to $10.7 million, up 23.1% from $8.7 million in the prior year. For the six months ended June 30, 2026, total revenues decreased to $84.0 million from $86.5 million, primarily due to a decline in product sales, particularly in Canada, which was impacted by customer project delays.

The company's financial performance showed a notable decline in profitability, with a net loss attributable to NCS Multistage Holdings, Inc. of $4.6 million for the second quarter, compared to a net income of $0.9 million in the same quarter of 2025. For the first half of 2026, the net loss was $5.0 million, a significant drop from a net income of $5.0 million in the previous year. This downturn was attributed to increased selling, general, and administrative expenses, which rose to $18.0 million from $13.6 million, largely due to higher professional fees related to strategic acquisition activities, including the pending merger with Weatherford International plc.

In terms of operational developments, NCS Multistage's acquisition of Reservoir Metrics, LLC in July 2025 has begun to contribute positively to service revenues, generating $2.3 million in the second quarter of 2026. The company also reported an increase in its customer base and successful commercialization of new products, particularly in the U.S. market. However, Canadian revenues faced challenges, with product sales declining by 25.2% year-over-year, attributed to project delays and customer consolidation.

Geographically, the U.S. market showed strong growth, with total revenues increasing by 50.3% to $20.5 million in the second quarter, driven by enhanced service offerings and a growing customer base. In contrast, Canadian revenues fell significantly, reflecting a broader trend of reduced activity in the region. The company’s total assets decreased to $177.6 million as of June 30, 2026, down from $181.2 million at the end of 2025, while total liabilities also declined to $36.8 million from $38.1 million.

Looking ahead, NCS Multistage anticipates a modest increase in drilling and completion activity in North America for the remainder of 2026, contingent on oil and natural gas prices and geopolitical factors. The company is focused on integrating its recent acquisitions and navigating the complexities of the pending merger with Weatherford, which is expected to close in the second half of 2026. The management remains cautious about market conditions, particularly regarding potential impacts from ongoing geopolitical tensions and trade policies that could affect operational costs and market demand.