NCS Multistage Holdings Reports 22.8% Revenue Growth and Net Income Turnaround in Latest Quarter

NCS Multistage Holdings, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $36.5 million for the three months ended June 30, 2025, compared to $29.7 million for the same period in 2024, marking a 22.8% increase. Product sales were a key driver, increasing by 46% to $27.8 million, while service revenues decreased by 18.7% to $8.7 million. For the six months ended June 30, 2025, total revenues were $86.5 million, up from $73.5 million in the prior year, reflecting a 17.6% growth. The company reported a net income of $1.7 million for the second quarter, a significant turnaround from a loss of $2.8 million in the same quarter last year.

The financial results indicate a notable recovery in profitability, with the company achieving a net income attributable to NCS Multistage Holdings of $924,000 for the second quarter, compared to a loss of $3.1 million in the prior year. The improvement in net income was attributed to increased product sales, particularly in Canada and the United States, despite a decline in service revenues. The company also reported a reversal of a valuation allowance against deferred tax assets, contributing to a tax benefit of $1.0 million for the quarter.

Operationally, NCS Multistage has made strategic moves, including the acquisition of Reservoir Metrics, LLC, a provider of tracer diagnostics services, for $5.9 million, which is expected to enhance its existing offerings. The company continues to focus on its core products, particularly fracturing systems, which are essential for oil and gas well construction. The company operates primarily in North America, with significant sales also occurring in international markets such as the Middle East and the North Sea.

In terms of operational metrics, the company reported a slight increase in customer engagement, with product sales in Canada rising significantly despite a decline in rig counts. The company’s total assets increased to $158.0 million as of June 30, 2025, up from $152.8 million at the end of 2024, while total liabilities decreased to $34.0 million from $36.7 million. The company’s cash and cash equivalents stood at $25.4 million, providing a solid liquidity position to support ongoing operations and potential future investments.

Looking ahead, NCS Multistage anticipates continued challenges in the oil and gas sector, particularly due to fluctuating commodity prices and competitive pressures. The company expects drilling and completion activity in the U.S. to decline, while Canadian activity may remain stable. The outlook remains cautious, with potential impacts from global trade tensions and economic conditions influencing future performance. The company plans to leverage its recent acquisition and focus on enhancing its product offerings to navigate these challenges effectively.