NCS Multistage Reports 14% Revenue Growth to $50M in Q1 2025

NCS Multistage Holdings, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $50.0 million, up 14% from $43.9 million in the same period last year. This growth was primarily driven by a 10.4% increase in product sales, which totaled $35.1 million, and a 23.5% rise in service revenues, amounting to $14.9 million. The company's net income also saw a substantial rise, reaching $4.5 million compared to $2.6 million in the prior year, marking a 74.5% increase. Earnings per share increased to $1.58 from $0.83, reflecting improved profitability.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. The cost of sales as a percentage of revenues decreased to 57.7% from 61.3%, attributed to higher-margin international work and efficiencies in manufacturing and supply chain operations. Selling, general, and administrative expenses rose to $16.2 million, up from $13.8 million, largely due to increased incentive bonuses and professional fees. The company’s cash and cash equivalents stood at $23.0 million as of March 31, 2025, down from $25.9 million at the end of 2024.

Strategically, NCS Multistage continues to focus on enhancing its product offerings and expanding its market presence. The company operates primarily in North America, with significant sales in Canada, which accounted for approximately 75% of its revenues. The first quarter of 2025 saw a robust performance in Canadian product sales, reflecting strong activity levels in fracturing systems completions. The company also reported increased service revenues from international markets, particularly in the Middle East and the North Sea.

Operationally, NCS Multistage's customer engagement metrics showed a mixed performance. While U.S. product sales declined by 11.6% to $6.9 million, Canadian product sales increased by 18.4% to $26.8 million. The average number of operating rigs in the U.S. remained stable, while Canadian rig counts increased slightly. The company’s employee headcount remained consistent, supporting its operational capabilities across various geographic regions.

Looking ahead, NCS Multistage anticipates a stable market in Canada, while projecting a modest decline in U.S. activity due to conservative oil production growth targets. The company remains cautious about potential impacts from global trade tensions and tariffs, which could affect commodity prices and operational costs. Despite these challenges, NCS Multistage is optimistic about its ability to leverage its product offerings and operational efficiencies to navigate the evolving market landscape.