NCS Multistage (NCSM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $45.6 million, down 8.7–9% year-over-year, mainly due to lower Canadian activity and international service revenue, partially offset by U.S. growth and ResMetrics acquisition contributions.

• U.S. revenue more than doubled year-over-year, driven by Repeat Precision product sales, tracer diagnostics, and new product launches; ResMetrics contributed $1.8 million in Q1 2026.

• Net loss for Q1 was $0.4 million, or $0.14 per share, compared to net income of $4.1 million last year.

• Adjusted EBITDA was $5.6 million (12% margin), down from $8.2 million (16% margin) year-over-year.

• Free cash flow improved to $0.7 million, reversing historical Q1 cash use.

Financial highlights

• Adjusted gross margin for Q1 2026 was 40%, down from 44% last year; gross profit was $17.4 million (38% margin).

• Cash balance at quarter-end was $34.5 million, with $7.2 million in debt and total liquidity of $53 million including an undrawn ABL facility.

• SG&A expenses decreased year-over-year, reflecting lower incentive accruals and share-based compensation, partially offset by ResMetrics expenses.

• Other income rose to $1.9 million, mainly from royalty income and scrap sales.

• Net working capital increased to $62.9 million at March 31, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $186–$194 million, with adjusted EBITDA guidance at $26–$29 million and free cash flow after JV distributions expected at $11–$15 million.

• Q2 2026 revenue expected at $36–$39 million, with adjusted gross margin of 35.5–37.5% and adjusted EBITDA between breakeven and $2 million.

• Capital expenditures for 2026 increased to $2.2–$2.8 million to expand manufacturing and Repeat Precision capacity.

• Management expects increased U.S. customer engagement and a large multi-well project in H2 2026, with modest Canadian activity recovery.

• Guidance does not include potential upside from higher oil prices or new deepwater projects.