NCS Multistage (NCSM) Q2 2026 earnings summary

Executive summary

• Entered into a definitive merger agreement with Weatherford International, expected to close in H2 2026, subject to regulatory approvals and customary conditions; transaction approved by majority shareholder.

• Acquired ResMetrics in July 2025, expanding tracer diagnostics capabilities; $1.3M contingent consideration paid in January 2026.

• Q2 2026 net loss was $4.6M, reversing from net income of $0.9M in Q2 2025; loss per share was $(1.71) compared to $0.34 EPS last year.

• Adjusted EBITDA was $1.9M, down from $2.2M year-over-year, with margin declining to 5% from 6%.

• Faced increased transaction-related costs due to merger and acquisition activities.

Financial highlights

• Q2 2026 revenues were $38.4M, up 5.2% year-over-year, driven by strong U.S. product and service performance, especially from Repeat Precision and tracer diagnostics.

• Gross margin improved to 34.2% from 33.7% year-over-year; gross profit was $13.1M.

• Adjusted gross profit was $13.9M (36% margin), up from $13.0M (36%) in the prior year.

• For the six months ended June 30, 2026, revenues were $84.0M, down 2.8% year-over-year; net loss attributable to shareholders was $5.0M versus net income of $5.0M in the prior year.

• Cash and cash equivalents at June 30, 2026: $31.3M; $7.5M in finance lease obligations; no outstanding borrowings under ABL facility.

Outlook and guidance

• Modest increases in U.S. and Canadian drilling and completion activity expected for the remainder of 2026.

• International market spending anticipated to remain stable; geopolitical risks and tariff uncertainties could impact activity.

• Capital expenditures for 2026 projected at $1.8M–$2.1M, focused on manufacturing upgrades and R&D.

• The merger with Weatherford is expected to close in the second half of 2026, pending regulatory approvals.

• Forward-looking statements highlight risks from oil and gas market volatility, regulatory changes, and merger completion uncertainties.