NCS Multistage (NCSM) Q4 2024 earnings summary

Executive summary

• Achieved record international revenue in 2024, doubling its share of total revenue to 10% year-over-year, with strong growth in Canada and the U.S. as well.

• Leadership in energy technology with a differentiated product and service portfolio, focusing on efficiency and customer returns.

• Expanded addressable market and diversified revenue streams through organic growth, joint ventures, and acquisitions.

• Enhanced product offerings, including new technologies for SAG-D, deep water, geothermal, and simul frac operations.

• Maintained a strong balance sheet with nearly $26 million in cash and no drawn revolver at year-end.

Financial highlights

• Q4 2024 revenue was $45.0 million, up 28% year-over-year; full-year revenue reached $162.6 million, a 14% increase.

• Adjusted gross margin improved to 43% in Q4 (from 37% prior year) and 41% for the full year (from 39%).

• Net income for Q4 was $3.5 million (EPS $1.32); full-year net income was $6.6 million (EPS $2.55), reversing a prior year net loss.

• Adjusted EBITDA for Q4 was $8.2 million (vs. $2.5 million prior year); full-year adjusted EBITDA was $22.3 million (vs. $11.9 million prior year).

• Free cash flow for 2024 was $12 million (54% of adjusted EBITDA); $10 million after distributions, representing 15% of market cap.

Outlook and guidance

• 2025 revenue guidance: $165–$175 million; adjusted EBITDA: $20–$23 million.

• Expect flat to down activity in the U.S., slight increases in Canada and international markets.

• FX headwinds expected to reduce revenue by ~$4 million and adjusted EBITDA by $2.5–$3 million in 2025.

• Q1 2025 revenue expected at $42–$46 million; adjusted gross margin 39–42%; adjusted EBITDA $4.5–$6.5 million.

• Free cash flow after distributions projected at $7–$10 million for 2025; capex $1.5–$2 million.