NCS Multistage (NCSM) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with revenue up 13% year-over-year to $183.6 million and Q4 revenue of $50.6 million, exceeding guidance and driven by leadership in well construction and completion technologies.

• Adjusted EBITDA for 2025 was $26.7 million, up 20% year-over-year, with a margin of 15%.

• Integration of ResMetrics enhanced tracer diagnostics capabilities, expanded market reach in the Middle East, and contributed $5.2 million to 2025 services revenue.

• Maintained a capital-light, asset-light business model, generating robust free cash flow and supporting strategic acquisitions and organic growth.

• Continued investment in technology, operational efficiency, and product innovation, with ongoing cost optimization.

Financial highlights

• 2025 revenue: $183.6 million, up 13% year-over-year; Q4 revenue: $50.6 million, up 13% year-over-year.

• Adjusted EBITDA for 2025: $26.7 million (20% increase), margin 15%; Q4 adjusted EBITDA: $9.2 million, margin over 18%.

• Net income for 2025: $23.7 million, or $8.65 per diluted share, including $11.5 million positive tax impact; Q4 net income: $15.0 million, including $9.8 million tax benefit.

• Free cash flow after distributions: $18.9 million in 2025, over 70% conversion from adjusted EBITDA.

• Cash at year-end: $36.7 million; net cash position: $29.1 million; total liquidity: ~$61 million.

Outlook and guidance

• 2026 revenue guidance: $184–$194 million; adjusted EBITDA: $26–$29 million; free cash flow after distributions: $12–$16 million.

• Q1 2026 revenue expected at $49–$53 million; adjusted gross margin 39–41%; adjusted EBITDA $6.5–$8.5 million.

• Revenue growth anticipated in U.S. and international markets, especially the Middle East; Canadian revenue expected to decline due to lower rig count and customer consolidation.

• Market environment expected to remain challenging in North America, with international growth weighted to the second half of 2026.

• Capital expenditures for 2026 expected at $1.5–$2 million.