NCS Multistage Holdings Sees Strong Q1 Growth, Driven by International Markets and Improved Margins

NCS Multistage Holdings (NASDAQ: NCSM) demonstrated substantial financial progress in the first quarter of 2025, reporting total revenues of $50.0 million—a 14% year-over-year increase and the company's highest quarterly revenue since early 2020. The impressive performance was primarily attributed to increased product sales in Canada and services revenue across global markets.

The company's financial results exceeded analyst expectations, with earnings per share reaching $1.58 compared to $0.83 in the same quarter of the previous year. Consolidated gross margins expanded from 40.1% in Q1 2024 to 43.7% in Q1 2025, signaling improved operational efficiency and strategic market positioning.

International markets played a crucial role in the company's growth strategy. Despite a 34% sequential decline in international revenues due to timing of tracer service work, the company reported $2.9 million in international revenues—a 33.8% year-over-year increase. Key contributors included tracer diagnostics projects in the Middle East and increased activity in the North Sea region.

The company's financial health appears robust, with a net working capital of $64.4 million—a 12.4% increase from the previous year-end. Notably, NCSM concluded the quarter with $23.0 million in cash and approximately $26.8 million in undrawn revolver, providing a total liquidity position of $49.8 million compared to $34.4 million in the same quarter last year.

Management remains optimistic about future growth, providing full-year guidance of $167.0 million to $175.0 million in revenue and $20.0 million to $24.0 million in adjusted EBITDA. The strategic focus on high-margin international markets, particularly in the Middle East and North Sea, suggests a continued commitment to geographic diversification and revenue expansion.

While challenges persist, including potential tariff increases and project delays in the U.S. market, NCS Multistage Holdings appears well-positioned to maintain its growth trajectory. The company's ability to adapt to market fluctuations and leverage international opportunities will be critical in sustaining its positive momentum throughout 2025.