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**Revenue Growth and Integration Success**: Q3 revenue beat expectations at $46.5 million, with 37% U.S. growth and 38% international expansion. ResMetrix integration yields $1 million in synergies and strengthens Middle East market access.
**Financial Strength**: Adjusted EBITDA of $7 million and free cash flow of $6.8 million year-to-date, with 2025 guidance for $11-$13 million free cash flow post-distributions.
**Product Development Momentum**: New deepwater systems and tracer diagnostics solutions poised for 2026 deployments, supported by confirmed North Sea orders.
**Market Dynamics**: Canadian customers cautious but NCS maintains share through value-driven pricing; Middle East contracts provide recurring revenue potential despite project-based execution.

**【CEO Summary Section】**
- Q3 2025 revenue of $46.5 million exceeded guidance, driven by 37% year-over-year growth in U.S. operations and 38% increase in international markets.
- Emphasized successful integration of ResMetrix, with $1 million in cost synergies and expanded Middle East market presence.
- Highlighted new product developments, such as deepwater fracturing systems, targeting 2026 deployments in the Gulf of America.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $7 million for Q3, with free cash flow of $6.8 million year-to-date.
- Projected 2025 revenue of $174-$178 million, with 8% growth driven by organic initiatives and ResMetrix contributions.
- Free cash flow after distributions expected to reach $11-$13 million, yielding 11% of market cap.

**【Q&A Key Highlights】**
- Customers in Canada showing cautious spending, but NCS maintaining market share through value-based pricing.
- North Sea pipeline includes confirmed orders for 2026, with potential for new product applications.
- Middle East tracer diagnostics contracts provide recurring revenue visibility, though project-based execution remains lumpy.
- Integration of ResMetrix on track for early 2026 completion, with $1.5 million in cost savings opportunities.


NCS Multistage Holdings, Inc. (NCSM) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue up 23% YoY to $36.5M, driven by 49% Canada growth and 15% U.S. expansion.
- **Acquisition Impact**: ResMetrics adds $10M revenue and 30% EBITDA margin, with $1-2M long-term synergies.
- **Financial Strength**: $36M total liquidity post-acquisition, 2025 free cash flow guidance of $7-11M.
- **Strategic Positioning**: Leading tracer diagnostics provider with 7 North Sea customers (vs 2 in 2022), expanding Middle East chemical tracing.

**【CEO Summary Section】**
- Q2 2025 revenue of $36.5 million exceeded high-end guidance by $7 million, driven by 49% year-over-year growth in Canada and 15% growth in the U.S. 
- Adjusted EBITDA of $2.2 million improved 142% YoY, with first-half EBITDA up 49% to $10.4 million.
- Acquired ResMetrics for $5.9 million upfront + $1.3 million earn-out, adding $10 million trailing revenue and 30% EBITDA margin in tracer diagnostics.
- 2025 full-year guidance: $168-176 million revenue (6% midpoint growth) and $21-24 million EBITDA, with ResMetrics contributing $4-5 million revenue and $1-1.5 million EBITDA post-acquisition.

**【CFO Financial Commentary】**
- Q2 gross margin 36% vs 40% YoY, due to product mix (higher frac system sales vs. higher-margin tracer work).
- Sequential revenue decline 27% due to Canadian spring breakup, offset by U.S. and international growth.
- Strong cash position: $25.4 million pre-acquisition, $17.7 million net cash post-acquisition, $36 million total liquidity.
- 2025 free cash flow forecast: $7-11 million after distributions, excluding ResMetrics purchase.

**【Acquisition of ResMetrics】**
- Complements NCS tracer diagnostics with liquid oil tracers, radioactive tracing, and Middle East partnerships.
- Expected $1-2 million long-term operational synergies through chemical cost optimization.
- 2025 contribution: $4-5 million revenue and $1-1.5 million EBITDA from Nov-Dec.

**【Q&A Highlights】**
- Cross-selling opportunities: ResMetrics' liquid tracers + NCS particulate tracers to expand use cases.
- Canadian rig count 10-15% below 2024 levels, but NCS outperformed market with 27% Canada revenue growth vs 1% rig count growth.
- North Sea and Middle East growth: 7 customers in North Sea (vs 5 in 2024), expanding chemical tracing in Middle East.
- Cautious outlook: 60% revenue exposure to Canada, watching OPEC supply and U.S. rig count trends.

NCS Multistage Holdings, Inc. (NCSM) Q2 2025 Earnings Call Transcript

- **Revenue Record**: Q1 2025 revenue of $50 million, highest since 2020, driven by 19% YoY growth in Canada and 34% surge in international markets.
- **Margin Expansion**: Adjusted gross margin improved to 44% (vs. 40% YoY), supported by higher-margin international activity.
- **Strategic Momentum**: 2025 tech initiatives include field trials for dissolvable frac plugs and rapidTrack tracer diagnostics, with Argentina marking first enhanced recovery system deployment.
- **Financial Strength**: $23 million cash, $50 million liquidity, and free cash flow positive for 2025, positioning for M&A or shareholder returns.
- **Risk Management**: Cautious on H2 2025 due to lower commodity prices and trade uncertainties, but maintaining guidance with wider ranges.


**【CEO Opening Remarks】**
- Q1 2025 revenue of $50 million exceeded guidance by $4 million, marking the highest quarterly revenue since Q1 2020.
- Adjusted gross margin of 44% (vs. 40% YoY) driven by higher-margin international activity.
- Canada revenue grew 19% YoY, outpacing a 3% increase in rig count, fueled by adoption of single-point entry frac technology.
- International revenue surged 34% YoY, with success in the Middle East, North Sea, and Argentina.

**【CFO Financial Highlights】**
- GAAP net income of $4.1 million (EPS: $1.51) vs. $2.1 million (EPS: $0.82) YoY.
- Adjusted EBITDA of $8.2 million vs. $6.1 million YoY, exceeding the $4.5-$6.5 million guidance.
- Q2 2025 revenue expected in $26-$29 million range, with adjusted EBITDA targeting -$2 million to breakeven.
- Full-year 2025 revenue guidance maintained at $165-$175 million, adjusted EBITDA raised to $20-$24 million.

**【CEO Strategic Updates】**
- Core strategies: market leadership (Canada), international expansion (North Sea, Middle East), innovation (Stage Saver plugs, rapidTrack tracer diagnostics).
- 2025 tech initiatives include field trials for dissolvable frac plugs, enhanced recovery systems, and multi-day automated samplers.
- Balance sheet strength: $23 million cash, $50 million total liquidity, positive free cash flow expected for the year.

**【Q&A Key Takeaways】**
- **Capacity Constraints**: No near-term bottlenecks; supply chain partners have sufficient capacity.
- **Sales Pipeline**: US product sales expected to strengthen as field trials convert to regular activity (e.g., Stage Saver plugs).
- **M&A Strategy**: Open to tactical acquisitions but prioritizing organic growth and shareholder returns.
- **Pricing Environment**: Disciplined approach to cost pass-through, leveraging technology differentiation to maintain margins.
- **North Sea Pipeline**: Q2 activity limited, with more significant opportunities expected in H2 2025.


NCS Multistage Holdings, Inc. (NCSM) Q1 2025 Earnings Call Transcript

- **Revenue Growth**: 14% YoY to $162.6M, driven by 280% intl revenue surge
- **Profitability**: Adjusted EBITDA up 87% to $22.3M, free cash flow $10M
- **2025 Outlook**: $165-175M revenue guided, with 4% FX-driven margin compression
- **Strategic Moves**: Expanding into North Sea/Argentina, evaluating M&A for tech adjacencies
- **Operational Strength**: 250bp margin expansion, $26M cash balance, no debt

**【CEO Opening Remarks】**
- NCS aims to be a trusted partner in unconventional resource development, leveraging technology and expertise across North America, the North Sea, and Middle East. 
- 2024 achievements include:
  - Doubling international revenue to 10% of total (vs 5% in 2023)
  - 250bp improvement in adjusted gross margin to 41%
  - Successful deployment of fracturing systems in North Sea and Argentina
- 2025 priorities: grow revenue > market activity in key regions, expand international trials, and maintain financial flexibility

**【CFO Financial Highlights】**
- Q4 2024 Results:
  - Revenue: $45M (+20% YoY), driven by 280% intl growth
  - Adjusted EBITDA: $8.2M (+232% YoY)
  - Net income: $3.5M (vs loss in Q4 2023)
- Full Year 2024:
  - Revenue: $162.6M (+14% YoY)
  - Adjusted EBITDA: $22.3M (+87% YoY)
  - Free cash flow: $10M after distributions
- 2025 Guidance:
  - Revenue: $165-175M (flat to down US, + Canada/intl)
  - Adjusted EBITDA: $20-23M
  - FX headwinds: ~$4M revenue reduction

**【Q&A Key Takeaways】**
- Canada activity: Q4 2024 saw unusual strength in winter, expect normal seasonal decline in Q1
- Margin trends: 2024 margin expansion due to intl growth and cost control; 2025 margins expected flat due to FX
- M&A strategy: Actively evaluating tech-driven opportunities with global expansion potential
- R&D pipeline: Multiple stage-gate products in testing phase for 2025 commercialization

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