NCS Multistage Holdings Reports Strong International Growth in Q3 2025
NCS Multistage Holdings demonstrated robust international expansion and strategic acquisition benefits in Q3 2025, positioning the company for sustained growth in global energy markets.
NCS Multistage Holdings, Inc. reported third quarter 2025 total revenues of $46.5 million, representing a 6.0% year-over-year increase that outperformed broader industry activity levels. The growth was primarily driven by higher U.S. and international product sales, particularly in fracturing systems including operations in the North Sea and wellbore construction activities in the Middle East. International revenue surged approximately 38.0% year-over-year, while U.S. revenue grew by approximately 36.0% during the same period, partially offset by softer Canadian product sales due to lower rig counts.
The company's adjusted gross margins came in at 41.7%, showing a slight decrease from 42.1% in the third quarter of 2024. Despite this minor contraction, NCSM reported gross profit of $19.4 million and adjusted EBITDA of $7.0 million for the quarter. The earnings per share for the quarter was $1.47, compared to $1.67 in the same quarter last year. Stonegate Capital Partners continues to expect modest revenue and margin growth through the remainder of fiscal year 2025, supported by resilience in core product lines and contributions from recent strategic acquisitions.
NCSM's balance sheet showed strength with net working capital of $63.0 million at quarter end, representing a 12.6% increase from $56.4 million at year-end 2024. This improvement was driven by higher accounts receivable and inventory, partially offset by a decrease in other current receivables. The company maintained a robust liquidity position with $25.3 million in cash and an additional $19.4 million available under its undrawn revolving credit facility, resulting in total liquidity of $44.7 million. This compares favorably to total debt of only $7.4 million, consisting entirely of finance lease obligations.
The integration of ResMetrics, acquired in late July 2025, is progressing ahead of plan and contributed approximately $2.0 million to U.S. diagnostics services during the quarter. The combination of ResMetrics' chemical tracer lab capabilities and PetroXY web portal with NCS's tracer portfolio and international footprint is expected to create a category-leading diagnostics platform. Management anticipates medium-term synergy potential from best-practice adoption and scaled product/service development across international markets, particularly in the Middle East and North Sea regions.
For the fourth quarter of 2025, management provided revenue guidance of $41-45 million, adjusted gross margin of 40-42%, and adjusted EBITDA of $5.0-6.5 million. Full-year 2025 guidance includes revenue of $174-178 million and adjusted EBITDA of $22.5-24.0 million. The company also forecasts free cash flow less distributions to non-controlling interest of $11-13 million and gross capital expenditures of $1.3-1.5 million for the full fiscal year. These projections reflect management's confidence in the company's strategic direction and market position.