NCS Multistage Holdings (NASDAQ: NCSM) reported impressive financial results for the fourth quarter of 2024, highlighting strong international market performance and strategic growth initiatives. The company recorded total revenues of $45.0 million, representing a 28% year-over-year increase.
International revenues were a key driver of growth, surging 279.8% to $4.4 million. This substantial expansion was primarily attributed to significant projects in the Middle East tracer diagnostics sector and North Sea frac systems. The company’s strategic focus on high-margin international markets has proven particularly effective.
Geographically, performance varied across regions. Canada demonstrated robust year-over-year growth of 19.5%, while U.S. results showed mixed outcomes with product sales increasing 29.1% and service revenues declining 9.5%. Despite regional variations, the company maintained a positive trajectory.
Consolidated gross margins expanded from 36.6% in the fourth quarter of 2023 to 43.1% in the same period of 2024, indicating improved operational efficiency. The company reported quarterly earnings per share of $1.36, compared to $15.96 in the corresponding quarter of the previous year.
The company’s financial liquidity remained strong, with a net working capital of $56.4 million and a total liquidity position of $46.0 million. Free cash flow for the year-to-date period reached $9.5 million, approximately 14% of the current market capitalization.
Looking forward, NCS Multistage Holdings anticipates flat revenue performance in the first quarter of 2025 across U.S., Canadian, and international markets. The company has provided full-year guidance, projecting revenues between $165.0 million and $175.0 million, with adjusted EBITDA expected to range from $20.0 million to $23.0 million.
Financial analysts utilizing discounted cash flow and enterprise value to EBITDA comparative analysis have estimated the company’s valuation range between $31.76 and $39.15 per share, with midpoint valuations of $34.36 and $36.86 respectively.
The results underscore NCS Multistage Holdings’ ability to navigate complex market dynamics and leverage international opportunities, positioning the company for potential continued growth in 2025.
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