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HOUSTON - NCS Multistage Holdings , Inc. (NASDAQ:NCSM), a provider of oil and gas well optimization products and services, saw its stock jump 14.8% after reporting fourth quarter earnings and revenue that exceeded analyst estimates.
The company posted adjusted earnings per share of $1.32 for Q4, surpassing the analyst consensus of $0.73 by $0.59. Revenue came in at $45 million, beating expectations of $40.6 million and representing a 28% YoY increase.
NCS Multistage’s strong performance was driven by growth across its key markets. International revenues saw significant gains, led by projects in the Middle East and North Sea. Canadian operations also exceeded the prior year period due to robust activity levels extending through the holiday season.
"2024 was an important year for NCS, as we began to truly deliver on our core strategies to build upon our leading market positions, capitalize on international and offshore opportunities and commercialize innovative solutions to complex customer challenges," said Ryan Hummer, CEO of NCS Multistage.
The company’s adjusted EBITDA for Q4 reached $8.2 million, compared to $2.5 million in the same quarter last year. Full-year adjusted EBITDA rose to $22.3 million, an 85% increase from 2023.
Looking ahead to 2025, NCS expects its revenue to outperform underlying industry growth in Canada, the United States, and international markets when measured in local currencies. However, the company noted that a strengthening U.S. dollar could negatively impact reported revenue and gross margins if the trend continues.
As of December 31, 2024, NCS had $25.9 million in cash and $8.1 million in total debt, with an undrawn $20.1 million asset-based revolving credit facility available.
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