NCS Multistage Holdings Reports Strong Q4 2024 Financial Results with Significant International Growth

NCS Multistage Holdings (NASDAQ: NCSM) announced its fourth quarter 2024 financial results, revealing a notable 28% year-over-year increase in total revenues, reaching $45.0 million. The company's international revenues were a standout, soaring by 279.8% to $4.4 million, fueled by key projects in the Middle East tracer diagnostics sector and North Sea frac systems. This growth underscores the success of NCS Multistage Holdings' strategy to focus on high-margin international markets.

Regionally, the company experienced a 19.5% growth in Canada, while the U.S. market presented mixed results with a 29.1% increase in product sales but a 9.5% decline in service revenues. Despite these variations, the company's overall performance remained positive. Consolidated gross margins improved significantly from 36.6% in Q4 2023 to 43.1% in Q4 2024, reflecting enhanced operational efficiency. Earnings per share for the quarter were reported at $1.36, a contrast to $15.96 in the same period the previous year.

NCS Multistage Holdings also reported strong financial liquidity, with net working capital of $56.4 million and a total liquidity position of $46.0 million. The company's free cash flow for the year-to-date period was $9.5 million, approximately 14% of its current market capitalization. Looking ahead, the company expects flat revenue performance in Q1 2025 across its U.S., Canadian, and international markets. For the full year, NCS Multistage Holdings projects revenues between $165.0 million and $175.0 million, with adjusted EBITDA anticipated to range from $20.0 million to $23.0 million.

Financial analysts have estimated the company's valuation range between $31.76 and $39.15 per share, using discounted cash flow and enterprise value to EBITDA comparative analysis, with midpoint valuations of $34.36 and $36.86 respectively. These results highlight NCS Multistage Holdings' adeptness at navigating market complexities and capitalizing on international opportunities, setting the stage for potential sustained growth in the coming year.