NCS Multistage Holdings Achieves Robust International Growth and Strong Financial Performance in Q4 2024

NCS Multistage Holdings (NASDAQ: NCSM) reported impressive financial results for the fourth quarter of 2024, highlighting substantial growth in international markets and improved financial performance. The company's total revenues increased 28% year-over-year to $45.0 million, driven primarily by strong international market expansion and strategic geographic diversification.

The most significant achievement was the remarkable 279.8% year-over-year increase in international revenues, which reached $4.4 million. This growth was predominantly fueled by successful tracer diagnostics projects in the Middle East and North Sea frac systems. The company's strategic focus on high-margin international projects has positioned it favorably for continued expansion in emerging markets.

Financial metrics demonstrated robust performance across multiple dimensions. Consolidated gross margins expanded from 36.6% in the fourth quarter of 2023 to 43.1% in the same period of 2024. The company reported revenue, gross profit, and adjusted EBITDA of $45.0 million, $19.4 million, and $8.2 million, respectively, exceeding previous analyst estimates.

Geographic performance varied, with Canada experiencing strong year-over-year growth of 19.5%. The United States market showed mixed results, with product sales increasing 29.1% while service revenues decreased 9.5%. Despite these regional variations, the company maintained a robust financial position, ending the quarter with $25.9 million in cash and an additional $20.1 million in undrawn revolver, representing a total liquidity of $46.0 million.

Free cash flow performance was particularly noteworthy, with $9.5 million generated year-to-date after non-controlling interest distributions. This represents approximately 14% of the current market capitalization, indicating strong operational efficiency and cash generation capabilities.

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.

The financial analysis conducted by Stonegate Capital Partners suggests a valuation range between $31.76 and $37.72 using discounted cash flow analysis, with an additional valuation range of $34.57 to $39.15 through enterprise value to EBITDA comparative analysis. These valuations reflect the company's strong market positioning and potential for continued growth.