Stonegate Capital Partners has updated its coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM), highlighting the company's strong financial performance in fiscal year 2025. Despite a challenging activity backdrop, NCSM grew revenue by 13% to $183.6 million, driven by product strength across regions, U.S. momentum in fracturing systems and Repeat Precision, continued traction in the North Sea and Middle East, and a $5.2 million contribution from ResMetrics following its acquisition in July.
The quality of growth was solid, with ex-ResMetrics revenue still increasing 10%. Adjusted EBITDA rose 20% to $26.7 million, and EBITDA margin expanded approximately 80 basis points to 15%. Adjusted gross margin held at 41% despite some service-mix pressure. Free cash flow after non-controlling interests nearly doubled to $18.9 million, underscoring the benefits of the company's asset-light model. This performance suggests that FY25 outperformance was driven more by share gains, product execution, and targeted expansion than by a stronger underlying market.
Key takeaways from the update include that FY25 outperformance reflected real execution, with share gains, product traction, and incremental contribution from ResMetrics. The fourth quarter materially outpaced expectations as U.S. fracturing demand accelerated and international markets remained constructive. NCSM exits FY25 with a strong balance sheet, supporting continued reinvestment, integration execution, and tuck-in M&A flexibility.
For more details, the full announcement is available here.
