NCS Multistage Holdings has demonstrated substantial financial resilience and strategic international growth in the fourth quarter of 2024, reporting a 28% year-over-year increase in total revenues to $45.0 million. The company's performance was highlighted by remarkable international revenue expansion, particularly in Middle East tracer diagnostics and North Sea frac systems.
Key financial metrics reveal a robust quarter for the organization. Consolidated gross margins expanded from 36.6% in the fourth quarter of 2023 to 43.1% in the same period of 2024. The company's international revenues surged by 279.8%, reaching $4.4 million and underscoring its strategic focus on high-margin global markets.
Geographically, the company experienced mixed results. While the United States saw product sales increase by 29.1%, service revenues declined by 9.5%. Conversely, the Canadian market demonstrated strong year-over-year growth of 19.5%, indicating regional market diversity and resilience.
The company's financial liquidity and balance sheet position also showed significant strength. NCS Multistage Holdings concluded the quarter with $25.9 million in cash and an additional $20.1 million in undrawn revolver, providing a total liquidity position of $46.0 million. This represents a substantial increase from the previous quarter's liquidity of $37.0 million, with minimal debt of only $8.1 million.
Free cash flow performance was equally impressive, with $9.5 million delivered year-to-date after non-controlling interest distributions, compared to $5.6 million in the same period of the previous fiscal year. This performance represents approximately 14% of the current market capitalization.
Looking forward, the company has provided guidance for fiscal year 2025, anticipating revenue between $165.0 million and $175.0 million, accompanied by an adjusted EBITDA projection of $20.0 million to $23.0 million. Initial projections suggest flat revenue performance in the first quarter of 2025 across U.S., Canadian, and international markets, with expected sequential growth in the Canadian market.
The company's valuation, analyzed through discounted cash flow and enterprise value to EBITDA comparative analysis, suggests a potential share price range between $31.76 and $39.15, with midpoint valuations of $34.36 and $36.86 respectively.
These results suggest NCS Multistage Holdings is strategically positioned to capitalize on international market opportunities, particularly in regions like the Middle East and North Sea, while maintaining financial discipline and exploring high-margin project expansions.
