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NCS Multistage Holdings: NCS Multistage Holdings' 2025 Earnings Exceed Expectations

NCS Multistage Holdings, Inc. reported a robust financial performance in 2025, with revenue growing 13% year-over-year to $183.6 million, and adjusted EBITDA increasing 20% to $26.7 million. The company's adjusted EBITDA margin stood at 15%, reflecting its ability to maintain profitability amidst a challenging market environment. Earnings per share (EPS) came in at $1.6, significantly higher than the estimated $0.7, underscoring the company's strong operational performance. Free cash flow after distributions to noncontrolling interest totaled $18.9 million, representing over 70% of adjusted EBITDA, which highlights the company's efficient conversion of earnings into cash.

NCSM

USD 54.55

12.82%

A-Score: 5.4/10

Publication date: March 5, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth: 13% YoY increase to $183.6M, with 10% growth excluding ResMetrics acquisition impact.
  • Adjusted EBITDA Expansion: 20% growth to $26.7M, achieving a 15% margin despite challenging market conditions.
  • Free Cash Flow Conversion: Over 70% of adjusted EBITDA converted to free cash flow ($18.9M) in 2025.
  • 2026 Guidance: Midpoint free cash flow yield of 13.2% on $15M average (based on $12M–$16M guidance range).
  • Return on Invested Capital: 11% after-tax returns in 2025, targeting 15% medium-term improvement.

Strategic Progress and Outlook

The company made significant strides in its strategic plan, including the successful deployment of its fracturing systems technology in a SAGD project in Canada and the expected installation of the Raytec Propex sliding sleeve system in the deepwater Gulf of America. For 2026, NCS Multistage Holdings aims to grow revenue in excess of underlying market activity, with a target to convert more than 50% of adjusted EBITDA to free cash flow. The company expects revenue to range from $184 million to $194 million, with adjusted EBITDA between $26 million and $29 million.

Valuation and Returns

Analysts estimate the company's revenue growth at 7.6% for the next year. With a current P/E Ratio of 5.14 and an EV/EBITDA of 5.66, the stock appears to be reasonably valued. Additionally, the Free Cash Flow Yield stands at approximately 17.02%, indicating a strong potential for returns. NCS Multistage Holdings achieved an after-tax return of over 11% in 2025 and aims to continue improving its returns, with a medium-term objective of 15%. The company's ROIC stands at 7.05%, and its ROE is 21.91%, demonstrating its ability to create value for shareholders.

Balance Sheet Strength and Future Prospects

NCS Multistage Holdings has a strong balance sheet and liquidity position, with total liquidity of over $61 million. The company expects to strengthen its balance sheet further through its free cash flow generation, with a guidance of $12 million to $16 million in free cash flow after distributions to its JV partner in 2026. This positions the company well to pursue strategic investment opportunities and drive further growth.

NCS Multistage Holdings's A-Score