Stonegate Capital Partners has updated its coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM), emphasizing the company's solid financial performance in fiscal year 2025. Despite a challenging activity backdrop, NCSM achieved a 13% increase in revenue to $183.6 million, driven by product strength across regions, momentum in U.S. 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 notable, with ex-ResMetrics revenue still increasing by 10%. Adjusted EBITDA rose 20% to $26.7 million, and EBITDA margin expanded approximately 80 basis points to 15%, while adjusted gross margin held steady at 41% despite some service-mix pressure. Free cash flow after non-controlling interests nearly doubled to $18.9 million, reinforcing the benefits of the company’s asset-light model. This performance supports the view that FY25 outperformance was driven more by share gains, product execution, and targeted expansion than by a stronger underlying market.
Key takeaways from the announcement include that FY25 outperformance reflected real execution, with share gains, product traction, and an incremental contribution from ResMetrics. The fourth quarter of 2025 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, view the full announcement here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking, equity research and capital raising for public and private companies.
This update underscores NCS Multistage’s ability to generate growth and margin improvement even in a subdued market, positioning it well for future opportunities. The company's focus on innovation and strategic acquisitions continues to drive value for shareholders.
