NCS Multistage Holdings, Inc. Q4 FY2025 earnings call

• Core strategies: Build leading market positions (e.g., first use of fracturing systems in SAGD project in Canada, first installation of Raytech PropX sliding sleeve system in Deepwater Gulf of America), capitalize on high margin growth opportunities (e.g., new customers in North Sea, first well in Middle East with fracturing systems), commercialize innovative solutions (e.g., first Terrace AICV system installation in Canada, customer adoption of Stage Saver solution). • Guiding principles: Maximize financial flexibility (net cash position $29 million at year end, free cash flow after distributions over 70% of adjusted EBITDA in 2025), uphold the promise (embedded in company values related to technology, quality, health, safety, environment). • ResMetrics integration: Strengthened tracer diagnostics platform, operating under ResMetrics commercial brand in U.S., upgrading lab systems, progressing towards operational and manufacturing integration, on track for cost savings and revenue synergy opportunities. • 2026 goals: Grow revenue in excess of market activity, target over 50% adjusted EBITDA to free cash flow conversion, advance commercial adoption of new tech, penetrate new markets, improve employee engagement and safety, expand gross margin.

2025: Revenue grew 13% year-over-year to $183.6 million, adjusted EBITDA increased 20% to $26.7 million with a 15% margin, free cash flow after distributions to non-controlling interest was $18.9 million. Fourth quarter 2025: Revenues $50.6 million, 13% increase Y/Y, adjusted gross profit $21.2 million with 42% margin. Full year 2025 excluding ResMetrics contribution, revenue up 10%. Fourth quarter 2025 breakdown: U.S. up 69% Y/Y, international up 5%, Canada down 7%.

• First quarter 2026: Total revenue range $49 - $53 million, U.S. revenue $19.5 - $20.5 million, international $3 - $4 million, Canada $26.5 - $28.5 million; adjusted gross margin 39% - 41%; adjusted EBITDA $6.5 - $8.5 million; depreciation and amortization expense ~$1.6 million. • Full year 2026: Revenue range $184 - $194 million, adjusted EBITDA $26 - $29 million; Canadian revenue lower due to headwinds; revenue growth from U.S. and international; gross capital expenditures $1.5 - $2 million; free cash flow after distributions to JV partner $12 - $16 million; annual adjusted EBITDA guidance weighted towards second half, free cash flow towards end of year.

Q: On guidance weighting to back half, Ryan Hummer said seasonality of business and Canadian market, Resmetrics acquisition helps mitigate, but seasonality will continue.

Q: On cross-sell potential in Middle East with ResMetrics, Ryan Hummer said ResMetrics international work under long-term contracts, can expand scope, but revenue cross-selling outside North America will take time.

Q: On North Sea pipeline, Ryan Hummer said 2025 worked with seven North Sea customers, has orders for two new customers in Dutch sector, North Sea customer involved in Deepwater Gulf of America well, and talking to North Sea customer about shallow water markets outside.

Q: On new market opportunities, Ryan Hummer discussed deep water, higher temperature including SAGD in Canada and enhanced geothermal systems, enhanced recovery suite of technology including Terra's AICV and ResMetrics integration opening up new opportunities in production space on water flood.