NCS Multistage Holdings, Inc. reported total revenues of $36.5 million for the second quarter ended June 30, 2025, a 23% increase compared to $29.7 million in the second quarter of 2024. This performance exceeded management's expectations and outperformed industry activity levels. Revenue growth was primarily driven by increased fracturing systems activity and frac plug sales in Canada and the United States.
The company achieved a net income of $0.9 million, or $0.34 per diluted share, for the second quarter of 2025, a significant turnaround from a net loss of $(3.1) million in Q2 2024. This included a $1.4 million deferred income tax benefit from the reversal of a valuation allowance on Canadian deferred tax assets. Adjusted EBITDA for the quarter was $2.2 million, an increase of $1.3 million year-over-year, with the Adjusted EBITDA margin improving to 6%.
As of June 30, 2025, NCS maintained a strong balance sheet with $25.4 million in cash and cash equivalents and total debt of $7.7 million, consisting entirely of finance lease obligations. The company's undrawn Asset-Based Lending (ABL) facility provided an additional $17.2 million in available borrowing base, bringing total liquidity to approximately $42.5 million.
NCS also announced the acquisition of Reservoir Metrics, LLC (ResMetrics) on July 31, 2025, for $5.9 million in cash at closing, with an earn-out of up to $1.3 million. ResMetrics, a provider of tracer diagnostics technologies, generated over $10 million in unaudited revenue and an EBITDA margin exceeding 30% for the trailing twelve months ended June 30, 2025. This acquisition is expected to significantly expand and complement NCS's existing tracer diagnostics offerings.
Following these results and the acquisition, NCS raised its full-year 2025 revenue guidance to a range of $172 million to $181 million, and combined Adjusted EBITDA guidance to $22 million to $25.5 million. ResMetrics is projected to contribute an additional $4 million to $5 million in revenue and $1 million to $1.5 million in Adjusted EBITDA for the last five months of 2025. The company anticipates full-year free cash flow after distributions to non-controlling interests of $7 million to $11 million.
Despite the positive updates, management expressed caution regarding the second half of 2025 due to deteriorating market conditions. These include continued U.S. rig count declines, a slower-than-normal Canadian rig count recovery, potential for an oversupplied oil market from increased OPEC+ supply, and ongoing uncertainties related to tariffs and trade policies.
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