Curated News
By: NewsRamp Editorial Staff
March 12, 2025
Stonegate Capital Partners Updates Coverage on NCS Multistage Holdings, Inc. After Strong Revenue Growth in 4Q24
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- NCS Multistage Holdings, Inc. saw a 28% Y/Y increase in total revenues, driven by international sales growth in 4Q24.
- NCSM's strong revenue growth in 4Q24 was due to increased product sales and services across all geographic segments.
- NCSM's focus on high-margin international projects positions it well for continued growth, benefiting the global economy.
- Stonegate Capital Partners updates coverage on NCSM; 4Q24 saw impressive revenue growth driven by international projects and expanded gross margins.
Impact - Why it Matters
This news matters as it highlights NCS Multistage Holdings, Inc.'s impressive financial performance, particularly in international markets. The Company's strategic focus on high-margin projects and improved cash flows position it well for future growth. Investors should take note of NCSM's solid balance sheet, expanded gross margins, and positive valuation analysis, signaling a promising outlook for the Company.
Summary
Stonegate Capital Partners updates their coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM) after the Company experienced a 28% year-over-year increase in total revenues to $45.0M in 4Q24. The growth was driven by international revenues and strong performances in tracer diagnostics projects in the Middle East and Canada. Despite mixed results in the U.S., NCSM is expected to maintain modest revenue growth through FY25. The Company also saw an expansion in consolidated gross margins from 36.6% to 43.1% in 4Q24.
NCSM reported strong quarterly results with revenue, gross profit, and adj EBITDA reaching $45.0M, $19.4M, and $8.2M, respectively. The Company's balance sheet showed a net working capital increase to $56.4M, with a solid liquidity position of $46.0M. International revenues soared by 279.8% in 4Q24, driven by projects in the Middle East and North Sea, positioning NCSM for continued growth.
Cash flows improved in 4Q24, with $9.5M of YTD FCF delivered. Updated guidance suggests flat revenue performance in 1Q25, with a full-year revenue range of $165.0M to $175.0M. Valuation analysis points to a range of $31.76 to $37.72, indicating a positive outlook for NCS Multistage Holdings, Inc.
Source Statement
This curated news summary relied on this press release disributed by Reportable. Read the source press release here, Stonegate Capital Partners Updates Coverage on NCS Multistage Holdings, Inc. After Strong Revenue Growth in 4Q24
