NCS Multistage Q1 revenue falls on lower activity in Canada

Overview

• U.S. oilfield services provider's Q1 revenue declined year-over-year on lower Canada and international activity

• Company posted Q1 net loss versus profit a year ago

Outlook

• Company expects increased customer engagement in U.S. completions offerings in 2026 second half

• NCS expects modest year-over-year increase in Canadian customer activity in 2026 second half

Result Drivers

• CANADA AND INTERNATIONAL WEAKNESS - Revenue fell on lower activity in Canada, including customer job deferrals and delays, and reduced international service revenue, especially in the Middle East, due to timing of tracer diagnostics projects

• U.S. GROWTH AND RESMETRICS CONTRIBUTION - U.S. revenues rose, driven by Repeat Precision product sales from successful field trials and new products, and a $1.8 mln contribution from ResMetrics acquisition

• GROSS MARGIN PRESSURE - Gross margin declined due to an unfavorable mix of products and services and lower fixed cost absorption

Company press release: ID:nGNXb2QFsC

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for NCS Multistage Holdings Inc is $69.00, about 11.9% below its April 28 closing price of $78.30

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 9 three months ago

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