Overview

• NCS Multistage Q2 revenue rises 23% yr/yr, beating analyst expectations

• Net income for Q2 aided by $1.4 mln tax valuation release in Canada

• Co acquires Reservoir Metrics, expanding tracer diagnostics service line

Outlook

• Company remains cautiously optimistic for second half of 2025

• NCS expects market conditions to deteriorate with U.S. rig count declines

• Company sees potential oil market oversupply in late 2025

• NCS cites ongoing uncertainties related to tariffs and trade

Result Drivers

• FRACTURING SYSTEMS - Increased fracturing systems activity and frac plug sales in Canada and the U.S. drove revenue growth

• INTERNATIONAL REVENUE - Decrease in tracer diagnostics activity in Middle East offset by higher sales in North Sea

• ACQUISITION - Acquisition of Reservoir Metrics expected to complement tracer diagnostics offerings

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 $38.50, about 22% above its July 30 closing price of $30.04

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

Press Release: ID:nGNX2gKf9v

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)