Stonegate Capital Partners has updated its coverage on NCS Multistage Holdings, Inc. (NASDAQ: NCSM) following the company's first-quarter 2026 results. The quarter fell short of expectations as challenges in Canada and select international projects weighed on performance, though continued momentum in the U.S. helped offset the shortfall. According to Stonegate, the quarterly results do not alter the core investment thesis centered on U.S. product momentum, ResMetrics integration, and the company's capital-light business model, but they highlight timing risks associated with Canada seasonality and project-based international work.
The key change is in cadence, with second-quarter 2026 guidance implying a softer near-term trough. However, maintained full-year 2026 Adjusted EBITDA guidance points to a more back-half-weighted recovery, driven by deferred Canadian work, recurring activity from Repeat Precision, and synergies from the ResMetrics acquisition. Management also noted that the 2026 guidance excludes potential sliding sleeve deliveries for its first deepwater Gulf of Mexico opportunity, which could materialize in late 2026 or early 2027.
Key takeaways from the update include: 1Q26 missed on Canada and international timing, but U.S. revenue more than doubled, preserving the thesis. Full-year 2026 EBITDA guidance was maintained, shifting focus to a second-half recovery and execution of the Repeat Precision strategy. The company generated positive free cash flow and holds $53 million in liquidity, supporting ResMetrics integration, capacity expansion, and growth investments. For more details, see the full announcement here.
Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking, equity research, and capital raising services.
