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, primarily due to timing issues in Canada and select international projects, although continued momentum in the U.S. market helped offset the shortfall. According to Stonegate, the quarter does not alter the core thesis around U.S. product momentum, the integration of ResMetrics, and the company's capital-light model. However, it does underscore the timing risk inherent in Canada's seasonality and project-based international work.
The key change is the cadence of earnings, with guidance for the second quarter of 2026 implying a softer near-term trough. Nonetheless, Stonegate notes that the maintained FY26 Adjusted EBITDA guidance points to a more back-half-weighted recovery, driven by deferred Canadian work, recurring activity from Repeat Precision, and synergies from ResMetrics. Additionally, management indicated that the 2026 guidance excludes potential deliveries of sliding sleeves for its first deepwater Gulf of Mexico opportunity, which could materialize in late 2026 or early 2027.
Key takeaways from the update include: the first-quarter miss was attributed to Canada and international timing, but U.S. revenue more than doubled, preserving the investment thesis; FY26 EBITDA guidance was maintained, shifting focus to a second-half recovery and execution of Repeat Precision; and positive free cash flow and $53 million in liquidity support ResMetrics integration, capacity expansion, and growth investments. For the full announcement, including downloadable images and bios, please click here.
Stonegate Capital Partners is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking, equity research, and capital raising for public and private companies.
