NCS Multistage Holdings, Inc.

Good day and thank you for standing by. I would like to hand it over to your speaker today, Corbin Woodhull, Hayden Investor Relations. Please go ahead.

Thank you, Victor. I would like to welcome everyone to the conference call and thank NCS Multistage Management for hosting today's call. With us on the call today are Mr. Ryan Hummer, CEO of NCS Multistage, and Mr. Mike Morrison, the CFO. I want to remind listeners that some of today's comments include forward-looking statements such as our financial guidance and comments regarding our future expectations for financial results and business operations. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any other expectations expressed herein. Please refer to our most recent annual report on Form 10-K and our latest SEC filings for risk factors and cautions regarding forward-looking statements. Our comments today, as well as the results of operations included in our earnings release, contain the following non-GAAP financial measures. EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less share-based compensation, adjusted gross profit, adjusted gross margin, free cash flow, free cash flow less distributions to non-controlling interest, net working capital, return on invested capital, net operating profit after tax, and average invested capital. These non-GAAP measures and reconciliations to the most comparable GAAP financial measures are provided in our fourth quarter earnings release, which can be found on our website at ncsmultisage.com. I will now turn the call over to Ryan Hummer.

Thank you, Corbin, and welcome to our investors, analysts, and employees who are joining our fourth quarter and full year 2025 earnings conference call. I'll begin my discussion with the financial highlights for 2025, and we'll review certain commercial and operational accomplishments from 2025 and early 2026 that are aligned with NCS's vision and core business strategies. I'll also discuss the integration of ResMetrics and outline our strategic objectives for the year. Mike will follow, covering the financial results for the quarter and our near-term guidance. 2025 was a very important and successful year for NCS. Strong performance in the fourth quarter kept a year in which we exceeded the high end of our guidance range for the quarter and full year for revenue, adjusted EBITDA, and free cash flow. Year over year, we grew revenue by 13% compared to 2024, and 10% excluding the contribution from ResMetrics, which we acquired at the end of July 2025. We achieved revenue growth in each of the U.S., Canada, and international markets despite the challenging industry environment. Adjusted EBITDA increased by 20% year-over-year, outpacing our revenue growth and reaching $26.7 million with an adjusted EBITDA margin of 15%. Free cash flow after distributions to non-controlling interest totaled $18.9 million and represents over 70% adjusted EBITDA to free cash flow conversion, which highlights the impact of our asset light model. We strengthened our balance sheet while completing the strategic acquisition of Resmetrics, enhancing our global position in the tracer diagnostic space. Resmetrics is a highly complimentary addition to our business that I'll discuss further in a moment. So starting with our strategy, Our vision at NCS is to advance more efficient, intelligent, and sustainable energy development by enabling unmatched well performance. In practice, we deploy this vision in pursuit of the approximately $10 billion global completions market through a cohesive product and service offering that's designed to enable our customers to reliably maximize the value of their unconventional assets. This applies across diverse markets. In the more mature markets in North America, in emerging, high-growth, unconventional developments in Argentina and the Middle East, and in more conventional geographies like the North Sea and Alaska, where we are successfully deploying unconventional technologies and techniques. Collaborating with our customers to open new markets for our products and services in technically demanding environments, including innovative solutions for heavy oil, utilizing steam-assisted gravity drainage, or SAGD, for deepwater offshore markets, and for enhanced geothermal systems. We also continue to partner with our customers to pursue further adoption of our products and services during the production phase of the well. As we've discussed before, we have three core strategies that are supported by two guiding principles. I'll review each, including recent progress, to demonstrate how we're creating long-term value for our stakeholders. The first core strategy is to build upon our leading market positions. This includes our market share and relationships in Canada, our extensive global track record in fracturing systems, and our expertise in tracer diagnostics, which has been strengthened through our combination with Resmetrics. This strategy is evident when we partner with our customers to introduce our solutions in new markets, often based on our extensive track record and the partnership that we've built with our customers over time. An example includes the first use of our fracturing systems technology for stimulation in a SAGD project in Canada in 2025, which also utilized our tracer diagnostic services to corroborate production results. Another example is the first expected installation of our Raytech PropX sliding sleeve system with integrated screen technology that we expect to deliver to our customer later this year for use in the Deepwater Gulf of America. A second core strategy is to capitalize on high margin growth opportunities worldwide. Over the years, I've highlighted the growth of our customer base in the North Sea, which continues to expand. We've received orders from two new customers already this year, each operating in the Dutch sector of the North Sea. We completed our first well in the Middle East utilizing our fracturing systems technology in 2025 and expect further applications in that market in 2026. and we've made the first sales of repeat precision frac plugs in the Middle East in 2025. We continued sales to two customers in the region so far and continuing during 2026. Our final core strategy is to commercialize innovative solutions to complex customer challenges. This proved to be an effective and exciting year for us with several significant achievements. In Canada, we recently installed our first Terrace AICV system, which has an integrated autonomous inflow control valve to improve the production profile of more mature wells, reducing produced water volumes while allowing for potential increases in oil rates. We look forward to additional installations of this system during 2026. Customer adoption of our Stage Saver solution at Repeat Precision has been a meaningful contributor to growth, with new customers added during 2025 and early 2026, reflecting the value that our customers place on the contingency mitigation offered by the product, paired with the proven performance of our purple seal frac plugs. We're capitalizing on our investments in new tracer diagnostic solutions, including our rapid trace on-site tracer detection solution, our Luminate multi-day composite samplers, and expanded use of Resmetric's SmartProp particulate tracer into Canada and other geographies. I'll now speak to the two guiding principles that underpin our long-term strategy. First, we seek to maximize financial flexibility. Our business model reflects this strength with a net cash position at year end of approximately $29 million and an undrawn revolver. During 2025, we generated approximately 22 million in free cash flow, 19 million of which is free cash flow after distributions to our non-controlling interest. This free cash flow after distributions constitutes over 70% of our adjusted EBITDA for the year, reflecting meaningful conversion, especially considering our 13% year-over-year revenue growth. Our second guiding principle is to uphold the promise. Our company values are embedded in the promise, which represents the commitments that we make as a company to our employees, customers, vendors, and other stakeholders related to how we conduct business. It also speaks to our focus in the areas of technology, quality, health, safety, and the environment. Now I'll provide a brief update on the integration of Resmetrics. This combination immediately strengthened our tracer diagnostics platform, increased our exposure to new markets in the Middle East, and aligned well with NCS's culture and our capital light business model. I'm pleased to say that we are operating under the Resmetrics commercial brand in the U.S., having integrated our sales and business development team. We've also upgraded our laboratory information management systems to incorporate certain Resmetrics processes allowing us to uniformly plan and execute jobs for our customers. Operational and manufacturing integration will soon follow, with manufacturing and US lab operations to be centralized in Tulsa by mid-year. We have a clear line of sight to achieve the cost savings that we identified with this transaction, and we're progressing to deliver on revenue synergy opportunities, which we originally characterized as upside potential from the combination. I'll close this section by reviewing our goals for the year, which are straightforward and are aligned with our long-term strategy. In 2026, we aim to grow revenue in excess of underlying market activity in the U.S. and internationally, with an objective to grow total revenue relative to 2025, inclusive of a full-year contribution from Resmetrics. We're targeting the conversion of more than 50% of our adjusted EBITDA to free cash flow. We expect to advance commercial adoption of our recent and new technology introductions drive further commercial success for our product and service offerings, and also continue to penetrate the newest markets that we've entered. We're working to continuously improve our employee engagement and to ensure workplace safety, and we expect to advance initiatives currently underway to participate in higher temperature and production markets, to drive better data-enabled decision-making, and to expand our gross margin by implementing strategic actions to drive our efficiencies and optimize the cost and performance of our products and services. Mike will now provide more detail for our results for the fourth quarter of 2025 and our guidance for the first quarter of 2026. Thank you, Ryan.