NCS Multistage Holdings Inc (NCSM) 2025 Q1 法說會逐字稿

Thank you for standing by. My name is Janice, and I will be your conference operator today. At this time, I would like to welcome everyone to Q1 2025 NCS multi-stage earnings conference call.

感謝您的支持。我叫 Janice，今天我將擔任您的會議主持人。現在，我歡迎大家參加 2025 年第一季 NCS 多階段財報電話會議。

(Conference Instructions)

（會議指示）

Thank you. I would now like to turn over the call to Mike Morrison, Chief Financial Officer. Please go ahead.

謝謝。現在我想將電話轉給財務長 Mike Morrison。請繼續。

Thank you, Janice, and thank you for joining the NCS Multi-stage first quarter 2025 conference call. Our call today will be led by our CEO Ryan Hummer, and I will also provide comments.

謝謝你，Janice，也謝謝你參加 NCS 多階段 2025 年第一季電話會議。今天的電話會議將由我們的執行長 Ryan Hummer 主持，我也會發表評論。

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 expectation expressed herein. Please refer to our most recent annual report on Form 10K and our latest SEC filings for risk factors and cautions regarding forward-looking statements.

我想提醒聽眾，今天的一些評論包括前瞻性陳述，例如我們的財務指導以及有關我們對未來財務結果和業務運營的預期的評論。這些聲明受許多風險和不確定性的影響，可能導致我們的實際結果與本文表達的任何預期有重大差異。有關前瞻性陳述的風險因素和警告，請參閱我們最新的 10K 表格年度報告和最新的 SEC 文件。

Our comments today, as well as the results of operations including in our earnings release, contain the following non-GAAP financial measures adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross profit, Adjusted gross margin, and free cash flow less distributions to non-controlling interest. These non-GAAP measures and reconciliations to the most comparable GAAP financial measures are provided in our first quarter earnings release, which can be found on our website ncsmultistage.com. I will now turn the call over to Ryan.

我們今天的評論以及收益報告中的經營業績包含以下非公認會計準則財務指標：調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的毛利、調整後的毛利率以及自由現金流減去分配給非控股權益的分配。這些非公認會計準則 (Non-GAAP) 指標以及與最可比公認會計準則 (GAAP) 財務指標的對帳表已在我們的第一季財報中提供，您可以在我們的網站 ncsmultistage.com 上找到該財報。現在，我將電話轉給瑞安 (Ryan)。

Thank you, Mike, and welcome to our investors, analysts, and employees who are joining our first quarter 2025 earnings conference call. Mike will cover our quarterly financial results in more detail, and I'll speak to a few highlights. NCS is off to a strong start in 2025. Our first quarter revenue of $50 million exceeded the high end of our guided range provided on our last call by $4 million.

謝謝你，麥克，歡迎我們的投資者、分析師和員工參加我們的 2025 年第一季財報電話會議。麥克將更詳細地介紹我們的季度財務業績，我將談一些亮點。NCS 在 2025 年迎來了強勁開局。我們第一季的收入為 5000 萬美元，比我們上次電話會議上給出的指導範圍上限高出 400 萬美元。

This represents the highest quarterly revenue for NCS since the first quarter of 2020. While we exceeded the midpoint of the guided range in each geography, our performance in Canada was the standout for the quarter. Our adjusted gross margin of 44%, which excludes depreciation and amortization expense, exceeded the high end of our guided range for the quarter as well.

這是NCS自2020年第一季以來的最高季度營收。雖然我們在每個地區的表現都超過了指導範圍的中點，但我們在加拿大的表現是本季的佼佼者。我們的調整後毛利率為 44%（不包括折舊和攤提費用），也超過了本季指引範圍的高端。

We benefited from the operating leverage associated with the revenue outperformance with a robust contribution from our higher margin international activity. Our adjusted EBITDA of $8.2 million exceeded our estimated range for the quarter of $4.5 million to $6.5 million and represents a year-over-year improvement of $2.1 million to reiterate, NCS is off to a strong start.

我們受惠於與營收超額表現相關的經營槓桿，以及利潤率更高的國際業務的強勁貢獻。我們的調整後 EBITDA 為 820 萬美元，超過了我們對本季 450 萬美元至 650 萬美元的預期範圍，並且比去年同期增長了 210 萬美元，再次重申，NCS 開局強勁。

In prior calls, I've referenced NCS's core strategies for creating value for our stakeholders. Slide 13 of our investor presentation helps to illustrate our strategy with examples of our progress. The first core strategy is to build upon our leading market positions. Our progress toward this goal continues to be reflected in our year-to-date results in Canada. Our Q1 revenue in Canada of $38 million increased by 19% as compared to the first quarter of 2024, outpacing a 3% increase in the average rate count.

在先前的電話會議中，我提到了 NCS 為利害關係人創造價值的核心策略。我們的投資者簡報的第 13 張投影片透過我們取得進展的例子來說明我們的策略。第一個核心策略是鞏固我們的領先市場地位。我們朝著這一目標所取得的進展繼續反映在我們今年迄今為止在加拿大的業績中。我們在加拿大第一季的營收為 3,800 萬美元，與 2024 年第一季相比成長了 19%，超過了平均費率 3% 的增幅。

This favorable performance was most prevalent for our fracturing system's product line, as more operators in the mutiny have adopted our single point entry frac technology and have experienced strong production results and increased operational flexibility. Our second core strategy is to capitalize on international and offshore opportunities. We're seeking to build on the success we achieved in 2024, a year in which international revenue reached 10% of total revenue, an important milestone for NCS.

這種良好的表現在我們的壓裂系統產品線中最為普遍，因為越來越多的營運商採用了我們的單點進入壓裂技術，並獲得了強勁的生產成果和更高的營運靈活性。我們的第二個核心策略是利用國際和離岸機會。我們力求在 2024 年取得的成功的基礎上再接再厲，這一年國際收入達到總收入的 10%，這對 NCS 來說是一個重要的里程碑。

We expect continued success with customers in the North Sea as our growing customer base and operational track record have positioned us well for long term growth in that market. In 2024, we signed commercial purchase agreements with a customer in the Middle East and were encouraged by the pace of adoption of our well construction products in unconventional wells in the region. We recently installed an enhanced recovery system for a customer in Argentina, our first in that market, with another installation planned for later this year.

我們期望北海地區的客戶能夠繼續取得成功，因為我們不斷成長的客戶群和營運記錄為我們在該市場的長期成長奠定了良好的基礎。2024年，我們與中東的一位客戶簽署了商業購買協議，該地區非常規油井採用我們的油井建設產品的速度令我們感到鼓舞。我們最近為阿根廷的一位客戶安裝了一套增強型回收系統，這是我們在該市場的第一套系統，我們計劃在今年稍後再安裝另一套。

We believe that this product line will provide an attractive additional market for us in the Latin American region, building on our existing tracer diagnostics business. The third core strategy for NCS is to commercialize innovative solutions to complex customer challenges. We have internal objectives this year that are tied to field trials for new products and for successfully entering new markets and regions. Some of these exciting products and projects include the first application of our seven-inch sliding sleeve and service tools for a remedial cementing application in Alaska, which is scheduled for later this month. Qualification of our fracturing systems sleeves, and service tools at higher temperature ratings.

我們相信，該產品線將在我們現有的示踪診斷業務的基礎上，為我們在拉丁美洲地區提供一個有吸引力的額外市場。NCS的第三個核心策略是將創新解決方案商業化，以應對複雜的客戶挑戰。我們今年的內部目標與新產品的現場試驗以及成功進入新市場和地區有關。這些令人興奮的產品和項目包括我們的七英寸滑動套管和服務工具首次應用於阿拉斯加的補救性固井應用，該項目計劃於本月晚些時候進行。我們的壓裂系統套管和服務工具在較高溫度等級下的資格。

To enable us to participate in certain Offshore, SAGD, and geothermal applications. The deployment of our Lumen8 multi-day automated sampler for Tracer Diagnostics customers, which reduces on-site service requirements. We're expecting field trials for our new rapid trace tracer diagnostics flow assurance solution which will provide our customers with immediate tracer results at the well site.

使我們能夠參與某些海上、SAGD 和地熱應用。我們為 Tracer Diagnostics 客戶部署了 Lumen8 多日自動採樣器，從而減少了現場服務需求。我們期待對我們的新型快速示踪劑診斷流動保證解決方案進行現場試驗，該解決方案將為我們的客戶在井場提供即時的示踪劑結果。

This data will provide value for our customers by allowing them to make cost saving decisions without having to wait for production sample analysis from our labs. We're expecting the commercialization of a broader portfolio of dissolvable frac plugs and our stage saver composite plug at repeat precision. The stage saver is designed to de-risk certain issues that can arise during simul frac operations.

這些數據將為我們的客戶提供價值，使他們能夠做出節省成本的決策，而無需等待我們實驗室的生產樣品分析。我們期望更廣泛的可溶解壓裂塞和我們的分級保護複合塞能夠以重複精度實現商業化。階段保護器旨在降低模擬壓裂作業期間可能出現的某些問題的風險。

Finally, we expect to broaden our enhanced recovery portfolio to include solutions for preferential production control, complementing our injection conformance offerings. In addition to these projects, we have several other technology developments underway across our various product lines which I'm looking forward to discussing as they roll out throughout the year and into the future.

最後，我們希望擴大我們的增強採收率產品組合，包括優先生產控制解決方案，以補充我們的注入一致性產品。除了這些項目之外，我們還在各個產品線上進行其他幾項技術開發，我期待在今年以及未來推出這些技術時進行討論。

Mike will now review our results for the 1st quarter and our guidance for the second quarter.

麥克現在將回顧我們第一季的業績和第二季的預期。

Thank you, Ryan. As reported in yesterday's earnings release, our first quarter revenues were $50 million, a year over year increase of 14% and 11% sequentially. This year-over-year increase was led by Canada, contributing a 19% increase in revenue, and our international results reflecting a 34% increase in revenue primarily associated with activity in the Middle East and the North Sea. This was partially offset by a 6% decline in the US.

謝謝你，瑞安。正如昨天的收益報告所述，我們的第一季營收為 5,000 萬美元，年增 14%，季增 11%。這一同比成長主要由加拿大推動，貢獻了 19% 的營收成長，而我們的國際業績反映出營收成長了 34%，主要與中東和北海的活動有關。但美國 6% 的降幅部分抵銷了這一增幅。

Our adjusted gross profit, defined as total revenues, less total cost of sales, excluding depreciation and amortization expense was $21.9 million in the first quarter, representing an adjusted gross margin of 44% up compared to our adjusted gross margin of 40% from one year ago. Selling general and administrative cost were $16.2 million for the first quarter, up by $2.4 million compared to the same period last year. This increase was primarily due to higher incentive bonus accruals associated with our improved operating performance, professional fees, and an increase in stock-based compensation expense associated with our cash settled stock awards, which we recognize additional expense due to the increase in our stock price.

我們第一季的調整後毛利（定義為總收入減去總銷售成本，不包括折舊和攤提費用）為 2,190 萬美元，調整後毛利率為 44%，而去年同期的調整後毛利率為 40%。第一季銷售總務及行政費用為 1,620 萬美元，較去年同期增加 240 萬美元。這一成長主要是由於我們經營業績改善帶來的激勵獎金增加、專業費用增加以及與現金結算股票獎勵相關的股票薪酬費用增加，我們因股價上漲而確認了額外費用。

Our other income of $0.9 million for the first quarter relates primarily to royalty income from licenses of our intellectual property. In prior periods, other income was benefited from the contribution of a technical services agreement with our local partner in Oman, which ended in November 2024. Our net income for the first quarter was $4.1 million or diluted earnings per share of $1.51 an improvement to last year's first quarter net income of $2.1 million or diluted earnings per share of $0.82. Our adjusted EBITDA was $8.2 million an improvement compared to $6.1 million in the first quarter of 2024.

我們第一季的其他收入為 90 萬美元，主要來自我們知識產權許可的特許權使用費收入。在先前的期間，其他收入受益於我們與阿曼當地合作夥伴簽訂的技術服務協議，該協議於 2024 年 11 月結束。我們第一季的淨利為410萬美元，即每股攤薄收益1.51美元，較去年同期的210萬美元淨利（即每股攤薄收益0.82美元）有所改善。我們的調整後息稅折舊攤提前利潤（EBITDA）為820萬美元，較2024年第一季的610萬美元有所改善。

Now turning to cash flow items in the balance sheet. Cash flow from operating activities and free cash flow less distributions to non-controlling interest reflects uses of cash of $1.6 million and $2.1 million respectively for the first quarter. As Ryan will discuss in further detail shortly, our full year 2025 forecast is free cash flow positive. However, results for the first quarter reflect the payment of our incentive bonuses related to 2024, as well as the annual vesting and payment of our cash settled stock awards.

現在轉向資產負債表中的現金流量項目。經營活動產生的現金流量和自由現金流量減去分配給非控股權益的分配反映出第一季的現金使用量分別為 160 萬美元和 210 萬美元。正如 Ryan 稍後將詳細討論的那樣，我們對 2025 年全年的自由現金流預測是正值。然而，第一季的業績反映了我們與 2024 年相關的激勵獎金的支付，以及我們現金結算股票獎勵的年度歸屬和支付。

On March 30th first, we had $23.0 million cash in total debt of $7.6 million, which consisted entirely of finance lease obligations resulting in a positive net cash position of $15.4 million. The borrowing base under our undrawn ABL facility was $26.8 million and our total liquidity was approximately $50 million including cash and availability under our revolving credit facility.

截至 3 月 30 日，我們的現金餘額為 2,300 萬美元，總債務為 760 萬美元，全部由融資租賃債務組成，因此淨現金狀況為 1,540 萬美元。我們未提取的 ABL 信貸額度下的借款基礎為 2,680 萬美元，我們的總流動資金約為 5,000 萬美元，包括現金和循環信貸額度下的可用資金。

Now turning to a few points of guidance for the second quarter. Due to the seasonal spring break up in Canada, we currently expect second quarter total revenue in the range of $26 million to $29 million. We expect Canadian revenue in the range of $12 million to $13 million US revenue of $10.5 million to $11.5 million, and international revenue of $3.5 million to $4.5 million. We expect our adjusted gross margin to range from 37% to 39% and our adjusted EBITDA to range from negative $2 million to break even. Our second quarter depreciation and amortization expense is projected to be approximately $1.4 million.

現在來談談第二季的幾個指導要點。由於加拿大春季季節性休假，我們目前預計第二季總收入將在 2,600 萬美元至 2,900 萬美元之間。我們預計加拿大的收入將在 1,200 萬至 1,300 萬美元之間，美國的收入將在 1,050 萬至 1,150 萬美元之間，國際收入將在 350 萬至 450 萬美元之間。我們預計調整後的毛利率將在 37% 至 39% 之間，調整後的 EBITDA 將在負 200 萬美元至盈虧平衡之間。我們第二季的折舊和攤提費用預計約為 140 萬美元。

With that, I'll hand it back over to Ryan to discuss our 2025 full year guidance and closing remarks.

說完這些，我將把時間交還給瑞安 (Ryan)，讓他討論我們 2025 年全年的指導和結束語。

Thank you, Mike.

謝謝你，麥克。

We're making only slight adjustments to our full year guidance for 2025. For context, when we provided our initial full year guidance in March, it excluded the potential impacts from threatened or enacted trade actions. Our current guidance reflects the known impacts from certain tariffs, including tariffs imposed by the US on steel imports and on products from China. As a reminder, we've implemented initiatives to partially mitigate cost increases associated with the tariffs imposed by the US, and we believe a portion of these costs can be recovered.

我們對 2025 年全年預期僅做了輕微調整。就背景而言，當我們在三月提供初步全年指引時，它排除了威脅或已實施的貿易行動帶來的潛在影響。我們目前的指引反映了某些關稅的已知影響，包括美國對鋼鐵進口和中國產品徵收的關稅。提醒一下，我們已經採取措施部分緩解與美國徵收的關稅相關的成本增加，我們相信其中一部分成本是可以收回的。

Our guidance also reflects the current commodity price environment, which is weakened somewhat for both oil and natural gas since our last discussion in early March. We expect this lower commodity pricing will result in reduced customer and industry activity levels compared to initial budgets, primarily impacting the second half of the year. There's currently a heightened level of uncertainty related to trade and the related impacts on economic growth. This is amplified by geopolitical uncertainty, as well as announced and potential actions by OPEC+ countries to increase production levels at a time when global demand growth appears to be decelerating.

我們的指引也反映了當前的大宗商品價格環境，自 3 月初我們上次討論以來，石油和天然氣的價格均有所減弱。我們預計，與最初的預算相比，較低的商品價格將導致客戶和行業活動水準下降，主要影響今年下半年。目前，貿易及其對經濟成長的影響存在高度不確定性。在全球需求成長似乎正在減速之際，地緣政治的不確定性以及 OPEC+ 國家宣布和可能採取的提高產量的行動，進一步加劇了這個問題。

Given that backdrop, we are maintaining our expectation for annual revenue of $165 million to $175 million in 2025, which represents year to year growth of 5% at the midpoint, led by Canada and product sales at repeat precision in the United States. We've modified our adjusted EBITDA range to $20 million to $24 million a modest increase to the high end with a midpoint of $22 million. As with prior years due to the seasonality of our business, we anticipate that the achievement of our annual adjusted guidance range will be weighted to the second half of the year. We expect free cash flow after distributions to our joint venture partner of $7 million to $11 million further strengthening our robust balance sheet and positioning us to pursue strategic investment opportunities.

鑑於這一背景，我們維持對 2025 年年收入 1.65 億至 1.75 億美元的預期，這意味著年增長率為 5%，其中以加拿大和美國重複精度產品銷售為主導。我們已將調整後的 EBITDA 範圍調整為 2,000 萬美元至 2,400 萬美元，上限略有增加，中位數為 2,200 萬美元。與前幾年一樣，由於我們業務的季節性，我們預計年度調整後的指導範圍的實現將集中在下半年。我們預計，向合資夥伴分配後的自由現金流將達到 700 萬至 1,100 萬美元，這將進一步增強我們穩健的資產負債表，並使我們能夠尋求戰略投資機會。

While NCS performed well during the first quarter of 2025, we were a bit more cautious regarding the second half of the year. Therefore, we are maintaining a wider than normal range for annual operating guidance. We believe that our expectation for revenue growth in the current industry and macro macroeconomic environment paired with our strong balance sheet positions us favorably amongst other publicly traded oilfield services companies.

儘管 NCS 在 2025 年第一季表現良好，但我們對下半年的表現更加謹慎。因此，我們維持的年度營運指引範圍比正常範圍要寬。我們相信，我們對當前產業和宏觀經濟環境下收入成長的預期，加上我們強勁的資產負債表，使我們在其他上市油田服務公司中佔據有利地位。

Slide 19 of our investor presentation benchmarks our balance sheet through total debt to total book capitalization and our current enterprise value to estimated 2025, EBITDA based on analyst consensus figures which compare our performance to a group of publicly traded peers with a market capitalization below $1 billion. We believe that our favorable growth and balance sheet profile is not reflected in our trading multiple, which is 3.5 times enterprise value to 2025 estimated EBITDA is a 20% discount to the pure median of 4.4%.

我們的投資者簡報的第 19 張投影片以我們的資產負債表為基準，透過總債務與帳面總資本化以及我們目前的企業價值與預計的 2025 年進行比較，EBITDA 基於分析師的共識數據，該數據將我們的業績與一組市值低於 10 億美元的公開交易同業進行比較。我們認為，我們良好的成長和資產負債表狀況並未反映在我們的交易倍數中，即企業價值的 3.5 倍，到 2025 年預計的 EBITDA 比 4.4% 的純中位數有 20% 的折扣。

Although our shares have performed relatively well over the last year in which we have presented and discussed these measures, the improvement has been almost entirely due to the higher underlying adjusted EBITDA earnings and an increase in our net cash position. At this time last year, we traded at a multiple of 3.4 times enterprise value to estimated 2024 adjusted EBITDA, which compares to the current multiple of 3.5 times that I discussed earlier.

儘管我們提出和討論這些措施的去年我們的股價表現相對較好，但這種改善幾乎完全歸功於更高的調整後 EBITDA 收益和我們的淨現金狀況的增加。去年此時，我們的企業價值與預計 2024 年調整後 EBITDA 的本益比為 3.4 倍，而我之前討論過的當前本益比為 3.5 倍。

We believe that as NCS continues to perform well operationally and to deliver on the financial benefits of our growth strategy that I discussed earlier in the call that we can earn a higher multiple over time. Before we open the call up to questions, I'll close with a couple of brief comments. First, we are delivering on the core strategies that we put in place in 2022 that are designed to generate value for our stakeholders through both organic growth and continued technology development.

我們相信，隨著 NCS 繼續在營運上表現良好，並實現我在電話會議中早些時候討論過的成長策略的財務效益，我們可以隨著時間的推移獲得更高的收益。在我們開始提問之前，我想說幾點簡短的評論。首先，我們正在實施 2022 年制定的核心策略，旨在透過有機成長和持續的技術開發為我們的利害關係人創造價值。

We have the infrastructure in place to support revenue growth in each of our geographic markets, providing leverage to grow future earnings. We maintain a strong balance sheet and liquidity position with a cash balance of $23 million at the end of the first quarter and total liquidity, including availability under our revolver of $50 million. This is a $15 million increase from this time a year ago.

我們擁有完善的基礎設施來支持每個地理市場的收入成長，為未來收益的成長提供槓桿。我們保持著強勁的資產負債表和流動性狀況，第一季末的現金餘額為 2,300 萬美元，總流動性（包括可用循環信貸額度）為 5,000 萬美元。這比去年同期增加了 1500 萬美元。

In addition, we expect to increase our cash balance by generating positive free cash flow in 2025, providing us with incremental financial and strategic flexibility. Finally, we continue to benefit from the successful introduction of new solutions that meet the needs of our customers, adding to our technology portfolio and expanding our addressable market.

此外，我們預計在 2025 年產生正自由現金流，從而增加我們的現金餘額，為我們提供增量財務和策略靈活性。最後，我們繼續受益於成功推出滿足客戶需求的新解決方案，豐富了我們的技術組合併擴大了我們的潛在市場。

With that, we welcome any questions.

我們歡迎您提出任何問題。

At this time, I would like to remind everyone in order to ask a question, press start and the number one on your telephone keypad. Your first question comes from the line of Dave storms of Stonegate Capital Partners Inc. Please go ahead.

此時，我想提醒大家，要想提問，請按電話鍵盤上的開始鍵和數字 1。您的第一個問題來自 Stonegate Capital Partners Inc. 的 Dave Storms。請繼續。

Hey, good morning everyone and thank you for taking my questions.

嘿，大家早安，感謝你們回答我的問題。

Brea, just want to start more it seems like, this was a strong showing of, really what the operating leverage is at NCS thinking about the scale that you guys are able to achieve going forward, are there any break points that we should maybe be aware of in terms of, capacity constraints or anything like that that may be on the horizon?

布雷亞，我只是想開始說更多，這似乎是一個強有力的展示，真正體現了 NCS 的營運槓桿，考慮到你們未來能夠實現的規模，在產能限製或類似方面，我們是否應該注意任何可能出現的斷點？

There really not Dave, and we think about that in two ways, right? 11 is through the supply chain where, we have some vertical integration through the operations at Repeat precision which supports us both in the repeat precision sales and in the US, or sorry, the sliding sleeve business for Canada. But we generally operate and outsourced manufacturing model and believe there's plenty of capacity at our supply chain partners to continue to serve us as we grow without requiring additional investment or having to have anything that would impact our gross margin profile there.

那裡真的沒有戴夫，我們從兩個方面來思考這個問題，對嗎？11 是透過供應鏈，我們透過 Repeat precision 的營運實現了一些垂直整合，這為我們在 Repeat precision 的銷售以及美國，或者抱歉，加拿大的滑動套筒業務提供了支持。但我們通常採用外包製造模式，並相信我們的供應鏈合作夥伴有足夠的產能在我們發展過程中繼續為我們服務，而不需要額外的投資或任何會影響我們毛利率狀況的事情。

And then when we think about the really the infrastructure that we have across our operating business, right, we've got a presence and a sales force in place to serve the US, Canada, Argentina, the North Sea, the Middle East that can accommodate significant additional growth. I think what you might see is in certain individual international markets if we achieve scale we might decide to have a little bit more in-country presence there.

然後，當我們考慮到我們整個營運業務的基礎設施時，我們會發現，我們已經擁有一個分支機構和一支銷售隊伍，可以服務於美國、加拿大、阿根廷、北海、中東等地區，可以適應顯著的額外增長。我認為，你可能會看到，如果我們在某些單獨的國際市場上達到規模，我們可能會決定在該國增加一些業務。

An example of that is this year we are likely to set up a An entity in the UK. We've got increased business on the UK side of the North Sea. We have an operating entity in Norway already, but so we may do something there this year and then as business grows in the Middle East, we may have more local service personnel that we decide to locate in country versus some of those jobs that we serve by rotating people from. Other regions as the work pops up. So, no real break point, we'll just find where we hit that critical mass of repeatable revenue where we make sense for us to put some additional investment into certain geographies.

例如，今年我們可能會在英國成立一個實體。我們在北海英國一側的業務有所增加。我們在挪威已經有一個營運實體，但我們今年可能會在那裡做一些事情，然後隨著中東業務的成長，我們可能會有更多的本地服務人員，我們決定將這些人員安置在該國，而不是透過輪調人員來提供一些服務。隨著工作不斷湧現，其他地區也開始陸續推出新作品。因此，沒有真正的斷點，我們只是找到可重複收入的臨界點，以便我們能夠在某些地區進行一些額外的投資。

Understood very helpful. And then I guess thinking about the sales pipeline, I guess kind of what are you seeing there from a tax standpoint? Are you building more inbound calls as customers are trying to, maybe beat some of this macro uncertainty or are you seeing your sales folks in a little more idle, as everyone's waiting for the dust to settle? Maybe just any color that would be very helpful.

明白了很有幫助。然後我想考慮一下銷售管道，我想從稅收的角度來看您看到了什麼？當客戶試圖克服一些宏觀不確定性時，您是否正在建立更多的來電？或者您看到您的銷售人員更加閒置，因為每個人都在等待塵埃落定？也許任何顏色都會很有幫助。

Yeah, thanks Dave. Obviously there, I think there's a lot of scenario planning that's going on in real time within our customer base. We have seen over the course of the last, even just the last week or so, oil prices in particular start to come down a bit. So, look it's early. But we are anticipating that there will be decisions made here in the course of the next couple of weeks that will, pull some activity out of the market, especially if WTI hangs in there with a five handle.

是的，謝謝戴夫。顯然，我認為我們的客戶群中正在即時進行大量情境規劃。我們看到，在過去一周左右的時間裡，油價開始下降。所以，看起來還早。但我們預計，未來幾週內將會做出一些決定，從而拉動市場的一些活動，特別是如果 WTI 能夠保持五連勝的勢頭。

Again, I think that that starts to come into the market first through private operators and maybe some of the smaller publics. I think your larger public companies and international oil companies in North America. They plan a little bit differently, but certainly they will react to commodity prices as they need to. So, I'd say the discussions are fluid right now, and that speaks to, North America, especially in Canada where we're sitting in breakups, so a period of lower activity right now where the customers are planning. What their winter drilling activity will look like.

再次，我認為這些將首先通過私人運營商以及一些較小的公共運營商進入市場。我認為你們的大型上市公司和北美的國際石油公司。他們的計劃略有不同，但肯定會根據需要對商品價格做出反應。所以，我想說現在的討論很不穩定，這說明北美，特別是加拿大，我們正處於分手階段，所以現在是一個活動較少的時期，客戶正在計劃。他們的冬季鑽探活動將會是什麼樣的。

So, the conversations are ongoing. What I can say is I feel really good about our technology portfolio because our solutions are generally designed to provide customers with an ability to operate more efficiently to save cost or to generate more economic value through their resources. So, I think we've got the right portfolio to help our customers win and survive through this environment, but we won't be immune to lower activity.

因此，對話仍在繼續。我可以說的是，我對我們的技術組合感到非常滿意，因為我們的解決方案通常旨在為客戶提供更有效率的營運能力，以節省成本或透過他們的資源創造更多的經濟價值。因此，我認為我們擁有正確的產品組合來幫助我們的客戶在這種環境中獲勝並生存下來，但我們也無法免受活動減少的影響。

Understood. And then maybe just one more for me, I want to touch on the product sales in the US. I know you mentioned that, you expect them to be kind of a strength going through the remainder of 2025. They also just followed up the quarter, probably on the weaker end compared to the rest of your portfolio. Maybe any more you could give us here as to, how you see that playing out for the remainder of 2025.

明白了。然後也許對我來說還有一個問題，我想談談美國的產品銷售情況。我知道您提到過這一點，您預計它們將成為 2025 年剩餘時間的強大力量。他們也剛剛跟進本季度的表現，可能與你的其他投資組合相比處於較弱的水平。您能否再告訴我們一些關於 2025 年剩餘時間狀況的看法？

Sure, yeah, a couple of things within that. One is, despite the overall strong performance in Q1, we did have some opportunities within frac systems in particular in the US in the first quarter that got deferred into the second quarter, and then within repeat precision. We've had a lot of what I call successful customer field trials that have taken place throughout the first quarter. And those trials are starting to convert into more regular activity, and that's across both the traditional composite plug and mention specifically on the call the stage saver technology, which is a variation of the composite plug, but brings some specific benefits around Simul-frac operations.

當然，是的，其中有幾件事。一是，儘管第一季整體表現強勁，但我們在第一季確實在壓裂系統（特別是在美國）中有一些機會，這些機會被推遲到第二季度，然後在重複精度方面。在第一季度，我們進行了很多我稱之為成功的客戶現場試驗。這些試驗開始轉變為更規律的活動，這既涉及傳統的複合塞，也涉及在通話中特別提到的階段保護技術，它是複合塞的變體，但為 Simul-frac 作業帶來了一些特定的好處。

And as more customers Simul-frac and Trimul-frac, etc. The features built into that stage saver are ones that that are, certainly on the radar screen for customers. So, as we move that product through trials, we think that we can certainly grow that business through repeat in the US as well. So, I feel pretty good about where we think the product sale activity in the US will go during the remainder of the year.

隨著越來越多的客戶採用 Simul-frac 和 Trimul-frac 等，此階段保護程式內建的功能肯定會引起客戶的注意。因此，隨著我們對該產品進行試驗，我們認為我們也一定能夠透過在美國重複銷售來擴大業務。因此，我對今年剩餘時間美國產品銷售活動的走向感到十分樂觀。

Understood. Thanks for taking my questions and good luck to Q2.

明白了。感謝您回答我的問題，祝第二季一切順利。

All right, thanks, Dave.

好的，謝謝，戴夫。

Your next question comes from the mind of John Daniel with Daniel Energy Partners. Please go ahead.

您的下一個問題來自 Daniel Energy Partners 的 John Daniel。請繼續。

Hey good morning guys. Ryan, it would seem that the second half could get pretty dicey, at least certainly here in the US. I'm just curious given the strength of your balance sheet and which is about to get better. Do you see yourself leaning more towards using market disruptions to go after tactical M&A deals or do you think you'd lean more conservative and hoard cash and just ride this thing out?

嘿，大家早安。瑞安，看起來下半場的情況可能會變得相當危險，至少在美國是如此。我只是好奇，鑑於你們的資產負債表的實力以及哪些方面即將變得更好。您是否認為自己更傾向於利用市場混亂來進行戰術性併購交易，還是您認為自己會更傾向於保守，囤積現金，然後安然度過難關？

Yeah, so John, we'll certainly be active in evaluating, the M&A market and yeah, I think one of the things that, at least we've experienced in the past is When you have changes in the market environment and market opportunity, it takes a little bit of time for seller price expectations to adjust, so certainly we'll engage in discussions and think about deploying cash through M&A where it makes sense.

是的，約翰，我們肯定會積極評估併購市場，是的，我認為至少我們過去經歷過的一件事是，當市場環境和市場機會發生變化時，賣方價格預期需要一點時間來調整，所以我們肯定會進行討論，並考慮在合理的情況下通過併購來部署現金。

We do expect the balance sheet to continue to continue to strengthen, and I also think that if we don't find that right M&A opportunity. We have a pretty outstanding investment opportunity within NCS as well. So, again, if we don't find opportunities to deploy that capital externally, I think we in the board will have conversations around what makes sense with respect to return of capital to shareholders or even, kind of thinking through whether it makes sense to buy NCS stock back.

我們確實預計資產負債表將繼續加強，我還認為，如果我們找不到合適的併購機會。我們在 NCS 內部也擁有相當出色的投資機會。因此，如果我們找不到機會在外部部署這些資本，我認為董事會將討論如何向股東返還資本，甚至考慮是否有必要回購 NCS 股票。

Sure, I guess going back to, I guess this is an unknown question. I'll just pose it to kind of feel it out, but I mean if activity goes lower second half, I'm assuming it doesn't come ramping back super fast in '26, we'll see who knows. Would the opportunities be start presenting themselves in your view in the second half or in the first half of next year?

當然，我想回到過去，我想這是一個未知的問題。我只是擺出姿勢來感受一下，但我的意思是，如果下半年活動減少，我假設它不會在 26 年超快地回升，我們拭目以待吧。您認為明年下半年或上半年會出現機會嗎？

That makes any sense. I'm trying to get the time. Yes.

這很有道理。我正在努力爭取時間。是的。

Yes, good question, and look, I think we We're looking at the current market environment is one where, there's I guess a reduction in anticipated demand, right? So, if we have the impact of tariffs on the global economy, I think oil demand slows but doesn't crater. You pair that with the unknowns on the supply side with OPEC+, but I would see it more as a kind of U shaped, if you will cycle or mini cycle where you come down potentially pretty quickly, stay at the bottom for a while and then recover so. It's a bit of a hard one to answer, but I think the general timing is right, whether I can pin it to the second half of this year or first half of next year, but give it, call it 6 months to 9 months for the market to adjust and for, expectations to recalibrate, that's probably fair.

是的，好問題，看，我認為我們正在觀察當前的市場環境，我猜預期需求有所減少，對嗎？因此，如果關稅對全球經濟產生影響，我認為石油需求會放緩，但不會下降。你可以將其與 OPEC+ 在供應方面的未知因素結合起來，但我認為它更像是一種 U 形，如果你有一個循環或小循環，你可能會很快下降，在底部停留一段時間，然後恢復。這個問題有點難回答，但我認為總體時機是正確的，無論我可以把它確定在今年下半年還是明年上半年，但給它 6 個月到 9 個月的時間讓市場進行調整，並重新調整預期，這可能是公平的。

Okay, that's all I got. Thank you for entertaining these questions.

好的，這就是我所知道的全部。感謝您回答這些問題。

All right, thanks, John.

好的，謝謝，約翰。

Your next question comes from the line of Gowshihan Sriharan of singular research. Please go ahead.

您的下一個問題來自獨特研究領域的 Gowshihan Sriharan。請繼續。

Good morning guys. Can you hear me?

大家早安。你聽得到我嗎？

I can hear you just fine.

我能聽清楚你的聲音。

Yes, well, thank you. The first question is that $3 million estimate for the international revenue for Q2, is that trace of work to well construction that was and what's the pipeline for the North Sea projects in Q2 and Q3 to compensate for any kind of project delays that you're seeing?

是的，好的，謝謝你。第一個問題是，第二季國際收入預計為 300 萬美元，這是否與油井建設工作有關？第二季和第三季北海專案的計劃如何彌補您所看到的任何專案延誤？

Yes, this is Mike. I appreciate your question. I would say part of the question you asked is that attributed to well construction? I would say yes. Part of it is well construction, in the Middle East with the agreement that we have and the throughput that we're seeing. It's also we have some tracer activity. That we experienced last year that we continue to see activity in that. The North Sea, I would say North Sea, that is, there are some, opportunities we continue to see those opportunities. I think for, our guidance, there is some in the second quarter, but probably more weighted toward the back half of the year as we look to the North Sea.

是的，我是麥克。我很感謝你的提問。我想說，您提出的問題的一部分是否與井的建設有關？我會說是的。其中一部分是在中東地區根據我們已達成的協議進行油井建設，並實現我們所看到的產量。我們也有一些追蹤活動。我們去年所經歷的，我們繼續看到這方面的活動。北海，我想說北海，也就是說，有一些機會，我們繼續看到這些機會。我認為，就我們的指導而言，第二季度會有一些，但當我們著眼於北海時，可能更多地集中在下半年。

Okay. And the Canadian activity might have been stronger than anticipated. Did you see any pull forward due to the current macroeconomic conditions, the current policy conditions? Is there any pull forward that we have to model into?

好的。加拿大的活動可能比預期的要強勁。您是否看到了當前宏觀經濟狀況和當前政策條件帶來的任何拉動？是否存在需要我們建模的向前推？

For Canada in the first quarter.

對於第一季的加拿大來說。

Yeah.

是的。

It's hard to attribute much of that specifically to a pull forward. I think what we did see in the first quarter was some generally favorable or benign weather conditions, so we got off to a little bit stronger start in January. There was a pretty short holiday break towards the end of last year. And then we've had our customers kind of continue to work into past the first week in March and sometimes you do see activity fall off pretty quickly there.

很難將其中的大部分歸因於向前拉動。我認為我們在第一季確實看到了一些總體有利或溫和的天氣條件，因此我們在一月份的開局會稍微強勁一些。去年年底有一個相當短的假期。然後，我們的客戶繼續工作到三月的第一周，有時你會看到那裡的活動很快就減少了。

I think another piece of it that's maybe just a little bit more fundamental that's helped us in March has been a bit of a transition in activity where we've picked up more work with customers that will work through breakup, whether that be on the frac system side, also the success we've had in building the composite plug business in Canada.

我認為，另一個可能更根本的因素是，3 月對我們有所幫助，那就是活動的某種轉變，我們與客戶開展了更多工作，這些工作將透過分解進行，無論是在壓裂系統方面，還是我們在加拿大建立複合插頭業務方面取得的成功。

A lot of the operators there will set up their well pads so they can work through breakup. So, I don't think we're going to have as drastic a falloff typically, through the second quarter as we've had in prior years. It'll still be, a big reduction for us, but we're working to build up that basic customers that work through the second quarter and help to mitigate at least some of that seasonality.

那裡的許多操作員都會設置井場，以便能夠在破裂時進行工作。因此，我認為我們在第二季度不會出現像前幾年那樣大幅的下滑。對我們來說，這仍然是一個很大的減少，但我們正在努力建立在第二季工作的基本客戶，並幫助緩解至少部分季節性的影響。

Got it. Given the, tariff, and the price increases that you might have to pass through, and as you're testing these new products in the north, especially in the US market, how well, is the pricing environment or are there any pushbacks, and are you able to maintain pricing discipline as you test these products, you think?

知道了。考慮到您可能必須經歷的關稅和價格上漲，以及您在北方（尤其是美國市場）測試這些新產品時，定價環境如何，是否存在任何阻力，您認為在測試這些產品時您是否能夠保持定價紀律？

Yes, so and there's sort of two components to it. One is when we're bringing in, a new technology, right, or that will have a benefit that will help the operator save money or avoid a potential disruption, typically we can get paid for that. It's not a lot right, but we can generally get a pretty good margin on new technology we bring to market.

是的，它有兩個組成部分。一是當我們引進一項新技術時，或者這項技術能夠幫助營運商節省資金或避免潛在的中斷，通常我們可以因此獲得報酬。雖然不是很多，但我們通常可以從推向市場的新技術中獲得相當不錯的利潤。

The question around pricing discipline and the question around, passing through costs, I think this is going to be, a bit more of a challenge certainly where we're seeing, relatively low commodity prices, operators potentially dropping activity at the same time that, we and other service companies will be facing increased costs. We'll see that in the form of steel.

關於定價紀律的問題以及關於轉嫁成本的問題，我認為這將是一個更大的挑戰，我們看到，商品價格相對較低，運營商可能會同時減少活動，而我們和其他服務公司將面臨成本增加。我們將以鋼鐵的形式看到這一點。

Others will see it and we'll see it a bit, still some pressure on the labor side. So, I think it's going to be a more challenging environment to pass some of the costs that we're seeing on the tariff side through to customers.

其他人會看到它，我們也會看到一點，勞動力方面仍然面臨一些壓力。因此，我認為將我們在關稅方面看到的部分成本轉嫁給客戶將會是一個更具挑戰性的環境。

There will be areas where we're able to do it and areas where we'll strategically you know, have to consider whether or not we try to really push that or not, but we, yeah, we will be as disciplined as we can. We're not going to leave the market down but I can't speak to what some of what our competitors will do on the pricing front unfortunately.

在某些領域我們能夠做到這一點，而在某些領域，我們必須從戰略上考慮是否要真正推動這一點，但是，是的，我們將盡可能地保持自律。我們不會放棄市場，但不幸的是，我無法說出我們的一些競爭對手在定價方面會採取什麼行動。

Is the pricing environment different in Canada as opposed to the US? Is there, is it vastly different or is it?

加拿大的定價環境與美國的有何不同？有嗎？有很大不同嗎？

Well, I think the broad similarity and the broad truth is that, when commodity prices come down, our customers will look to the service companies to help contribute and help them lower their well cost to maintain activity as much as possible. That's true in Canada. It's true in the US.

嗯，我認為大致的相似之處和大致的事實是，當商品價格下降時，我們的客戶將尋求服務公司的幫助，並幫助他們降低成本，盡可能維持活動。在加拿大確實如此。在美國確實如此。

Yes, I think part of it has to do really with the differentiation that you're able to provide through your products and services, and I think we're very well placed certainly with our fracs product line in Canada and from an operational standpoint what we're able to enable in that market, we've got a pretty nice differentiation versus the peer set. So, while there will be certainly price pressure. Coming from competitors, I think we do offer distinct advantages operationally that the competitors can't meet.

是的，我認為部分原因在於您能夠透過產品和服務提供的差異化，而且我認為我們在加拿大的壓裂產品線處於非常有利的地位，從營運的角度來看，我們能夠在該市場中實現什麼，與同行相比，我們有著相當不錯的差異化。因此，肯定會存在價格壓力。與競爭對手相比，我認為我們在營運上確實提供了競爭對手無法比擬的獨特優勢。

Thank you, guys. That's all I had. Good luck with your, the rest of the year.

謝謝你們。這就是我所擁有的一切。祝你今年餘下的時間一切順利。

Alright thanks, I appreciate the call and I appreciate the questions.

好的，謝謝，我很感謝您的來電，也謝謝您的提問。

I will now turn the call back over to Ryan Hammer, Chief Executive Officer for closing remarks. Please go ahead.

現在我將把電話轉回給執行長 Ryan Hammer 作結束語。請繼續。

Yeah, all right, thank you, Janice. On behalf of our management team and board, we'd like to thank everyone joining the call today, including our shareholders, analysts, and especially our employees. I truly appreciate the tremendous work and dedication demonstrated by our team here at NCS and Repeat precision as we implement our long-term strategies. We're only as good as our people who continually demonstrate why I believe we have the best team in the industry.

是的，好的，謝謝你，珍妮絲。我謹代表我們的管理團隊和董事會感謝今天參加電話會議的所有人，包括我們的股東、分析師，特別是我們的員工。我由衷感謝 NCS 和 Repeat precision 團隊在我們實施長期策略過程中所展現的巨大工作和奉獻精神。我們的優秀取決於我們的員工，他們不斷證明為什麼我相信我們擁有業內最好的團隊。

This team continues to provide excellent service to our customers while developing new products and services that will enable our customers to be even more successful. We appreciate everyone's interest in NCS Multi-Stage, and we look forward to talking again on our next quarterly earnings call.

團隊繼續為我們的客戶提供優質服務，同時開發新產品和服務，使我們的客戶取得更大的成功。我們感謝大家對 NCS Multi-Stage 的關注，並期待在下次季度財報電話會議上再次討論。

Ladies and gentlemen, that concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you all for joining. You may now disconnect.

感謝大家的加入。您現在可以斷開連線。