NCS Multistage Holdings Inc (NCSM) 2025 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to the NCS Multi-stage Q3 2025 earnings conference call.

您好，感謝您的耐心等待。歡迎參加 NCS 2025 年第三季多階段財報電話會議。

(operator Instructions)

（操作說明）

I would now like to hand the conference over to your first speaker today, Michael Morrison, CFO. Please go ahead.

現在，我謹將會議交給今天的第一位發言人，財務長麥可‧莫里森。請繼續。

Thank you, Stephen, and thank you for joining the NCS Multi-stage third quarter 2025 conference call. Our call today will be led by our CEO Ryan Hummer, and I will also provide comments. 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. 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 EBITA margin, adjusted EBITDA less share-based compensation. Adjusted gross profit, adjusted gross margin, free cash flow, and free cash flow less distributions to non-controlling interest and networking capital. These non-GAAP measures and reconciliations to the most comparable GAAP financial measures are provided in our third quarter earnings release, which can be found on our website, NCS multiStage.com. I will now turn the call over to Ryan.

謝謝 Stephen，也謝謝您參加 NCS 多階段 2025 年第三季電話會議。今天的電話會議將由我們的執行長瑞安·胡默主持，我也會發表一些看法。我想提醒各位聽眾，今天的一些演講包含前瞻性陳述，例如我們的財務指導以及關於我們對未來財務業績和業務運營的預期。這些聲明存在許多風險和不確定因素，可能導致我們的實際結果與此處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注意事項，請參閱我們最新的 10-K 表格年度報告和我們最新的美國證券交易委員會文件。我們今天的評論以及我們在獲利報告中揭露的經營業績包含以下非GAAP財務指標：EBITDA、調整後EBITDA、調整後EBITA利潤率、調整後EBITDA減去股份支付費用。調整後毛利、調整後毛利率、自由現金流、自由現金流減去分配給少數股東和網路資本的分配。這些非GAAP財務指標以及與最接近的GAAP財務指標的調節表，均已在我們的第三季財報中提供，您可以在我們的網站NCS multiStage.com上找到該財報。現在我將把電話交給Ryan。

Thank you, Michael, and welcome to our investors, analysts, and employees who are joining our 3rd quarter 2025 earnings conference call.

謝謝邁克爾，也歡迎各位投資人、分析師和員工參加我們2025年第三季財報電話會議。

Mike will discuss our quarterly financial results in more detail a bit later. I want to touch on a few highlights for the quarter and year-to-date, including our progress integrating ResMetrics, the tracer diagnostics business that we acquired in late July 2025.

稍後，麥克將更詳細地討論我們的季度財務表現。我想重點介紹本季和今年迄今的一些亮點，包括我們在整合 ResMetrics（我們在 2025 年 7 月下旬收購的示踪診斷業務）方面取得的進展。

NCS continues to perform well despite challenging market conditions. Our third quarter revenue of $46.5 million exceeded the midpoint of our guided range, including the expected contribution from ResMetrics that was provided in our last earnings call.

儘管市場環境充滿挑戰，NCS 的表現仍然良好。我們第三季的營收為 4,650 萬美元，超過了我們先前預期範圍的中點，其中包括我們在上次財報電話會議上提到的 ResMetrics 的預期貢獻。

Revenue in the US increased by 26% sequentially and 54% when compared to the same quarter last year.

美國市場營收季增 26%，年增 54%。

Importantly, excluding the contribution from ResMetrics, our US revenue improved by 37% compared to the same quarter last year, with robust contributions from our fracturing services, fracturing systems, and tracer diagnostics product lines.

值得注意的是，若不計 ResMetrics 的貢獻，我們的美國營收與去年同期相比成長了 37%，這主要得益於我們的壓裂服務、壓裂系統和示踪診斷產品線的強勁貢獻。

Our revenue for the first nine months of 2025 was $133 million which is 13% or over $15 million higher than during the first nine months of 2024, with higher revenue year over year from each of the US, Canada, and international markets.

2025 年前九個月，我們的營收為 1.33 億美元，比 2024 年前九個月成長了 13%，即超過 1,500 萬美元，美國、加拿大和國際市場的營收均較去年同期成長。

Our adjusted EBITA of $17.5 million for the first nine months of 2025 represents an increase of $3.4 million or 24% year over year.

2025 年前九個月的調整後 EBITA 為 1,750 萬美元，比去年同期成長 340 萬美元，增幅達 24%。

Importantly, we've generated $6.8 million in free cash flow after distributions to non-controlling interest during the first nine months of 2025, an improvement of $6.5 million compared to the same period of the prior year and contributing to our cash balance, which exceeded $25 million as of September 30th, 2025.

重要的是，在 2025 年前九個月向非控股股東分配利潤後，我們產生了 680 萬美元的自由現金流，比上年同期增加了 650 萬美元，這使得我們的現金餘額在 2025 年 9 月 30 日超過了 2500 萬美元。

We're growing in large part due to the continued progress in delivering on our strategic plan which informs our organic growth initiatives and our new product development investments within a framework that maximizes financial flexibility and produces free cash flow.

我們之所以能夠發展壯大，很大程度上是因為我們在策略規劃的實施上取得了持續進展。此策略規劃指導我們的有機成長舉措和新產品開發投資，並在一個能夠最大限度地提高財務靈活性和產生自由現金流的框架內進行。

Our senior leadership team recently reaffirmed the core strategies we are implementing to create value for our stakeholders. Slide fourteen of our investor presentation helps to illustrate our strategy with examples of our progress.

我們的高階領導團隊最近重申了我們正在實施的核心策略，旨在為我們的利害關係人創造價值。我們在投資者簡報的第十四頁透過我們所取得的進展實例來說明我們的策略。

The first core strategy is to build upon our leading market positions. These leading market positions include our unmatched expertise in our fracturing systems product line, our market share in Canadian completions, and the breadth and global presence of our tracer diagnostic service offerings, especially now that it includes ResMetrics.

首要核心策略是鞏固我們領先的市場地位。這些領先的市場地位包括我們在壓裂系統產品線方面無與倫比的專業知識、我們在加拿大完井領域的市場份額，以及我們示踪劑診斷服務產品的廣泛性和全球影響力，尤其是在現在包括了 ResMetrics 之後。

In Canada, our revenues increased 9% for the first nine months of the year compared to last year, despite a 6% decline in the average re-count which we believe indicates the value that we bring to our customers.

在加拿大，儘管平均重新計數下降了 6%，但與去年相比，我們今年前九個月的收入仍增長了 9%，我們認為這表明了我們為客戶帶來的價值。

In addition, we've been able to grow our tracer diagnostics revenue year over year organically and through the ResMetrics acquisition, supporting customer projects in eight countries around the globe.

此外，我們透過自身發展和收購 ResMetrics，實現了示蹤診斷收入的逐年成長，為全球八個國家的客戶專案提供支援。

Our leadership and fracturing systems has led to exciting developments, including our successful seven-inch sliding sleeve offering and initiatives to expand our participation in higher temperature environments and to expand our offshore success into deeper waters.

我們的領導地位和壓裂系統帶來了令人興奮的發展，包括我們成功推出的七英寸滑動套管，以及擴大我們在更高溫度環境下的參與度和將我們的海上成功擴展到更深水域的舉措。

The second core strategy is to capitalize on high margin growth opportunities worldwide.

第二個核心策略是抓住全球範圍內的高利潤成長機會。

We continue to build on the success that we achieved in 2024, a year in which international revenue reached 10% of total revenue, an important milestone for NCS.

我們將繼續鞏固在 2024 年的成功，那一年國際收入佔總收入的 10%，這是 NCS 的一個重要里程碑。

The North Sea continues to be a success story for NCS internationally with our extensive track record and growing customer base.

北海市場一直是NCS在國際上成功的典範，我們擁有豐富的經驗和不斷成長的客戶群。

We've enjoyed strong collaboration with our customers, supporting technical papers and presentations and hosting a workshop for current and potential customers, and the anger.

我們與客戶建立了良好的合作關係，支援技術論文和演示，並為現有客戶和潛在客戶舉辦研討會，以及憤怒。

This workshop allows us to hear the voice of customers and to continuously improve by identifying efficiencies which may expand the addressable market for our technology in the region.

本次研討會讓我們有機會傾聽客戶的聲音，並透過發現可能擴大我們技術在該地區潛在市場的效率提升點來不斷改進。

We've modified the scope of this strategy because we wanted to highlight certain markets in North America, such as Alaska and heavy oil where we can provide differentiated solutions for our customers. We're excited about opportunities in these markets for current and future applications of our fracturing systems, enhanced recovery, and tracer diagnostics product lines.

我們調整了該策略的範圍，因為我們想專注於北美的一些市場，例如阿拉斯加和重油市場，在這些市場我們可以為客戶提供差異化的解決方案。我們對目前和未來在這些市場中應用我們的壓裂系統、提高採收率和示踪診斷產品線的機會感到興奮。

The third core strategy for NCS is to commercialize innovative solutions to complex customer challenges.

NCS的第三項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。

We have internal objectives this year tied to field trials for new products and for successfully entering new markets in new regions.

今年我們的內部目標與新產品的實地試驗以及成功進入新地區的新市場有關。

A few notable technology and market development highlights include That we'll be showcasing our luminate multi-day composite sampling units at a customer location during the fourth quarter of 2025 to support a tracer diagnostics project.

一些值得注意的技術和市場發展亮點包括：我們將在 2025 年第四季在客戶現場展示我們的發光多日複合採樣裝置，以支援示踪診斷項目。

These units will improve sample quality and significantly reduce the number of visits required to the well sites during the sampling program.

這些設備將提高樣品質量，並顯著減少採樣計劃期間對井場的訪問次數。

We are also manufacturing our Teris AICV sliding sleeves and proprietary packers for an upcoming (inaudible) customer installation.

我們也為即將到來的（聽不清楚）客戶安裝專案生產 Teris AICV 滑動套筒和專有墊片。

These systems are designed to help our customers optimize production in more mature wells, creating an opportunity to increase oil production while reducing water cuts.

這些系統旨在幫助我們的客戶優化成熟油井的生產，從而有機會在降低含水率的同時提高石油產量。

Our development customer has identified a candidate well in the Gulf of America to deploy our deepwater fracturing system solution, with drilling expected to commence in the second half of 2026. We're working with the customer to advance the independent third-party review required by the regulator for this well.

我們的開發客戶已在美洲灣選定一口候選井，準備部署我們的深水壓裂系統解決方案，預計將於 2026 年下半年開始鑽井。我們正在與客戶合作，推進監管機構要求的針對該油井的獨立第三方審查。

From a market development standpoint, Repeat Precision now has agreements in place to grow its business in the Middle East, as NCS has previously done with its well construction and tracer diagnostics product launch.

從市場開發的角度來看，Repeat Precision 現在已經達成協議，將在中東地區拓展業務，就像 NCS 之前在中東地區推出油井建設和示踪劑診斷產品一樣。

Turning now to our recent acquisition of Resmetrics, we've been very pleased with the operational and financial performance of ResMetrics since the acquisition, as well as the progress made integrating NCS's tracer diagnostics operations with the ResMetrics service offerings.

現在來談談我們最近收購 Resmetrics 的情況。自收購以來，我們對 ResMetrics 的營運和財務表現非常滿意，同時我們也對 NCS 的示踪劑診斷業務與 ResMetrics 服務產品整合的進展感到滿意。

Both the NCS and ResMetrics sales and operations teams began coordinating efforts soon after the announcement.

公告發布後不久，NCS 和 ResMetrics 的銷售和營運團隊就開始協調合作。

I'll note a few of these early successes.

我將列舉其中幾個早期的成功案例。

ResMetrics utilized its portfolio of tracers tested for thermal stability on a well with NCS sliding sleeves in Canada.

ResMetrics 利用其示踪劑產品組合，在加拿大一口裝有 NCS 滑動套管的油井上測試了其熱穩定性。

NCS's Canadian operations team supported the chemical importation and field deployment on the job.

NCS 的加拿大營運團隊為化學品進口和現場部署提供了支援。

Tracer data will provide critical insight when paired with the production data from the well.

示踪劑數據與油井生產數據相結合，將提供關鍵資訊。

NCS's lab in Tulsa can outrun water tracer samples from ResMetrics jobs, helping to reduce the sample backlog and improve turnaround time for our customers.

NCS 在塔爾薩的實驗室可以比 ResMetrics 的作業更快地處理水示踪劑樣本，從而幫助減少樣本積壓，並縮短客戶的周轉時間。

ResMetrics has sourced certain liquid water tracers from NCS's existing inventory, deferring the need to place orders from an overseas supplier in the current uncertain trade environment, including evolving tariff percentages.

ResMetrics 從 NCS 的現有庫存中採購了一些液態水示踪劑，從而避免了在當前不確定的貿易環境（包括不斷變化的關稅百分比）下向海外供應商下訂單的需要。

We've identified other cost savings by integrating ResMetrics into the existing NCS insurance policies and also our vehicle fleet management programs.

透過將 ResMetrics 整合到現有的 NCS 保險政策以及我們的車隊管理程序中，我們發現了其他節省成本的方法。

So as I mentioned last quarter, we are taking a methodical approach to integration with several key milestones anticipated as we approach the new year. These early winds highlight the constructive and collaborative approach that the NCS and ResMetrics teams are taking to identify and implement best practices that support our people and our customers.

正如我上個季度提到的，我們正在採取有條不紊的方式進行整合，預計在新的一年將實現幾個關鍵里程碑。這些早期的跡象表明，NCS 和 ResMetrics 團隊正在採取建設性和協作的方法，以確定和實施支持我們的員工和客戶的最佳實踐。

Confident that our team will continue to deliver on the expected benefits of this strategic transaction.

我們有信心，我們的團隊將繼續實現這項策略交易的預期收益。

Before I turn it over to Mike, I want to provide an update on an ongoing legal matter in Canada. I'm pleased to announce that last week the Federal Court of Appeal in Canada has overturned a prior judgment against NCS, setting aside a finding of infringement against NCS and confirming that an award of cost reimbursements that were previously paid by NCS to the counterparty was excessive.

在把麥克風交給麥克之前，我想先報告加拿大正在發生的法律案件的最新進展。我很高興地宣布，上週加拿大聯邦上訴法院推翻了先前對 NCS 的判決，撤銷了對 NCS 的侵權認定，並確認 NCS 先前向對方支付的費用補償金額過高。

The matter has been remanded back to the trial court for reconsideration, which will review the validity of the counterparties' patent in consideration of the appellate court findings.

該案已發回初審法院重新審理，初審法院將依據上訴法院的裁決審查對方專利的有效性。

Michael will now review our results for the third quarter and provide our guidance for the fourth quarter.

麥可接下來將回顧我們第三季的業績，並提供我們對第四季的展望。

Thank.

感謝。

You, Ryan. As reported in yesterday's earnings release, our third quarter revenues were $46.5 million, a 6% year over year improvement and above the midpoint of our guidance range, which includes the contribution of res metrics since the date of acquisition on July 31st, 2025. Excluding ResMetrics, our revenues were slightly up for the quarter, with the US and international revenues increasing by 37% and 38% respectively, with increased fracturing system cells domestically and in the North Sea and well construction sales in the Middle East. These revenue increases were partially offset by a 19% decline in Canada, reflecting a general slowdown in activity levels and lower rig counts. Sequentially, our quarterly revenues increased 28% with a 32% increase in Canada reflecting normal seasonality associated with the second quarter spring breakup. Our US revenues increased 26% and our international revenues increased 16%.

你，瑞恩。正如昨天發布的收益報告所述，我們第三季的營收為 4,650 萬美元，年增 6%，高於我們預期範圍的中點，其中包括自 2025 年 7 月 31 日收購之日起的資源指標的貢獻。除 ResMetrics 外，本季度我們的收入略有增長，其中美國和國際收入分別增長了 37% 和 38%，這得益於國內和北海地區壓裂系統單元數量的增加以及中東地區油井建設銷售額的增長。這些收入成長被加拿大 19% 的收入下降部分抵消，反映出整體活動水準放緩和鑽井平台數量減少。與上一季相比，我們的季度營收成長了 28%，其中加拿大成長了 32%，這反映了與第二季春季解凍相關的正常季節性因素。我們的美國收入成長了 26%，國際收入成長了 16%。

Our adjusted gross profit, defined as total revenues less total cost of sales, excluding depreciation and amortization expense was $19.4 million for the third quarter or an adjusted gross margin of 42% consistent with one year ago.

第三季度，我們調整後的毛利（定義為總收入減去總銷售成本，不包括折舊和攤提費用）為 1,940 萬美元，調整後的毛利率為 42%，與一年前持平。

Selling general and administrative costs were $14.8 million for the third quarter, up $700,000 compared to the same period last year due to an increase in expense associated with cash settled stock awards that are re-measured at the balance sheet date based on the price of our common stock. Other income was $1.2 million for the third quarter and related primarily to royalty income from licensing our intellectual property.

第三季銷售一般及行政費用為 1,480 萬美元，比去年同期增加 70 萬美元，原因是與現金結算的股票獎勵相關的費用增加，這些獎勵在資產負債表日根據我們普通股的價格重新計量。第三季其他收入為 120 萬美元，主要與授權我們智慧財產權的特許權使用費收入有關。

That income for the third quarter was $3.8 million or diluted earnings per share of $1.37 compared to $4.1 million or diluted earnings per share of a dollar $0.60 for the third quarter last year. Our adjusted EBITA of $7 million for the quarter exceeded the midpoint of our guidance range and included the contribution of ResMetrics.

第三季營收為 380 萬美元，稀釋後每股收益為 1.37 美元，去年同期收入為 410 萬美元，稀釋後每股收益為 0.60 美元。本季調整後的 EBITA 為 700 萬美元，超過了我們預期範圍的中點，其中包括 ResMetrics 的貢獻。

Now turning to the balance sheet and an overview of our cash position and cash flows. As of September 30th, NCS was in a positive net cash position with cash on hand at $25.3 million in total debt of $7.4 million consisting entirely of finance lease obligations. The borrowing base availability under our undrawn ABL facility was $19.4 million and our total liquidity was $44.7 million including cash on hand and this going base availability.

現在來看資產負債表以及我們的現金狀況和現金流量概覽。截至 9 月 30 日，NCS 的淨現金狀況為正，手頭現金為 2,530 萬美元，總債務為 740 萬美元，全部為融資租賃義務。我們未提取的 ABL 貸款額度下的可用借款基礎為 1,940 萬美元，包括手頭現金和目前可用借款基礎在內，我們的總流動性為 4,470 萬美元。

For the first nine months of 2025, cash from operations improved approximately $7 million and free cash flow less distributions to non-controlling interest improved over $6 million each compared to the same period in 2024.

2025 年前九個月，經營活動產生的現金流量比 2024 年同期增加了約 700 萬美元，扣除分配給少數股東的款項後的自由現金流分別增加了 600 多萬美元。

Now turning to a few points of guidance for the fourth quarter, we currently expect fourth quarter total revenue in the range of 41 to $45 million. We expect Canadian revenue in the range of 23 to $25 million. US revenue, including the rest metrics of 15 to $16 million and international revenue of 3 to $4 million. We expect our adjusted gross margin to range from 40% to 42% and our adjusted EBITDA to range from 5 million to 6.5 million.

現在來看看第四季的一些預期，我們目前預計第四季總營收將在 4,100 萬至 4,500 萬美元之間。我們預計加拿大地區的營收將在2,300萬至2,500萬美元之間。收入，包括其他指標在內為 1500 萬至 1600 萬美元，國際收入為 300 萬至 400 萬美元。我們預計調整後的毛利率將在 40% 至 42% 之間，調整後的 EBITDA 將在 500 萬至 650 萬之間。

Our fourth quarter depreciation and amortization expense is projected to be approximately $1.6 million. With that, I'll hand it back to Ryan to discuss our 2025 full year guidance and for closing remarks.

我們預計第四季折舊和攤提費用約為 160 萬美元。接下來，我將把發言權交還給 Ryan，讓他討論我們 2025 年全年業績預期並作總結發言。

Thank you, Michael.

謝謝你，麥可。

So as we've discussed, NCS performed well during the first nine months of 2025.

正如我們之前討論的，NCS 在 2025 年前九個月表現良好。

We remain a bit cautious as we move into the fourth quarter as market and industry conditions continue to be challenging with a stagnating US recount, double-digit year over year activity declines in Canada, and continued delays in the timing of unconventional jobs in Saudi Arabia.

進入第四季度，我們仍保持謹慎，因為市場和產業狀況依然充滿挑戰，美國重新計票陷入停滯，加拿大經濟活動同比下降兩位數，沙烏地阿拉伯非常規就業的進度也持續延遲。

There's also potential for an oversupplied oil market due to increased OPEC+ oil supply and ongoing uncertainties related to tariffs and trade.

由於歐佩克+石油供應增加以及關稅和貿易相關的持續不確定性，石油市場也可能出現供應過剩的情況。

So given that backdrop and the comments Mike just provided, our expectation for annual revenue for NCS for 2025 is $174 to $178 million which represents a year to year growth of 8%.

鑑於上述背景和麥克剛才提供的評論，我們預計 NCS 2025 年的年收入為 1.74 億至 1.78 億美元，年增 8%。

Of this, 5% would be organic and 3% would be contributed from ResMetrics.

其中，5%為自然成長，3%來自ResMetrics。

We're narrowing our proforma combined adjusted EBITA range to 22.5 to $24 million with the midpoint of $23.25 million.

我們將合併調整後的 EBITA 預計範圍縮小至 2,250 萬美元至 2,400 萬美元，中位數為 2,325 萬美元。

While the midpoint of this range is slightly below our guidance from last quarter, it includes nearly $1 million in additional expense related to our cash settled stock awards for Q3 and Q4, as Michael described earlier.

雖然該範圍的中點略低於我們上季度的預期，但正如邁克爾之前所述，它包含了與我們第三季度和第四季度現金結算的股票獎勵相關的近 100 萬美元的額外支出。

We're increasing our expectation for free cash flow after distributions to our not controlling interest and excluding the cash paid for as metrics to $11 to $13 million this year, further strengthening our robust balance sheet.

我們將今年在向非控股股東分配利潤後，並扣除已支付的現金後，自由現金流的預期提高至 1,100 萬至 1,300 萬美元，這將進一步增強我們穩健的資產負債表。

This represents an increase of $3 million at the midpoint and reflects our expectation of more favourable working capital balances and additional free cash flow contributed by ResMetrics.

這相當於中間值增加了 300 萬美元，反映了我們對 ResMetrics 帶來的更有利的營運資金餘額和額外自由現金流的預期。

Before we open the call for questions, I'll close with a couple of brief comments.

在正式開始提問環節之前，我先簡單說幾點。

We continue to deliver on our core strategies through organic growth and technological development designed to generate value for our stakeholders.

我們將繼續透過內生成長和技術發展來實現我們的核心策略，旨在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.

我們已建立起完善的基礎設施，以支持我們各個地區市場的收入成長，從而為未來獲利成長提供槓桿作用。

We're benefiting from the successful introduction of new solutions that meet the needs of our customers, adding to our portfolio and also expanding our addressable market.

我們成功推出了滿足客戶需求的新解決方案，不僅豐富了我們的產品組合，也擴大了我們的目標市場。

We've identified synergies through the ResMetrics integration, and we expect to identify more benefits as we work towards full integration by the early next year.

我們已經透過與 ResMetrics 的整合發現了協同效應，我們預計在明年年初實現全面整合的過程中，將會發現更多益處。

We maintain a strong balance sheet and a strong liquidity position with total liquidity, including availability under our revolver of approximately $45 million.

我們保持著強勁的資產負債表和充足的流動性，總流動性包括約 4,500 萬美元的循環信貸額度。

We are efficiently converting our adjusted the data free cash flow with midpoint free cash flow after distributions to non-controlling interest of $12 million this year. As of yesterday, this would represent a free cash flow yield of 11% to our market capitalization.

我們正在有效率地將調整後的數據自由現金流轉化為今年向少數股東分配後的中點自由現金流 1,200 萬美元。截至昨日，這將使我們的市值獲得 11% 的自由現金流收益率。

And with that, Stephen, we'd welcome any questions.

那麼，史蒂芬，我們歡迎大家提問。

Thank you. At this time, we will conduct the question-and-answer session.

謝謝。屆時我們將進行問答環節。

(Operator Instructions)

（操作說明）

Our first question comes from the line of Colby Sasso of Daniel Energy Partners. Your line is now open.

我們的第一個問題來自 Daniel Energy Partners 的 Colby Sasso。您的線路已開通。

Hi, thanks for having me on the call. It sounds like your integration of ResMetrics is going really well, and the rationale behind the deal was to expand the trace of diagnostics footprint in the Middle East. What does that op opportunity set look like going forward and in 2026?

您好，謝謝邀請我參加電話會議。聽起來你們對 ResMetrics 的整合進展非常順利，這筆交易背後的理由是為了擴大在中東的診斷足跡。展望未來以及到 2026 年，這些機會前景如何？

Yeah, thanks, Colby. Thanks for joining. I appreciate the question.

是啊，謝謝你，科爾比。謝謝參與。感謝您的提問。

So yeah, look, I think What ResMetrics brought to us in the Middle East was certainly one part of the rationale for the deal just by way of background, we've had existing on the NCS side Tracer diagnostic operations in the Middle East for several years, but it really started to scale that up over the course of 2024 and 2025, primarily in Oman and Saudi Arabia. And what ResMetrics brought was some long-term contracts to participate in a couple of additional markets, including in the Emirates and in Kuwait. So, it really helped to broaden our portfolio in the region and the way that we serve customers over there. So we continue to participate in in that work, but I think there are a number of other compelling benefits to the ResMetrics acquisition beyond just that that Middle East presence, but that was certainly something that was attractive to us as part of the evaluation of that transaction.

所以，是的，你看，我認為 ResMetrics 為我們在中東帶來的價值，無疑是促成這筆交易的部分原因。就背景而言，我們在 NCS 方面已經在中東開展了 Tracer 診斷業務好幾年了，但真正開始擴大規模是在 2024 年和 2025 年，主要是在阿曼和沙烏地阿拉伯。ResMetrics 帶來的是一些長期合同，使其能夠參與到包括阿聯酋和科威特在內的幾個其他市場。因此，這確實有助於擴大我們在該地區的業務範圍以及我們服務當地客戶的方式。因此，我們將繼續參與這項工作，但我認為，除了在中東的業務之外，收購 ResMetrics 還有許多其他令人信服的好處，但這當然也是我們在評估這筆交易時非常重視的一點。

Thanks for the colour and then as the second follow-up question, free cash flows been up, handily year over year, and if we assume (Inaudible) growth in 2026, would you expect similar free cash flow next year and what does that profile look like?

感謝您提供的資料。第二個後續問題是，自由現金流年增率顯著，如果我們假設 2026 年（聽不清楚）成長，您預計明年的自由現金流會與去年類似嗎？如果是，其走勢會是怎樣的？

Yeah, it's a really good question, and I think the way we frame things up typically is thinking through, how we convert our adjusted EBITA to free cash flow and you know the way you framed is actually, a good way to frame it. So, in a in a flat environment.

是的，這確實是個好問題。我認為我們通常會思考如何將調整後的 EBITA 轉化為自由現金流，而你提出的觀點實際上也是一個很好的切入點。所以，在一個扁平化的環境。

We're not really investing in working capital or, drawing down working capital. We think we can typically convert something on the order of, 50 to 60% of our adjusted EBITA to free cash flow, and that's really about what you are seeing this year with that 60% free cash flow guidance at the midpoint. And I will note that when we are talking about free cash flow in that context, we are talking about it after the distributions to our non-controlling interests. So, it's really the free cash flow, the equity is the way to think about that.

我們既沒有真正投資於營運資金，也沒有動用營運資金。我們認為，我們通常可以將調整後 EBITA 的 50% 到 60% 轉化為自由現金流，而今年您看到的自由現金流預期中位數為 60%，這確實就是實際情況。我還要指出，當我們在那種情況下談論自由現金流時，我們指的是向非控股股東分配利潤之後的自由現金流。所以，真正重要的是自由現金流，也就是權益，這是看待這個問題的方式。

Thank you, that's all from me. I will turn it back over.

謝謝，我今天就到這裡。我會把它翻過來。

Alright, thanks.

好的，謝謝。

Thank you.

謝謝。

Our next question comes from the line of Dave Storms from Stonegate. Your line is now open.

我們的下一個問題來自 Stonegate 的 Dave Storms。您的線路已開通。

Morning and thanks for taking my questions.

早上好，感謝您回答我的問題。

Yeah, absolutely. Good morning, Dave.

是的，絕對的。早上好，戴夫。

Just wanted to circle back to ResMetrics here for a minute. It was mentioned that, maybe the integration is a little ahead of schedule. Could you spend a little more time talking about how much time is left to fully integrate and maybe if you think, it was mentioned last quarter, the 1 to $2 million in synergies could be implied if you think that's still a potential.

我想再簡單提一下 ResMetrics。有人提到，整合工作可能比原計劃提前了一些。能否再花點時間談談還需要多少時間才能完全整合？另外，如果您認為上個季度提到的 100 萬至 200 萬美元的協同效應仍然存在，那麼這或許可以算是協同效應。

Yeah, so maybe two things there. One is I think the integration is progressing along the timeline that we had expected as far as really doing the work to align processes, arrive at best practices, and be in a position to implement those.

是的，所以可能有兩個原因。我認為，整合工作正按照我們預期的時間表進行，真正地進行了流程協調、制定最佳實踐並能夠實施這些實踐的工作。

Because I think as we discussed, right, we were head to head competitors in the market doing the same thing but doing everything a little bit differently from the way that we source chemicals, the way we deploy them in the field, the way we take samples, the way we keep them in the lab and deliver reports to customers.

因為我認為正如我們討論的那樣，我們是市場上的直接競爭對手，做著同樣的事情，但在化學品的採購方式、現場部署方式、取樣方式、實驗室保存方式以及向客戶提供報告的方式等方面都略有不同。

So, with that we will continue to be methodical but believe that by early next year we will have really aligned all of those practices and be in a position to go out to the customer into the market in an integrated way.

因此，我們將繼續採取有條不紊的方式，但相信到明年初，我們將真正協調好所有這些做法，並能夠以一體化的方式走向客戶和市場。

What we've seen, however, is that we're not waiting for that kind of official integration to take place to find ways to work together and deliver some of those wins and some of that's coming in ahead of schedule.

然而，我們看到的是，我們並沒有等待那種正式的整合發生，而是尋找合作方式並取得一些成果，其中一些成果甚至提前實現了。

So with respect to the overall kind of synergy opportunity for the deal, I think we're still, confident that if you think about ResMetrics being about $10 million of annual revenue, the NCS Tracer business, ResMetrics having been in the high 10s, so you're talking about a $25 to $30 million dollar revenue base.

因此，就這筆交易的整體協同效應而言，我認為我們仍然有信心，考慮到 ResMetrics 的年收入約為 1000 萬美元，而 NCS Tracer 業務的 ResMetrics 的年收入接近 1000 萬美元，所以總收入基數在 2500 萬至 3000 萬美元之間。

Being able to get about 5% points of benefit across that, translates to call it 1.5 synergies at the midpoint, a mix of some on the SGA side, but really most of it on the cost of sales side and being able to more efficiently deploy the chemical portfolios, should yield really good savings for us and savings that contribute not only to earnings but also help to, bolster that free cash flow profile of the company.

能夠從中獲得約 5 個百分點的收益，相當於中間值 1.5 倍的協同效應，其中一些來自銷售、一般及行政費用 (SGA) 方面，但大部分來自銷售成本方面，並且能夠更有效地部署化學品組合，應該會為我們帶來非常好的節省，這些節省不僅有助於提高收益，還有助於增強公司的自由現金狀況流量。

That's a great call.

這是個明智的決定。

Thank you for that.

謝謝。

And then I want to ask a follow-up question around the North Sea. I know it tends to be more project by project.

然後我想問一個關於北海的後續問題。我知道這通常是按項目來定的。

Do you have any updates on maybe what that pipeline looks like going into 2026? And then additionally, you mentioned some new products like the science that you're going to be putting maybe into the Gulf of America as a test.

您能否提供一些關於該管道到 2026 年的最新消息？此外，您也提到了一些新產品，例如您打算在美洲灣進行測試的科學技術。

Will those new products give you any advantage in the North sea as well?

這些新產品也能為你們在北海帶來優勢嗎？

Sure I'll TRY to take those one at a time. So yeah, North Sea continues to be a really good market for us. Yeah, I think when we spoke last quarter, we had talked about the number of customers that we are, we worked for in 2025.

當然，我會盡量一次處理一個。是的，北海對我們來說仍然是一個非常好的市場。是的，我想上個季度我們談到的時候，我們討論過到 2025 年我們將服務的客戶數量。

Yeah, the North Sea tends to be a bit more seasonal from an operation standpoint when vessels can get out there to service the work as you approach the wintertime, seas get higher and the operational window closes a bit, but we do have a number of orders in hand from customers in the North Sea for slitting sleeves. It'll be installed for next year and are expected to be used in projects next year.

是的，從作業角度來看，北海的作業往往具有更強的季節性，隨著冬季臨近，海浪升高，作業窗口期會略微縮短，只有少數船舶能夠出海作業。但我們目前確實有一些來自北海客戶的套管分切訂單。它將於明年安裝，預計明年將在項目中使用。

So I would expect our activity in the North Sea next year to be, at least as robust as it was here in 2025 just based on what we're able to see at this point.

因此，根據我們目前所看到的，我預計我們明年在北海的活動至少會和 2025 年一樣強勁。

The project for the Gulf of America, we've talked about that before. It was a long, relatively long development project where we had some sponsorship from a customer, and that customer is the one who's identified the target well for us.

我們之前討論過美洲灣計畫。這是一個漫長的開發項目，期間我們得到了客戶的贊助，而這位客戶也為我們明確了目標客戶。

And that involves we call our Raytec PropX system for deepwater applications. It is a sliding sleeve that has integrated into it the ability to put the sleeve in a screen position after the frac.

這其中就包括我們稱為 Raytec PropX 的深水應用系統。這是一個滑動套筒，整合了在壓裂後將套筒置於篩網位置的功能。

So the first deployment will certainly be, in the Gulf of America, but that should have application in other deepwater markets worldwide. What I will say though is, those types of developments, especially as you move to deep water, tend to be.

因此，首次部署肯定會在美洲灣，但這應該可以應用於世界其他深水市場。不過我要說的是，這類發展，尤其是在深水區，往往會如此。

Longer sale cycle, longer lead time, and while this, particular system was developed with a single customer in mind and we think it has applicability for other customers, but other customers will want to do their own testing and potentially see some slight modifications before it gets deployed elsewhere. So we're bullish about it long-term and actually, Deepwater North Sea is a market that it could be applicable for, so it could help to, give us a little bit more opportunity in the North Sea in that medium to long-term time frame.

銷售週期更長，交付週期更長。雖然這個特定的系統是為一個客戶開發的，我們認為它也適用於其他客戶，但其他客戶可能希望進行自己的測試，並在部署到其他地方之前進行一些細微的修改。因此，我們長期看好它，實際上，北海深水區是一個它可能適用的市場，因此，在中長期內，它可以幫助我們在北海獲得更多機會。

That's great.

那太棒了。

Thank you for taking my questions and good luck in Q4.

感謝您回答我的問題，祝您第四季一切順利。

All right, thanks.

好的，謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Our next question comes from the line of Kashyi Sri of Singular Research. Your line is now open.

我們的下一個問題來自 Singular Research 的 Kashyi Sri。您的線路已開通。

Good morning, guys.

各位早安。

Can you hear me?

你聽得到我嗎？

I can hear you loud and clear. Thanks.

我能聽得很清楚。謝謝。

Thank you. Given the weakness in the Canadian rigs, are you seeing any changes in customer strategies that would alter your margin math for next year, or if you give us some colour on what kind of levers you'll be pulling to defend those margins?

謝謝。鑑於加拿大鑽井平台的疲軟，您是否看到客戶策略有任何變化，從而影響您明年的利潤率計算？或者，您能否透露您將採取哪些措施來捍衛這些利潤率？

Sure, yeah, I think we're right now in budget season within our customer base. There there's some customers that have put out preliminary budgets for next year, but many still haven't at this point.

當然，是的，我認為我們現在正處於客戶預算緊張的時期。有些客戶已經提交了明年的初步預算，但目前仍有許多客戶尚未提交。

But just to maybe take a step back, Canadian rig count was relatively flat and maybe even a little bit up year over year through the first half of the year. But we can if we came out a breakup in the third quarter, I think we were down 15% is on a year-to-year basis, and that is continued here into the fourth quarter. So there certainly has been a pullback in activity in the Canadian market. Some of that had to do with. Local gas pricing, the AECO gas market was at very low levels for the late summer and early fall. We think there is a chance that reverses itself. It's already recovered, but it reverses itself a bit more durably, especially as LNG Canada comes on and takes keeps taking more gas.

但或許應該退一步來看，今年上半年加拿大鑽井平台數量相對持平，甚至可能比去年同期略有成長。但是，如果我們在第三季度出現分崩離析的情況，我認為我們比去年同期下降了 15%，而且這種情況一直延續到第四季度。因此，加拿大市場的活躍度確實出現了回落。其中一些原因與此有關。在當地天然氣價格方面，AECO天然氣市場在夏末秋初處於非常低的水平。我們認為這種情況有可能逆轉。雖然已經恢復，但情況正在逐漸逆轉，而且這種逆轉會更加持久，尤其是在加拿大液化天然氣計畫投產並不斷增加天然氣消耗的情況下。

So right now. The budgets that we have seen announced from customers speak to more or less flat year to year CapEx, not to material reductions, if we do start seeing reductions in capital activity in Canada, we'll certainly look to take some actions in response to that. But the other thing I'd say is that we've historically had really good success in continuing to grow our market share in Canada over time.

所以現在。我們看到客戶公佈的預算表明，資本支出基本上保持平穩，沒有實質削減。如果我們開始看到加拿大資本活動減少，我們肯定會採取一些應對措施。但我想說的另一點是，從歷史上看，我們在加拿大市場份額的持續成長方面一直取得了非常好的成功。

And we've been really successful in a couple of markets up there in growing our presence, including parts of the Montani that are really focused more on light and condensate, and we've continuing to grow our share with products even outside of our fracturing systems business, growing our share with plug and perp through repeat precision products in Canada and bringing on additional well construction opportunities, so. Big picture, I think we can continue to take share and grow revenue in a way that would outpace the market in Canada, but as it is the biggest revenue component of our business, if there are changes in that market, we'll definitely adapt to them and if we need to, we'll adapt our cost structure as well.

我們在北部幾個市場取得了巨大的成功，擴大了我們的業務，包括蒙大拿州一些更專注於輕質原油和凝析油的地區。我們不斷擴大市場份額，甚至在壓裂系統業務之外的產品領域也是如此，例如在加拿大透過重複精密產品擴大了封隔器和垂直壓裂的市場份額，並帶來了更多的油井建設機會。從宏觀角度來看，我認為我們可以繼續擴大市場份額並實現收入成長，從而超越加拿大市場的整體水平。但由於加拿大市場是我們業務中最大的收入來源，如果該市場發生變化，我們一定會做出相應的調整，如有必要，我們也會調整成本結構。

Got you.

抓到你了。

And on this quarter, was the pressure mainly volume driven or was there some component of price? Do you expect any pressure on that end as well as you try to gain market share?

本季，市場壓力主要是由成交量驅動，還是價格因素也起了一定作用？在努力獲取市場份額的過程中，您是否預期會面臨來自這方面的壓力？

It’s really been volume at this point. Customers will always work with service companies to try to reduce price. It's an ongoing game of cat and mouse, but I think what I would say is we are comfortable and confident in the value that we deliver to our customers and enable them to achieve some pretty interesting production results, right? So yeah.

目前來看，關鍵在於銷售量。顧客總是會與服務公司協商，試圖降低價格。這是一場持續不斷的貓鼠遊戲，但我認為我想說的是，我們對我們為客戶提供的價值以及幫助他們取得一些非常有趣的生產成果感到滿意和自信，對吧？是的。

Pricing pressure is always a challenge whether it comes from customers or whether it comes from competitors, but we've got a good pricing strategy in place and again we're really leaning in the value that we provide to our customers and not trying to chase after work based on price.

價格壓力始終是一個挑戰，無論是來自客戶還是來自競爭對手，但我們已經制定了良好的定價策略，並且我們真正注重為客戶提供的價值，而不是試圖透過價格來爭取業務。

Got you.

抓到你了。

And on and on the tray diagnostics and rest metrics contribution, I think you've indicated that most of it is predominantly lumpy, but there is a recurring revenue base that is growing as we look towards these international markets, can you kind of give us some colour of the competitive space that it is and how much upside there is to the recovery revenue?

關於托盤診斷和剩餘指標的貢獻，我認為您已經指出，其中大部分收入波動較大，但隨著我們著眼於這些國際市場，經常性收入基礎正在增長。您能否為我們介紹當前的競爭格局以及回收收入的成長潛力？

Yeah, I mean we certainly have recurring customer relationships and projects with customers. We don't have what you would call backlog that really gets established through those.

是的，我的意思是，我們當然與客戶保持著長期的合作關係和專案往來。我們沒有那種透過這些方式真正建立的積壓訂單。

There is a little bit of an exception with some of the longer-term contracts that ResMetrics brought to the table in the Emirates and with Kuwait where it's kind of multi-year, but even with those, it tends to be project by project that gets called off from those frameworks.

ResMetrics 在阿聯酋和科威特簽訂的一些長期合同略有例外，這些合同通常是多年期的，但即使是這些合同，也往往是逐個項目地從這些框架中取消的。

So I'd say, look, big picture, right? International continues to be a strong opportunity for continued growth at NCS for Tracer diagnostics and for our other product lines. I think we have a pretty good line of sight and communication with our customers to understand their activity.

所以我想說，要從大局著眼，對吧？國際市場仍然是 NCS Tracer 診斷和其他產品線持續成長的強勁機會。我認為我們與客戶之間有著相當良好的溝通和聯繫，能夠了解他們的活動。

And expect to continue to kind of work with them over the course of those ongoing programs, but I think it's a little bit.

預計在這些持續進行的項目中，我們會繼續與他們合作，但我認為這有點…

To call it true kind of recurring revenue in that it would be under a backlog or something like that maybe a little bit of a mischaracterization.

如果稱之為真正的經常性收入，因為它可能來自積壓訂單或其他類似情況，那可能有點名不副實。

But it's, again, with the relationships and the history that we have, what we've established through the value of the reports that we provide to our customers, we expect a good growth profile internationally as a result.

但是，憑藉我們擁有的關係和歷史，以及我們透過向客戶提供的報告所建立的價值，我們期望在國際上取得良好的成長前景。

Okay, and on the competitive environment in these markets, what does that look like?

好的，那麼這些市場的競爭環境是怎麼樣的呢？

It's different market by market, because there's a process to get qualified with in most cases in the Middle East in particular, it's the national oil company, so that, Saudi is the biggest market and probably the most competitive as a result. The other markets are very attractive, so you will see competition when tenders come up. You're always going to see that, but I think as we've discussed with The tracer diagnostics business in the past compared to some of the other product lines that we're in, there are a handful of global competitors in tracer diagnostics, whereas in fracturing systems or for well construction, there tends to be, more competitors, so it tends to be pretty well behaved from a competitive standpoint. And again, really we rely on the value we provide and that that value is manifested in the reports and the insights that we deliver to our customers.

每個市場的情況都不一樣，因為在大多數情況下，尤其是在中東地區，都需要經過資格認證流程。這是由國家石油公司負責的，因此，沙烏地阿拉伯是最大的市場，也可能是競爭最激烈的市場。其他市場也很有吸引力，所以招標時就會出現競爭。你總是會看到這種情況，但我認為，正如我們過去在示踪診斷業務中討論過的那樣，與我們從事的其他一些產品線相比，示踪診斷領域只有少數幾家全球競爭對手，而壓裂系統或油井建設領域則往往有更多的競爭對手，因此從競爭的角度來看，示踪診斷業務往往表現得相當穩定。再次強調，我們真正依賴的是我們提供的價值，而這種價值體現在我們向客戶提供的報告和見解中。

Awesome, thank you guys.

太棒了，謝謝大家。

That's all I had.

這就是我全部的家當。

Thank you.

謝謝。

I'm showing no further questions at this time. I would now like to turn it back to Ryan Hummer's CEO for closing remarks.

我目前沒有其他問題要問。現在我想把時間交還給瑞安·哈默的首席執行官，請他作總結發言。

On behalf of our management team and our board, we'd like to thank everyone for joining the call today, including our shareholders, analysts, and especially our employees. I truly appreciate the tremendous work and dedication demonstrated by our team as we implement our long-term strategies. Our exceptional people continually demonstrate why I believe we have the best team in the industry.

我謹代表管理團隊和董事會，感謝今天所有參加電話會議的人士，包括我們的股東、分析師，尤其要感謝我們的員工。我衷心感謝我們的團隊在實施長期策略過程中所展現出的巨大努力和奉獻精神。我們優秀的員工不斷證明，為什麼我相信我們擁有業內最好的團隊。

The team continues to provide excellent service to our customers while developing new products and services that will enable our customers and NCS to be even more successful.

團隊將繼續為客戶提供優質服務，同時開發新產品和服務，使我們的客戶和 NCS 能夠取得更大的成功。

We appreciate everyone's interest in NCS Multi-stage and look forward to talking again on our next quarterly earnings call.

我們感謝大家對 NCS 多階段系統的關注，期待在下次季度財報電話會議上再次與大家交流。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。節目到此結束。您現在可以斷開連線了。