Company reports revenues of $75 million, diluted EPS of $0.12; Raises full-year guidance
THE WOODLANDS, Texas--(BUSINESS WIRE)--April 30, 2026--
NPK International Inc. (NYSE: NPKI) ("NPK" or the "Company") today announced results for the first quarter ended March 31, 2026.
FIRST QUARTER 2026 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-- Revenues of $75.1 million, +16%
-- Operating income from continuing operations of $14.4 million (19.2% of
revenues)
-- Income from continuing operations of $10.4 million, or $0.12 per
diluted share
-- Adjusted EBITDA from Continuing Operations of $22.5 million, +14%
-- Adjusted EBITDA margin from Continuing Operations of 29.9%
-- Total cash of $6.5 million and total debt of $10.6 million as of March
31, 2026
-- Repurchased $2.7 million of common equity
First Quarter
--------------------------------- -------------------- ----- ----
(In millions) 2026 2025 Change
--------------------------------- ---- ---- -----------
Revenues $75.1 $64.8 $10.3
Operating income from continuing
operations $14.4 $13.5 $ 0.9
Income from continuing operations
per common share - Diluted $0.12 $0.12 $ --
Adjusted EBITDA from continuing
operations $22.5 $19.7 $ 2.8
Operating margin from continuing
operations (%) 19.2% 20.9% -170 bps
Adjusted EBITDA margin from
continuing operations (%) 29.9% 30.4% -50 bps
Net cash provided by operating
activities $21.1 $ 8.8 $12.3
Free Cash Flow $ 4.9 $ 0.6 $ 4.3
MANAGEMENT COMMENTARY
"We were very pleased with our strong first quarter 2026 results, further building on the sustained momentum we experienced during 2025," stated Matthew Lanigan, President and CEO of NPK International. "First quarter revenue increased 16% year-over-year, driven by another record quarter of rental and services revenues and strong product demand from utility customers. The environment for power transmission spending remains robust, as evident by our sustained strength in rental fleet utilization, improved pricing, and strong quoting activity.
Lanigan continued, "As we have discussed, while we have made progress in improving our manufacturing throughput, the momentum in utility spending and our confidence in the durability of these trends has caused us to accelerate our planned manufacturing capacity expansion plans. To this end, we are pleased to report that our Board has approved plans to expand manufacturing capacity by approximately 50% from current levels, with the additional capacity expected to be online by mid-2027. We expect to invest $40 million to $45 million to complete the expansion, which we believe represents an attractive investment to support the planned growth in our business.
"Our disciplined financial management enabled us to generate strong cash flow, delivering $21 million of operating cash flow while investing nearly $15 million in fleet expansion during the first quarter. We continued to execute on our disciplined capital return strategy, utilizing $3 million for share repurchases during the quarter. We have $148 million of availability under our bank facility and minimal net debt, providing us with ample financial flexibility to continue executing our strategic growth objectives.
"First quarter results were in line with our expectations, demonstrating the improved consistency as we grow the business. Based on this strong first quarter performance and our confidence in the business outlook, we are raising our full-year fiscal 2026 guidance. Our scale and ability to execute on the largest and most complex transmission projects has us well positioned to benefit from the favorable secular drivers benefiting our end markets. We remain focused on execution against our strategic priorities, including our commitment to our disciplined allocation framework, all with an ongoing focus on providing value for our shareholders," concluded Lanigan.
BUSINESS UPDATE
NPK's business plan is designed to drive organic commercial growth within targeted, higher-margin product and rental markets; improve asset optimization and organizational efficiency; and pursue a capital allocation strategy that prioritizes investments with superior return profiles, together with a programmatic return of capital program.
First quarter 2026 highlights include:
-- Strong customer demand for matting rental and related services.
Revenues from specialty rental and related services increased to $52
million in the first quarter of 2026, with record rental revenues driven
by strong sustained demand from key customer accounts in support of power
transmission projects and the impact of our recent acquisition. Revenues
from product sales were $23 million for the first quarter of 2026,
primarily reflecting the continued strong demand from utility companies.
-- Improved operating efficiency. NPK remains focused on efficiency
improvements and operating cost optimization across every aspect of its
business. In the first quarter of 2026, NPK's SG&A as a percentage of
revenue was 17.6%, a 60 basis point improvement versus the prior year
period.
-- Return of capital to shareholders. The Company continued to execute on
its disciplined return of capital strategy during the first quarter of
2026, using $2.7 million of cash to repurchase 0.2 million of outstanding
shares under the repurchase program.
-- Manufacturing efficiency and capacity expansion. Management announced
that the Board of Directors recently approved plans to expand
manufacturing capacity by approximately 50% from current levels. The
Company expects to invest $40 million to $45 million over the next five
quarters to complete this expansion, with the goal of bringing the
additional capacity online by mid-2027.
FINANCIAL PERFORMANCE
In the first quarter of 2026, NPK generated revenue of $75.1 million, an increase of 16%, compared to $64.8 million in the prior year period. Rental and Service revenue increased 20% to $52.0 million, while product sales increased 8% to $23.1 million.
Gross margin was 36.2% in the first quarter of 2026, compared to 39.0% in the prior year period. The decline primarily reflects an elevated level of cross-rental activity, as well as modestly lower fleet utilization as compared to the exceptionally strong performance in the prior-year period.
Selling, general and administrative expenses were $13.2 million (17.6% of revenues) in the first quarter of 2026, compared to $11.7 million (18.1% of revenues) in the first quarter of 2025.
NPK generated income from continuing operations of $10.4 million, or $0.12 per diluted share, on total revenue of $75.1 million, compared to income from continuing operations of $10.4 million, or $0.12 per diluted share, on total revenue of $64.8 million, in the first quarter of 2025.
The Company reported Adjusted EBITDA from Continuing Operations of $22.5 million in the first quarter of 2026, or 29.9% of total revenue, compared to $19.7 million, or 30.4% of total revenue, in the prior year period.
BALANCE SHEET AND LIQUIDITY
As of March 31, 2026, NPK had total cash of $6.5 million, total debt of $10.6 million, and available liquidity under its senior secured revolving credit facility of $148 million.
Operating cash flow was $21.1 million in the first quarter of 2026. Capital investments used $16.2 million, net, with the substantial majority funding the expansion of the mat rental fleet to support increased customer demand.
FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company's current expectations and beliefs as of April 30, 2026 and is subject to change. The following statements apply only as of the date of this disclosure and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document.
For the full year 2026, NPK currently anticipates the following:
-- Revenues in a range of $310 million to $325 million
-- Adjusted EBITDA in a range of $92 million to $102 million
-- Capital expenditures in a range of $75 million to $90 million, which
includes $30 million to $35 million from manufacturing expansion
FIRST QUARTER 2026 RESULTS CONFERENCE CALL
A conference call will be held Friday, May 1, 2026 at 9:30 a.m. ET to review the Company's financial results and conduct a question-and-answer session.
A webcast of the conference call will be available in the Investor Relations section of the Company's website at www.npki.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To participate in the live teleconference:
Domestic Live: 800-715-9871 International Live: 646-307-1963 Conference ID: 8869084
To listen to a replay of the teleconference, which subsequently will be available through May 8, 2026:
Domestic Replay: 800-770-2030 International Replay: 647-362-9199
ABOUT NPK INTERNATIONAL
NPK International Inc. is a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products, along with a full suite of services, including planning, logistics, and site restoration. As a geographically diversified company, the Company delivers superior quality and reliability across critical infrastructure markets, including electrical transmission and distribution, oil and gas exploration, pipeline, renewable energy, petrochemical, construction, and other industries. For more information, visit our website at www.npki.com.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as "will," "may," "could," "would, " "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," "guidance," and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by NPK, particularly its Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q, as well as others, could cause actual plans or results to differ materially from those expressed in, or implied by, these statements. These risk factors include, but are not limited to, risks related to our ability to generate organic growth; economic and market conditions that may impact our customers' future spending; customer concentration; the effective management of our fleet, including our ability to properly manufacture, safeguard, and maintain our fleet; international operations; manufacturing capacity expansion projects; operating hazards present in our and our customers' industries and substantial liability claims; our contracts that can be terminated or downsized by our customers without penalty; our product offering and market expansion; our ability to attract, retain, and develop qualified leaders, key employees, and skilled personnel; expanding our services in the utilities sector, which may require unionized labor; the price and availability of raw materials; inflation; capital investments and business acquisitions; market competition; technological developments and intellectual property; severe weather, natural disasters, and seasonality; public health crises, epidemics, and pandemics; our cost and continued availability of borrowed funds, including noncompliance with debt covenants; environmental laws and regulations; legal compliance; the inherent limitations of insurance coverage; income taxes; cybersecurity incidents or business system disruptions; complications with the design or implementation of our updated enterprise resource planning system; activist stockholders that may attempt to effect changes at our Company or acquire control over our Company; share repurchases; and our amended and restated bylaws, which could limit our stockholders' ability to obtain what such stockholders believe to be a favorable judicial forum for disputes with us or our directors, officers or other employees. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. NPK's filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as well as through our website at www.npki.com.
NPK International Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
---------------------------- ------------------------------------------
(In thousands, except per March 31, December 31, March 31,
share data) 2026 2025 2025
---------------------------- ----------- -------------- -------------
Revenues $ 75,070 $ 75,195 $ 64,777
Cost of revenues 47,884 46,834 39,527
Selling, general and
administrative expenses 13,191 15,352 11,746
Other operating (income)
loss, net (428) 444 (24)
------ ---------- ------
Operating income from
continuing operations 14,423 12,565 13,528
Foreign currency exchange
(gain) loss 145 25 (314)
Interest (income) expense,
net 323 107 (48)
------ ---------- ------
Income from continuing
operations before
income taxes 13,955 12,433 13,890
Provision for income taxes
from continuing operations
(1) 3,597 1,710 3,515
------ ---------- ------
Income from continuing
operations 10,358 10,723 10,375
Income (loss) from
discontinued
operations, net of tax 100 3,881 (372)
------ ---------- ------
Net income $ 10,458 $ 14,604 $ 10,003
====== ========== ======
Income (loss) per common
share - basic
Income from continuing
operations $ 0.12 $ 0.13 $ 0.12
Income (loss) from
discontinued operations -- 0.04 --
------ ---------- ------
Net income $ 0.12 $ 0.17 $ 0.12
====== ========== ======
Income (loss) per common
share - diluted
Income from continuing
operations $ 0.12 $ 0.13 $ 0.12
Income (loss) from
discontinued
operations -- 0.04 (0.01)
------ ---------- ------
Net income $ 0.12 $ 0.17 $ 0.11
====== ========== ======
Weighted average shares:
Basic 84,416 84,406 86,057
Diluted 85,852 85,414 86,996
(1) Includes an income tax benefit of $1.5 million for the three months
ended December 31, 2025, primarily reflecting the release of valuation
allowances on U.S. net operating losses and other tax credit
carryforwards following the sale of the Fluids Systems business.
NPK International Inc.
Operating Results
(Unaudited)
Three Months Ended
-------------------------- ------------------------------------------
March 31, December 31, March 31,
(In thousands) 2026 2025 2025
-------------------------- ----------- ---------------- -----------
Revenues
Rental revenues $35,625 $ 34,816 $28,110
Service revenues 16,328 14,909 15,283
Product sales revenues 23,117 25,470 21,384
------ -------- ------
Total revenues $75,070 $ 75,195 $64,777
====== ======== ======
Operating income from
continuing operations $14,423 $ 12,565 $13,528
Operating margin from
continuing operations 19.2% 16.7% 20.9%
NPK International Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
(In thousands, except share data) 2026 2025
------------------------------------------- --------- ----------------
ASSETS
Cash and cash equivalents $ 6,537 $ 5,140
Receivables, net 61,624 59,806
Inventories 9,336 11,500
Prepaid expenses and other current
assets 4,819 5,046
------- ---------
Total current assets 82,316 81,492
Property, plant and equipment, net 239,777 233,048
Operating lease assets 10,244 11,195
Goodwill 75,507 76,341
Other intangible assets, net 19,678 21,297
Deferred tax assets 2,207 5,535
Other assets 8,161 12,850
------- ---------
Total assets $437,890 $ 441,758
======= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt $ 4,833 $ 5,170
Accounts payable 23,103 22,327
Accrued liabilities 24,107 29,647
------- ---------
Total current liabilities 52,043 57,144
Long-term debt, less current portion 5,721 11,692
Noncurrent operating lease liabilities 9,054 9,877
Deferred tax liabilities 7,168 7,476
Other noncurrent liabilities 4,120 4,413
------- ---------
Total liabilities 78,106 90,602
Common stock, $0.01 par value
(200,000,000 shares authorized and
89,969,464 and 90,134,477 shares
issued, respectively) 900 902
Paid-in capital 489,996 489,632
Accumulated other comprehensive loss (2,968) (1,610)
Retained earnings (deficit) (90,069) (100,527)
Treasury stock, at cost (5,537,255 and
5,616,798 shares, respectively) (38,075) (37,241)
------- ---------
Total stockholders' equity 359,784 351,156
------- ---------
Total liabilities and stockholders'
equity $437,890 $ 441,758
======= =========
NPK International Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
------------------------------------ --------------------------------------
(In thousands) 2026 2025
------------------------------------ ----------- ----------
Cash flows from operating
activities:
Net income $ 10,458 $ 10,003
Adjustments to reconcile net income
to net cash provided by operations:
Gain on divestitures (500) --
Depreciation and amortization 8,167 5,802
Stock-based compensation expense 1,720 1,185
Provision for deferred income
taxes 3,207 2,917
Credit loss expense 29 6
Gain on sale of assets (621) (823)
Amortization of original issue
discount and debt issuance
costs 79 69
Change in assets and
liabilities:
Increase in receivables (3,068) (10,015)
Decrease in inventories 2,159 5,088
Increase in other assets (41) (256)
Increase (decrease) in
accounts payable 3,715 (522)
Decrease in accrued
liabilities and other (4,193) (4,626)
----------- ----------
Net cash provided by operating
activities 21,111 8,828
Cash flows from investing
activities:
Capital expenditures (16,684) (10,011)
Proceeds from divestitures 5,490 10,665
Proceeds from sale of property,
plant and equipment 483 1,818
Other investing activities -- 2,946
----------- ----------
Net cash provided by (used in)
investing activities (10,711) 5,418
Cash flows from financing
activities:
Borrowings on lines of credit 12,100 --
Payments on lines of credit (17,400) --
Purchases of treasury stock (2,683) (10,810)
Proceeds from employee stock
plans 491 --
Other financing activities (1,428) (865)
----------- ----------
Net cash used in financing
activities (8,920) (11,675)
Effect of exchange rate changes on
cash (83) 26
----------- ----------
Net increase in cash, cash
equivalents, and restricted cash 1,397 2,597
Cash, cash equivalents, and
restricted cash at beginning of
period 5,140 18,237
----------- ----------
Cash, cash equivalents, and
restricted cash at end of period $ 6,537 $ 20,834
=========== ==========
NPK International Inc.
Non-GAAP Reconciliations
(Unaudited)
To help understand the Company's financial performance, the Company
has supplemented its financial results that it provides in accordance
with generally accepted accounting principles ("GAAP") with non-GAAP
financial measures. Such financial measures include Adjusted Income
from Continuing Operations, Adjusted Income from Continuing Operations
Per Common Share, earnings before interest, taxes, depreciation and
amortization ("EBITDA") from Continuing Operations, Adjusted EBITDA
from Continuing Operations, Adjusted EBITDA Margin from Continuing
Operations, and Free Cash Flow.
We believe these non-GAAP financial measures are frequently used by
investors, securities analysts and other parties in the evaluation of
our performance and liquidity with that of other companies in our
industry. Management uses these measures to evaluate our operating
performance, liquidity and capital structure. In addition, our
incentive compensation plan measures performance based on our
consolidated EBITDA, along with other factors. The methods we use to
produce these non-GAAP financial measures may differ from methods used
by other companies. These measures should be considered in addition
to, not as a substitute for, financial measures prepared in accordance
with GAAP.
Adjusted Income from Continuing Operations and Adjusted Income from
Continuing Operations Per Common Share
The following tables reconcile the Company's income from continuing
operations and income from continuing operations per common share
calculated in accordance with GAAP to the non-GAAP financial measures
of Adjusted Net Income from Continuing Operations and Adjusted Net
Income from Continuing Operations Per Common Share:
Consolidated Three Months Ended
-------------------------- ------------------------------------------
March 31, December 31, March 31,
(In thousands) 2026 2025 2025
-------------------------- ----------- -------------- -------------
Income from continuing
operations (GAAP) $ 10,358 $ 10,723 $ 10,375
Acquisition-related
transaction costs 32 1,088 --
Severance costs -- 763 27
Tax on adjustments (7) (389) (6)
Unusual tax items (1) -- (1,471) --
------ --------- ------
Adjusted Income from
Continuing Operations
(non-GAAP) $ 10,383 $ 10,714 $ 10,396
====== ========= ======
Adjusted Income from Continuing
Operations (non-GAAP) $10,383 $10,714 $10,396
Weighted average common shares
outstanding - basic 84,416 84,406 86,057
Dilutive effect of stock
options and restricted stock
awards 1,436 1,008 939
------ ------ ------
Weighted average common shares
outstanding - diluted 85,852 85,414 86,996
------ ------ ------
Adjusted Income from Continuing
Operations Per Common Share -
Diluted (non-GAAP): $ 0.12 $ 0.13 $ 0.12
(1) Unusual tax item for the three months ended December 31,
2025, primarily reflects the release of valuation allowances on
U.S. net operating losses and other tax credit carryforwards
that are expected to be realized following the sale of the
Fluids Systems business.
NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
EBITDA from Continuing Operations, Adjusted EBITDA from Continuing
Operations, and Adjusted EBITDA Margin from Continuing Operations
The following table reconciles the Company's income from continuing
operations calculated in accordance with GAAP to the non-GAAP
financial measures of EBITDA from Continuing Operations, Adjusted
EBITDA from Continuing Operations, and Adjusted EBITDA Margin from
Continuing Operations:
Consolidated Three Months Ended
-------------------------- ------------------------------------------
March 31, December 31, March 31,
(In thousands) 2026 2025 2025
-------------------------- ----------- ---------------- -----------
Revenues $75,070 $ 75,195 $64,777
Operating income from
continuing operations
(GAAP) $14,423 $ 12,565 $13,528
Income from continuing
operations (GAAP) $10,358 $ 10,723 $10,375
Interest (income)
expense, net 323 107 (48)
Provision for income
taxes from continuing
operations 3,597 1,710 3,515
Depreciation and
amortization 8,167 7,302 5,802
------ -------- ------
EBITDA from Continuing
Operations (non-GAAP) 22,445 19,842 19,644
Acquisition-related
transaction costs 32 1,088
Severance costs -- 763 27
------ -------- ------
Adjusted EBITDA from
Continuing Operations
(non-GAAP) $22,477 $ 21,693 $19,671
====== ======== ======
Operating Margin from
Continuing Operations
(GAAP) 19.2% 16.7% 20.9%
====== ======== ======
Adjusted EBITDA Margin
from Continuing
Operations (non-GAAP) 29.9% 28.8% 30.4%
====== ======== ======
Free Cash Flow
The following table reconciles the Company's net cash provided by
operating activities calculated in accordance with GAAP to the
non-GAAP financial measure of Free Cash Flow:
Consolidated Three Months Ended
-------------------------- --------------------------------------
March 31, December 31, March 31,
(In thousands) 2026 2025 2025
-------------------------- --------- -------------- -----------
Net cash provided by
operating activities
(GAAP) $ 21,111 $ 18,004 $ 8,828
Capital expenditures (16,684) (12,252) (10,011)
Proceeds from sale of
property, plant and
equipment 483 195 1,818
------- --------- -------
Free Cash Flow (non-GAAP) $ 4,910 $ 5,947 $ 635
======= ========= =======
NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
Trailing Twelve Months ("TTM")
Consolidated Three Months Ended TTM
------------------------ -------------------------------------------------- ------------
June 30, September December March 31, March 31,
(In thousands) 2025 30, 2025 31, 2025 2026 2026
------------------------ ----------- ----------- ----------- ----------- ------------
Revenues $68,233 $68,838 $75,195 $75,070 $287,336
Operating income from
continuing operations
(GAAP) $11,629 $ 9,057 $12,565 $14,423 $ 47,674
Income from continuing
operations (GAAP) $ 8,784 $ 6,063 $10,723 $10,358 $ 35,928
Interest (income)
expense, net 1 (47) 107 323 384
Provision (benefit)
for income taxes
from continuing
operations 3,470 3,010 1,710 3,597 11,787
Depreciation and
amortization 6,172 6,261 7,302 8,167 27,902
------ ------ ------ ------ -------
EBITDA from Continuing
Operations (non-GAAP) 18,427 15,287 19,842 22,445 76,001
Acquisition-related
transaction costs -- -- 1,088 32 1,120
Severance costs 359 69 763 -- 1,191
------ ------ ------ ------ -------
Adjusted EBITDA from
Continuing Operations
(non-GAAP) $18,786 $15,356 $21,693 $22,477 $ 78,312
====== ====== ====== ====== =======
Operating Margin from
Continuing Operations
(GAAP) 17.0% 13.2% 16.7% 19.2% 16.6%
====== ====== ====== ====== =======
Adjusted EBITDA Margin
from Continuing
Operations (non-GAAP) 27.5% 22.3% 28.8% 29.9% 27.3%
====== ====== ====== ====== =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430348858/en/
CONTACT: INVESTOR RELATIONS:
Investors@npki.com
(END) Dow Jones Newswires
April 30, 2026 16:15 ET (20:15 GMT)