Company reports record rental revenues; Raises full-year guidance

THE WOODLANDS, Texas--(BUSINESS WIRE)--Aug. 5, 2025-- NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced results for the three and six months ended June 30, 2025.

SECOND QUARTER 2025 RESULTS

(all comparisons versus the prior year period unless otherwise noted)

• Revenues of $68.2 million, +2%; Rental revenues of $31.7 million, +34%
• Operating income from continuing operations of $11.6 million, 17.0% operating margin
• Income from continuing operations of $8.8 million, or $0.10 per diluted share
• Adjusted EBITDA from Continuing Operations of $18.8 million, 27.5% Adjusted EBITDA margin
• Total cash of $26.0 million and total debt of $9.3 million as of June 30, 2025
• Cash flow from operating activities of $21.4 million; Free Cash Flow of $11.2 million
• Repurchased $6 million of common equity, 1% of outstanding shares
• Established new $150 million revolving credit facility
• Announced Global Industry Classification Standard (GICS^®) code changed to 20107010 (Industrials/Capital Goods/Trading Companies & Distributors)

MANAGEMENT COMMENTARY

“Our disciplined execution once again resulted in strong organic growth in the second quarter, highlighted by rental revenue growth of 34% to $32 million, another single quarter record,” stated Matthew Lanigan, President and CEO of NPK. “The strong demand we experienced late in the first quarter continued through the second quarter, driven by ongoing strength in our core utility and critical infrastructure markets, with notable strength in large scale utility projects that has the added benefit of driving longer contract durations and increased visibility. To meet the concurrent surge in demand on several large-scale projects, we leveraged our rental fleet and logistics capabilities, as well as our third-party network to successfully deliver for our customers and highlight our position as one of the few providers with the ability to scale rapidly and successfully execute during even the most dynamic market environments.”

“We remain excited by the ongoing momentum in our business, further validating our long-term growth strategy, which is focused on growing our rental fleet scale, expanding our geographic footprint, and providing industry leading products and services to our customers,” continued Lanigan. “As we look ahead to the second half, we continue to be encouraged by the strength in our core markets and the pipeline of rental projects and products sales we are pursuing. Based on our strong first half performance and our visibility into continued momentum into the second half, we are pleased to once again raise our full-year revenue and EBITDA expectations for fiscal 2025.”

“We continued to execute under our disciplined capital allocation framework during the second quarter, as we made additional investments to expand our rental fleet and returned capital through our share repurchase program, all while maintaining ample financial flexibility,” noted Lanigan. “We repurchased another 1% of our outstanding shares during the quarter and further expanded our rental fleet by 5%, as we continue to build on our leading position within the composite rental market. With the recent establishment of our new bank facility in June, we had approximately $175 million of cash and available liquidity as of June 30, 2025, providing us significant flexibility to support our strategic growth plans and capital allocation strategy.”

“We are very pleased by our strong results during the first half of 2025, which are a direct result of the dedicated focus on our key strategic priorities combined with the favorable market trends. We look to further take advantage of these favorable conditions by remaining committed to our key initiatives, which include delivering consistent organic growth, driving operating efficiency, and return of capital optimization, all with a focus on driving long-term shareholder value,” 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.

Second quarter 2025 highlights include:

• Strong customer demand for matting rental and related services. Revenues from specialty rental and related services increased to $46 million in the second quarter of 2025, with record rental revenues driven by strong demand in support of power transmission projects. Revenues from product sales were $22 million for the second quarter of 2025, reflecting continued strength in demand from utility companies and other fleet owners supporting the utilities and critical infrastructure end-markets.
• Improved operating efficiency. NPK remains focused on efficiency improvements and operating cost optimization across every aspect of its business. The Company continues to evaluate and execute actions intended to streamline the organization and its cost structure, while targeting SG&A as a percentage of revenue in the mid-teens by early 2026. In the second quarter of 2025, NPK’s SG&A as a percentage of revenue was 20%, which includes approximately $2 million in elevated costs related to performance-based incentives, along with severance costs associated with ongoing streamlining efforts. The expense for performance-based incentives includes both long-term awards measured on the Company’s total shareholder return (“TSR”) relative to the designated peer group, as well as short-term incentives tied to 2025 sales, profitability and other performance targets.
• Robust return of capital program. During the second quarter of 2025, the Company used $6 million of cash to repurchase 0.8 million (1%) of outstanding shares under the repurchase program.

FINANCIAL PERFORMANCE

In the second quarter of 2025, NPK generated income from continuing operations of $8.8 million, or $0.10 per diluted share, on total revenue of $68.2 million, compared to $8.6 million, or $0.10 per diluted share, on total revenue of $66.8 million, in the second quarter of 2024. Gross margin was 36.9% in the second quarter of 2025, compared to 37.2% in the prior year period. The Company reported Adjusted EBITDA from Continuing Operations of $18.8 million in the second quarter of 2025, or 27.5% of total revenue, compared to $17.9 million, or 26.8% of total revenue, in the prior year period.

Selling, general and administrative expenses were $13.7 million (20.0% of revenues) in the second quarter of 2025, compared to $12.8 million (19.1% of revenues) in the second quarter of 2024.

BALANCE SHEET AND LIQUIDITY

As of June 30, 2025, NPK remained in a net cash positive position, with total cash of $26.0 million, total debt of $9.3 million, and available liquidity under its senior secured revolving credit facility of $148 million.

Operating cash flow was $21.4 million in the second quarter of 2025. Capital investments used $10.2 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand, while $8.5 million was used to fund the purchase of treasury shares, including purchases under our repurchase program and shares withheld upon vesting of employee equity awards for the settlement of tax obligations.

FINANCIAL GUIDANCE

The following forward-looking guidance reflects the Company’s current expectations and beliefs as of August 5, 2025, 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 2025, NPK currently anticipates the following:

• Revenues in a range of $250 million to $260 million
• Adjusted EBITDA in a range of $68 million to $74 million
• Capital expenditures in a range of $35 million to $40 million

SECOND QUARTER 2025 RESULTS CONFERENCE CALL

A conference call will be held Wednesday, August 6, 2025 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:

To listen to a replay of the teleconference, which subsequently will be available through August 13, 2025:

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. 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 sale of the Fluids Systems business; our ability to generate organic growth; economic and market conditions that may impact our customers’ future spending; the effective management of our fleet, including our ability to properly manufacture, safeguard, and maintain our fleet; international operations; 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; 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.
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 (Loss) from Continuing Operations, Adjusted Income (Loss) 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 (Loss) from Continuing Operations and Adjusted Income (Loss) 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 Income from Continuing Operations and Adjusted Income from Continuing Operations Per Common Share:

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:

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:

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INVESTOR RELATIONS CONTACT
Investors@npki.com

Source: NPK International Inc.