NPK Reports Third Quarter 2025 Results

Revenues increased 56% year-over-year; Company raises full-year revenue guidance to $268-$272 million; full-year Adjusted EBITDA updated to $71-$74 million NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced results for the three and nine months ended September 30, 2025. THIRD QUARTER 2025 RESULTS (all comparisons versus the prior year period unless otherwise noted) Revenues of $68.8 million, +56%; Rental revenues of $29.6 million, +57%Operating income from continuing operations of $9.1 million, 13.2% operating marginIncome from continuing operations of $6.1 million, or $0.07 per diluted shareAdjusted EBITDA from Continuing Operations of $15.4 million, 22.3% Adjusted EBITDA marginTotal cash of $35.6 million and total debt of $9.5 million as of September 30, 2025Cash flow from operating activities of $24.7 million; Free Cash Flow of $12.5 million Third Quarter (In millions) 2025 2024 Change Revenues $ 68.8 $ 44.2 $ 24.6 Operating income from continuing operations $ 9.1 $ 1.2 $ 7.9 Adjusted EBITDA from continuing operations $ 15.4 $ 7.5 $ 7.9 Operating margin from continuing operations (%) 13.2 % 2.8 % 1040 bps Adjusted EBITDA margin from continuing operations (%) 22.3 % 17.0 % 530 bps Net cash provided by operating activities $ 24.7 $ 2.8 $ 21.9 Free Cash Flow $ 12.5 $ (5.6 ) $ 18.1 MANAGEMENT COMMENTARY “We delivered strong third-quarter results, with revenue increasing by 56%, driven by sustained demand growth in the power transmission market, and exceptional execution by our commercial sales and operational teams serving the largest and most complex utility projects,” said Matthew Lanigan, President and CEO of NPK. “Given the strengthening market outlook, we are raising our full-year capital expenditure plan by $10 million to align with expected demand growth in 2026 and have also accelerated planning efforts to expand our manufacturing capacity to support long-term growth.” Lanigan continued, “One of our key competitive advantages is the scale and flexibility of our rental fleet, which enables us to respond rapidly to evolving customer needs. This advantage was again clearly demonstrated late in the quarter, as we successfully met customer demand for multiple large-scale project changes and extensions. While these short-notice changes introduced some operational inefficiencies and modest margin pressure in the quarter, our responsiveness further solidifies our customer relationships and market leadership while our full year and longer-term outlook for mid-30’s gross margin remains unchanged.” “We remain in a strong financial position, with cash and available liquidity of nearly $180 million as of September 30, 2025, giving us significant flexibility to support our balanced capital allocation strategy and fund our growth initiatives,” Lanigan added. “Year-to-date, we have expanded our rental fleet by 13%, and our recent debottlenecking efforts have resulted in a 5% increase in production output — both critical steps toward supporting continued growth and enhancing operational efficiency.” “We’re extremely proud of our performance through the first nine months of 2025, which reflects the dedication and hard work of our entire team,” Lanigan concluded. “We ended Q3 with record utilization levels, setting the stage for a strong finish to the year. As a result, we are raising our full-year financial guidance. We remain focused on executing our strategic priorities and are energized by the opportunities ahead.” 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. Third quarter 2025 highlights include: Strong customer demand continued for matting rental and related services. Revenues from specialty rental and related services were $44 million in the third quarter of 2025, with strong demand continuing in support of power transmission projects throughout the typically softer summer months. Revenues from product sales were $25 million for the third quarter of 2025, the Company’s strongest quarter of the year, primarily reflecting continued strength in demand from utility companies.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. During the third quarter of 2025, the Company began the rollout of a new cloud-based ERP system, which is expected to be substantially completed in the first quarter of 2026. In the third quarter of 2025, NPK’s SG&A as a percentage of revenue was 19.3%, which includes approximately $1 million in elevated costs related to performance-based incentives, along with $0.5 million in costs associated with strategic planning projects and the ERP rollout. 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 annual incentives tied to 2025 sales, profitability and other performance targets.Robust return of capital program. During the third quarter of 2025, the Company used $3.4 million of cash to repurchase 0.4 million outstanding shares under the repurchase program. FINANCIAL PERFORMANCE In the third quarter of 2025, NPK generated income from continuing operations of $6.1 million, or $0.07 per diluted share, on total revenue of $68.8 million, compared to $14.9 million, or $0.17 per diluted share, on total revenue of $44.2 million, in the third quarter of 2024. Income from continuing operations for the third quarter of 2024 included an income tax benefit of $14.6 million 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. Gross margin was 31.9% in the third quarter of 2025, compared to 27.5% in the prior year period. The Company reported Adjusted EBITDA from Continuing Operations of $15.4 million in the third quarter of 2025, or 22.3% of total revenue, compared to $7.5 million, or 17.0% of total revenue, in the prior year period. Selling, general and administrative expenses were $13.3 million (19.3% of revenues) in the third quarter of 2025, compared to $11.0 million (24.9% of revenues) in the third quarter of 2024. BALANCE SHEET AND LIQUIDITY As of September 30, 2025, NPK remained in a net cash positive position, with total cash of $35.6 million, total debt of $9.5 million, and available liquidity under its senior secured revolving credit facility of $144 million. Operating cash flow was $24.7 million in the third quarter of 2025. Capital investments used $12.2 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand, while $3.4 million was used to fund purchases under our repurchase program. FINANCIAL GUIDANCE The following forward-looking guidance reflects the Company’s current expectations and beliefs as of October 30, 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 $268 million to $272 millionAdjusted EBITDA in a range of $71 million to $74 millionCapital expenditures in a range of $45 million to $50 million THIRD QUARTER 2025 RESULTS CONFERENCE CALL A conference call will be held Friday, October 31, 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: 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 November 7, 2025: 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. 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. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenues $ 68,838 $ 68,233 $ 44,207 $ 201,848 $ 159,965 Cost of revenues 46,870 43,052 32,067 129,449 105,358 Selling, general and administrative expenses 13,279 13,657 11,005 38,682 35,335 Other operating (income) loss, net (368 ) (105 ) (99 ) (497 ) (1,435 ) Operating income from continuing operations 9,057 11,629 1,234 34,214 20,707 Foreign currency exchange (gain) loss 31 (626 ) (562 ) (909 ) 170 Interest (income) expense, net (47 ) 1 943 (94 ) 2,612 Income from continuing operations before income taxes 9,073 12,254 853 35,217 17,925 Provision (benefit) for income taxes from continuing operations 3,010 3,470 (14,016 ) 9,995 (9,626 ) Income from continuing operations 6,063 8,784 14,869 25,222 27,551 Loss from discontinued operations, net of tax (409 ) (106 ) (189,167 ) (887 ) (186,516 ) Net income (loss) $ 5,654 $ 8,678 $ (174,298 ) $ 24,335 $ (158,965 ) Income (loss) per common share - basic Income from continuing operations $ 0.07 $ 0.10 $ 0.17 $ 0.30 $ 0.32 Loss from discontinued operations — — (2.19 ) (0.01 ) (2.18 ) Net income (loss) $ 0.07 $ 0.10 $ (2.02 ) $ 0.29 $ (1.86 ) Income (loss) per common share - diluted Income from continuing operations $ 0.07 $ 0.10 $ 0.17 $ 0.29 $ 0.32 Loss from discontinued operations — — (2.16 ) (0.01 ) (2.13 ) Net income (loss) $ 0.07 $ 0.10 $ (1.99 ) $ 0.28 $ (1.82 ) Weighted average shares: Basic 84,359 84,480 86,377 84,959 85,619 Diluted 85,066 85,423 87,490 85,821 87,453 NPK International Inc. Operating Segment Results (Unaudited) Three Months Ended Nine Months Ended (In thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenues Rental revenues $ 29,591 $ 31,654 $ 18,873 $ 89,355 $ 63,787 Service revenues 14,688 14,658 13,535 44,629 40,198 Product sales revenues 24,559 21,921 11,799 67,864 55,980 Total revenues $ 68,838 $ 68,233 $ 44,207 $ 201,848 $ 159,965 Operating income from continuing operations $ 9,057 $ 11,629 $ 1,234 $ 34,214 $ 20,707 Operating margin from continuing operations 13.2 % 17.0 % 2.8 % 17.0 % 12.9 % NPK International Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share data) September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 35,636 $ 17,756 Receivables, net 57,362 74,841 Inventories 9,668 14,659 Prepaid expenses and other current assets 5,152 5,728 Total current assets 107,818 112,984 Property, plant and equipment, net 210,521 187,483 Operating lease assets 10,840 11,793 Goodwill 47,481 47,222 Other intangible assets, net 8,868 10,331 Deferred tax assets 6,844 15,593 Other assets 12,087 8,276 Total assets $ 404,459 $ 393,682 LIABILITIES AND STOCKHOLDERS’ EQUITY Current debt $ 3,636 $ 2,900 Accounts payable 21,960 19,459 Accrued liabilities 23,392 22,300 Total current liabilities 48,988 44,659 Long-term debt, less current portion 5,906 4,827 Noncurrent operating lease liabilities 9,649 10,896 Deferred tax liabilities 1,820 1,203 Other noncurrent liabilities 4,173 5,602 Total liabilities 70,536 67,187 Common stock, $0.01 par value (200,000,000 shares authorized and 111,669,464 and 111,669,464 shares issued, respectively) 1,117 1,117 Paid-in capital 630,802 633,239 Accumulated other comprehensive loss (2,668 ) (2,871 ) Retained earnings (deficit) (115,131 ) (139,466 ) Treasury stock, at cost (27,178,065 and 25,114,978 shares, respectively) (180,197 ) (165,524 ) Total stockholders’ equity 333,923 326,495 Total liabilities and stockholders’ equity $ 404,459 $ 393,682 NPK International Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, (In thousands) 2025 2024 Cash flows from operating activities: Net income (loss) $ 24,335 $ (158,965 ) Adjustments to reconcile net income (loss) to net cash provided by operations: Loss on divestitures — 195,729 Depreciation and amortization 18,235 21,804 Stock-based compensation expense 4,137 4,119 Provision for deferred income taxes 9,362 (22,290 ) Credit loss expense 19 998 Gain on sale of assets (2,203 ) (2,412 ) Gain on insurance recovery — (874 ) Amortization of original issue discount and debt issuance costs 394 885 Change in assets and liabilities: Increase in receivables (2,462 ) (13,734 ) Decrease in inventories 5,007 9,481 Increase in other assets (3,711 ) (1,027 ) Increase in accounts payable 1,466 12,498 Increase (decrease) in accrued liabilities and other 405 (3,916 ) Net cash provided by operating activities 54,984 42,296 Cash flows from investing activities: Capital expenditures (34,419 ) (29,940 ) Proceeds from divestitures 14,485 48,499 Proceeds from sale of property, plant and equipment 3,819 3,188 Proceeds from insurance property claim — 1,385 Other investing activities 3,089 — Net cash provided by (used in) investing activities (13,026 ) 23,132 Cash flows from financing activities: Borrowings on lines of credit — 177,541 Payments on lines of credit — (224,292 ) Debt issuance costs (811 ) (50 ) Purchases of treasury stock (22,695 ) (4,504 ) Proceeds from employee stock plans 1,497 17 Other financing activities (2,639 ) (9,538 ) Net cash used in financing activities (24,648 ) (60,826 ) Effect of exchange rate changes on cash 91 (119 ) Net increase in cash, cash equivalents, and restricted cash 17,401 4,483 Cash, cash equivalents, and restricted cash at beginning of period 18,237 38,901 Cash, cash equivalents, and restricted cash at end of period $ 35,638 $ 43,384 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: Consolidated Three Months Ended Nine Months Ended (In thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Income from continuing operations (GAAP) $ 6,063 $ 8,784 $ 14,869 $ 25,222 $ 27,551 Gain on insurance recovery — — — — (67 ) Gain on legal settlement — — — — (550 ) Severance costs 69 359 113 455 921 Tax on adjustments (14 ) (75 ) (24 ) (96 ) (64 ) Unusual tax items(1) — — (14,617 ) — (14,617 ) Adjusted Income from Continuing Operations (non-GAAP) $ 6,118 $ 9,068 $ 341 $ 25,581 $ 13,174 Adjusted Income from Continuing Operations (non-GAAP) $ 6,118 $ 9,068 $ 341 $ 25,581 $ 13,174 Weighted average common shares outstanding - basic 84,359 84,480 86,377 84,959 85,619 Dilutive effect of restricted stock awards and stock options 707 943 1,113 862 1,834 Weighted average common shares outstanding - diluted 85,066 85,423 87,490 85,821 87,453 Adjusted Income from Continuing Operations Per Common Share - Diluted (non-GAAP): $ 0.07 $ 0.11 $ — $ 0.30 $ 0.15 (1) Unusual tax items 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 Nine Months Ended (In thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenues $ 68,838 $ 68,233 $ 44,207 $ 201,848 $ 159,965 Operating income from continuing operations (GAAP) $ 9,057 $ 11,629 $ 1,234 $ 34,214 $ 20,707 Income from continuing operations (GAAP) $ 6,063 $ 8,784 $ 14,869 $ 25,222 $ 27,551 Interest (income) expense, net (47 ) 1 943 (94 ) 2,612 Provision (benefit) for income taxes from continuing operations 3,010 3,470 (14,016 ) 9,995 (9,626 ) Depreciation and amortization 6,261 6,172 5,592 18,235 16,932 EBITDA from Continuing Operations (non-GAAP) 15,287 18,427 7,388 53,358 37,469 Gain on insurance recovery — — — — (67 ) Gain on legal settlement — — — — (550 ) Severance costs 69 359 113 455 921 Adjusted EBITDA from Continuing Operations (non-GAAP) $ 15,356 $ 18,786 $ 7,501 $ 53,813 $ 37,773 Operating Margin from Continuing Operations (GAAP) 13.2 % 17.0 % 2.8 % 17.0 % 12.9 % Adjusted EBITDA Margin from Continuing Operations (non-GAAP) 22.3 % 27.5 % 17.0 % 26.7 % 23.6 % 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 Nine Months Ended (In thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net cash provided by operating activities (GAAP) $ 24,716 $ 21,440 $ 2,765 $ 54,984 $ 42,296 Capital expenditures (12,714 ) (11,694 ) (9,472 ) (34,419 ) (29,940 ) Proceeds from sale of property, plant and equipment 499 1,502 1,146 3,819 3,188 Free Cash Flow (non-GAAP) $ 12,501 $ 11,248 $ (5,561 ) $ 24,384 $ 15,544 NPK International Inc. Non-GAAP Reconciliations (Continued) (Unaudited) Trailing Twelve Months (“TTM”) Consolidated Three Months Ended TTM (In thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 Revenues $ 57,524 $ 64,777 $ 68,233 $ 68,838 $ 259,372 Operating income from continuing operations (GAAP) $ 11,644 $ 13,528 $ 11,629 $ 9,057 $ 45,858 Income from continuing operations (GAAP) $ 8,048 $ 10,375 $ 8,784 $ 6,063 $ 33,270 Interest (income) expense, net 9 (48 ) 1 (47 ) (85 ) Provision (benefit) for income taxes from continuing operations 2,888 3,515 3,470 3,010 12,883 Depreciation and amortization 5,724 5,802 6,172 6,261 23,959 EBITDA from Continuing Operations (non-GAAP) 16,669 19,644 18,427 15,287 70,027 Severance costs 416 27 359 69 871 Adjusted EBITDA from Continuing Operations (non-GAAP) $ 17,085 $ 19,671 $ 18,786 $ 15,356 $ 70,898 Operating Margin from Continuing Operations (GAAP) 20.2 % 20.9 % 17.0 % 13.2 % 17.7 % Adjusted EBITDA Margin from Continuing Operations (non-GAAP) 29.7 % 30.4 % 27.5 % 22.3 % 27.3 % Source: NPK International Inc.