NPK Reports Second Quarter 2026 Results

Company reports $82 million revenues, $0.14 diluted EPS; Raises full-year earnings guidance NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced results for the three and six months ended June 30, 2026. SECOND QUARTER 2026 RESULTS (all comparisons versus the prior year period unless otherwise noted) Revenues of $81.6 million, +20%Operating income from continuing operations of $16.1 million, 19.7% operating marginIncome from continuing operations of $12.0 million, or $0.14 per diluted shareAdjusted EBITDA from Continuing Operations of $25.7 million, 31.5% Adjusted EBITDA marginTotal cash of $8.4 million and total debt of $10.6 million as of June 30, 2026 Second Quarter (In millions) 2026 2025 Change Revenues $ 81.6 $ 68.2 $ 13.4 Operating income from continuing operations $ 16.1 $ 11.6 $ 4.5 Income from continuing operations per common share - Diluted $ 0.14 $ 0.10 $ 0.04 Adjusted EBITDA from continuing operations $ 25.7 $ 18.8 $ 6.9 Operating margin from continuing operations (%) 19.7 % 17.0 % 270 bps Adjusted EBITDA margin from continuing operations (%) 31.5 % 27.5 % 400 bps Net cash provided by operating activities $ 21.9 $ 21.4 $ 0.5 Free Cash Flow $ 5.9 $ 11.2 $ (5.3 ) MANAGEMENT COMMENTARY “We are pleased with the strong financial results for the second quarter of 2026, reflecting consistent execution by our team members across the organization, continued momentum in our core power transmission markets, and efficient margin realization,” stated Matthew Lanigan, President and CEO of NPK International. “During the second quarter, we successfully navigated the demobilization of several large-scale projects and delivered 20% year-over-year revenue growth, highlighted by another quarter of record rental revenue and robust demand for product sales, while adjusted EBITDA grew 37%. Supported by sustained market strength and an ongoing focus on operational excellence, we are well positioned for continued strength in the second half of 2026 and have raised our full year earnings guidance. Lanigan continued, “We have continued to make important progress on our strategic initiatives, as evidenced by our strong operating momentum. Notably, we have advanced our Carencro, Louisiana manufacturing expansion effort, which remains on track to start up by mid-2027, expanding capacity by approximately 50%. During the second quarter, we invested more than $4 million of the expected $40 million to $45 million required to complete the project, and we are confident that this expansion and our continuing debottlenecking initiatives will both enhance margins through reduced usage of cross-rental mats while also supporting our longer-term growth objectives. “Our capital allocation strategy continues to prioritize investments in the growth of our rental fleet and our manufacturing capacity expansion to support sustained organic growth, strategic acquisitions, and the return of capital through our disciplined share repurchase program. With minimal net debt and nearly $150 million of availability under our bank facility, we are well positioned to pursue our strategic growth and capital allocation priorities. “The outlook for utility transmission spending remains robust, driven by projected load growth, an aging infrastructure, and the need to connect new capacity to the grid. While timing of large projects is difficult to predict, we remain confident in the near-term outlook and our ability to continue generating double-digit rental growth in the coming years. We continue to be encouraged by the opportunities ahead and remain confident in our ability to execute on our strategic priorities and create durable 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. Second quarter 2026 highlights include: Strong customer demand for matting rental and related services. Revenues from specialty rental and related services increased to $54 million in the second quarter of 2026, with record rental revenues driven by strong demand from key customer accounts in support of power transmission projects and the impact of our recent acquisition. Revenues from product sales were $28 million for the second quarter of 2026, our highest quarterly level in two years, 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 second quarter of 2026, NPK’s Adjusted EBITDA Margin was 31.5%, a 400 basis improvement from the prior year period, and SG&A as a percentage of revenue was 17.4%, a 260 basis point improvement versus the prior year period. In May 2026, the Compensation Committee of our Board of Directors modified the retirement eligibility terms applicable to our long-term incentive awards, including unvested grants from 2024 and 2025. As a result, SG&A for the second quarter of 2026 includes a $0.9 million charge reflecting the acceleration of compensation expense for such awards for retirement eligible executive officers and other employees.Manufacturing efficiency and capacity expansion. NPK continues to execute on its recently approved plans to expand our Carencro, Louisiana manufacturing capacity by approximately 50% from current levels. The Company expects to invest $40 million to $45 million by mid-2027, including $4.1 million invested in the second quarter, with additional production expected to start up by mid-2027. FINANCIAL PERFORMANCE In the second quarter of 2026, NPK generated revenue of $81.6 million, an increase of 20%, compared to $68.2 million in the prior year period. Rental and service revenue increased 16% to $53.6 million, while product sales increased 28% to $28.0 million. Gross margin was 37.0% in the second quarter of 2026, compared to 36.9% in the prior year period. Selling, general and administrative expenses were $14.2 million (17.4% of revenues) in the second quarter of 2026, compared to $13.7 million (20.0% of revenues) in the second quarter of 2025. SG&A for the second quarter of 2026 includes a $0.9 million charge related to acceleration of long-term incentive compensation expense due to the modification of our retirement eligibility terms. NPK generated income from continuing operations of $12.0 million, or $0.14 per diluted share, compared to $8.8 million, or $0.10 per diluted share, in the second quarter of 2025. Second quarter 2026 adjusted income from continuing operations was $12.8 million, or $0.15 per diluted share. The Company reported Adjusted EBITDA from Continuing Operations of $25.7 million in the second quarter of 2026, or 31.5% of total revenue, compared to $18.8 million, or 27.5% of total revenue, in the prior year period. BALANCE SHEET AND LIQUIDITY As of June 30, 2026, NPK had total cash of $8.4 million, total debt of $10.6 million, and available liquidity under its senior secured revolving credit facility of $148 million. Operating cash flow was $21.9 million in the second quarter of 2026. Capital investments used $16.0 million, net, with the substantial majority funding the growth of the mat rental fleet and the manufacturing expansion project. FINANCIAL GUIDANCE The following forward-looking guidance reflects the Company’s current expectations and beliefs as of July 29, 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 $313 million to $323 millionAdjusted EBITDA in a range of $97 million to $103 millionCapital expenditures in a range of $65 million to $80 million, which includes $20 million to $25 million from manufacturing expansion; Our capex plan for 2026 has been reduced, primarily reflecting changes in the timing of manufacturing expansion expenditures. The change in expenditure timing will not impact our anticipated mid-year 2027 completion date SECOND QUARTER 2026 RESULTS CONFERENCE CALL A conference call will be held Thursday, July 30, 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 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: 833-461-5787 International Live: 365-657-4084 Conference ID: 374346665 After the webcast, a replay will be available on the Company’s website. ABOUT NPK INTERNATIONAL NPK International Inc. is a 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 power transmission, oil and gas exploration, pipeline, renewable energy, petrochemical, construction, and other industries. For more information, visit our website at 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 sec.gov, as well as through our website at npki.com. NPK International Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended (In thousands, except per share data) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues $ 81,585 $ 75,070 $ 68,233 $ 156,655 $ 133,010 Cost of revenues 51,426 47,884 43,052 99,310 82,579 Selling, general and administrative expenses 14,160 13,191 13,657 27,351 25,403 Other operating (income) loss, net (91 ) (428 ) (105 ) (519 ) (129 ) Operating income from continuing operations 16,090 14,423 11,629 30,513 25,157 Foreign currency exchange (gain) loss (154 ) 145 (626 ) (9 ) (940 ) Interest (income) expense, net 347 323 1 670 (47 ) Income from continuing operations before income taxes 15,897 13,955 12,254 29,852 26,144 Provision for income taxes from continuing operations 3,908 3,597 3,470 7,505 6,985 Income from continuing operations 11,989 10,358 8,784 22,347 19,159 Income (loss) from discontinued operations, net of tax (22 ) 100 (106 ) 78 (478 ) Net income $ 11,967 $ 10,458 $ 8,678 $ 22,425 $ 18,681 Income (loss) per common share - basic Income from continuing operations $ 0.14 $ 0.12 $ 0.10 $ 0.26 $ 0.22 Income (loss) from discontinued operations — — — 0.01 — Net income $ 0.14 $ 0.12 $ 0.10 $ 0.27 $ 0.22 Income (loss) per common share - diluted Income from continuing operations $ 0.14 $ 0.12 $ 0.10 $ 0.26 $ 0.22 Income (loss) from discontinued operations — — — — — Net income $ 0.14 $ 0.12 $ 0.10 $ 0.26 $ 0.22 Weighted average shares: Basic 84,526 84,416 84,480 84,471 85,264 Diluted 85,844 85,852 85,423 85,848 86,205 NPK International Inc. Operating Segment Results (Unaudited) Three Months Ended Six Months Ended (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues Rental revenues $ 37,208 $ 35,625 $ 31,654 $ 72,833 $ 59,764 Service revenues 16,344 16,328 14,658 32,672 29,941 Product sales revenues 28,033 23,117 21,921 51,150 43,305 Total revenues $ 81,585 $ 75,070 $ 68,233 $ 156,655 $ 133,010 Operating income from continuing operations $ 16,090 $ 14,423 $ 11,629 $ 30,513 $ 25,157 Operating margin from continuing operations 19.7 % 19.2 % 17.0 % 19.5 % 18.9 % NPK International Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share data) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 8,351 $ 5,140 Receivables, net 60,276 59,806 Inventories 11,503 11,500 Prepaid expenses and other current assets 4,866 5,046 Total current assets 84,996 81,492 Property, plant and equipment, net 250,037 233,048 Operating lease assets 10,018 11,195 Goodwill 75,971 76,341 Other intangible assets, net 18,647 21,297 Deferred tax assets 1,603 5,535 Other assets 8,458 12,850 Total assets $ 449,730 $ 441,758 LIABILITIES AND STOCKHOLDERS’ EQUITY Current debt $ 5,183 $ 5,170 Accounts payable 23,370 22,327 Accrued liabilities 24,125 29,647 Total current liabilities 52,678 57,144 Long-term debt, less current portion 5,383 11,692 Noncurrent operating lease liabilities 8,630 9,877 Deferred tax liabilities 9,685 7,476 Other noncurrent liabilities 1,977 4,413 Total liabilities 78,353 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 487,744 489,632 Accumulated other comprehensive loss (2,723 ) (1,610 ) Retained earnings (deficit) (78,102 ) (100,527 ) Treasury stock, at cost (5,059,570 and 5,616,798 shares, respectively) (36,442 ) (37,241 ) Total stockholders’ equity 371,377 351,156 Total liabilities and stockholders’ equity $ 449,730 $ 441,758 NPK International Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (In thousands) 2026 2025 Cash flows from operating activities: Net income $ 22,425 $ 18,681 Adjustments to reconcile net income to net cash provided by operations: Gain on divestitures (500 ) — Depreciation and amortization 16,545 11,974 Stock-based compensation expense 4,125 2,596 Provision for deferred income taxes 6,284 6,164 Credit loss expense 64 19 Gain on sale of assets (1,212 ) (1,557 ) Amortization of original issue discount and debt issuance costs 158 313 Change in assets and liabilities: Increase in receivables (1,472 ) (6,283 ) Decrease in inventories 25 3,596 Increase in other assets (736 ) (1,924 ) Increase in accounts payable 3,708 1,823 Decrease in accrued liabilities and other (6,387 ) (5,134 ) Net cash provided by operating activities 43,027 30,268 Cash flows from investing activities: Capital expenditures (33,215 ) (21,705 ) Proceeds from divestitures 5,490 14,485 Proceeds from sale of property, plant and equipment 1,019 3,320 Other investing activities — 3,089 Net cash used in investing activities (26,706 ) (811 ) Cash flows from financing activities: Borrowings on lines of credit 12,600 — Payments on lines of credit (17,900 ) — Debt issuance costs — (797 ) Purchases of treasury stock (5,882 ) (19,291 ) Proceeds from employee stock plans 528 — Other financing activities (2,416 ) (1,704 ) Net cash used in financing activities (13,070 ) (21,792 ) Effect of exchange rate changes on cash (40 ) 110 Net increase in cash, cash equivalents, and restricted cash 3,211 7,775 Cash, cash equivalents, and restricted cash at beginning of period 5,140 18,237 Cash, cash equivalents, and restricted cash at end of period $ 8,351 $ 26,012 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 Six Months Ended (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Income from continuing operations (GAAP) $ 11,989 $ 10,358 $ 8,784 $ 22,347 $ 19,159 Acquisition-related transaction costs — 32 — 32 — Modification of retirement terms 858 — — 858 — Plant expansion expenses 226 — — 226 — Severance costs — — 359 — 386 Tax on adjustments (228 ) (7 ) (75 ) (234 ) (81 ) Adjusted Income from Continuing Operations (non-GAAP) $ 12,845 $ 10,383 $ 9,068 $ 23,229 $ 19,464 Adjusted Income from Continuing Operations (non-GAAP) $ 12,845 $ 10,383 $ 9,068 $ 23,229 $ 19,464 Weighted average common shares outstanding - basic 84,526 84,416 84,480 84,471 85,264 Dilutive effect of stock options and restricted stock awards 1,318 1,436 943 1,377 941 Weighted average common shares outstanding - diluted 85,844 85,852 85,423 85,848 86,205 Adjusted Income from Continuing Operations Per Common Share - Diluted (non-GAAP): $ 0.15 $ 0.12 $ 0.11 $ 0.27 $ 0.23 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 Six Months Ended (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues $ 81,585 $ 75,070 $ 68,233 $ 156,655 $ 133,010 Operating income from continuing operations (GAAP) $ 16,090 $ 14,423 $ 11,629 $ 30,513 $ 25,157 Income from continuing operations (GAAP) $ 11,989 $ 10,358 $ 8,784 $ 22,347 $ 19,159 Interest expense, net 347 323 1 670 (47 ) Provision for income taxes 3,908 3,597 3,470 7,505 6,985 Depreciation and amortization 8,378 8,167 6,172 16,545 11,974 EBITDA from Continuing Operations (non-GAAP) 24,622 22,445 18,427 47,067 38,071 Acquisition-related transaction costs — 32 — 32 — Modification of retirement terms 858 — — 858 — Plant expansion expenses 226 — — 226 — Severance costs — — 359 — 386 Adjusted EBITDA from Continuing Operations (non-GAAP) $ 25,706 $ 22,477 $ 18,786 $ 48,183 $ 38,457 Operating Margin from Continuing Operations (GAAP) 19.7 % 19.2 % 17.0 % 19.5 % 18.9 % Adjusted EBITDA Margin from Continuing Operations (non-GAAP) 31.5 % 29.9 % 27.5 % 30.8 % 28.9 % 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 Six Months Ended (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net cash provided by operating activities (GAAP) $ 21,916 $ 21,111 $ 21,440 $ 43,027 $ 30,268 Capital expenditures (16,531 ) (16,684 ) (11,694 ) (33,215 ) (21,705 ) Proceeds from sale of property, plant and equipment 536 483 1,502 1,019 3,320 Free Cash Flow (non-GAAP) $ 5,921 $ 4,910 $ 11,248 $ 10,831 $ 11,883 NPK International Inc. Non-GAAP Reconciliations (Continued) (Unaudited) Trailing Twelve Months (“TTM”) Consolidated Three Months Ended TTM (In thousands) September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 June 30, 2026 Revenues $ 68,838 $ 75,195 $ 75,070 $ 81,585 $ 300,688 Operating income from continuing operations (GAAP) $ 9,057 $ 12,565 $ 14,423 $ 16,090 $ 52,135 Income from continuing operations (GAAP) $ 6,063 $ 10,723 $ 10,358 $ 11,989 $ 39,133 Interest (income) expense, net (47 ) 107 323 347 730 Provision (benefit) for income taxes from continuing operations 3,010 1,710 3,597 3,908 12,225 Depreciation and amortization 6,261 7,302 8,167 8,378 30,108 EBITDA from Continuing Operations (non-GAAP) 15,287 19,842 22,445 24,622 82,196 Acquisition-related transaction costs — 1,088 32 — 1,120 Modification of retirement terms — — — 858 858 Plant expansion expenses — — — 226 226 Severance costs 69 763 — — 832 Adjusted EBITDA from Continuing Operations (non-GAAP) $ 15,356 $ 21,693 $ 22,477 $ 25,706 $ 85,232 Operating Margin from Continuing Operations (GAAP) 13.2 % 16.7 % 19.2 % 19.7 % 17.3 % Adjusted EBITDA Margin from Continuing Operations (non-GAAP) 22.3 % 28.8 % 29.9 % 31.5 % 28.3 % Source: NPK International Inc.