NPK Reports Third Quarter 2026 Results

Higher revenue and adjusted EBITDA accompanied weaker cash generation and a weather-related reduction in full-year expectations.

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THE WOODLANDS, Texas--(BUSINESS WIRE)-- NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced results for the three and nine months ended September 30, 2026.

THIRD QUARTER 2026 RESULTS

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

• Revenues of $76.3 million, +11%
• Operating income from continuing operations of $9.2 million, 12.0% operating margin
• Income from continuing operations of $6.3 million, or $0.07 per diluted share
• Adjusted EBITDA from Continuing Operations of $20.0 million, +30%
• Adjusted EBITDA margin of 26.2%, +390 basis points
• Total debt of $26.3 million and cash of $4.2 million as of September 30, 2026
• Repurchased $13.4 million of common equity in the third quarter of 2026

	Third Quarter
(In millions)	2026				2025				Change
Revenues	$	76.3			$	68.8			$	7.5
Operating income from continuing operations	$	9.2			$	9.1			$	0.1
Income from continuing operations per common share - Diluted	$	0.07			$	0.07			$	—
Adjusted EBITDA from continuing operations	$	20.0			$	15.4			$	4.6
Operating margin from continuing operations (%)		12.0	%			13.2	%			-120		bps
Adjusted EBITDA margin from continuing operations (%)		26.2	%			22.3	%			390		bps
Net cash provided by operating activities	$	7.1			$	24.7			$	(17.6	)
Free Cash Flow	$	(4.4	)		$	12.5			$	(16.9	)

MANAGEMENT COMMENTARY

“We generated third quarter year-over-year revenue and adjusted EBITDA growth of 11% and 30%, respectively, despite delayed deployments on several large projects,” stated Matthew Lanigan, President and CEO of NPK International. “While the exceptionally dry weather in Texas negatively impacted matting demand during the third and early fourth quarter and caused us to lower our full-year guidance, the underlying demand trends in our core power transmission markets remain robust as rental project activity has significantly strengthened throughout October. As a result, we expect strong rental and service trends to finish the year and our growth expectations for 2027 remain unchanged.”

Lanigan continued, “We remain focused on executing our key growth initiatives, including expanding our manufacturing capacity, growing our rental fleet, and further diversifying our customer base and geographic footprint. Our manufacturing facility expansion remains on track to begin operations by mid-2027, supporting accelerated fleet growth and reducing our reliance on cross-rental mats. We also continue to evaluate organic growth opportunities and strategic acquisitions to expand our presence in new and underpenetrated markets and further increase market share. These investments reflect our confidence in the strength and long-term durability of the growth trends driving our business.

“Our strong liquidity position provides us the flexibility to balance our growth investments with the return of capital through our disciplined share repurchase program. During the third quarter, we invested $13 million in share repurchases, leaving $76 million remaining under our current share repurchase authorization. With debt of $26 million at quarter end and roughly $132 million of availability under our bank facility, we have ample financial capacity to support both our strategic growth investments, as well as opportunistic share repurchases.

“Our quoting activity has remained robust, maintaining year-over-year growth of approximately 20% throughout the year, demonstrating the strong fundamental demand trends benefitting our business. We believe our strategic investments position us well to capitalize on these attractive growth opportunities, which combined with our consistent operational execution, give us confidence in our ability to deliver double-digit rental growth in the coming years. We are excited about the opportunities ahead and remain focused on capitalizing on favorable market trends, executing our growth strategy and delivering long-term 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.

Third quarter 2026 highlights include:

• Consistent customer demand from core markets. Business activity remains robust in core markets, driven by sustained demand from power transmission customers. Quoting activity remains consistent at elevated levels, with year-over-year growth of at least 20% throughout 2026, with much of the volume being originated in expansion geographies. This supports the Company’s longer-term expectation for double-digit rental growth.
• Improved operating efficiency. NPK remains focused on efficiency improvements and operating cost optimization across every aspect of its business. In the third quarter of 2026, NPK’s Adjusted EBITDA Margin was 26.2%, a 390 basis point improvement from the prior year period.
• Manufacturing capacity expansion. Based on the continued favorable long-term demand outlook, NPK continues to execute on 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 $10.5 million invested through September 30, 2026, with additional production expected to start up by mid-2027.
• Robust return of capital program. During the third quarter of 2026, the Company used $13.4 million of cash to repurchase 1.0 million outstanding shares under the repurchase program. The Company has $76 million remaining under the current share repurchase authorization.

FINANCIAL PERFORMANCE

In the third quarter of 2026, NPK generated revenue of $76.3 million, an increase of 11%, compared to $68.8 million in the prior year period. Rental and service revenue increased 12% to $49.6 million, while product sales increased 9% to $26.7 million. Rental demand in the third quarter of 2026 was impacted by an exceptionally dry weather pattern in Texas, which resulted in several scheduled large-scale utility projects commencing without the use of matting. The revenue decline in the Texas region was partially offset by growth in other targeted expansion markets.

Gross margin was 31.3% in the third quarter of 2026, compared to 31.9% in the prior year period.

Selling, general and administrative expenses were $14.7 million (19.3% of revenues) in the third quarter of 2026, compared to $13.3 million (19.3% of revenues) in the third quarter of 2025. SG&A for the third quarter of 2026 includes approximately $1.2 million in severance and related costs associated with executive leadership transition, as well as $0.7 million in strategic planning and diligence costs.

NPK generated income from continuing operations of $6.3 million, or $0.07 per diluted share, compared to $6.1 million, or $0.07 per diluted share, in the third quarter of 2025. Third quarter 2026 adjusted income from continuing operations was $7.9 million, or $0.09 per diluted share, compared to adjusted income from continuing operations of $6.1 million, or $0.07 per diluted share, in the third quarter of 2025.

The Company reported Adjusted EBITDA from Continuing Operations of $20.0 million in the third quarter of 2026, or 26.2% of total revenue, compared to $15.4 million, or 22.3% of total revenue, in the prior year period.

BALANCE SHEET AND LIQUIDITY

As of September 30, 2026, NPK had total cash of $4.2 million, total debt of $26.3 million, and available liquidity under its senior secured revolving credit facility of $132.2 million.

Operating cash flow was $7.1 million in the third quarter of 2026, and capital investments used $11.4 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 October 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 $300 million to $305 million
• Adjusted EBITDA in a range of $90 million to $93 million
• Capital expenditures in a range of $70 million to $75 million, which includes $40 million to $45 million invested to expand our rental fleet and approximately $20 million for the manufacturing expansion

THIRD QUARTER 2026 RESULTS CONFERENCE CALL

A conference call will be held Friday, October 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:	585-542-9983
Conference ID:	336 340 669

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 transmission and distribution, 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												Nine Months Ended
(In thousands, except per share data)	September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Revenues	$	76,276			$	81,585			$	68,838			$	232,931			$	201,848
Cost of revenues		52,371				51,426				46,870				151,681				129,449
Selling, general and administrative expenses		14,738				14,160				13,279				42,089				38,682
Other operating (income) loss, net		8				(91	)			(368	)			(511	)			(497	)
Operating income from continuing operations		9,159				16,090				9,057				39,672				34,214
Foreign currency exchange (gain) loss		101				(154	)			31				92				(909	)
Interest (income) expense, net		460				347				(47	)			1,130				(94	)
Income from continuing operations before income taxes		8,598				15,897				9,073				38,450				35,217
Provision for income taxes from continuing operations		2,268				3,908				3,010				9,773				9,995
Income from continuing operations		6,330				11,989				6,063				28,677				25,222
Loss from discontinued operations, net of tax		(221	)			(22	)			(409	)			(143	)			(887	)
Net income	$	6,109			$	11,967			$	5,654			$	28,534			$	24,335
Income (loss) per common share - basic
Income from continuing operations	$	0.07			$	0.14			$	0.07			$	0.34			$	0.30
Loss from discontinued operations		—				—				—				—				(0.01	)
Net income (loss)	$	0.07			$	0.14			$	0.07			$	0.34			$	0.29
Income (loss) per common share - diluted
Income from continuing operations	$	0.07			$	0.14			$	0.07			$	0.33			$	0.29
Loss from discontinued operations		—				—				—				—				(0.01	)
Net income	$	0.07			$	0.14			$	0.07			$	0.33			$	0.28
Weighted average shares:
Basic		84,420				84,526				84,359				84,454				84,959
Diluted		85,372				85,844				85,066				85,688				85,821

NPK International Inc.
Operating Results
(Unaudited)
	Three Months Ended												Nine Months Ended
(In thousands)	September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Revenues
Rental revenues	$	31,840			$	37,208			$	29,591			$	104,673			$	89,355
Service revenues		17,724				16,344				14,688				50,396				44,629
Product sales revenues		26,712				28,033				24,559				77,862				67,864
Total revenues	$	76,276			$	81,585			$	68,838			$	232,931			$	201,848
Operating income from continuing operations	$	9,159			$	16,090			$	9,057			$	39,672			$	34,214
Operating margin from continuing operations		12.0	%			19.7	%			13.2	%			17.0	%			17.0	%

NPK International Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)	September 30, 2026				December 31, 2025
ASSETS
Cash and cash equivalents	$	4,230			$	5,140
Receivables, net		65,735				59,806
Inventories		16,417				11,500
Prepaid expenses and other current assets		6,947				5,046
Total current assets		93,329				81,492
Property, plant and equipment, net		257,058				233,048
Operating lease assets		11,573				11,195
Goodwill		75,914				76,341
Other intangible assets, net		17,525				21,297
Deferred tax assets		1,558				5,535
Other assets		8,682				12,850
Total assets	$	465,639			$	441,758
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current debt	$	5,067			$	5,170
Accounts payable		23,353				22,327
Accrued liabilities		27,175				29,647
Total current liabilities		55,595				57,144
Long-term debt, less current portion		21,229				11,692
Noncurrent operating lease liabilities		9,778				9,877
Deferred tax liabilities		11,039				7,476
Other noncurrent liabilities		1,908				4,413
Total liabilities		99,549				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		489,664				489,632
Accumulated other comprehensive loss		(2,716	)			(1,610	)
Retained earnings (deficit)		(71,993	)			(100,527	)
Treasury stock, at cost (6,046,343 and 5,616,798 shares, respectively)		(49,765	)			(37,241	)
Total stockholders’ equity		366,090				351,156
Total liabilities and stockholders’ equity	$	465,639			$	441,758

NPK International Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended September 30,
(In thousands)	2026				2025
Cash flows from operating activities:
Net income	$	28,534			$	24,335
Adjustments to reconcile net income to net cash provided by operations:
Gain on divestitures		(500	)			—
Depreciation and amortization		25,404				18,235
Stock-based compensation expense		6,154				4,137
Provision for deferred income taxes		7,697				9,362
Credit loss expense		95				19
Gain on sale of assets		(1,261	)			(2,203	)
Amortization of original issue discount and debt issuance costs		237				394
Change in assets and liabilities:
Increase in receivables		(7,558	)			(2,462	)
(Increase) decrease in inventories		(4,790	)			5,007
Increase in other assets		(3,119	)			(3,711	)
Increase in accounts payable		2,425				1,466
Increase (decrease) in accrued liabilities and other		(3,172	)			405
Net cash provided by operating activities		50,146				54,984
Cash flows from investing activities:
Capital expenditures		(45,519	)			(34,419	)
Proceeds from divestitures		5,490				14,485
Proceeds from sale of property, plant and equipment		1,811				3,819
Other investing activities		(627	)			3,089
Net cash used in investing activities		(38,845	)			(13,026	)
Cash flows from financing activities:
Borrowings on lines of credit		49,100				—
Payments on lines of credit		(38,500	)			—
Debt issuance costs		—				(811	)
Purchases of treasury stock		(19,330	)			(22,695	)
Proceeds from employee stock plans		528				1,497
Other financing activities		(3,979	)			(2,639	)
Net cash used in financing activities		(12,181	)			(24,648	)
Effect of exchange rate changes on cash		(30	)			91
Net increase (decrease) in cash, cash equivalents, and restricted cash		(910	)			17,401
Cash, cash equivalents, and restricted cash at beginning of period		5,140				18,237
Cash, cash equivalents, and restricted cash at end of period	$	4,230			$	35,638

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 Income from Continuing Operations and Adjusted Income from Continuing Operations Per Common Share:

Consolidated	Three Months Ended												Nine Months Ended
(In thousands)	September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Income from continuing operations (GAAP)	$	6,330			$	11,989			$	6,063			$	28,677			$	25,222
Strategic planning, diligence, and acquisition-related costs		719				—				—				751				—
Modification of retirement terms		—				858				—				858				—
Plant expansion expenses		107				226				—				333				—
Severance and related costs		1,210				—				69				1,210				455
Tax on adjustments		(428	)			(228	)			(14	)			(662	)			(96	)
Adjusted Income from Continuing Operations (non-GAAP)	$	7,938			$	12,845			$	6,118			$	31,167			$	25,581

Adjusted Income from Continuing Operations (non-GAAP)	$	7,938			$	12,845			$	6,118			$	31,167			$	25,581
Weighted average common shares outstanding - basic		84,420				84,526				84,359				84,454				84,959
Dilutive effect of restricted stock awards and stock options		952				1,318				707				1,234				862
Weighted average common shares outstanding - diluted		85,372				85,844				85,066				85,688				85,821
Adjusted Income from Continuing Operations Per Common Share - Diluted (non-GAAP):	$	0.09			$	0.15			$	0.07			$	0.36			$	0.30

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, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Revenues	$	76,276			$	81,585			$	68,838			$	232,931			$	201,848
Operating income from continuing operations (GAAP)	$	9,159			$	16,090			$	9,057			$	39,672			$	34,214
Income from continuing operations (GAAP)	$	6,330			$	11,989			$	6,063			$	28,677			$	25,222
Interest (income) expense, net		460				347				(47	)			1,130				(94	)
Provision for income taxes from continuing operations		2,268				3,908				3,010				9,773				9,995
Depreciation and amortization		8,859				8,378				6,261				25,404				18,235
EBITDA from Continuing Operations (non-GAAP)		17,917				24,622				15,287				64,984				53,358
Strategic planning, diligence, and acquisition-related costs		719				—				—				751				—
Modification of retirement terms		—				858				—				858				—
Plant expansion expenses		107				226				—				333				—
Severance and related costs		1,210				—				69				1,210				455
Adjusted EBITDA from Continuing Operations (non-GAAP)	$	19,953			$	25,706			$	15,356			$	68,136			$	53,813
Operating Margin from Continuing Operations (GAAP)		12.0	%			19.7	%			13.2	%			17.0	%			17.0	%
Adjusted EBITDA Margin from Continuing Operations (non-GAAP)		26.2	%			31.5	%			22.3	%			29.3	%			26.7	%

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, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Net cash provided by operating activities (GAAP)	$	7,119			$	21,916			$	24,716			$	50,146			$	54,984
Capital expenditures		(12,304	)			(16,531	)			(12,714	)			(45,519	)			(34,419	)
Proceeds from sale of property, plant and equipment		792				536				499				1,811				3,819
Free Cash Flow (non-GAAP)	$	(4,393	)		$	5,921			$	12,501			$	6,438			$	24,384

NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
Trailing Twelve Months (“TTM”)
Consolidated	Three Months Ended																TTM
(In thousands)	December 31, 2025				March 31, 2026				June 30, 2026				September 30, 2026				September 30, 2026
Revenues	$	75,195			$	75,070			$	81,585			$	76,276			$	308,126
Operating income from continuing operations (GAAP)	$	12,565			$	14,423			$	16,090			$	9,159			$	52,237
Income from continuing operations (GAAP)	$	10,723			$	10,358			$	11,989			$	6,330			$	39,400
Interest (income) expense, net		107				323				347				460				1,237
Provision (benefit) for income taxes from continuing operations		1,710				3,597				3,908				2,268				11,483
Depreciation and amortization		7,302				8,167				8,378				8,859				32,706
EBITDA from Continuing Operations (non-GAAP)		19,842				22,445				24,622				17,917				84,826
Strategic planning, diligence, and acquisition-related costs		1,088				32				—				719				1,839
Modification of retirement terms		—				—				858				—				858
Plant expansion expenses		—				—				226				107				333
Severance and related costs		763				—				—				1,210				1,973
Adjusted EBITDA from Continuing Operations (non-GAAP)	$	21,693			$	22,477			$	25,706			$	19,953			$	89,829
Operating Margin from Continuing Operations (GAAP)		16.7	%			19.2	%			19.7	%			12.0	%			17.0	%
Adjusted EBITDA Margin from Continuing Operations (non-GAAP)		28.8	%			29.9	%			31.5	%			26.2	%			29.2	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029804711/en/

INVESTOR RELATIONS CONTACT
Investors@npki.com

Source: NPK International Inc.

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.