NPK International (NYSE: NPKI) raises 2026 guidance after strong Q1 2026 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
NPK International Inc. reported solid first quarter 2026 results, with revenue of $75.1 million, up 16% from $64.8 million a year earlier. Growth was driven by rental and services revenue of $52.0 million, supported by strong demand from power transmission projects and utilities.
Operating income from continuing operations was $14.4 million, and income from continuing operations held at $10.4 million, or $0.12 per diluted share, matching the prior year’s per-share result. Adjusted EBITDA from continuing operations increased to $22.5 million, up 14%, with a margin of 29.9%.
The company generated $21.1 million of operating cash flow and $4.9 million of free cash flow, while repurchasing $2.7 million of common equity and ending the quarter with $6.5 million in cash and $10.6 million of total debt. The Board approved a manufacturing capacity expansion of about 50%, with planned investment of $40–$45 million through mid-2027. Based on current momentum, NPK raised full-year 2026 guidance to revenue of $310–$325 million, Adjusted EBITDA of $92–$102 million, and capital expenditures of $75–$90 million.
Positive
- Stronger growth and higher outlook: Q1 2026 revenue rose 16% to $75.1 million, Adjusted EBITDA increased 14% to $22.5 million, and management raised full-year 2026 guidance for both revenue ($310–$325 million) and Adjusted EBITDA ($92–$102 million).
Negative
- None.
Insights
Revenue up 16%, strong cash flow, higher 2026 guidance and major capacity expansion underline growth focus.
NPK International posted Q1 2026 revenue of $75.1 million, up 16%, with Adjusted EBITDA from continuing operations rising to $22.5 million. Income from continuing operations was $10.4 million, or $0.12 per diluted share, flat year over year on a per-share basis.
Cash generation was notable, with operating cash flow of $21.1 million and Free Cash Flow of $4.9 million, while funding fleet growth and $2.7 million of share repurchases. Net debt remained low, with $6.5 million of cash, $10.6 million of total debt, and $148 million of revolver availability as of March 31, 2026.
The Board approved a roughly 50% manufacturing capacity increase, with planned investment of $40–$45 million through mid-2027. Management also raised full-year 2026 guidance to revenue of $310–$325 million and Adjusted EBITDA of $92–$102 million, signaling confidence in sustained demand and execution against its growth strategy.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $75.1 million
Q1 2026 Income from Continuing Operations: $10.4 million
Q1 2026 Adjusted EBITDA: $22.5 million
+5 more
8 metrics
Q1 2026 Revenue
$75.1 million
Three months ended March 31, 2026; up 16% year over year
Q1 2026 Income from Continuing Operations
$10.4 million
Three months ended March 31, 2026; $0.12 diluted EPS
Q1 2026 Adjusted EBITDA
$22.5 million
Adjusted EBITDA from continuing operations; 29.9% margin; +14% vs prior year
Operating Cash Flow Q1 2026
$21.1 million
Net cash provided by operating activities in first quarter 2026
Free Cash Flow Q1 2026
$4.9 million
Non-GAAP Free Cash Flow for three months ended March 31, 2026
Manufacturing Expansion Investment
$40–$45 million
Planned spend over next five quarters to expand capacity ~50% by mid-2027
2026 Revenue Guidance
$310–$325 million
Full-year 2026 revenue outlook provided April 30, 2026
2026 Adjusted EBITDA Guidance
$92–$102 million
Full-year 2026 Adjusted EBITDA guidance range
Key Terms
Adjusted EBITDA from Continuing Operations, Free Cash Flow, non-GAAP financial measures, Operating margin from continuing operations, +2 more
6 terms
Adjusted EBITDA from Continuing Operations financial
"Adjusted EBITDA from Continuing Operations of $22.5 million, +14%"
Free Cash Flow financial
"Free Cash Flow | $ | 4.9 | | $ | 0.6 | | $ | 4.3"
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.
non-GAAP financial measures financial
"the Company has supplemented its financial results... with non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Operating margin from continuing operations financial
"Operating margin from continuing operations (%) | 19.2% | | 20.9%"
forward-looking statements regulatory
"This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
trailing twelve months financial
"Trailing Twelve Months (“TTM”)"
Trailing twelve months is a rolling measure of a company’s financial performance that adds together the most recent four quarters of results to show how the business has done over the last 12 months, rather than a fixed fiscal year. Investors use it like checking a car’s last 12 months of fuel use to see current efficiency — it highlights recent trends, evens out seasonal swings, and provides an up-to-date basis for comparing and valuing companies.
Earnings Snapshot
Revenue: $75.1 million · Guidance included
Q1 2026
Revenue
$75.1 million
+16% YoY
Income from continuing operations
$10.4 million
flat EPS at $0.12 diluted vs prior year
Adjusted EBITDA from continuing operations
$22.5 million
+14% YoY
Guidance
For 2026, NPK expects revenue of $310–$325 million, Adjusted EBITDA of $92–$102 million, and capital expenditures of $75–$90 million, including $30–$35 million related to manufacturing expansion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| | ||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant's telephone number, including area code: (281 ) 362-6800
| Not Applicable | ||
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 30, 2026, NPK International Inc. (the “Company”) issued a press release announcing financial information for the three months ended March 31, 2026. The press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K and the information in the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
Use of Non-GAAP Financial Information
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. Applicable reconciliations to the nearest GAAP financial measure of each non-GAAP financial measure are included in the attached Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued by NPK International Inc. on April 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NPK International Inc. | |||||||||||
| (Registrant) | |||||||||||
| Date: | April 30, 2026 | By: | /s/ Gregg S. Piontek | ||||||||
| Gregg S. Piontek | |||||||||||
| Senior Vice President and Chief Financial Officer | |||||||||||
| (Principal Financial Officer) | |||||||||||
Exhibit 99.1
NPK REPORTS FIRST QUARTER 2026 RESULTS
Company reports revenues of $75 million, diluted EPS of $0.12; Raises full-year guidance
THE WOODLANDS, TEXAS – 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
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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.
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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
3
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
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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.
INVESTOR RELATIONS CONTACT
Investors@npki.com
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NPK International Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended | |||||||||||||||||
| (In thousands, except per share data) | March 31, 2026 | December 31, 2025 | March 31, 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.
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NPK International Inc.
Operating Results
(Unaudited)
| Three Months Ended | |||||||||||||||||
| (In thousands) | March 31, 2026 | December 31, 2025 | March 31, 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 | % | |||||||||||
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NPK International Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (In thousands, except share data) | March 31, 2026 | December 31, 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 | |||||||
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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 | |||||||
9
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 | ||||||||||||||||
| (In thousands) | March 31, 2026 | December 31, 2025 | March 31, 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.
10
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 | ||||||||||||||||
| (In thousands) | March 31, 2026 | December 31, 2025 | March 31, 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 | ||||||||||||||||
| (In thousands) | March 31, 2026 | December 31, 2025 | March 31, 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 | |||||||||||
11
NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
Trailing Twelve Months (“TTM”)
| Consolidated | Three Months Ended | TTM | |||||||||||||||||||||||||||
| (In thousands) | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | March 31, 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 | % | |||||||||||||||||||
###
12
FAQ
How did NPKI perform financially in the first quarter of 2026?
NPK International reported Q1 2026 revenue of $75.1 million, up 16% year over year. Income from continuing operations was $10.4 million, or $0.12 per diluted share, with Adjusted EBITDA from continuing operations of $22.5 million, a 14% increase.
What guidance did NPKI provide for full-year 2026?
For 2026, NPK International anticipates revenue of $310–$325 million and Adjusted EBITDA of $92–$102 million. It also projects capital expenditures of $75–$90 million, including $30–$35 million tied to its planned manufacturing capacity expansion.
What is NPKI’s manufacturing capacity expansion plan?
NPK International’s board approved plans to expand manufacturing capacity by approximately 50% from current levels. The company expects to invest $40–$45 million over the next five quarters, targeting the additional capacity to be online by mid-2027 to support anticipated growth.
How strong was NPKI’s cash flow and liquidity in Q1 2026?
In Q1 2026, NPK International generated $21.1 million in operating cash flow and $4.9 million in Free Cash Flow. As of March 31, 2026, it held $6.5 million in cash, $10.6 million in total debt, and had $148 million available under its revolving credit facility.
What were NPKI’s key revenue drivers in the first quarter of 2026?
First quarter 2026 growth was led by rental and service revenues, which rose to $52.0 million, supported by robust demand for matting rentals and services on power transmission projects. Product sales reached $23.1 million, reflecting continued strength from utility customers.
How did NPKI’s profitability and margins trend in Q1 2026?
NPK International reported operating income from continuing operations of $14.4 million, a 19.2% operating margin. Adjusted EBITDA from continuing operations was $22.5 million, with a 29.9% margin, compared to 30.4% in the prior-year quarter.