NPK Reports Third Quarter 2025 Results
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, 2025.
THIRD QUARTER 2025 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
Third Quarter
(In millions)
2025
2024
Change
Revenues
$
68.8
$
44.2
$
24.6
Operating income from continuing operations
$
9.1
$
1.2
$
7.9
Adjusted EBITDA from continuing operations
$
15.4
$
7.5
$
7.9
Operating margin from continuing operations (%)
13.2
%
2.8
%
1040
bps
Adjusted EBITDA margin from continuing operations (%)
22.3
%
17.0
%
530
bps
Net cash provided by operating activities
$
24.7
$
2.8
$
21.9
Free Cash Flow
$
12.5
$
(5.6
)
$
18.1
MANAGEMENT COMMENTARY
“We delivered strong third-quarter results, with revenue increasing by 56%, driven by sustained demand growth in the power transmission market, and exceptional execution by our commercial sales and operational teams serving the largest and most complex utility projects,” said Matthew Lanigan, President and CEO of NPK. “Given the strengthening market outlook, we are raising our full-year capital expenditure plan by $10 million to align with expected demand growth in 2026 and have also accelerated planning efforts to expand our manufacturing capacity to support long-term growth.”
Lanigan continued, “One of our key competitive advantages is the scale and flexibility of our rental fleet, which enables us to respond rapidly to evolving customer needs. This advantage was again clearly demonstrated late in the quarter, as we successfully met customer demand for multiple large-scale project changes and extensions. While these short-notice changes introduced some operational inefficiencies and modest margin pressure in the quarter, our responsiveness further solidifies our customer relationships and market leadership while our full year and longer-term outlook for mid-30’s gross margin remains unchanged.”
“We remain in a strong financial position, with cash and available liquidity of nearly $180 million as of September 30, 2025, giving us significant flexibility to support our balanced capital allocation strategy and fund our growth initiatives,” Lanigan added. “Year-to-date, we have expanded our rental fleet by 13%, and our recent debottlenecking efforts have resulted in a 5% increase in production output — both critical steps toward supporting continued growth and enhancing operational efficiency.”
“We’re extremely proud of our performance through the first nine months of 2025, which reflects the dedication and hard work of our entire team,” Lanigan concluded. “We ended Q3 with record utilization levels, setting the stage for a strong finish to the year. As a result, we are raising our full-year financial guidance. We remain focused on executing our strategic priorities and are energized by the opportunities ahead.”
BUSINESS UPDATE
NPK’s business plan is designed to drive organic commercial growth within targeted, higher-margin product and rental markets; improve asset optimization and organizational efficiency; and pursue a capital allocation strategy that prioritizes investments with superior return profiles, together with a programmatic return of capital program.
Third quarter 2025 highlights include:
FINANCIAL PERFORMANCE
In the third quarter of 2025, NPK generated income from continuing operations of $6.1 million, or $0.07 per diluted share, on total revenue of $68.8 million, compared to $14.9 million, or $0.17 per diluted share, on total revenue of $44.2 million, in the third quarter of 2024. Income from continuing operations for the third quarter of 2024 included an income tax benefit of $14.6 million primarily reflecting the release of valuation allowances on U.S. net operating losses and other tax credit carryforwards following the sale of the Fluids Systems business. Gross margin was 31.9% in the third quarter of 2025, compared to 27.5% in the prior year period. The Company reported Adjusted EBITDA from Continuing Operations of $15.4 million in the third quarter of 2025, or 22.3% of total revenue, compared to $7.5 million, or 17.0% of total revenue, in the prior year period.
Selling, general and administrative expenses were $13.3 million (19.3% of revenues) in the third quarter of 2025, compared to $11.0 million (24.9% of revenues) in the third quarter of 2024.
BALANCE SHEET AND LIQUIDITY
As of September 30, 2025, NPK remained in a net cash positive position, with total cash of $35.6 million, total debt of $9.5 million, and available liquidity under its senior secured revolving credit facility of $144 million.
Operating cash flow was $24.7 million in the third quarter of 2025. Capital investments used $12.2 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand, while $3.4 million was used to fund purchases under our repurchase program.
FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company’s current expectations and beliefs as of October 30, 2025, and is subject to change. The following statements apply only as of the date of this disclosure and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document.
For the full year 2025, NPK currently anticipates the following:
THIRD QUARTER 2025 RESULTS CONFERENCE CALL
A conference call will be held Friday, October 31, 2025 at 9:30 a.m. ET to review the Company’s financial results and conduct a question-and-answer session.
A webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.npki.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To participate in the live teleconference:
Domestic Live:
800-715-9871
International Live:
646-307-1963
Conference ID:
8869084
To listen to a replay of the teleconference, which subsequently will be available through November 7, 2025:
Domestic Replay:
800-770-2030
International Replay:
647-362-9199
ABOUT NPK INTERNATIONAL
NPK International Inc. is a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products, along with a full suite of services, including planning, logistics, and site restoration. The Company delivers superior quality and reliability across critical infrastructure markets, including electrical transmission and distribution, oil and gas exploration, pipeline, renewable energy, petrochemical, construction, and other industries. For more information, visit our website at www.npki.com.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as “will,” “may,” “could,” “would,” “should,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “guidance,” and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by NPK, particularly its Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q, as well as others, could cause actual plans or results to differ materially from those expressed in, or implied by, these statements. These risk factors include, but are not limited to, risks related to our sale of the Fluids Systems business; our ability to generate organic growth; economic and market conditions that may impact our customers’ future spending; the effective management of our fleet, including our ability to properly manufacture, safeguard, and maintain our fleet; international operations; operating hazards present in our and our customers’ industries and substantial liability claims; our contracts that can be terminated or downsized by our customers without penalty; our product offering and market expansion; our ability to attract, retain, and develop qualified leaders, key employees, and skilled personnel; expanding our services in the utilities sector, which may require unionized labor; the price and availability of raw materials; inflation; capital investments and business acquisitions; market competition; technological developments and intellectual property; severe weather, natural disasters, and seasonality; public health crises, epidemics, and pandemics; our cost and continued availability of borrowed funds, including noncompliance with debt covenants; environmental laws and regulations; legal compliance; the inherent limitations of insurance coverage; income taxes; cybersecurity incidents or business system disruptions; activist stockholders that may attempt to effect changes at our Company or acquire control over our Company; share repurchases; and our amended and restated bylaws, which could limit our stockholders’ ability to obtain what such stockholders believe to be a favorable judicial forum for disputes with us or our directors, officers or other employees. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. NPK’s filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as well as through our website at www.npki.com.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
(In thousands, except per share data)
September 30,
2025
June 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenues
$
68,838
$
68,233
$
44,207
$
201,848
$
159,965
Cost of revenues
46,870
43,052
32,067
129,449
105,358
Selling, general and administrative expenses
13,279
13,657
11,005
38,682
35,335
Other operating (income) loss, net
(368
)
(105
)
(99
)
(497
)
(1,435
)
Operating income from continuing operations
9,057
11,629
1,234
34,214
20,707
Foreign currency exchange (gain) loss
31
(626
)
(562
)
(909
)
170
Interest (income) expense, net
(47
)
1
943
(94
)
2,612
Income from continuing operations before income taxes
9,073
12,254
853
35,217
17,925
Provision (benefit) for income taxes from continuing operations
3,010
3,470
(14,016
)
9,995
(9,626
)
Income from continuing operations
6,063
8,784
14,869
25,222
27,551
Loss from discontinued operations, net of tax
(409
)
(106
)
(189,167
)
(887
)
(186,516
)
Net income (loss)
$
5,654
$
8,678
$
(174,298
)
$
24,335
$
(158,965
)
Income (loss) per common share - basic
Income from continuing operations
$
0.07
$
0.10
$
0.17
$
0.30
$
0.32
Loss from discontinued operations
—
—
(2.19
)
(0.01
)
(2.18
)
Net income (loss)
$
0.07
$
0.10
$
(2.02
)
$
0.29
$
(1.86
)
Income (loss) per common share - diluted
Income from continuing operations
$
0.07
$
0.10
$
0.17
$
0.29
$
0.32
Loss from discontinued operations
—
—
(2.16
)
(0.01
)
(2.13
)
Net income (loss)
$
0.07
$
0.10
$
(1.99
)
$
0.28
$
(1.82
)
Weighted average shares:
Basic
84,359
84,480
86,377
84,959
85,619
Diluted
85,066
85,423
87,490
85,821
87,453
Operating Segment Results
(Unaudited)
Three Months Ended
Nine Months Ended
(In thousands)
September 30,
2025
June 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenues
Rental revenues
$
29,591
$
31,654
$
18,873
$
89,355
$
63,787
Service revenues
14,688
14,658
13,535
44,629
40,198
Product sales revenues
24,559
21,921
11,799
67,864
55,980
Total revenues
$
68,838
$
68,233
$
44,207
$
201,848
$
159,965
Operating income from continuing operations
$
9,057
$
11,629
$
1,234
$
34,214
$
20,707
Operating margin from continuing operations
13.2
%
17.0
%
2.8
%
17.0
%
12.9
%
NPK International Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
September 30, 2025
December 31, 2024
ASSETS
Cash and cash equivalents
$
35,636
$
17,756
Receivables, net
57,362
74,841
Inventories
9,668
14,659
Prepaid expenses and other current assets
5,152
5,728
Total current assets
107,818
112,984
Property, plant and equipment, net
210,521
187,483
Operating lease assets
10,840
11,793
Goodwill
47,481
47,222
Other intangible assets, net
8,868
10,331
Deferred tax assets
6,844
15,593
Other assets
12,087
8,276
Total assets
$
404,459
$
393,682
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current debt
$
3,636
$
2,900
Accounts payable
21,960
19,459
Accrued liabilities
23,392
22,300
Total current liabilities
48,988
44,659
Long-term debt, less current portion
5,906
4,827
Noncurrent operating lease liabilities
9,649
10,896
Deferred tax liabilities
1,820
1,203
Other noncurrent liabilities
4,173
5,602
Total liabilities
70,536
67,187
Common stock, $0.01 par value (200,000,000 shares authorized and 111,669,464 and 111,669,464 shares issued, respectively)
1,117
1,117
Paid-in capital
630,802
633,239
Accumulated other comprehensive loss
(2,668
)
(2,871
)
Retained earnings (deficit)
(115,131
)
(139,466
)
Treasury stock, at cost (27,178,065 and 25,114,978 shares, respectively)
(180,197
)
(165,524
)
Total stockholders’ equity
333,923
326,495
Total liabilities and stockholders’ equity
$
404,459
$
393,682
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
(In thousands)
2025
2024
Cash flows from operating activities:
Net income (loss)
$
24,335
$
(158,965
)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Loss on divestitures
—
195,729
Depreciation and amortization
18,235
21,804
Stock-based compensation expense
4,137
4,119
Provision for deferred income taxes
9,362
(22,290
)
Credit loss expense
19
998
Gain on sale of assets
(2,203
)
(2,412
)
Gain on insurance recovery
—
(874
)
Amortization of original issue discount and debt issuance costs
394
885
Change in assets and liabilities:
Increase in receivables
(2,462
)
(13,734
)
Decrease in inventories
5,007
9,481
Increase in other assets
(3,711
)
(1,027
)
Increase in accounts payable
1,466
12,498
Increase (decrease) in accrued liabilities and other
405
(3,916
)
Net cash provided by operating activities
54,984
42,296
Cash flows from investing activities:
Capital expenditures
(34,419
)
(29,940
)
Proceeds from divestitures
14,485
48,499
Proceeds from sale of property, plant and equipment
3,819
3,188
Proceeds from insurance property claim
—
1,385
Other investing activities
3,089
—
Net cash provided by (used in) investing activities
(13,026
)
23,132
Cash flows from financing activities:
Borrowings on lines of credit
—
177,541
Payments on lines of credit
—
(224,292
)
Debt issuance costs
(811
)
(50
)
Purchases of treasury stock
(22,695
)
(4,504
)
Proceeds from employee stock plans
1,497
17
Other financing activities
(2,639
)
(9,538
)
Net cash used in financing activities
(24,648
)
(60,826
)
Effect of exchange rate changes on cash
91
(119
)
Net increase in cash, cash equivalents, and restricted cash
17,401
4,483
Cash, cash equivalents, and restricted cash at beginning of period
18,237
38,901
Cash, cash equivalents, and restricted cash at end of period
$
35,638
$
43,384
NPK International Inc.
Non-GAAP Reconciliations
(Unaudited)
To help understand the Company’s financial performance, the Company has supplemented its financial results that it provides in accordance with generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Such financial measures include Adjusted Income (Loss) from Continuing Operations, Adjusted Income (Loss) from Continuing Operations Per Common Share, earnings before interest, taxes, depreciation and amortization (“EBITDA”) from Continuing Operations, Adjusted EBITDA from Continuing Operations, Adjusted EBITDA Margin from Continuing Operations, and Free Cash Flow.
We believe these non-GAAP financial measures are frequently used by investors, securities analysts and other parties in the evaluation of our performance and liquidity with that of other companies in our industry. Management uses these measures to evaluate our operating performance, liquidity and capital structure. In addition, our incentive compensation plan measures performance based on our consolidated EBITDA, along with other factors. The methods we use to produce these non-GAAP financial measures may differ from methods used by other companies. These measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP.
Adjusted Income (Loss) from Continuing Operations and Adjusted Income (Loss) from Continuing Operations Per Common Share
The following tables reconcile the Company’s income from continuing operations and income from continuing operations per common share calculated in accordance with GAAP to the non-GAAP financial measures of Adjusted Income from Continuing Operations and Adjusted Income from Continuing Operations Per Common Share:
Consolidated
Three Months Ended
Nine Months Ended
(In thousands)
September 30,
2025
June 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Income from continuing operations (GAAP)
$
6,063
$
8,784
$
14,869
$
25,222
$
27,551
Gain on insurance recovery
—
—
—
—
(67
)
Gain on legal settlement
—
—
—
—
(550
)
Severance costs
69
359
113
455
921
Tax on adjustments
(14
)
(75
)
(24
)
(96
)
(64
)
Unusual tax items (1)
—
—
(14,617
)
—
(14,617
)
Adjusted Income from Continuing Operations (non-GAAP)
$
6,118
$
9,068
$
341
$
25,581
$
13,174
Adjusted Income from Continuing Operations (non-GAAP)
$
6,118
$
9,068
$
341
$
25,581
$
13,174
Weighted average common shares outstanding - basic
84,359
84,480
86,377
84,959
85,619
Dilutive effect of restricted stock awards and stock options
707
943
1,113
862
1,834
Weighted average common shares outstanding - diluted
85,066
85,423
87,490
85,821
87,453
Adjusted Income from Continuing Operations Per Common Share - Diluted (non-GAAP):
$
0.07
$
0.11
$
—
$
0.30
$
0.15
(1) Unusual tax items primarily reflects the release of valuation allowances on U.S. net operating losses and other tax credit carryforwards that are expected to be realized following the sale of the Fluids Systems business.
NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA Margin from Continuing Operations
The following table reconciles the Company’s income from continuing operations calculated in accordance with GAAP to the non-GAAP financial measures of EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA Margin from Continuing Operations:
Consolidated
Three Months Ended
Nine Months Ended
(In thousands)
September 30,
2025
June 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenues
$
68,838
$
68,233
$
44,207
$
201,848
$
159,965
Operating income from continuing operations (GAAP)
$
9,057
$
11,629
$
1,234
$
34,214
$
20,707
Income from continuing operations (GAAP)
$
6,063
$
8,784
$
14,869
$
25,222
$
27,551
Interest (income) expense, net
(47
)
1
943
(94
)
2,612
Provision (benefit) for income taxes from continuing operations
3,010
3,470
(14,016
)
9,995
(9,626
)
Depreciation and amortization
6,261
6,172
5,592
18,235
16,932
EBITDA from Continuing Operations (non-GAAP)
15,287
18,427
7,388
53,358
37,469
Gain on insurance recovery
—
—
—
—
(67
)
Gain on legal settlement
—
—
—
—
(550
)
Severance costs
69
359
113
455
921
Adjusted EBITDA from Continuing Operations (non-GAAP)
$
15,356
$
18,786
$
7,501
$
53,813
$
37,773
Operating Margin from Continuing Operations (GAAP)
13.2
%
17.0
%
2.8
%
17.0
%
12.9
%
Adjusted EBITDA Margin from Continuing Operations (non-GAAP)
22.3
%
27.5
%
17.0
%
26.7
%
23.6
%
Free Cash Flow
The following table reconciles the Company’s net cash provided by operating activities calculated in accordance with GAAP to the non-GAAP financial measure of Free Cash Flow:
Consolidated
Three Months Ended
Nine Months Ended
(In thousands)
September 30,
2025
June 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Net cash provided by operating activities (GAAP)
$
24,716
$
21,440
$
2,765
$
54,984
$
42,296
Capital expenditures
(12,714
)
(11,694
)
(9,472
)
(34,419
)
(29,940
)
Proceeds from sale of property, plant and equipment
499
1,502
1,146
3,819
3,188
Free Cash Flow (non-GAAP)
$
12,501
$
11,248
$
(5,561
)
$
24,384
$
15,544
Non-GAAP Reconciliations (Continued)
(Unaudited)
Trailing Twelve Months (“TTM”)
Consolidated
Three Months Ended
TTM
(In thousands)
December 31,
2024
March 31,
2025
June 30,
2025
September 30,
2025
September 30,
2025
Revenues
$
57,524
$
64,777
$
68,233
$
68,838
$
259,372
Operating income from continuing operations (GAAP)
$
11,644
$
13,528
$
11,629
$
9,057
$
45,858
Income from continuing operations (GAAP)
$
8,048
$
10,375
$
8,784
$
6,063
$
33,270
Interest (income) expense, net
9
(48
)
1
(47
)
(85
)
Provision (benefit) for income taxes from continuing operations
2,888
3,515
3,470
3,010
12,883
Depreciation and amortization
5,724
5,802
6,172
6,261
23,959
EBITDA from Continuing Operations (non-GAAP)
16,669
19,644
18,427
15,287
70,027
Severance costs
416
27
359
69
871
Adjusted EBITDA from Continuing Operations (non-GAAP)
$
17,085
$
19,671
$
18,786
$
15,356
$
70,898
Operating Margin from Continuing Operations (GAAP)
20.2
%
20.9
%
17.0
%
13.2
%
17.7
%
Adjusted EBITDA Margin from Continuing Operations (non-GAAP)
29.7
%
30.4
%
27.5
%
22.3
%
27.3
%