{"success":true,"data":{"pressRelease":{"id":"102665","rtpr_id":"nBw9bx0rJa","ticker":"NPKI","exchange":"NYSE","all_tickers":["NPKI"],"title":"NPK Reports Second Quarter 2026 Results","author":"Business Wire","published_at":"2026-07-29T20:15:00.621Z","article_body":"NPK Reports Second Quarter 2026 Results\n\nCompany reports $82 million revenues, $0.14 diluted EPS; Raises full-year\nearnings guidance\n\nNPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today\nannounced results for the three and six months ended June 30, 2026.\n\nSECOND QUARTER 2026 RESULTS\n\n(all comparisons versus the prior year period unless otherwise noted)\n\n\n * Revenues of $81.6 million, +20%\n\n * Operating income from continuing operations of $16.1 million, 19.7% operating\nmargin\n\n * Income from continuing operations of $12.0 million, or $0.14 per diluted share\n\n * Adjusted EBITDA from Continuing Operations of $25.7 million, 31.5% Adjusted\nEBITDA margin\n\n * Total cash of $8.4 million and total debt of $10.6 million as of June 30, 2026\n   Second Quarter       \n (In millions) 2026   2025   Change   \n Revenues $ 81.6     $ 68.2     $ 13.4     \n Operating income from continuing operations $ 16.1     $ 11.6     $ 4.5     \n Income from continuing operations per common share - Diluted $ 0.14     $ 0.10     $ 0.04     \n Adjusted EBITDA from continuing operations $ 25.7     $ 18.8     $ 6.9     \n Operating margin from continuing operations (%)   19.7 %     17.0 %     270   bps \n Adjusted EBITDA margin from continuing operations (%)   31.5 %     27.5 %     400   bps \n Net cash provided by operating activities $ 21.9     $ 21.4     $ 0.5     \n Free Cash Flow $ 5.9     $ 11.2     $ (5.3 )   \n\n\nMANAGEMENT COMMENTARY\n\n“We are pleased with the strong financial results for the second quarter of\n2026, reflecting consistent execution by our team members across the\norganization, continued momentum in our core power transmission markets, and\nefficient margin realization,” stated Matthew Lanigan, President and CEO of\nNPK International. “During the second quarter, we successfully navigated the\ndemobilization of several large-scale projects and delivered 20%\nyear-over-year revenue growth, highlighted by another quarter of record rental\nrevenue and robust demand for product sales, while adjusted EBITDA grew 37%.\nSupported by sustained market strength and an ongoing focus on operational\nexcellence, we are well positioned for continued strength in the second half\nof 2026 and have raised our full year earnings guidance.\n\nLanigan continued, “We have continued to make important progress on our\nstrategic initiatives, as evidenced by our strong operating momentum. Notably,\nwe have advanced our Carencro, Louisiana manufacturing expansion effort, which\nremains on track to start up by mid-2027, expanding capacity by approximately\n50%. During the second quarter, we invested more than $4 million of the\nexpected $40 million to $45 million required to complete the project, and we\nare confident that this expansion and our continuing debottlenecking\ninitiatives will both enhance margins through reduced usage of cross-rental\nmats while also supporting our longer-term growth objectives.\n\n“Our capital allocation strategy continues to prioritize investments in the\ngrowth of our rental fleet and our manufacturing capacity expansion to support\nsustained organic growth, strategic acquisitions, and the return of capital\nthrough our disciplined share repurchase program. With minimal net debt and\nnearly $150 million of availability under our bank facility, we are well\npositioned to pursue our strategic growth and capital allocation priorities.\n\n“The outlook for utility transmission spending remains robust, driven by\nprojected load growth, an aging infrastructure, and the need to connect new\ncapacity to the grid. While timing of large projects is difficult to predict,\nwe remain confident in the near-term outlook and our ability to continue\ngenerating double-digit rental growth in the coming years. We continue to be\nencouraged by the opportunities ahead and remain confident in our ability to\nexecute on our strategic priorities and create durable value for our\nshareholders,” concluded Lanigan.\n\nBUSINESS UPDATE\n\nNPK’s business plan is designed to drive organic commercial growth within\ntargeted, higher-margin product and rental markets; improve asset optimization\nand organizational efficiency; and pursue a capital allocation strategy that\nprioritizes investments with superior return profiles, together with a\nprogrammatic return of capital program.\n\nSecond quarter 2026 highlights include:\n\n\n * Strong customer demand for matting rental and related services. Revenues from\nspecialty rental and related services increased to $54 million in the second\nquarter of 2026, with record rental revenues driven by strong demand from key\ncustomer accounts in support of power transmission projects and the impact of\nour recent acquisition. Revenues from product sales were $28 million for the\nsecond quarter of 2026, our highest quarterly level in two years, primarily\nreflecting the continued strong demand from utility companies.\n\n * Improved operating efficiency. NPK remains focused on efficiency improvements\nand operating cost optimization across every aspect of its business. In the\nsecond quarter of 2026, NPK’s Adjusted EBITDA Margin was 31.5%, a 400 basis\nimprovement from the prior year period, and SG&A as a percentage of\nrevenue was 17.4%, a 260 basis point improvement versus the prior year period.\nIn May 2026, the Compensation Committee of our Board of Directors modified the\nretirement eligibility terms applicable to our long-term incentive awards,\nincluding unvested grants from 2024 and 2025. As a result, SG&A for the\nsecond quarter of 2026 includes a $0.9 million charge reflecting the\nacceleration of compensation expense for such awards for retirement eligible\nexecutive officers and other employees.\n\n * Manufacturing efficiency and capacity expansion. NPK continues to execute on\nits recently approved plans to expand our Carencro, Louisiana manufacturing\ncapacity by approximately 50% from current levels. The Company expects to\ninvest $40 million to $45 million by mid-2027, including $4.1 million invested\nin the second quarter, with additional production expected to start up by\nmid-2027.\n\nFINANCIAL PERFORMANCE\n\nIn the second quarter of 2026, NPK generated revenue of $81.6 million, an\nincrease of 20%, compared to $68.2 million in the prior year period. Rental\nand service revenue increased 16% to $53.6 million, while product sales\nincreased 28% to $28.0 million.\n\nGross margin was 37.0% in the second quarter of 2026, compared to 36.9% in the\nprior year period.\n\nSelling, general and administrative expenses were $14.2 million (17.4% of\nrevenues) in the second quarter of 2026, compared to $13.7 million (20.0% of\nrevenues) in the second quarter of 2025. SG&A for the second quarter of\n2026 includes a $0.9 million charge related to acceleration of long-term\nincentive compensation expense due to the modification of our retirement\neligibility terms.\n\nNPK generated income from continuing operations of $12.0 million, or $0.14 per\ndiluted share, compared to $8.8 million, or $0.10 per diluted share, in the\nsecond quarter of 2025. Second quarter 2026 adjusted income from continuing\noperations was $12.8 million, or $0.15 per diluted share.\n\nThe Company reported Adjusted EBITDA from Continuing Operations of $25.7\nmillion in the second quarter of 2026, or 31.5% of total revenue, compared to\n$18.8 million, or 27.5% of total revenue, in the prior year period.\n\nBALANCE SHEET AND LIQUIDITY\n\nAs of June 30, 2026, NPK had total cash of $8.4 million, total debt of $10.6\nmillion, and available liquidity under its senior secured revolving credit\nfacility of $148 million.\n\nOperating cash flow was $21.9 million in the second quarter of 2026. Capital\ninvestments used $16.0 million, net, with the substantial majority funding the\ngrowth of the mat rental fleet and the manufacturing expansion project.\n\nFINANCIAL GUIDANCE\n\nThe following forward-looking guidance reflects the Company’s current\nexpectations and beliefs as of July 29, 2026, and is subject to change. The\nfollowing statements apply only as of the date of this disclosure and are\nexpressly qualified in their entirety by the cautionary statements included\nelsewhere in this document.\n\nFor the full year 2026, NPK currently anticipates the following:\n\n\n * Revenues in a range of $313 million to $323 million\n\n * Adjusted EBITDA in a range of $97 million to $103 million\n\n * Capital expenditures in a range of $65 million to $80 million, which includes\n$20 million to $25 million from manufacturing expansion; Our capex plan for\n2026 has been reduced, primarily reflecting changes in the timing of\nmanufacturing expansion expenditures. The change in expenditure timing will\nnot impact our anticipated mid-year 2027 completion date\n\nSECOND QUARTER 2026 RESULTS CONFERENCE CALL\n\nA conference call will be held Thursday, July 30, 2026 at 9:30 a.m. ET to\nreview the Company’s financial results and conduct a question-and-answer\nsession.\n\nA webcast of the conference call will be available in the Investor Relations\nsection of the Company’s website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=1&md5=481deb0b3c8a019f8b4ea3753343f26c)\n. Individuals can also participate by teleconference dial-in. To listen to a\nlive broadcast, go to the site at least 15 minutes prior to the scheduled\nstart time in order to register, download and install any necessary audio\nsoftware.\n\nTo participate in the live teleconference:\n Domestic Live: 833-461-5787 \n International Live: 365-657-4084 \n Conference ID: 374346665 \n\n\nAfter the webcast, a replay will be available on the Company’s website.\n\nABOUT NPK INTERNATIONAL\n\nNPK International Inc. is a worksite access solutions company that\nmanufactures, sells, and rents recyclable composite matting products, along\nwith a full suite of services, including planning, logistics, and site\nrestoration. The Company delivers superior quality and reliability across\ncritical infrastructure markets, including electrical power transmission, oil\nand gas exploration, pipeline, renewable energy, petrochemical, construction,\nand other industries. For more information, visit our website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=2&md5=1e20332feb18d9c4ea65a1038d50baeb)\n.\n\nFORWARD-LOOKING STATEMENTS\n\nThis news release contains “forward-looking statements” within the meaning\nof the Private Securities Litigation Reform Act of 1995, as amended. All\nstatements other than statements of historical facts are forward-looking\nstatements. Words such as “will,” “may,” “could,” “would,”\n“should,” “anticipates,” “believes,” “estimates,”\n“expects,” “plans,” “intends,” “guidance,” and similar\nexpressions are intended to identify these forward-looking statements but are\nnot the exclusive means of identifying them. These statements are not\nguarantees that our expectations will prove to be correct and involve a number\nof risks, uncertainties, and assumptions. Many factors, including those\ndiscussed more fully elsewhere in this release and in documents filed with the\nSecurities and Exchange Commission by NPK, particularly its Annual Report on\nForm 10-K, and its Quarterly Reports on Form 10-Q, as well as others, could\ncause actual plans or results to differ materially from those expressed in, or\nimplied by, these statements. These risk factors include, but are not limited\nto, risks related to our ability to generate organic growth; economic and\nmarket conditions that may impact our customers’ future spending; customer\nconcentration; the effective management of our fleet, including our ability to\nproperly manufacture, safeguard, and maintain our fleet; international\noperations; manufacturing capacity expansion projects; operating hazards\npresent in our and our customers’ industries and substantial liability\nclaims; our contracts that can be terminated or downsized by our customers\nwithout penalty; our product offering and market expansion; our ability to\nattract, retain, and develop qualified leaders, key employees, and skilled\npersonnel; expanding our services in the utilities sector, which may require\nunionized labor; the price and availability of raw materials; inflation;\ncapital investments and business acquisitions; market competition;\ntechnological developments and intellectual property; severe weather, natural\ndisasters, and seasonality; public health crises, epidemics, and pandemics;\nour cost and continued availability of borrowed funds, including noncompliance\nwith debt covenants; environmental laws and regulations; legal compliance; the\ninherent limitations of insurance coverage; income taxes; cybersecurity\nincidents or business system disruptions; complications with the design or\nimplementation of our updated enterprise resource planning system; activist\nstockholders that may attempt to effect changes at our Company or acquire\ncontrol over our Company; share repurchases; and our amended and restated\nbylaws, which could limit our stockholders’ ability to obtain what such\nstockholders believe to be a favorable judicial forum for disputes with us or\nour directors, officers or other employees. We assume no obligation to update\nany forward-looking statements, whether as a result of new information, future\nevents or otherwise, except as required by securities laws. NPK’s filings\nwith the Securities and Exchange Commission can be obtained at no charge at\nsec.gov, as well as through our website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=3&md5=8d1d77ae70d6c343d46e1e9d0e9d469c)\n.\n NPK International Inc. \n Condensed Consolidated Statements of Operations \n (Unaudited) \n   \n   Three Months Ended   Six Months Ended \n (In thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n Cost of revenues   51,426       47,884       43,052       99,310       82,579   \n Selling, general and administrative expenses   14,160       13,191       13,657       27,351       25,403   \n Other operating (income) loss, net   (91 )     (428 )     (105 )     (519 )     (129 ) \n Operating income from continuing operations   16,090       14,423       11,629       30,513       25,157   \n                     \n Foreign currency exchange (gain) loss   (154 )     145       (626 )     (9 )     (940 ) \n Interest (income) expense, net   347       323       1       670       (47 ) \n Income from continuing operations before income taxes   15,897       13,955       12,254       29,852       26,144   \n                     \n Provision for income taxes from continuing operations   3,908       3,597       3,470       7,505       6,985   \n Income from continuing operations   11,989       10,358       8,784       22,347       19,159   \n Income (loss) from discontinued operations, net of tax   (22 )     100       (106 )     78       (478 ) \n Net income $ 11,967     $ 10,458     $ 8,678     $ 22,425     $ 18,681   \n                     \n Income (loss) per common share - basic                   \n Income from continuing operations $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n Income (loss) from discontinued operations   —       —       —       0.01       —   \n Net income $ 0.14     $ 0.12     $ 0.10     $ 0.27     $ 0.22   \n                     \n Income (loss) per common share - diluted                   \n Income from continuing operations $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n Income (loss) from discontinued operations   —       —       —       —       —   \n Net income $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n                     \n Weighted average shares:                   \n Basic   84,526       84,416       84,480       84,471       85,264   \n Diluted   85,844       85,852       85,423       85,848       86,205   \n\n NPK International Inc. \n Operating Segment Results \n (Unaudited) \n   \n   Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues                   \n Rental revenues $ 37,208     $ 35,625     $ 31,654     $ 72,833     $ 59,764   \n Service revenues   16,344       16,328       14,658       32,672       29,941   \n Product sales revenues   28,033       23,117       21,921       51,150       43,305   \n Total revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n                     \n Operating income from continuing operations $ 16,090     $ 14,423     $ 11,629     $ 30,513     $ 25,157   \n Operating margin from continuing operations   19.7 %     19.2 %     17.0 %     19.5 %     18.9 % \n\n NPK International Inc. \n Condensed Consolidated Balance Sheets \n (Unaudited) \n   \n (In thousands, except share data) June 30,   December 31, \n \n \n \n \n2026 \n2025 \n ASSETS       \n Cash and cash equivalents $ 8,351     $ 5,140   \n Receivables, net   60,276       59,806   \n Inventories   11,503       11,500   \n Prepaid expenses and other current assets   4,866       5,046   \n Total current assets   84,996       81,492   \n         \n Property, plant and equipment, net   250,037       233,048   \n Operating lease assets   10,018       11,195   \n Goodwill   75,971       76,341   \n Other intangible assets, net   18,647       21,297   \n Deferred tax assets   1,603       5,535   \n Other assets   8,458       12,850   \n Total assets $ 449,730     $ 441,758   \n         \n LIABILITIES AND STOCKHOLDERS’ EQUITY       \n Current debt $ 5,183     $ 5,170   \n Accounts payable   23,370       22,327   \n Accrued liabilities   24,125       29,647   \n Total current liabilities   52,678       57,144   \n         \n Long-term debt, less current portion   5,383       11,692   \n Noncurrent operating lease liabilities   8,630       9,877   \n Deferred tax liabilities   9,685       7,476   \n Other noncurrent liabilities   1,977       4,413   \n Total liabilities   78,353       90,602   \n         \n Common stock, $0.01 par value (200,000,000 shares authorized and 89,969,464   900       902   \n and 90,134,477 shares issued, respectively) \n Paid-in capital   487,744       489,632   \n Accumulated other comprehensive loss   (2,723 )     (1,610 ) \n Retained earnings (deficit)   (78,102 )     (100,527 ) \n Treasury stock, at cost (5,059,570 and 5,616,798 shares, respectively)   (36,442 )     (37,241 ) \n Total stockholders’ equity   371,377       351,156   \n Total liabilities and stockholders’ equity $ 449,730     $ 441,758   \n\n NPK International Inc. \n Condensed Consolidated Statements of Cash Flows \n (Unaudited) \n   \n   Six Months Ended \n \n \n \nJune 30, \n (In thousands) 2026   2025 \n Cash flows from operating activities:       \n Net income $ 22,425     $ 18,681   \n Adjustments to reconcile net income to net cash provided by operations:       \n Gain on divestitures   (500 )     —   \n Depreciation and amortization   16,545       11,974   \n Stock-based compensation expense   4,125       2,596   \n Provision for deferred income taxes   6,284       6,164   \n Credit loss expense   64       19   \n Gain on sale of assets   (1,212 )     (1,557 ) \n Amortization of original issue discount and debt issuance costs   158       313   \n Change in assets and liabilities:       \n Increase in receivables   (1,472 )     (6,283 ) \n Decrease in inventories   25       3,596   \n Increase in other assets   (736 )     (1,924 ) \n Increase in accounts payable   3,708       1,823   \n Decrease in accrued liabilities and other   (6,387 )     (5,134 ) \n Net cash provided by operating activities   43,027       30,268   \n         \n Cash flows from investing activities:       \n Capital expenditures   (33,215 )     (21,705 ) \n Proceeds from divestitures   5,490       14,485   \n Proceeds from sale of property, plant and equipment   1,019       3,320   \n Other investing activities   —       3,089   \n Net cash used in investing activities   (26,706 )     (811 ) \n         \n Cash flows from financing activities:       \n Borrowings on lines of credit   12,600       —   \n Payments on lines of credit   (17,900 )     —   \n Debt issuance costs   —       (797 ) \n Purchases of treasury stock   (5,882 )     (19,291 ) \n Proceeds from employee stock plans   528       —   \n Other financing activities   (2,416 )     (1,704 ) \n Net cash used in financing activities   (13,070 )     (21,792 ) \n         \n Effect of exchange rate changes on cash   (40 )     110   \n         \n Net increase in cash, cash equivalents, and restricted cash   3,211       7,775   \n Cash, cash equivalents, and restricted cash at beginning of period   5,140       18,237   \n Cash, cash equivalents, and restricted cash at end of period $ 8,351     $ 26,012   \n\n\nNPK International Inc.\n\nNon-GAAP Reconciliations\n\n(Unaudited)\n\nTo help understand the Company’s financial performance, the Company has\nsupplemented its financial results that it provides in accordance with\ngenerally accepted accounting principles (“GAAP”) with non-GAAP financial\nmeasures. Such financial measures include Adjusted Income from Continuing\nOperations, Adjusted Income from Continuing Operations Per Common Share,\nearnings before interest, taxes, depreciation and amortization (“EBITDA”)\nfrom Continuing Operations, Adjusted EBITDA from Continuing Operations,\nAdjusted EBITDA Margin from Continuing Operations, and Free Cash Flow.\n\nWe believe these non-GAAP financial measures are frequently used by investors,\nsecurities analysts and other parties in the evaluation of our performance and\nliquidity with that of other companies in our industry. Management uses these\nmeasures to evaluate our operating performance, liquidity and capital\nstructure. In addition, our incentive compensation plan measures performance\nbased on our consolidated EBITDA, along with other factors. The methods we use\nto produce these non-GAAP financial measures may differ from methods used by\nother companies. These measures should be considered in addition to, not as a\nsubstitute for, financial measures prepared in accordance with GAAP.\n\nAdjusted Income from Continuing Operations and Adjusted Income from Continuing\nOperations Per Common Share\n\nThe following tables reconcile the Company’s income from continuing\noperations and income from continuing operations per common share calculated\nin accordance with GAAP to the non-GAAP financial measures of Adjusted Net\nIncome from Continuing Operations and Adjusted Net Income from Continuing\nOperations Per Common Share:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Income from continuing operations (GAAP) $ 11,989     $ 10,358     $ 8,784     $ 22,347     $ 19,159   \n Acquisition-related transaction costs   —       32       —       32       —   \n Modification of retirement terms   858       —       —       858       —   \n Plant expansion expenses   226       —       —       226       —   \n Severance costs   —       —       359       —       386   \n Tax on adjustments   (228 )     (7 )     (75 )     (234 )     (81 ) \n Adjusted Income from Continuing Operations (non-GAAP) $ 12,845     $ 10,383     $ 9,068     $ 23,229     $ 19,464   \n   \n Adjusted Income from Continuing Operations (non-GAAP) $ 12,845     $ 10,383     $ 9,068     $ 23,229   $ 19,464   \n                   \n Weighted average common shares outstanding - basic   84,526       84,416       84,480       84,471     85,264   \n Dilutive effect of stock options and restricted stock awards   1,318       1,436       943       1,377     941   \n Weighted average common shares outstanding - diluted   85,844       85,852       85,423       85,848     86,205   \n                   \n Adjusted Income from Continuing Operations Per Common Share - Diluted $ 0.15     $ 0.12     $ 0.11     $ 0.27   $ 0.23   \n (non-GAAP): \n\n\nNPK International Inc.\n\nNon-GAAP Reconciliations (Continued)\n\n(Unaudited)\n\nEBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations,\nand Adjusted EBITDA Margin from Continuing Operations\n\nThe following table reconciles the Company’s income from continuing\noperations calculated in accordance with GAAP to the non-GAAP financial\nmeasures of EBITDA from Continuing Operations, Adjusted EBITDA from Continuing\nOperations, and Adjusted EBITDA Margin from Continuing Operations:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n                     \n Operating income from continuing operations (GAAP) $ 16,090     $ 14,423     $ 11,629     $ 30,513     $ 25,157   \n                     \n Income from continuing operations (GAAP) $ 11,989     $ 10,358     $ 8,784     $ 22,347     $ 19,159   \n Interest expense, net   347       323       1       670       (47 ) \n Provision for income taxes   3,908       3,597       3,470       7,505       6,985   \n Depreciation and amortization   8,378       8,167       6,172       16,545       11,974   \n EBITDA from Continuing Operations (non-GAAP)   24,622       22,445       18,427       47,067       38,071   \n Acquisition-related transaction costs   —       32       —       32       —   \n Modification of retirement terms   858       —       —       858       —   \n Plant expansion expenses   226       —       —       226       —   \n Severance costs   —       —       359       —       386   \n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 25,706     $ 22,477     $ 18,786     $ 48,183     $ 38,457   \n Operating Margin from Continuing Operations (GAAP)   19.7 %     19.2 %     17.0 %     19.5 %     18.9 % \n Adjusted EBITDA Margin from Continuing Operations (non-GAAP)   31.5 %     29.9 %     27.5 %     30.8 %     28.9 % \n\n\nFree Cash Flow\n\nThe following table reconciles the Company’s net cash provided by operating\nactivities calculated in accordance with GAAP to the non-GAAP financial\nmeasure of Free Cash Flow:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Net cash provided by operating activities (GAAP) $ 21,916     $ 21,111     $ 21,440     $ 43,027     $ 30,268   \n Capital expenditures   (16,531 )     (16,684 )     (11,694 )     (33,215 )     (21,705 ) \n Proceeds from sale of property, plant and equipment   536       483       1,502       1,019       3,320   \n Free Cash Flow (non-GAAP) $ 5,921     $ 4,910     $ 11,248     $ 10,831     $ 11,883   \n\n NPK International Inc. \n Non-GAAP Reconciliations (Continued) \n (Unaudited) \n   \n Trailing Twelve Months (“TTM”) \n   \n Consolidated Three Months Ended   TTM \n (In thousands) September 30,   December 31,   March 31,   June 30,   June 30, \n \n2025 \n2025 \n2026 \n2026 \n2026 \n Revenues $ 68,838     $ 75,195     $ 75,070     $ 81,585     $ 300,688   \n Operating income from continuing operations (GAAP) $ 9,057     $ 12,565     $ 14,423     $ 16,090     $ 52,135   \n                     \n Income from continuing operations (GAAP) $ 6,063     $ 10,723     $ 10,358     $ 11,989     $ 39,133   \n Interest (income) expense, net   (47 )     107       323       347       730   \n Provision (benefit) for income taxes from continuing operations   3,010       1,710       3,597       3,908       12,225   \n Depreciation and amortization   6,261       7,302       8,167       8,378       30,108   \n EBITDA from Continuing Operations (non-GAAP)   15,287       19,842       22,445       24,622       82,196   \n Acquisition-related transaction costs   —       1,088       32       —       1,120   \n Modification of retirement terms   —       —       —       858       858   \n Plant expansion expenses   —       —       —       226       226   \n Severance costs   69       763       —       —       832   \n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 15,356     $ 21,693     $ 22,477     $ 25,706     $ 85,232   \n Operating Margin from Continuing Operations (GAAP)   13.2 %     16.7 %     19.2 %     19.7 %     17.3 % \n Adjusted EBITDA Margin from Continuing Operations (non-GAAP)   22.3 %     28.8 %     29.9 %     31.5 %     28.3 % \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260729824689/en/\n(https://www.businesswire.com/news/home/20260729824689/en/)\n\nINVESTOR RELATIONS CONTACT \n\nInvestors@npki.com (mailto:Investors@npki.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw9bx0rJa","title":"NPK Reports Second Quarter 2026 Results","author":"Business Wire","ticker":"NPKI","created":"2026-07-29T20:15:00.621Z","tickers":["NPKI"],"exchange":"NYSE","article_body":"NPK Reports Second Quarter 2026 Results\n\nCompany reports $82 million revenues, $0.14 diluted EPS; Raises full-year\nearnings guidance\n\nNPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today\nannounced results for the three and six months ended June 30, 2026.\n\nSECOND QUARTER 2026 RESULTS\n\n(all comparisons versus the prior year period unless otherwise noted)\n\n\n * Revenues of $81.6 million, +20%\n\n * Operating income from continuing operations of $16.1 million, 19.7% operating\nmargin\n\n * Income from continuing operations of $12.0 million, or $0.14 per diluted share\n\n * Adjusted EBITDA from Continuing Operations of $25.7 million, 31.5% Adjusted\nEBITDA margin\n\n * Total cash of $8.4 million and total debt of $10.6 million as of June 30, 2026\n   Second Quarter       \n (In millions) 2026   2025   Change   \n Revenues $ 81.6     $ 68.2     $ 13.4     \n Operating income from continuing operations $ 16.1     $ 11.6     $ 4.5     \n Income from continuing operations per common share - Diluted $ 0.14     $ 0.10     $ 0.04     \n Adjusted EBITDA from continuing operations $ 25.7     $ 18.8     $ 6.9     \n Operating margin from continuing operations (%)   19.7 %     17.0 %     270   bps \n Adjusted EBITDA margin from continuing operations (%)   31.5 %     27.5 %     400   bps \n Net cash provided by operating activities $ 21.9     $ 21.4     $ 0.5     \n Free Cash Flow $ 5.9     $ 11.2     $ (5.3 )   \n\n\nMANAGEMENT COMMENTARY\n\n“We are pleased with the strong financial results for the second quarter of\n2026, reflecting consistent execution by our team members across the\norganization, continued momentum in our core power transmission markets, and\nefficient margin realization,” stated Matthew Lanigan, President and CEO of\nNPK International. “During the second quarter, we successfully navigated the\ndemobilization of several large-scale projects and delivered 20%\nyear-over-year revenue growth, highlighted by another quarter of record rental\nrevenue and robust demand for product sales, while adjusted EBITDA grew 37%.\nSupported by sustained market strength and an ongoing focus on operational\nexcellence, we are well positioned for continued strength in the second half\nof 2026 and have raised our full year earnings guidance.\n\nLanigan continued, “We have continued to make important progress on our\nstrategic initiatives, as evidenced by our strong operating momentum. Notably,\nwe have advanced our Carencro, Louisiana manufacturing expansion effort, which\nremains on track to start up by mid-2027, expanding capacity by approximately\n50%. During the second quarter, we invested more than $4 million of the\nexpected $40 million to $45 million required to complete the project, and we\nare confident that this expansion and our continuing debottlenecking\ninitiatives will both enhance margins through reduced usage of cross-rental\nmats while also supporting our longer-term growth objectives.\n\n“Our capital allocation strategy continues to prioritize investments in the\ngrowth of our rental fleet and our manufacturing capacity expansion to support\nsustained organic growth, strategic acquisitions, and the return of capital\nthrough our disciplined share repurchase program. With minimal net debt and\nnearly $150 million of availability under our bank facility, we are well\npositioned to pursue our strategic growth and capital allocation priorities.\n\n“The outlook for utility transmission spending remains robust, driven by\nprojected load growth, an aging infrastructure, and the need to connect new\ncapacity to the grid. While timing of large projects is difficult to predict,\nwe remain confident in the near-term outlook and our ability to continue\ngenerating double-digit rental growth in the coming years. We continue to be\nencouraged by the opportunities ahead and remain confident in our ability to\nexecute on our strategic priorities and create durable value for our\nshareholders,” concluded Lanigan.\n\nBUSINESS UPDATE\n\nNPK’s business plan is designed to drive organic commercial growth within\ntargeted, higher-margin product and rental markets; improve asset optimization\nand organizational efficiency; and pursue a capital allocation strategy that\nprioritizes investments with superior return profiles, together with a\nprogrammatic return of capital program.\n\nSecond quarter 2026 highlights include:\n\n\n * Strong customer demand for matting rental and related services. Revenues from\nspecialty rental and related services increased to $54 million in the second\nquarter of 2026, with record rental revenues driven by strong demand from key\ncustomer accounts in support of power transmission projects and the impact of\nour recent acquisition. Revenues from product sales were $28 million for the\nsecond quarter of 2026, our highest quarterly level in two years, primarily\nreflecting the continued strong demand from utility companies.\n\n * Improved operating efficiency. NPK remains focused on efficiency improvements\nand operating cost optimization across every aspect of its business. In the\nsecond quarter of 2026, NPK’s Adjusted EBITDA Margin was 31.5%, a 400 basis\nimprovement from the prior year period, and SG&A as a percentage of\nrevenue was 17.4%, a 260 basis point improvement versus the prior year period.\nIn May 2026, the Compensation Committee of our Board of Directors modified the\nretirement eligibility terms applicable to our long-term incentive awards,\nincluding unvested grants from 2024 and 2025. As a result, SG&A for the\nsecond quarter of 2026 includes a $0.9 million charge reflecting the\nacceleration of compensation expense for such awards for retirement eligible\nexecutive officers and other employees.\n\n * Manufacturing efficiency and capacity expansion. NPK continues to execute on\nits recently approved plans to expand our Carencro, Louisiana manufacturing\ncapacity by approximately 50% from current levels. The Company expects to\ninvest $40 million to $45 million by mid-2027, including $4.1 million invested\nin the second quarter, with additional production expected to start up by\nmid-2027.\n\nFINANCIAL PERFORMANCE\n\nIn the second quarter of 2026, NPK generated revenue of $81.6 million, an\nincrease of 20%, compared to $68.2 million in the prior year period. Rental\nand service revenue increased 16% to $53.6 million, while product sales\nincreased 28% to $28.0 million.\n\nGross margin was 37.0% in the second quarter of 2026, compared to 36.9% in the\nprior year period.\n\nSelling, general and administrative expenses were $14.2 million (17.4% of\nrevenues) in the second quarter of 2026, compared to $13.7 million (20.0% of\nrevenues) in the second quarter of 2025. SG&A for the second quarter of\n2026 includes a $0.9 million charge related to acceleration of long-term\nincentive compensation expense due to the modification of our retirement\neligibility terms.\n\nNPK generated income from continuing operations of $12.0 million, or $0.14 per\ndiluted share, compared to $8.8 million, or $0.10 per diluted share, in the\nsecond quarter of 2025. Second quarter 2026 adjusted income from continuing\noperations was $12.8 million, or $0.15 per diluted share.\n\nThe Company reported Adjusted EBITDA from Continuing Operations of $25.7\nmillion in the second quarter of 2026, or 31.5% of total revenue, compared to\n$18.8 million, or 27.5% of total revenue, in the prior year period.\n\nBALANCE SHEET AND LIQUIDITY\n\nAs of June 30, 2026, NPK had total cash of $8.4 million, total debt of $10.6\nmillion, and available liquidity under its senior secured revolving credit\nfacility of $148 million.\n\nOperating cash flow was $21.9 million in the second quarter of 2026. Capital\ninvestments used $16.0 million, net, with the substantial majority funding the\ngrowth of the mat rental fleet and the manufacturing expansion project.\n\nFINANCIAL GUIDANCE\n\nThe following forward-looking guidance reflects the Company’s current\nexpectations and beliefs as of July 29, 2026, and is subject to change. The\nfollowing statements apply only as of the date of this disclosure and are\nexpressly qualified in their entirety by the cautionary statements included\nelsewhere in this document.\n\nFor the full year 2026, NPK currently anticipates the following:\n\n\n * Revenues in a range of $313 million to $323 million\n\n * Adjusted EBITDA in a range of $97 million to $103 million\n\n * Capital expenditures in a range of $65 million to $80 million, which includes\n$20 million to $25 million from manufacturing expansion; Our capex plan for\n2026 has been reduced, primarily reflecting changes in the timing of\nmanufacturing expansion expenditures. The change in expenditure timing will\nnot impact our anticipated mid-year 2027 completion date\n\nSECOND QUARTER 2026 RESULTS CONFERENCE CALL\n\nA conference call will be held Thursday, July 30, 2026 at 9:30 a.m. ET to\nreview the Company’s financial results and conduct a question-and-answer\nsession.\n\nA webcast of the conference call will be available in the Investor Relations\nsection of the Company’s website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=1&md5=481deb0b3c8a019f8b4ea3753343f26c)\n. Individuals can also participate by teleconference dial-in. To listen to a\nlive broadcast, go to the site at least 15 minutes prior to the scheduled\nstart time in order to register, download and install any necessary audio\nsoftware.\n\nTo participate in the live teleconference:\n Domestic Live: 833-461-5787 \n International Live: 365-657-4084 \n Conference ID: 374346665 \n\n\nAfter the webcast, a replay will be available on the Company’s website.\n\nABOUT NPK INTERNATIONAL\n\nNPK International Inc. is a worksite access solutions company that\nmanufactures, sells, and rents recyclable composite matting products, along\nwith a full suite of services, including planning, logistics, and site\nrestoration. The Company delivers superior quality and reliability across\ncritical infrastructure markets, including electrical power transmission, oil\nand gas exploration, pipeline, renewable energy, petrochemical, construction,\nand other industries. For more information, visit our website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=2&md5=1e20332feb18d9c4ea65a1038d50baeb)\n.\n\nFORWARD-LOOKING STATEMENTS\n\nThis news release contains “forward-looking statements” within the meaning\nof the Private Securities Litigation Reform Act of 1995, as amended. All\nstatements other than statements of historical facts are forward-looking\nstatements. Words such as “will,” “may,” “could,” “would,”\n“should,” “anticipates,” “believes,” “estimates,”\n“expects,” “plans,” “intends,” “guidance,” and similar\nexpressions are intended to identify these forward-looking statements but are\nnot the exclusive means of identifying them. These statements are not\nguarantees that our expectations will prove to be correct and involve a number\nof risks, uncertainties, and assumptions. Many factors, including those\ndiscussed more fully elsewhere in this release and in documents filed with the\nSecurities and Exchange Commission by NPK, particularly its Annual Report on\nForm 10-K, and its Quarterly Reports on Form 10-Q, as well as others, could\ncause actual plans or results to differ materially from those expressed in, or\nimplied by, these statements. These risk factors include, but are not limited\nto, risks related to our ability to generate organic growth; economic and\nmarket conditions that may impact our customers’ future spending; customer\nconcentration; the effective management of our fleet, including our ability to\nproperly manufacture, safeguard, and maintain our fleet; international\noperations; manufacturing capacity expansion projects; operating hazards\npresent in our and our customers’ industries and substantial liability\nclaims; our contracts that can be terminated or downsized by our customers\nwithout penalty; our product offering and market expansion; our ability to\nattract, retain, and develop qualified leaders, key employees, and skilled\npersonnel; expanding our services in the utilities sector, which may require\nunionized labor; the price and availability of raw materials; inflation;\ncapital investments and business acquisitions; market competition;\ntechnological developments and intellectual property; severe weather, natural\ndisasters, and seasonality; public health crises, epidemics, and pandemics;\nour cost and continued availability of borrowed funds, including noncompliance\nwith debt covenants; environmental laws and regulations; legal compliance; the\ninherent limitations of insurance coverage; income taxes; cybersecurity\nincidents or business system disruptions; complications with the design or\nimplementation of our updated enterprise resource planning system; activist\nstockholders that may attempt to effect changes at our Company or acquire\ncontrol over our Company; share repurchases; and our amended and restated\nbylaws, which could limit our stockholders’ ability to obtain what such\nstockholders believe to be a favorable judicial forum for disputes with us or\nour directors, officers or other employees. We assume no obligation to update\nany forward-looking statements, whether as a result of new information, future\nevents or otherwise, except as required by securities laws. NPK’s filings\nwith the Securities and Exchange Commission can be obtained at no charge at\nsec.gov, as well as through our website at npki.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fnpki.com&esheet=54579250&newsitemid=20260729824689&lan=en-US&anchor=npki.com&index=3&md5=8d1d77ae70d6c343d46e1e9d0e9d469c)\n.\n NPK International Inc. \n Condensed Consolidated Statements of Operations \n (Unaudited) \n   \n   Three Months Ended   Six Months Ended \n (In thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n Cost of revenues   51,426       47,884       43,052       99,310       82,579   \n Selling, general and administrative expenses   14,160       13,191       13,657       27,351       25,403   \n Other operating (income) loss, net   (91 )     (428 )     (105 )     (519 )     (129 ) \n Operating income from continuing operations   16,090       14,423       11,629       30,513       25,157   \n                     \n Foreign currency exchange (gain) loss   (154 )     145       (626 )     (9 )     (940 ) \n Interest (income) expense, net   347       323       1       670       (47 ) \n Income from continuing operations before income taxes   15,897       13,955       12,254       29,852       26,144   \n                     \n Provision for income taxes from continuing operations   3,908       3,597       3,470       7,505       6,985   \n Income from continuing operations   11,989       10,358       8,784       22,347       19,159   \n Income (loss) from discontinued operations, net of tax   (22 )     100       (106 )     78       (478 ) \n Net income $ 11,967     $ 10,458     $ 8,678     $ 22,425     $ 18,681   \n                     \n Income (loss) per common share - basic                   \n Income from continuing operations $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n Income (loss) from discontinued operations   —       —       —       0.01       —   \n Net income $ 0.14     $ 0.12     $ 0.10     $ 0.27     $ 0.22   \n                     \n Income (loss) per common share - diluted                   \n Income from continuing operations $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n Income (loss) from discontinued operations   —       —       —       —       —   \n Net income $ 0.14     $ 0.12     $ 0.10     $ 0.26     $ 0.22   \n                     \n Weighted average shares:                   \n Basic   84,526       84,416       84,480       84,471       85,264   \n Diluted   85,844       85,852       85,423       85,848       86,205   \n\n NPK International Inc. \n Operating Segment Results \n (Unaudited) \n   \n   Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues                   \n Rental revenues $ 37,208     $ 35,625     $ 31,654     $ 72,833     $ 59,764   \n Service revenues   16,344       16,328       14,658       32,672       29,941   \n Product sales revenues   28,033       23,117       21,921       51,150       43,305   \n Total revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n                     \n Operating income from continuing operations $ 16,090     $ 14,423     $ 11,629     $ 30,513     $ 25,157   \n Operating margin from continuing operations   19.7 %     19.2 %     17.0 %     19.5 %     18.9 % \n\n NPK International Inc. \n Condensed Consolidated Balance Sheets \n (Unaudited) \n   \n (In thousands, except share data) June 30,   December 31, \n \n \n \n \n2026 \n2025 \n ASSETS       \n Cash and cash equivalents $ 8,351     $ 5,140   \n Receivables, net   60,276       59,806   \n Inventories   11,503       11,500   \n Prepaid expenses and other current assets   4,866       5,046   \n Total current assets   84,996       81,492   \n         \n Property, plant and equipment, net   250,037       233,048   \n Operating lease assets   10,018       11,195   \n Goodwill   75,971       76,341   \n Other intangible assets, net   18,647       21,297   \n Deferred tax assets   1,603       5,535   \n Other assets   8,458       12,850   \n Total assets $ 449,730     $ 441,758   \n         \n LIABILITIES AND STOCKHOLDERS’ EQUITY       \n Current debt $ 5,183     $ 5,170   \n Accounts payable   23,370       22,327   \n Accrued liabilities   24,125       29,647   \n Total current liabilities   52,678       57,144   \n         \n Long-term debt, less current portion   5,383       11,692   \n Noncurrent operating lease liabilities   8,630       9,877   \n Deferred tax liabilities   9,685       7,476   \n Other noncurrent liabilities   1,977       4,413   \n Total liabilities   78,353       90,602   \n         \n Common stock, $0.01 par value (200,000,000 shares authorized and 89,969,464   900       902   \n and 90,134,477 shares issued, respectively) \n Paid-in capital   487,744       489,632   \n Accumulated other comprehensive loss   (2,723 )     (1,610 ) \n Retained earnings (deficit)   (78,102 )     (100,527 ) \n Treasury stock, at cost (5,059,570 and 5,616,798 shares, respectively)   (36,442 )     (37,241 ) \n Total stockholders’ equity   371,377       351,156   \n Total liabilities and stockholders’ equity $ 449,730     $ 441,758   \n\n NPK International Inc. \n Condensed Consolidated Statements of Cash Flows \n (Unaudited) \n   \n   Six Months Ended \n \n \n \nJune 30, \n (In thousands) 2026   2025 \n Cash flows from operating activities:       \n Net income $ 22,425     $ 18,681   \n Adjustments to reconcile net income to net cash provided by operations:       \n Gain on divestitures   (500 )     —   \n Depreciation and amortization   16,545       11,974   \n Stock-based compensation expense   4,125       2,596   \n Provision for deferred income taxes   6,284       6,164   \n Credit loss expense   64       19   \n Gain on sale of assets   (1,212 )     (1,557 ) \n Amortization of original issue discount and debt issuance costs   158       313   \n Change in assets and liabilities:       \n Increase in receivables   (1,472 )     (6,283 ) \n Decrease in inventories   25       3,596   \n Increase in other assets   (736 )     (1,924 ) \n Increase in accounts payable   3,708       1,823   \n Decrease in accrued liabilities and other   (6,387 )     (5,134 ) \n Net cash provided by operating activities   43,027       30,268   \n         \n Cash flows from investing activities:       \n Capital expenditures   (33,215 )     (21,705 ) \n Proceeds from divestitures   5,490       14,485   \n Proceeds from sale of property, plant and equipment   1,019       3,320   \n Other investing activities   —       3,089   \n Net cash used in investing activities   (26,706 )     (811 ) \n         \n Cash flows from financing activities:       \n Borrowings on lines of credit   12,600       —   \n Payments on lines of credit   (17,900 )     —   \n Debt issuance costs   —       (797 ) \n Purchases of treasury stock   (5,882 )     (19,291 ) \n Proceeds from employee stock plans   528       —   \n Other financing activities   (2,416 )     (1,704 ) \n Net cash used in financing activities   (13,070 )     (21,792 ) \n         \n Effect of exchange rate changes on cash   (40 )     110   \n         \n Net increase in cash, cash equivalents, and restricted cash   3,211       7,775   \n Cash, cash equivalents, and restricted cash at beginning of period   5,140       18,237   \n Cash, cash equivalents, and restricted cash at end of period $ 8,351     $ 26,012   \n\n\nNPK International Inc.\n\nNon-GAAP Reconciliations\n\n(Unaudited)\n\nTo help understand the Company’s financial performance, the Company has\nsupplemented its financial results that it provides in accordance with\ngenerally accepted accounting principles (“GAAP”) with non-GAAP financial\nmeasures. Such financial measures include Adjusted Income from Continuing\nOperations, Adjusted Income from Continuing Operations Per Common Share,\nearnings before interest, taxes, depreciation and amortization (“EBITDA”)\nfrom Continuing Operations, Adjusted EBITDA from Continuing Operations,\nAdjusted EBITDA Margin from Continuing Operations, and Free Cash Flow.\n\nWe believe these non-GAAP financial measures are frequently used by investors,\nsecurities analysts and other parties in the evaluation of our performance and\nliquidity with that of other companies in our industry. Management uses these\nmeasures to evaluate our operating performance, liquidity and capital\nstructure. In addition, our incentive compensation plan measures performance\nbased on our consolidated EBITDA, along with other factors. The methods we use\nto produce these non-GAAP financial measures may differ from methods used by\nother companies. These measures should be considered in addition to, not as a\nsubstitute for, financial measures prepared in accordance with GAAP.\n\nAdjusted Income from Continuing Operations and Adjusted Income from Continuing\nOperations Per Common Share\n\nThe following tables reconcile the Company’s income from continuing\noperations and income from continuing operations per common share calculated\nin accordance with GAAP to the non-GAAP financial measures of Adjusted Net\nIncome from Continuing Operations and Adjusted Net Income from Continuing\nOperations Per Common Share:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Income from continuing operations (GAAP) $ 11,989     $ 10,358     $ 8,784     $ 22,347     $ 19,159   \n Acquisition-related transaction costs   —       32       —       32       —   \n Modification of retirement terms   858       —       —       858       —   \n Plant expansion expenses   226       —       —       226       —   \n Severance costs   —       —       359       —       386   \n Tax on adjustments   (228 )     (7 )     (75 )     (234 )     (81 ) \n Adjusted Income from Continuing Operations (non-GAAP) $ 12,845     $ 10,383     $ 9,068     $ 23,229     $ 19,464   \n   \n Adjusted Income from Continuing Operations (non-GAAP) $ 12,845     $ 10,383     $ 9,068     $ 23,229   $ 19,464   \n                   \n Weighted average common shares outstanding - basic   84,526       84,416       84,480       84,471     85,264   \n Dilutive effect of stock options and restricted stock awards   1,318       1,436       943       1,377     941   \n Weighted average common shares outstanding - diluted   85,844       85,852       85,423       85,848     86,205   \n                   \n Adjusted Income from Continuing Operations Per Common Share - Diluted $ 0.15     $ 0.12     $ 0.11     $ 0.27   $ 0.23   \n (non-GAAP): \n\n\nNPK International Inc.\n\nNon-GAAP Reconciliations (Continued)\n\n(Unaudited)\n\nEBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations,\nand Adjusted EBITDA Margin from Continuing Operations\n\nThe following table reconciles the Company’s income from continuing\noperations calculated in accordance with GAAP to the non-GAAP financial\nmeasures of EBITDA from Continuing Operations, Adjusted EBITDA from Continuing\nOperations, and Adjusted EBITDA Margin from Continuing Operations:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Revenues $ 81,585     $ 75,070     $ 68,233     $ 156,655     $ 133,010   \n                     \n Operating income from continuing operations (GAAP) $ 16,090     $ 14,423     $ 11,629     $ 30,513     $ 25,157   \n                     \n Income from continuing operations (GAAP) $ 11,989     $ 10,358     $ 8,784     $ 22,347     $ 19,159   \n Interest expense, net   347       323       1       670       (47 ) \n Provision for income taxes   3,908       3,597       3,470       7,505       6,985   \n Depreciation and amortization   8,378       8,167       6,172       16,545       11,974   \n EBITDA from Continuing Operations (non-GAAP)   24,622       22,445       18,427       47,067       38,071   \n Acquisition-related transaction costs   —       32       —       32       —   \n Modification of retirement terms   858       —       —       858       —   \n Plant expansion expenses   226       —       —       226       —   \n Severance costs   —       —       359       —       386   \n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 25,706     $ 22,477     $ 18,786     $ 48,183     $ 38,457   \n Operating Margin from Continuing Operations (GAAP)   19.7 %     19.2 %     17.0 %     19.5 %     18.9 % \n Adjusted EBITDA Margin from Continuing Operations (non-GAAP)   31.5 %     29.9 %     27.5 %     30.8 %     28.9 % \n\n\nFree Cash Flow\n\nThe following table reconciles the Company’s net cash provided by operating\nactivities calculated in accordance with GAAP to the non-GAAP financial\nmeasure of Free Cash Flow:\n Consolidated Three Months Ended   Six Months Ended \n (In thousands) June 30,   March 31,   June 30,   June 30,   June 30, \n \n2026 \n2026 \n2025 \n2026 \n2025 \n Net cash provided by operating activities (GAAP) $ 21,916     $ 21,111     $ 21,440     $ 43,027     $ 30,268   \n Capital expenditures   (16,531 )     (16,684 )     (11,694 )     (33,215 )     (21,705 ) \n Proceeds from sale of property, plant and equipment   536       483       1,502       1,019       3,320   \n Free Cash Flow (non-GAAP) $ 5,921     $ 4,910     $ 11,248     $ 10,831     $ 11,883   \n\n NPK International Inc. \n Non-GAAP Reconciliations (Continued) \n (Unaudited) \n   \n Trailing Twelve Months (“TTM”) \n   \n Consolidated Three Months Ended   TTM \n (In thousands) September 30,   December 31,   March 31,   June 30,   June 30, \n \n2025 \n2025 \n2026 \n2026 \n2026 \n Revenues $ 68,838     $ 75,195     $ 75,070     $ 81,585     $ 300,688   \n Operating income from continuing operations (GAAP) $ 9,057     $ 12,565     $ 14,423     $ 16,090     $ 52,135   \n                     \n Income from continuing operations (GAAP) $ 6,063     $ 10,723     $ 10,358     $ 11,989     $ 39,133   \n Interest (income) expense, net   (47 )     107       323       347       730   \n Provision (benefit) for income taxes from continuing operations   3,010       1,710       3,597       3,908       12,225   \n Depreciation and amortization   6,261       7,302       8,167       8,378       30,108   \n EBITDA from Continuing Operations (non-GAAP)   15,287       19,842       22,445       24,622       82,196   \n Acquisition-related transaction costs   —       1,088       32       —       1,120   \n Modification of retirement terms   —       —       —       858       858   \n Plant expansion expenses   —       —       —       226       226   \n Severance costs   69       763       —       —       832   \n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 15,356     $ 21,693     $ 22,477     $ 25,706     $ 85,232   \n Operating Margin from Continuing Operations (GAAP)   13.2 %     16.7 %     19.2 %     19.7 %     17.3 % \n Adjusted EBITDA Margin from Continuing Operations (non-GAAP)   22.3 %     28.8 %     29.9 %     31.5 %     28.3 % \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260729824689/en/\n(https://www.businesswire.com/news/home/20260729824689/en/)\n\nINVESTOR RELATIONS CONTACT \n\nInvestors@npki.com (mailto:Investors@npki.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-07-29T20:15:01.602962094Z","server_sent_at_ms":1785356101602},"received_at":"2026-07-29T20:15:01.692Z","source_url":"https://www.businesswire.com/news/home/20260729824689/en/"},"analysis":{"id":"91676","press_release_id":"102665","analysis_json":{"industry":{"label":"Construction & Engineering","sector":"Industrials"},"redFlags":[],"eventType":"earnings","narrative":"NPK International reported Q2 2026 revenue of $81.6 million, up 20% year-over-year, driven by record rental revenue and strong product sales.\n\nAdjusted EBITDA increased 37% to $25.7 million, with margins expanding 400 basis points to 31.5%, while diluted EPS rose 40% to $0.14.\n\nThe company raised its full-year 2026 revenue guidance to $313 million-$323 million and Adjusted EBITDA guidance to $97 million-$103 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"NPK delivers strong Q2 with 20% revenue growth and margin expansion, lifting full-year 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EBITDA"},{"amount":"$313 million to $323 million","context":"FY26 revenue guidance"},{"amount":"$97 million to $103 million","context":"FY26 Adjusted EBITDA guidance"},{"amount":"$4.1 million","context":"Q2 2026 investment in manufacturing expansion"},{"amount":"$40 million to $45 million","context":"total investment required for manufacturing expansion"}]},"materialImpact":{"score":4,"reasoning":"Revenue increased 20% year-over-year to $81.6 million, and diluted EPS grew 40% to $0.14. 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