NPK Q3 revenue beats analyst estimates on demand in the power transmission market, raises FY revenue guidance

Overview

• NPK Q3 revenue grows 56% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EBITDA for Q3 rises to $15.4 mln

• Company raises full-year revenue guidance to $268-$272 mln

Outlook

• NPK raises full-year revenue guidance to $268-$272 mln

• NPK updates full-year Adjusted EBITDA to $71-$74 mln

• Company plans capital expenditures of $45-$50 mln for 2025

Result Drivers

• DEMAND GROWTH - Revenue increase driven by sustained demand in the power transmission market and effective execution by sales and operational teams

• FLEET FLEXIBILITY - Rental fleet's scale and flexibility allowed rapid response to project changes, though it caused operational inefficiencies and margin pressure

• FLEET EXPANSION - Expanded rental fleet by 13% and improved production output by 5% to support growth and efficiency

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for NPK International Inc is $12.50, about 9.3% below its October 29 closing price of $13.66

Press Release: ID:nBw5sdjhZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)