Company reports revenues of $75 million; Diluted EPS from Continuing Operations of $0.13
Company provides full year 2026 revenue guidance of $305-$325 million and Adjusted EBITDA of $88-$100 million
THE WOODLANDS, Texas--(BUSINESS WIRE)--February 25, 2026--
NPK International Inc. (NYSE: NPKI) ("NPK" or the "Company") today announced results for the three and twelve months ended December 31, 2025.
FOURTH QUARTER 2025 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-- Revenues of $75.2 million, +31%; Rental revenues of $34.8 million,
+35%
-- Operating income from continuing operations of $12.6 million (16.7% of
revenues)
-- Income from continuing operations of $10.7 million, or $0.13 per
diluted share; Adjusted Income from Continuing Operations of $10.7
million, or $0.13 per diluted share
-- Adjusted EBITDA from Continuing Operations of $21.7 million, +27%
-- Adjusted EBITDA margin from Continuing Operations of 28.8%
-- Total cash of $5.1 million and total debt of $16.9 million as of
December 31, 2025; credit facility availability of $139 million
-- Cash flow from operating activities of $18.0 million; Free Cash Flow of
$5.9 million
FULL-YEAR 2025 RESULTS
(all comparisons versus the prior year period unless otherwise noted)
-- Revenues of $277.0 million, +27%; Rental revenues of $124.2 million,
+39%
-- Operating income from continuing operations of $46.8 million (16.9% of
revenues)
-- Income from continuing operations of $35.9 million, or $0.42 per
diluted share; Adjusted Income from Continuing Operations of $36.3
million, or $0.42 per diluted share
-- Adjusted EBITDA from Continuing Operations of $75.5 million, +38%
-- Adjusted EBITDA margin from Continuing Operations of 27.3%
-- Cash flow from operating activities of $73.0 million; Free Cash Flow of
$30.3 million
Fourth Quarter
------------------------------------ ---------------- -------- ----
(In millions) 2025 2024 Change
------------------------------------ ------- ------- -------- ----
Revenues $ 75.2 $ 57.5 $ 17.7
Operating income from continuing
operations $ 12.6 $ 11.6 $ 1.0
Adjusted EBITDA from continuing
operations $ 21.7 $ 17.1 $ 4.6
Operating margin from continuing
operations (%) 16.7 % 20.2 % -350 bps
Adjusted EBITDA margin from
continuing operations (%) 28.8 % 29.7 % -90 bps
Net cash provided by operating
activities $ 18.0 $ (4.1) $ 22.1
Free Cash Flow $ 5.9 $(15.9) $ 21.8
Full Year
------------------------------------ ---------------- -------- ----
(In millions) 2025 2024 Change
------------------------------------ ------- ------- -------- ----
Revenues $ 277.0 $ 217.5 $ 59.5
Operating income from continuing
operations $ 46.8 $ 32.4 $ 14.4
Adjusted EBITDA from continuing
operations $ 75.5 $ 54.9 $ 20.6
Operating margin from continuing
operations (%) 16.9 % 14.9 % 200 bps
Adjusted EBITDA margin from
continuing operations (%) 27.3 % 25.2 % 210 bps
Net cash provided by operating
activities $ 73.0 $ 38.2 $ 34.8
Free Cash Flow $ 30.3 $ (0.4) $ 30.7
MANAGEMENT COMMENTARY
"We were extremely pleased with our strong fourth quarter performance, which capped a record year and underscored the strength of our long-term strategy and the continued momentum across our key end-markets," said Matthew Lanigan, President and CEO of NPK International. "Fourth quarter revenue increased 9% sequentially and 31% year over year, driven by sustained strength in rental fleet utilization and continued robust demand for our DURA-BASE products from utility customers. As expected, profitability rebounded meaningfully from the third quarter, with fourth quarter Adjusted EBITDA increasing 41% sequentially and 27% year over year.
Lanigan continued, "Looking at full-year 2025, we made significant progress across each of the strategic priorities we outlined at the start of the year. Our top focus was accelerating organic rental growth, which we believe is our most durable long-term value driver. For the year, rental revenue increased 39%, contributing to total revenue growth of 27%. Importantly, Adjusted EBITDA margin expanded by more than 200 basis points in 2025, reflecting the operating leverage inherent in our model and driving Adjusted EBITDA growth of 38% compared with the prior year.
"A key pillar of our organic growth strategy remains our focus on manufacturing capacity expansion. Production volumes increased more than 15% year-over-year in 2025, and the initiatives implemented during the year are anticipated to provide sufficient production capacity to support our growth needs in 2026. Looking longer-term, our team is wrapping up the evaluation of manufacturing expansion alternatives. We are very encouraged by the team's progress and expect to finalize our investment details and timelines within the next few months, with an expectation of bringing additional production capacity online in the first half of 2027.
"As part of our disciplined capital allocation strategy, an important priority coming into 2025 was the focused pursuit of core inorganic growth. We were pleased to complete the acquisition of Grassform Plant Hire Limited in November, which strengthens our capabilities and enhances our scale as a top tier worksite access provider in the U.K. market. We ended the year in a strong financial position and remain committed to our balanced capital allocation framework that prioritizes organic growth investments, the pursuit of strategic acquisitions, and the return of excess capital to shareholders.
"We remain optimistic regarding the long-term outlook for power transmission spending, supported by an aging utility infrastructure and the continued electrification of the economy. Our industry-leading matting fleet provides the scale and flexibility to capitalize on these trends, as reflected by the strength in our commercial pipeline, with our quoted volumes up approximately 30% from year-end 2024. Based on this momentum, we are introducing full-year 2026 guidance which reflects year-over-year revenue and Adjusted EBITDA growth of 14% and 25%, respectively, at the midpoint of our range, driven primarily by anticipated low-to-mid teens percentage growth in rental and service revenues.
"As we look ahead, our strategic priorities remain unchanged - delivering consistent organic growth, driving organizational efficiencies, and enhancing returns on invested capital through a disciplined approach to capital allocation," concluded Lanigan. "We are excited about the opportunities ahead and remain confident in our ability to execute on our objectives in 2026 and beyond."
BUSINESS UPDATE
NPK's business plan is designed to drive organic commercial growth within targeted rental and product sale 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.
Fourth quarter and full-year 2025 highlights include:
-- Strong customer demand continued for matting rental and related
services. Revenues from specialty rental and related services were $50
million in the fourth quarter of 2025, with strong demand continuing in
support of power transmission projects. Revenues from product sales were
$25 million for the fourth quarter of 2025, the Company's strongest
quarter of the year, primarily reflecting continued strength in demand
from utility companies. For the full year 2025, rental and service
revenues increased 26% year-over-year, while revenues from product sales
increased 30%. More than two-thirds of 2025 revenue was derived from the
power transmission sector.
-- Manufacturing efficiency and capacity expansion. Production volumes
increased more than 15% year over year in 2025 benefitting from a shift
to 24/7 operations and throughput enhancements. These initiatives are
anticipated to provide an additional increase in production capacity in
2026, sufficient to support anticipated growth. Management continues to
evaluate additional manufacturing expansion alternatives and expects to
finalize investment plans and timelines over the next few months.
-- Pursuit of operational efficiency. During 2025, the Company completed
the required transitional support for the divested Fluids business while
simultaneously advancing a major ERP conversion project. The new ERP
system has been recently rolled out to all legacy operations and
represents yet another significant milestone in the efforts to streamline
overhead and SG&A costs, consistent with the Company's goal to drive SG&A
costs down to a mid-teens percentage of revenue.
-- Enhanced return on invested capital. The Company delivered an after-tax
return on net assets of 11% in 2025, a substantial year-over-year
improvement, driven by a combination of improved profitability and
focused balance sheet management.
-- Return of capital to shareholders. The Company continued to execute on
its disciplined return of capital strategy during 2025 by repurchasing 4%
of outstanding shares at an average price of $6.70 per share. As a result,
the Company exited 2025 with two million fewer shares outstanding versus
the prior year.
-- Acquisition of Grassform. On November 24, 2025, the Company completed
the acquisition of Grassform Plant Hire Limited ("Grassform"), a U.K.
market leader in ground protection and temporary roadway solutions and
services with a fleet of over 20,000 composite mats. The purchase price
at closing for this acquisition was $42 million net of cash acquired, and
was funded with cash on hand and borrowings under the Credit Facility. It
is anticipated that the acquisition will meaningfully strengthen U.K.
operations through scale and the addition of a highly tenured and
talented team.
FINANCIAL PERFORMANCE
In the fourth quarter of 2025, NPK generated income from continuing operations of $10.7 million, or $0.13 per diluted share, on total revenue of $75.2 million, compared to $8.0 million, or $0.09 per diluted share, on total revenue of $57.5 million, in the fourth quarter of 2024. Income from continuing operations for the fourth quarter of 2025 and 2024 included income tax benefits of $1.5 million and $1.3 million, respectively, primarily reflecting the release of valuation allowances on U.S. state net operating losses. Gross margin was 37.7% in the fourth quarter of 2025, compared to 39.2% in the prior year period. The Company reported Adjusted EBITDA from Continuing Operations of $21.7 million in the fourth quarter of 2025, or 28.8% of total revenue, compared to $17.1 million, or 29.7% of total revenue, in the prior year period.
Selling, general and administrative expenses were $15.4 million (20.4% of revenues) in the fourth quarter of 2025, compared to $10.7 million (18.6% of revenues) in the fourth quarter of 2024. SG&A in the fourth quarter of 2025 includes approximately $1.1 million in acquisition-related transaction costs primarily attributable to the Grassform acquisition and $0.8 million of severance costs. Full year selling, general and administrative expenses were $54.0 million (19.5% of revenues), compared to $46.0 million (21.2% of revenues) in the prior year. SG&A in 2025 includes elevated costs for performance-based incentives tied to 2025 performance targets and longer-term shareholder return metrics as well as approximately $1.1 million in acquisition-related transaction costs primarily attributable to the Grassform acquisition, $1.2 million of severance costs, and $0.5 million of ERP implementation costs.
BALANCE SHEET AND LIQUIDITY
As of December 31, 2025, NPK had total cash of $5.1 million, total debt of $16.9 million, and available liquidity under its senior secured revolving credit facility of $139 million.
Operating cash flow was $18.0 million in the fourth quarter of 2025. Capital investments used $12.1 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand. Operating cash flow was $73.0 million in 2025. Capital investments used $42.7 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand. During 2025, the Company used $20.4 million of cash to repurchase 3 million (4%) of outstanding shares under the repurchase program.
FINANCIAL GUIDANCE
The following forward-looking guidance reflects the Company's current expectations and beliefs as of February 25, 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 $305 million to $325 million
-- Adjusted EBITDA in a range of $88 million to $100 million
-- Capital expenditures in a range of $45 million to $55 million
(excluding manufacturing expansion)
FOURTH QUARTER 2025 RESULTS CONFERENCE CALL
A conference call will be held Thursday, February 26, 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 March 5, 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 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.
NPK International Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Twelve Months Ended
--------------- ------------------------------- -----------------------
(In thousands, December December
except per 31, September 31, December December 31,
share data) 2025 30, 2025 2024 31, 2025 2024
--------------- -------- ----------- -------- --------- ------------
Revenues $75,195 $ 68,838 $57,524 $277,043 $ 217,489
Cost of
revenues 46,834 46,870 35,001 176,283 140,359
Selling,
general and
administrative
expenses 15,352 13,279 10,713 54,034 46,048
Other operating
(income) loss,
net 444 (368) 166 (53) (1,269)
------ ------ ------ ------- --------
Operating
income from
continuing
operations 12,565 9,057 11,644 46,779 32,351
Foreign
currency
exchange
(gain) loss 25 31 699 (884) 869
Interest
(income)
expense, net 107 (47) 9 13 2,621
------ ------ ------ ------- --------
Income from
continuing
operations
before
income
taxes 12,433 9,073 10,936 47,650 28,861
Provision
(benefit) for
income taxes
from
continuing
operations
(1) 1,710 3,010 2,888 11,705 (6,738)
------ ------ ------ ------- --------
Income from
continuing
operations 10,723 6,063 8,048 35,945 35,599
------ ------ ------ ------- --------
Discontinued
operations:
Income (loss)
from
discontinued
operations
before income
taxes (229) (593) (712) (1,412) 4,360
Gain (loss) on
sale of
discontinued
operations
before income
taxes 2,176 -- -- 2,176 (195,729)
Provision
(benefit) for
income taxes
from
discontinued
operations (1,934) (184) (1,367) (2,230) (5,508)
------ ------ ------ ------- --------
Income (loss)
from
discontinued
operations 3,881 (409) 655 2,994 (185,861)
------ ------ ------ ------- --------
Net income
(loss) $14,604 $ 5,654 $ 8,703 $ 38,939 $(150,262)
====== ====== ====== ======= ========
Income (loss)
per common
share - basic:
Income from
continuing
operations $ 0.13 $ 0.07 $ 0.09 $ 0.42 $ 0.41
Income (loss)
from
discontinued
operations 0.04 -- 0.01 0.04 (2.17)
------ ------ ------ ------- --------
Net income
(loss) $ 0.17 $ 0.07 $ 0.10 $ 0.46 $ (1.75)
====== ====== ====== ======= ========
Income (loss)
per common
share -
diluted:
Income from
continuing
operations $ 0.13 $ 0.07 $ 0.09 $ 0.42 $ 0.41
Income (loss)
from
discontinued
operations 0.04 -- 0.01 0.03 (2.13)
------ ------ ------ ------- --------
Net income
(loss) $ 0.17 $ 0.07 $ 0.10 $ 0.45 $ (1.72)
====== ====== ====== ======= ========
Weighted
average
shares:
Basic 84,406 84,359 86,416 84,820 85,819
Diluted 85,414 85,066 87,222 85,719 87,395
(1) Includes income tax benefits of $1.5 million for the three and twelve
months ended December 31, 2025, and $1.3 million and $15.9 million for
the three months and twelve months ended December 31, 2024, respectively,
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.
NPK International Inc.
Operating Results
(Unaudited)
Three Months Ended Twelve Months Ended
--------------- ------------------------------------- --------------------------
December September December December 31, December 31,
(In thousands) 31, 2025 30, 2025 31, 2024 2025 2024
--------------- ----------- ----------- ----------- ------------ ------------
Revenues
Rental
revenues $34,816 $29,591 $25,725 $124,171 $ 89,512
Service
revenues 14,909 14,688 16,075 59,538 56,273
Product
sales
revenues 25,470 24,559 15,724 93,334 71,704
------ ------ ------ ------- -------
Total revenues $75,195 $68,838 $57,524 $277,043 $217,489
====== ====== ====== ======= =======
Operating
income from
continuing
operations $12,565 $ 9,057 $11,644 $ 46,779 $ 32,351
Operating
margin from
continuing
operations 16.7% 13.2% 20.2% 16.9% 14.9%
NPK International Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, December 31,
(In thousands, except share data) 2025 2024
---------------------------------------- -------------- ----------------
ASSETS
Cash and cash equivalents $ 5,140 $ 17,756
Receivables, net (1) 59,806 74,841
Inventories 11,500 14,659
Prepaid expenses and other current
assets 5,046 5,728
--------- ---------
Total current assets 81,492 112,984
Property, plant and equipment, net 233,048 187,483
Operating lease assets 11,195 11,793
Goodwill 76,341 47,222
Other intangible assets, net 21,297 10,331
Deferred tax assets 5,535 15,593
Other assets 12,850 8,276
--------- ---------
Total assets $ 441,758 $ 393,682
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt $ 5,170 $ 2,900
Accounts payable 22,327 19,459
Accrued liabilities 29,647 22,300
--------- ---------
Total current liabilities 57,144 44,659
.
Long-term debt, less current portion 11,692 4,827
Noncurrent operating lease
liabilities 9,877 10,896
Deferred tax liabilities 7,476 1,203
Other noncurrent liabilities 4,413 5,602
--------- ---------
Total liabilities 90,602 67,187
Common stock, $0.01 par value
(200,000,000 shares authorized and
90,134,477 and 111,669,464 shares
issued, respectively) 902 1,117
Paid-in capital 489,632 633,239
Accumulated other comprehensive loss (1,610) (2,871)
Retained earnings (deficit) (100,527) (139,466)
Treasury stock, at cost (5,616,798
and 25,114,978 shares,
respectively) (37,241) (165,524)
--------- ---------
Total stockholders' equity 351,156 326,495
--------- ---------
Total liabilities and
stockholders' equity $ 441,758 $ 393,682
========= =========
(1) Receivables, net as of December 31, 2025 and December 31, 2024,
includes $1 million and $23 million, respectively, for amounts due from
the purchaser including estimated deferred consideration related to the
sale of the Fluids Systems business.
NPK International Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Twelve Months Ended
December 31,
--------------------------------------------- -----------------------
(In thousands) 2025 2024
--------------------------------------------- --------- ------------
Cash flows from operating activities:
Net income (loss) $ 38,939 $(150,262)
Adjustments to reconcile net income (loss) to
net cash provided by operations:
(Gain) loss on divestitures (2,176) 195,729
Depreciation and amortization 25,537 27,530
Stock-based compensation expense 5,527 5,247
Provision for deferred income taxes 8,923 (20,304)
Credit loss expense 35 698
Gain on sale of assets (1,864) (4,297)
Gain on insurance recovery -- (874)
Amortization of original issue discount
and debt issuance costs 472 983
Change in assets and liabilities:
Increase in receivables (3,921) (28,012)
Decrease in inventories 3,377 9,746
Increase in other assets (3,521) (3,913)
Increase (decrease) in accounts payable (2,576) 12,488
Increase (decrease) in accrued
liabilities and other 4,236 (6,590)
------- --------
Net cash provided by operating activities 72,988 38,169
Cash flows from investing activities:
Capital expenditures (46,671) (43,531)
Business acquisitions, net of cash
acquired (42,352) --
Proceeds from divestitures, net of cash
disposed 16,603 48,499
Proceeds from sale of property, plant and
equipment 4,014 4,997
Proceeds from insurance property claim -- 1,385
Other investing activities 3,089 (3,089)
------- --------
Net cash provided by (used in) investing
activities (65,317) 8,261
Cash flows from financing activities:
Borrowings on lines of credit 27,300 177,541
Payments on lines of credit (22,000) (224,292)
Debt issuance costs (1,241) (50)
Purchases of treasury stock (22,695) (4,505)
Proceeds from employee stock plans 1,517 139
Other financing activities (3,826) (15,715)
------- --------
Net cash used in financing activities (20,945) (66,882)
Effect of exchange rate changes on cash 177 (212)
------- --------
Net increase (decrease) in cash, cash
equivalents, and restricted cash (13,097) (20,664)
Cash, cash equivalents, and restricted cash
at beginning of period 18,237 38,901
------- --------
Cash, cash equivalents, and restricted cash
at end of period $ 5,140 $ 18,237
======= ========
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 Net Income
from Continuing Operations and Adjusted Net Income from Continuing Operations
Per Common Share:
Consolidated Three Months Ended Twelve Months Ended
----------------------- ------------------------------- ---------------------
December December December
31, September 31, 31, December
(In thousands) 2025 30, 2025 2024 2025 31, 2024
----------------------- -------- ----------- -------- -------- -----------
Income from continuing
operations (GAAP) $10,723 $ 6,063 $ 8,048 $35,945 $ 35,599
Gain on insurance
recovery -- -- -- -- (67)
Gain on legal
settlement -- -- -- -- (550)
Acquisition-related
transaction costs 1,088 -- -- 1,088 --
Severance costs 763 69 416 1,218 1,337
Tax on adjustments (389) (14) (87) (484) (151)
Unusual tax items
(1) (1,471) -- (1,280) (1,471) (15,897)
------ ------ ------ ------ -------
Adjusted Income from
Continuing Operations
(non-GAAP) $10,714 $ 6,118 $ 7,097 $36,296 $ 20,271
====== ====== ====== ====== =======
Adjusted Income from
Continuing Operations
(non-GAAP) $10,714 $ 6,118 $ 7,097 $36,296 $ 20,271
Weighted average common
shares outstanding -
basic 84,406 84,359 86,416 84,820 85,819
Dilutive effect
of stock options
and restricted
stock awards 1,008 707 806 899 1,576
------ ------ ------ ------ -------
Weighted average common
shares outstanding -
diluted 85,414 85,066 87,222 85,719 87,395
------ ------ ------ ------ -------
Adjusted Income from
Continuing Operations
Per Common Share -
Diluted (non-GAAP): $ 0.13 $ 0.07 $ 0.08 $ 0.42 $ 0.23
(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 Twelve Months Ended
----------------------- ------------------------------------- --------------------------
December September December December 31, December 31,
(In thousands) 31, 2025 30, 2025 31, 2024 2025 2024
----------------------- ----------- ----------- ----------- ------------ ------------
Revenues $75,195 $68,838 $57,524 $277,043 $217,489
Operating income from
continuing operations
(GAAP) $12,565 $ 9,057 $11,644 $ 46,779 $ 32,351
Income from continuing
operations (GAAP) $10,723 $ 6,063 $ 8,048 $ 35,945 $ 35,599
Interest (income)
expense, net 107 (47) 9 13 2,621
Provision (benefit)
for income taxes 1,710 3,010 2,888 11,705 (6,738)
Depreciation and
amortization 7,302 6,261 5,724 25,537 22,656
------ ------ ------ ------- -------
EBITDA from Continuing
Operations (non-GAAP) 19,842 15,287 16,669 73,200 54,138
Gain on insurance
recovery -- -- -- -- (67)
Gain on legal
settlement -- -- -- -- (550)
Acquisition-related
transaction costs 1,088 -- -- 1,088 --
Severance costs 763 69 416 1,218 1,337
------ ------ ------ ------- -------
Adjusted EBITDA from
Continuing Operations
(non-GAAP) $21,693 $15,356 $17,085 $ 75,506 $ 54,858
====== ====== ====== ======= =======
Operating Margin (GAAP) 16.7% 13.2% 20.2% 16.9% 14.9%
====== ====== ====== ======= =======
Adjusted EBITDA Margin
from Continuing
Operations (non-GAAP) 28.8% 22.3% 29.7% 27.3% 25.2%
====== ====== ====== ======= =======
Free Cash Flow
The following table reconciles the Company's net cash provided by (used in)
operating activities calculated in accordance with GAAP to the non-GAAP
financial measure of Free Cash Flow:
Consolidated Three Months Ended Twelve Months Ended
---------------- ------------------------------- ----------------------
December September December December December
(In thousands) 31, 2025 30, 2025 31, 2024 31, 2025 31, 2024
---------------- --------- --------- --------- --------- -----------
Net cash
provided by
(used in)
operating
activities
(GAAP) $ 18,004 $ 24,716 $ (4,127) $ 72,988 $ 38,169
Capital
expenditures (12,252) (12,714) (13,591) (46,671) (43,531)
Proceeds from
sale of
property,
plant and
equipment 195 499 1,809 4,014 4,997
------- ------- ------- ------- -------
Free Cash Flow
(non-GAAP) $ 5,947 $ 12,501 $(15,909) $ 30,331 $ (365)
======= ======= ======= ======= =======
NPK International Inc.
Non-GAAP Reconciliations (Continued)
(Unaudited)
Trailing Twelve Months ("TTM")
Consolidated Three Months Ended TTM
----------------------- -------------------------------------------------- ------------
March 31, June 30, September December December 31,
(In thousands) 2025 2025 30, 2025 31, 2025 2025
----------------------- ----------- ----------- ----------- ----------- ------------
Revenues $64,777 $68,233 $68,838 $75,195 $277,043
Operating income from
continuing operations
(GAAP) $13,528 $11,629 $ 9,057 $12,565 $ 46,779
Income from Continuing
Operations (GAAP) $10,375 $ 8,784 $ 6,063 $10,723 $ 35,945
Interest expense,
net (48) 1 (47) 107 13
Provision (benefit)
for income taxes 3,515 3,470 3,010 1,710 11,705
Depreciation and
amortization 5,802 6,172 6,261 7,302 25,537
------ ------ ------ ------ -------
EBITDA from Continuing
Operations (non-GAAP) 19,644 18,427 15,287 19,842 73,200
Acquisition-related
transaction costs -- -- -- 1,088 1,088
Severance costs 27 359 69 763 1,218
------ ------ ------ ------ -------
Adjusted EBITDA from
Continuing Operations
(non-GAAP) $19,671 $18,786 $15,356 $21,693 $ 75,506
====== ====== ====== ====== =======
Operating Margin (GAAP) 20.9% 17.0% 13.2% 16.7% 16.9%
====== ====== ====== ====== =======
Adjusted EBITDA Margin
from Continuing
Operations (non-GAAP) 30.4% 27.5% 22.3% 28.8% 27.3%
====== ====== ====== ====== =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225115792/en/
CONTACT: INVESTOR RELATIONS CONTACT
Investors@npki.com
(END) Dow Jones Newswires
February 25, 2026 16:15 ET (21:15 GMT)
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