NPK International Inc. Reports Strong Third Quarter 2025 Results
NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced financial results for the three and nine months ended September 30, 2025, reflecting strong year-over-year growth, operational execution, and continued momentum in its rental and product businesses.
Third Quarter 2025 Highlights
(All comparisons are versus the prior-year period unless otherwise noted)
- Total revenues: $68.8 million, up 56%
- Rental revenues: $29.6 million, up 57%
- Operating income from continuing operations: $9.1 million, representing a 13.2% operating margin
- Income from continuing operations: $6.1 million, or $0.07 per diluted share
- Adjusted EBITDA from continuing operations: $15.4 million, with an Adjusted EBITDA margin of 22.3%
- Total cash: $35.6 million
- Total debt: $9.5 million, as of September 30, 2025
- Cash flow from operations: $24.7 million
- Free cash flow: $12.5 million
Management Commentary
“We delivered a very strong third quarter, highlighted by a 56% increase in revenue, reflecting sustained demand in the power transmission market and outstanding execution from our commercial and operations teams,” said Matthew Lanigan, President and Chief Executive Officer of NPK.
Lanigan continued, “Given the strengthening market outlook, we are increasing our full-year capital expenditure plan by $10 million to support anticipated demand growth in 2026. We’ve also accelerated planning to expand manufacturing capacity — a critical investment for sustaining our long-term growth trajectory.”
Lanigan emphasized that NPK’s scalable and flexible rental fleet remains a key competitive differentiator. “Our ability to quickly respond to changing customer needs continues to strengthen our market leadership. Late in the quarter, we successfully accommodated multiple large-scale project changes and extensions at short notice. While this created some operational inefficiencies and modest margin pressure, it reinforced our reputation for responsiveness and reliability. Importantly, our outlook for mid-30% gross margins over the full year and long term remains intact.”
“We maintain a strong balance sheet, with cash and available liquidity approaching $180 million as of September 30, 2025,” Lanigan added. “This financial strength allows us to execute our balanced capital allocation strategy — funding both growth investments and shareholder returns. Year-to-date, we’ve expanded our rental fleet by 13% and achieved a 5% increase in production output through targeted debottlenecking efforts, enhancing both capacity and efficiency.”
Concluding his remarks, Lanigan said, “We’re extremely proud of our team’s execution and the momentum we’ve built through the first nine months of 2025. Record utilization levels at quarter-end position us for a strong finish to the year. Reflecting this confidence, we are raising our full-year financial guidance. We remain laser-focused on delivering against our strategic priorities and capturing the exciting opportunities ahead.”
Business Update
NPK’s strategy continues to center on organic growth, operational efficiency, and a disciplined capital allocation framework that prioritizes investments with strong returns and consistent shareholder value creation.
Key highlights for the third quarter of 2025 include:
Continued Strong Rental Demand:
Customer demand for matting rentals and related services remained robust throughout the typically slower summer months. Specialty rental and related service revenues totaled $44 million in Q3 2025, driven by sustained activity in power transmission projects. Product sales reached $25 million, the Company’s strongest quarter of the year, reflecting ongoing strength in utility sector demand.
Operational Efficiency Improvements:
NPK continues to focus on operational efficiency, cost management, and scalability across the organization. The Company is targeting SG&A as a percentage of revenue in the mid-teens by early 2026. During Q3 2025, NPK began rolling out a new cloud-based ERP system, expected to be substantially completed in Q1 2026.
Selling, general and administrative expenses were $13.3 million, or 19.3% of revenue, compared to $11.0 million (24.9% of revenue) in Q3 2024. SG&A for the quarter included approximately $1.0 million in performance-based incentive costs and $0.5 million in expenses related to strategic planning and ERP implementation. Incentives were tied to both long-term total shareholder return (TSR) performance and 2025 operating goals.
Share Repurchases and Capital Returns:
NPK repurchased 0.4 million shares during the quarter for $3.4 million under its share repurchase program, underscoring management’s ongoing commitment to disciplined capital returns alongside growth investments.
Financial Performance
For the third quarter of 2025, income from continuing operations was $6.1 million, or $0.07 per diluted share, compared to $14.9 million, or $0.17 per diluted share, in the same period last year. The prior-year results included a $14.6 million income tax benefit related to the release of valuation allowances following the sale of the Fluids Systems business.
Gross margin improved to 31.9% in Q3 2025, up from 27.5% in Q3 2024, reflecting improved pricing, higher utilization, and efficiency gains.
Adjusted EBITDA from continuing operations reached $15.4 million, or 22.3% of revenue, compared to $7.5 million, or 17.0% of revenue, in the prior-year quarter — a 105% increase in Adjusted EBITDA on a 56% revenue gain.
Balance Sheet and Liquidity
As of September 30, 2025, NPK maintained a strong financial position, ending the quarter with $35.6 million in cash, $9.5 million in total debt, and $144 million of available liquidity under its senior secured revolving credit facility — resulting in a net cash positive position.
Operating cash flow for the quarter totaled $24.7 million, reflecting solid profitability and disciplined working capital management. Capital expenditures of $12.2 million, net, were primarily directed toward expanding the mat rental fleet to meet growing customer demand. The Company also deployed $3.4 million toward share repurchases during the quarter.
2025 Financial Guidance
Reflecting continued momentum and confidence in its markets, NPK has raised its full-year 2025 outlook. The Company now expects:
- Revenue: $268 million to $272 million
- Adjusted EBITDA: $71 million to $74 million
- Capital Expenditures: $45 million to $50 million
These projections reflect NPK’s expectation for sustained strength in demand, further efficiency improvements, and continued disciplined execution through year-end.
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