NPK International Q2 Earnings Call Highlights

Strong second-quarter performance: Revenue rose 20% year over year to $82 million, while adjusted EBITDA increased 37% to $26 million, supported by record rental and service revenue and a 28% increase in product sales. 2026 outlook raised: NPK narrowed its revenue forecast to $313 million–$323 million and raised adjusted EBITDA guidance to $97 million–$103 million, implying midpoint growth of 15% and 32%, respectively. Expansion and financial position: The company is investing in a Louisiana manufacturing expansion expected to increase capacity by about 50% by mid-2027, while expanding its rental fleet and maintaining modest net debt of approximately $2 million.

NPK International NYSE: NPKI reported second-quarter 2026 revenue of $82 million, up 20% from a year earlier, as growth in product sales and rental activity drove higher profitability. The company also raised its full-year adjusted EBITDA outlook following what President and CEO Matthew Lanigan described as continued momentum in its core markets. Adjusted EBITDA rose 37% year over year to $26 million, producing a 31.5% margin. Adjusted earnings per share from continuing operations were $0.15, compared with $0.11 a year earlier and $0.12 in the first quarter.

Rental and service revenue reached a quarterly record of $54 million, increasing 16% from the prior-year period and 3% sequentially. Rental revenue grew 18% year over year, including 4% organic growth and a $4 million contribution from the Grassform acquisition. Service revenue increased 12%, with substantially all of that gain tied to the acquisition, Chief Financial Officer Gregg Piontek said. The company managed several large project completions during the quarter that collectively represented more than 25% of its domestic mat fleet. Lanigan said the accelerated timing of those completions tested the company’s ability to redeploy assets, but the business still grew profitably. “Our ability to absorb these large project transitions while continuing to grow profitably in the quarter once again demonstrates the benefits of our scale,” Lanigan said.

Product sales contributed $28 million in second-quarter revenue, up 28% from a year earlier and 21% sequentially. Piontek attributed the increase primarily to demand from utility customers and elevated international sales. During the question-and-answer session, Lanigan clarified that the international sales were not made in the United Kingdom. Second-quarter gross margin was 37%, improving 80 basis points from the first quarter and matching the prior-year level. Piontek said stronger product sales and stable rental margins supported the sequential improvement. The company also cited increased manufacturing operating leverage, partly offset by lower rental utilization tied to project completions.

NPK narrowed its full-year revenue forecast to a range of $313 million to $323 million and increased its adjusted EBITDA outlook to $97 million to $103 million. At the midpoint, the company expects revenue growth of 15% and adjusted EBITDA growth of 32% over 2025. For the third quarter, management expects rental and service revenue to remain roughly in line with the second-quarter level, despite the company’s typical seasonal slowdown in project activity and ongoing fleet redeployment from recently completed projects. That would represent year-over-year growth of more than 20%, according to Piontek. Product sales are expected to return to levels more consistent with the first quarter after what management characterized as an exceptionally strong second quarter. Third-quarter gross margin is expected to be roughly consistent with the first-half result, subject to project timing...