NPK International Inc. (NYSE: NPKI) (“NPK” or the “Company”) today announced results for the first quarter ended March 31, 2025.

FIRST QUARTER 2025 RESULTS

(all comparisons versus the prior year period unless otherwise noted)

• Revenues of $64.8 million, +32%
• Operating income from continuing operations of $13.5 million
• Operating margin from continuing operations of 20.9%
• Income from continuing operations of $10.4 million, or $0.12 per diluted share
• Adjusted EBITDA from Continuing Operations of $19.7 million, +59%
• Adjusted EBITDA margin from Continuing Operations of 30.4%, +510 bps
• Total cash of $20.8 million and total debt of $8.1 million as of March 31, 2025
• Repurchased $11 million of common equity, 2% of outstanding shares
• Announces increase in remaining share repurchase authorization to $100 million
• Raised full-year 2025 financial guidance

MANAGEMENT COMMENTARY

“We delivered another period of strong results during the first quarter, further building on our positive momentum exiting 2024, highlighted by growth in revenue and adjusted EBITDA of 32% and 59%, respectively,” stated Matthew Lanigan, President and CEO of NPK International. “Our results were driven by meaningful growth in both rental and products sales, with rental revenue increasing 32% from last year to another single-quarter record, reflecting continued momentum in our core utilities transmission and critical infrastructure end markets. The demand trends in our key end-markets remain favorable and we also continue to see the effects of wood-to-composite mat conversion by fleet owners.”

“We remain committed to our long-term growth strategy, which emphasizes the expansion of our high-return rental business and expanding customer market share within our targeted markets,” continued Lanigan. “The investments in our commercial capabilities are a critical aspect of our growth strategy and our progress in expanding our sales team and enhancing our effectiveness has been a key factor driving our recent growth momentum, as quoted volumes continue to grow meaningfully while award rates remain consistent with historical levels. Based on our strong first quarter results, continued execution of our growth strategy, consistent operating efficiency, and favorable near-term market trends, we are pleased to be raising our fiscal 2025 financial guidance.”

“A key driver of our value creation framework is our disciplined capital allocation strategy, and we were extremely pleased to be able to resume our share repurchase program during the first quarter, as we acquired 1.8 million shares, or 2% of our shares outstanding,” continued Lanigan. “We remain committed to our balanced capital allocation strategy, one that combines investments into the organic growth of our rental fleet, evaluation of inorganic opportunities, and return of capital to shareholders. To support our strategy, our Board of Directors increased our remaining share repurchase authorization to $100 million as of April 30, 2025.”

“The secular megatrends underpinning investment in critical infrastructure remain robust despite the current macro uncertainty and we are well positioned to further build on our recent momentum. In addition, our manufacturing footprint and raw material sourcing is 100% US-based and insulated from any currently known tariff impacts. We have the right strategy in place and based on our continued execution against our key priorities, we are confident in our ability to drive value for all of our stakeholders,” concluded Lanigan.

BUSINESS UPDATE

NPK’s business plan is designed to drive organic commercial growth within targeted, higher-margin product and rental 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.

First quarter 2025 highlights include:

• Strong customer demand for matting rental and related services. Revenues from specialty rental and related services increased to $43 million in the first quarter of 2025, with record rental revenues driven by strong demand from key customer accounts in support of power transmission projects. Revenues from product sales increased to $21 million for the first quarter of 2025, reflecting both continued wood-to-composite mat conversion by fleet owners supporting the utilities and critical infrastructure end-markets and timing of customer projects.
• Improved operating efficiency. NPK remains focused on efficiency improvements and operating cost optimization across every aspect of its business. The Company continues to evaluate and execute actions intended to streamline the organization and its cost structure, while targeting SG&A as a percentage of revenue in the mid-teens percentage range by early 2026. In the first quarter of 2025, NPK’s SG&A as a percentage of revenue was 18.1%, a decline of 550 bps versus the prior year period.
• Robust return of capital program. In February 2024, the Board of Directors increased the authorization for repurchases of common stock to $50.0 million. In 2024, the share repurchase program was restricted due to the Fluids Systems sale process. During the first quarter of 2025, the Company used $11 million of cash to repurchase 1.8 million (2%) of outstanding shares under the repurchase program.

FINANCIAL PERFORMANCE

In the first quarter of 2025, NPK generated income from continuing operations of $10.4 million, or $0.12 per diluted share, on total revenue of $64.8 million, compared to income from continuing operations of $4.1 million, or $0.05 per diluted share, on total revenue of $49.0 million, in the first quarter of 2024. Gross margin was 39.0% in the first quarter of 2025, compared to 36.0% in the prior year period. The Company reported Adjusted EBITDA from Continuing Operations of $19.7 million in the first quarter of 2025, or 30.4% of total revenue, compared to $12.4 million, or 25.3% of total revenue, in the prior year period.

Selling, general and administrative expenses were $11.7 million (18.1% of revenues) in the first quarter of 2025, compared to $11.6 million (23.6% of revenues) in the first quarter of 2024.

BALANCE SHEET AND LIQUIDITY

As of March 31, 2025, NPK had total cash of $20.8 million, total debt of $8.1 million, and available liquidity under its U.S. ABL credit facility of $66 million. Additionally, the Company had $7 million of receivables and net deferred consideration from the Fluids Systems sale as of March 31, 2025.

Operating cash flow was $9 million in the first quarter of 2025, which included $10 million usage in net working capital driven by the strong business activity. Capital investments used $8 million, net, primarily funding the expansion of the mat rental fleet to support increased customer demand. The Company remained in a net cash positive position as of March 31, 2025.

FINANCIAL GUIDANCE

The following forward-looking guidance reflects the Company’s current expectations and beliefs as of May 1, 2025 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 2025, NPK currently anticipates the following:

• Revenues in a range of $240 million to $252 million
• Adjusted EBITDA in a range of $64 million to $72 million
• Capital expenditures in a range of $35 million to $40 million

FIRST QUARTER 2025 RESULTS CONFERENCE CALL

A conference call will be held Friday, May 2, 2025 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:

To listen to a replay of the teleconference, which subsequently will be available through May 9, 2025:

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 recently completed sale of the Fluids Systems business; our ability to generate organic growth; economic and market conditions that may impact our customers’ future spending; the effective management of our fleet, including our ability to properly manufacture, safeguard, and maintain our fleet; international operations; 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; 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.

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:

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:

Free Cash Flow

The following table reconciles the Company’s net cash provided by operating activities calculated in accordance with GAAP to the non-GAAP financial measure of Free Cash Flow:

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