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 Product Sales Growth
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.
Updated 2026 Outlook
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.
Lanigan said the company’s pipeline of quoted work was up about 20% year over year, with more than half of the quoted volume originating in expansion geographies. He said NPK was not seeing effects from concerns affecting some participants in the data-center-related market, adding that its pipeline was “fairly advanced and locked in.”
The company said it currently has no mats deployed on data-center construction. Lanigan said more than 70% of its fleet is deployed on transmission projects, while much of the remaining domestic fleet serves oil-and-gas activity around U.S. fracking basins. In the United Kingdom, the company’s operations are more concentrated in transmission, rail and general construction.
Manufacturing Expansion and Capital Position
NPK invested $4 million during the quarter in its Louisiana manufacturing expansion project, which is expected to increase production capacity by approximately 50%. The project remains on track for a mid-2027 startup, although the company reduced its 2026 capital expenditure plan primarily because of changes in the timing of expansion spending.
Total net capital expenditures are now expected to range from $65 million to $80 million in 2026, including:
- $20 million to $25 million for the manufacturing expansion;
- $35 million to $45 million for rental fleet expansion; and
- Investment intended to expand the DURA-BASE rental fleet by a low- to mid-teens percentage.
Management said additional fleet capacity should support organic growth and reduce the need for cross-rented assets. Piontek said cross-rental costs have been relatively stable but represent about a three-point headwind to rental-and-service margins. Over time, the company expects lower use of cross-rented mats to provide a margin benefit.
Net cash from operating activities totaled $22 million in the quarter, while free cash flow was $6 million. The company expanded its rental fleet by 3% during the period. NPK ended the quarter with $11 million in total debt and $8 million in cash, for net debt of about $2 million, along with $148 million of availability under its bank facility.
Acquisition and Market Strategy
Management said the Grassform acquisition is performing ahead of expectations as NPK integrates its two U.K. platforms. Lanigan said the company remains prepared to pursue additional acquisitions that could expand its presence in geographic markets, provided the economics are attractive.
On the U.S. market, Lanigan said most current work remains on existing transmission lines and rights-of-way rather than greenfield projects. He said higher-voltage transmission construction planned for 2027 and 2028 could require materially more matting, estimating that larger projects may use roughly 1.5 times the matting required for current rights-of-way work.
The company also said its customer base is becoming more geographically diversified. Piontek noted that a large customer represented 19% of business in 2025 after successful large-project activity, and management has been focused in 2026 on broadening its customer mix.
About NPK International (NYSE:NPKI)
NPK International, Inc NYSE: NPKI is a specialty chemical distributor supplying a broad range of industrial and performance materials across diverse end-markets. Its product portfolio includes acetic acid and derivatives, alcohols, ketones, esters, glycol ethers, glycols, specialty solvents, select inorganic chemicals and crop-protection intermediates. These materials serve industries such as coatings, adhesives and sealants, oil and gas, personal care, pharmaceuticals, agrochemicals and water treatment.
The company places a strong emphasis on supply-chain security and technical service, maintaining warehousing, logistics support and laboratory capabilities at its regional distribution centers.
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