Key Highlights

  • Revenue rose 11% to $76.3 million in the third quarter, from $68.8 million a year earlier.
  • Adjusted EBITDA from continuing operations was $20.0 million, up 30%, at a 26.2% margin.
  • Income from continuing operations was $6.3 million, or $0.07 per diluted share, unchanged per share from the prior year.
  • Free Cash Flow was negative $4.4 million, against positive $12.5 million a year ago.
  • Full-year 2026 Revenue guidance is $300 million to $305 million, with adjusted EBITDA of $90 million to $93 million.

Revenue grows 11% even as Texas matting Demand softens

NPK International (NYSE:NPKI), based in The Woodlands, Texas, manufactures, sells and rents recyclable composite matting that gives crews stable worksite access. Customers span electrical transmission, oil and gas, pipeline, renewable energy and construction projects. The company reported third quarter 2026 results on October 29, 2026.

Revenue was $76.3 million, up 11% from $68.8 million in the third quarter of 2025. Rental and service revenue increased 12% to $49.6 million, while product sales rose 9% to $26.7 million. For the first nine months of 2026, revenue reached $232.9 million against $201.8 million a year earlier, which is growth of about 15.4% on a calculated basis.

An exceptionally dry Texas weather pattern changes the rental mix

Management said the dry weather caused several scheduled large Utility projects in Texas to begin without matting, which trimmed rental demand during the third quarter and the early part of the fourth.

President and CEO Matthew Lanigan said deployments on several large projects were delayed, yet rental project activity strengthened significantly through October. He added that quoting activity has held at year-over-year growth of about 20% throughout the year.

Margin gains outpace profit growth

Adjusted EBITDA from continuing operations was $20.0 million, up 30% from $15.4 million, and the adjusted EBITDA Margin widened by 390 basis points to 26.2% from 22.3%. Operating Margin was 12.0%, down from 13.2%.

Selling, general and administrative expenses were $14.7 million, or 19.3% of revenue, and included about $1.2 million of severance related to an executive Leadership transition. Income from continuing operations was $6.3 million, or $0.07 per diluted share, versus $6.1 million, or $0.07, a year earlier. Adjusted income from continuing operations was $7.9 million, or $0.09 per diluted share, compared with $6.1 million, or $0.07.

Heavy Investment turns free cash flow negative

Operating cash flow was $7.1 million in the quarter, down from $24.7 million a year earlier. Net capital investments used $11.4 million, mostly for the rental fleet and the Manufacturing expansion, leaving free cash flow of negative $4.4 million versus positive $12.5 million.

At September 30, 2026, the company held cash of $4.2 million and total Debt of $26.3 million, with $132.2 million of availability under its senior secured revolving Credit facility. It repurchased 1.0 million shares for $13.4 million during the quarter, leaving $76 million under the current repurchase authorization.

Lower full-year guidance and the Louisiana expansion frame what comes next

NPK now expects 2026 revenue of $300 million to $305 million and adjusted EBITDA of $90 million to $93 million. Capital expenditures are expected at $70 million to $75 million, including $40 million to $45 million for the rental fleet and about $20 million for manufacturing expansion.

The planned expansion of the Carencro, Louisiana Facility would lift capacity by roughly 50%, with $40 million to $45 million of total investment by mid-2027, of which $10.5 million had been spent through September 30, 2026. Management said its growth expectations for 2027 are unchanged.