NPK | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 75.07 M

Revenue: As of FY2026 Q1, the actual value is USD 75.07 M, beating the estimate of USD 73.11 M.

EPS: As of FY2026 Q1, the actual value is USD 0.12.

EBIT: As of FY2026 Q1, the actual value is USD 14.75 M.

NPK International Inc. operates as a single reportable segment, with financial performance assessed on a consolidated basis .

Revenue

• Total Revenues: Total revenues for the first quarter of 2026 increased by 16% to $75,070 thousand, up from $64,777 thousand in the first quarter of 2025 .
• Rental and Service Revenues: These revenues increased by 20% to $51,953 thousand in the first quarter of 2026, compared to $43,393 thousand in the first quarter of 2025 . This growth included a 27% increase in rental revenues to $35,625 thousand (from $28,110 thousand in 2025) and a 7% increase in service revenues to $16,328 thousand (from $15,283 thousand in 2025) .
• Product Sales Revenues: Product sales revenues grew by 8% to $23,117 thousand for the first quarter of 2026, compared to $21,384 thousand for the first quarter of 2025 .
• Geographic Revenues: Revenues from the United States were $65,880 thousand in Q1 2026 (compared to $60,675 thousand in Q1 2025), and from the United Kingdom were $9,190 thousand in Q1 2026 (compared to $4,102 thousand in Q1 2025) . The increase in UK revenues was primarily driven by the Grassform acquisition .

Operational Metrics

• Cost of Revenues: Cost of revenues increased by 21% to $47,884 thousand for the first quarter of 2026, from $39,527 thousand in the first quarter of 2025 .
• Gross Profit Margin: The gross profit margin decreased to 36.2% for the first quarter of 2026, from 39.0% in the first quarter of 2025 . This decline is primarily attributed to approximately $3.5 million in cross-rental costs, lower rental fleet utilization, and expenses from manufacturing expansion efforts .
• Selling, General and Administrative (SG&A) Expenses: SG&A expenses increased to $13,191 thousand for the first quarter of 2026, which included $0.7 million attributable to the Grassform acquisition, compared to $11,746 thousand for the first quarter of 2025 . SG&A as a percentage of revenues was 17.6% in Q1 2026, down from 18.1% in Q1 2025 .
• Operating Income from Continuing Operations: Operating income from continuing operations increased by 7% to $14,423 thousand for the first quarter of 2026, compared to $13,528 thousand for the first quarter of 2025 .
• Net Income: Net income was $10,458 thousand for the first quarter of 2026, compared to $10,003 thousand for the first quarter of 2025 .
• Depreciation and Amortization: Depreciation and amortization totaled $8,167 thousand for the first quarter of 2026, compared to $5,802 thousand for the first quarter of 2025 . This figure includes $1.5 million related to the acquired Grassform business in Q1 2026 .

Cash Flow

• Net Cash Provided by Operating Activities: Net cash provided by operating activities was $21,111 thousand for the first quarter of 2026, compared to $8,828 thousand for the first quarter of 2025 .
• Net Cash Used in Investing Activities: Net cash used in investing activities was -$10,711 thousand for the first quarter of 2026, compared to net cash provided of $5,418 thousand for the first quarter of 2025 .
• Capital Expenditures: Capital expenditures totaled -$16,684 thousand for the first quarter of 2026, compared to -$10,011 thousand for the first quarter of 2025 .
• Net Cash Used in Financing Activities: Net cash used in financing activities was -$8,920 thousand for the first quarter of 2026, compared to -$11,675 thousand for the first quarter of 2025 .

Unique Metrics

• Grassform Plant Hire Limited Acquisition: This acquisition was completed on November 24, 2025, for an estimated purchase price of $49.5 million (reduced by $0.7 million in Q1 2026), or $45.3 million net of cash acquired . The acquisition resulted in $12.5 million in other intangible assets and $27.8 million in goodwill .
• Fluids Systems Business Divestiture: In the first quarter of 2026, NPK International Inc. collected $5.0 million on a note receivable and $0.5 million for tax assets related to the sale . A $0.5 million pre-tax gain on sale was recognized in Q1 2026 .
• Share Repurchase Program: NPK International Inc. repurchased 0.2 million shares for -$2.7 million in the first quarter of 2026 . As of March 31, 2026, $89.0 million of authorization remained under the program .
• Credit Facility: As of March 31, 2026, NPK International Inc. had no outstanding borrowings and $1.9 million in outstanding letters of credit, resulting in remaining availability of $148.1 million under its $150 million Credit Facility . The facility matures in June 2030 .

Future Outlook and Strategy

NPK International Inc.’s long-term strategy focuses on accelerating organic growth, pursuing inorganic growth, driving operational efficiency, and enhancing return on capital . The company plans to expand its rental business through geographic expansion and increased customer market share, particularly in larger-scale, longer-term projects . NPK International Inc. intends to invest $40 million to $45 million over the next five quarters to expand its composite mat production capacity by approximately 50%, with additional capacity expected by mid-2027 . Net capital expenditures for 2026 are projected to be $75 million to $90 million, including $35 million to $45 million for rental fleet expansion and $30 million to $35 million for the manufacturing expansion project . The company also expects to use existing liquidity for inorganic growth opportunities and share repurchases .