Key Highlights

  • Revenue increased 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, versus 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), headquartered in The Woodlands, Texas, makes, sells and rents recyclable composite matting that gives crews stable access to worksites. Its customers span electrical transmission, oil and gas, pipeline, renewable energy and construction projects. The company released third quarter 2026 results on October 29, 2026.

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

An exceptionally dry Texas pattern changes the rental mix

Management said the dry weather meant several scheduled large Utility projects in Texas started without matting, which trimmed rental demand during the third quarter and early in the fourth.

President and CEO Matthew Lanigan said deployments on several large projects were delayed, yet rental project activity strengthened considerably 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 rose 30% to $20.0 million from $15.4 million, and the adjusted EBITDA Margin widened 390 basis points to 26.2% from 22.3%. Operating Margin was 12.0%, down from 13.2%.

Selling, general and administrative expenses came to $14.7 million, or 19.3% of revenue, and included about $1.2 million of severance tied 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 consumed $11.4 million, mostly for the rental fleet and the Manufacturing expansion, leaving free cash flow of negative $4.4 million against positive $12.5 million.

At September 30, 2026, the company held $4.2 million of cash and $26.3 million of total debt, with $132.2 million available 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 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 the manufacturing expansion.

The planned expansion at 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.