NPK International Inc.

Second-quarter 2026 revenue was $82 million, up 20% year over year. Product sales were $28 million, up 28% year over year, and rental and service revenues were $54 million, up 16% year over year to a quarterly record. Gross margin was 37%, 80 basis points better sequentially and in line with prior year. Adjusted EBITDA was $26 million, up 37% year over year, with a 31.5% adjusted EBITDA margin. Adjusted EPS from continuing operations was $0.15 per diluted share versus $0.11 a year ago. For the first half, revenue rose 18% year over year, adjusted EBITDA 25%, and adjusted EPS 20%. Full-year 2026 guidance was raised to revenue of $313 million-$323 million and adjusted EBITDA of $97 million-$103 million. Net CapEx is now expected to be $65 million-$80 million, including $20 million-$25 million for manufacturing expansion and $35 million-$45 million for rental fleet expansion.

Matthew Lanigan framed the quarter as evidence of strong execution, saying the business is benefiting from core-market momentum, operating leverage, and strategic investments in fleet and manufacturing capacity. He emphasized that the Louisiana expansion should increase production capacity by approximately 50% and support long-term share gains while improving margins through less reliance on cross-rental mats. His tone was confident and constructive, highlighting a quoting pipeline up roughly 20% year over year and saying the company is on pace to deliver another strong year of profitable growth.

Gregg Piontek focused on the drivers of margin and cash flow. He noted gross margin was 37%, SG&A was $14.2 million, income tax expense was $3.9 million at a 25% effective rate, and adjusted EPS was $0.15. On cash flow, he said operating cash flow was $22 million, free cash flow was $6 million, net CapEx was $16 million, total debt was $11 million, cash was $8 million, and net debt was $2 million, with $148 million of facility availability. He also said cross-rental costs remain about a 3-point headwind to rental and service margins and should ease over time as the fleet expands.

Analysts pressed on visibility into guidance, possible data center spending slowdowns, margin durability, and the impact of cross-rentals. Management said they are not seeing any impact from recent data-center-related concerns, that the pipeline is fairly advanced and locked in, and that second-half results still look in line with guidance despite project timing risk. On margins, Gregg said improvement came from mix, operating leverage, and cost control, while cross-rental costs are a stable roughly 3-point headwind today but should decline over time as new fleet capacity comes online. Management also said there was no meaningful change in the business dynamic behind accelerated project completions, just timing shifts of a few days on very large, long-running projects.