NPK Cuts Full-Year Outlook After Texas Matting Miss

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter revenue was $76.3 million and adjusted EBITDA $20.0 million as the company lowered 2026 sales to $300 million–$305 million.

NPK International Inc. (NPKI), a worksite access solutions company that manufactures, sells, and rents recyclable composite matting, lowered its full-year 2026 outlook after exceptionally dry weather in Texas delayed matting deployments on several large projects and reduced matting demand in the third quarter.

The company now anticipates full-year revenues of $300 million to $305 million and adjusted EBITDA of $90 million to $93 million. It had raised full-year earnings guidance in both the first and second quarters.

Third-quarter revenue was $76.3 million, up 11% from a year earlier, after 20% growth in the second quarter and 16% in the first. Adjusted EBITDA from continuing operations was $20.0 million, up 30% from a year earlier, after 37% growth in the second quarter and 14% in the first.

President and CEO Matthew Lanigan said the company generated 11% year-over-year revenue growth and 30% adjusted EBITDA growth “despite delayed deployments on several large projects.” He said exceptionally dry weather in Texas negatively impacted matting demand during the third and early fourth quarter and caused the company to lower full-year guidance. He said rental project activity has significantly strengthened throughout October and that growth expectations for 2027 remain unchanged.

Rental and service revenue increased 12% to $49.6 million. Product sales increased 9% to $26.7 million. The company said rental demand was impacted by the dry Texas weather, which resulted in several scheduled large-scale utility projects commencing without matting. The revenue decline in Texas was partially offset by growth in other targeted expansion markets.

Adjusted EBITDA margin was 26.2%, up 390 basis points from a year earlier, after 31.5% in the second quarter and 29.9% in the first. Operating income from continuing operations was $9.2 million, a 12.0% operating margin, versus 19.7% in the second quarter and 19.2% in the first. Gross margin was 31.3%.

Selling, general and administrative expenses were $14.7 million, or 19.3% of revenues, including about $1.2 million in severance and related costs associated with an executive leadership transition and $0.7 million in strategic planning and diligence costs. Income from continuing operations was $6.3 million, or $0.07 a share, versus $6.1 million, or $0.07 a share, a year earlier. Adjusted income from continuing operations was $7.9 million, or $0.09 a share.

Net cash provided by operating activities was $7.1 million. Free cash flow was $(4.4) million. Capital investments used $11.4 million, net, with the substantial majority funding growth of the mat rental fleet and the manufacturing expansion project. Cash was $4.2 million and total debt $26.3 million as of September 30, 2026, versus cash of $8.4 million and debt of $10.6 million at June 30, 2026. Available liquidity under the senior secured revolving credit facility was $132.2 million.

The company repurchased $13.4 million of common equity in the third quarter, buying 1.0 million shares and leaving $76 million remaining under the current authorization.

Quoting activity remained at year-over-year growth of approximately 20% throughout 2026, with much of the volume originated in expansion geographies, the company said. It continues plans to expand Carencro, Louisiana manufacturing capacity by approximately 50% from current levels, expecting to invest $40 million to $45 million by mid-2027, including $10.5 million invested through September 30, 2026. Full-year capital expenditures are now 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.