NPK International Inc. Reports 15% Revenue Growth to $133 Million in First Half of 2025

NPK International Inc. reported a revenue increase of 15% for the first half of 2025, reaching $133 million compared to $115.8 million in the same period of 2024. The company's net income also rose to $18.7 million, up from $15.3 million year-over-year. The growth was primarily driven by a 25% increase in rental and service revenues, which accounted for 67% of total revenues, while product sales revenues saw a slight decline of 2%. The company’s operating income from continuing operations increased by 29% to $25.2 million, reflecting improved operational efficiency and a favorable revenue mix.

In the second quarter of 2025, NPK International's revenues increased by 2% to $68.2 million, with rental and service revenues surging by 27%. However, product sales revenues decreased by 28%, attributed to fluctuations in customer project timing. The gross profit margin for the quarter was 36.9%, slightly down from 37.2% in the previous year, primarily due to increased cross-rent costs associated with heightened customer project activity. Selling, general, and administrative expenses rose to $13.7 million, reflecting a charge related to performance-based awards.

The company has made strategic moves to enhance its market position, including a significant investment of $16 million in expanding its rental fleet, which grew by approximately 8%. NPK International also completed the sale of its Fluids Systems segment in September 2024, which is now reported as discontinued operations. This divestiture has allowed the company to focus on its core business of temporary worksite access solutions, which includes the rental of recyclable composite matting products.

Operationally, NPK International reported a decrease in total current assets to $102.4 million as of June 30, 2025, down from $113 million at the end of 2024. The company’s cash and cash equivalents increased to $26 million, up from $17.8 million, indicating improved liquidity. The total liabilities decreased slightly to $64.8 million, while stockholders' equity rose to $328.8 million, reflecting a strong balance sheet position. The company also repurchased 2.6 million shares for $17 million under its share repurchase program, which has a remaining authorization of $95 million.

Looking ahead, NPK International anticipates continued growth driven by its rental business expansion and operational efficiencies. The company expects capital expenditures for 2025 to be between $35 million and $40 million, primarily focused on further expanding its rental fleet. Management remains optimistic about leveraging its strong cash position and credit facilities to support ongoing operations and strategic initiatives, while also returning value to shareholders through share repurchases.