NPK International (NR) Q2 2026 earnings summary

Executive summary

• Achieved $81.6 million in Q2 2026 revenue, up 20% year-over-year, with record rental and product sales revenues, driven by robust demand in utilities and power transmission sectors and significant contributions from the Grassform acquisition.

• Adjusted EBITDA grew 37% to $25.7 million, with a 31.5% margin, reflecting margin expansion and improved operational efficiency.

• Net income for Q2 2026 was $12.0 million, up from $8.7 million in Q2 2025; operating income reached $16.1 million with a 19.7% margin.

• Continued investments in rental fleet and manufacturing capacity, including a $40–$45 million expansion in Louisiana expected to increase capacity by 50%.

• Raised full-year earnings guidance, citing strong market demand, operational execution, and ongoing strategic priorities.

Financial highlights

• Q2 2026 revenues: $81.6 million (+20% YoY); first half 2026 revenues: $156.7 million (+18% YoY); TTM revenue at $300.7 million (+28% YoY).

• Adjusted EBITDA for Q2 2026 was $25.7 million (31.5% margin), up 37% year-over-year; TTM adjusted EBITDA at $85.2 million (28.3% margin), up 35%.

• Net income from continuing operations for Q2 2026 was $12.0 million; adjusted net income was $12.8 million ($0.15 per diluted share).

• Gross margin for Q2 2026 was 37.0%, nearly flat year-over-year.

• Free cash flow for Q2 was $5.9 million; total cash at quarter-end was $8.4 million, with $148 million available under the credit facility.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $313–$323 million; adjusted EBITDA expected at $97–$103 million.

• Capital expenditures for 2026 forecasted at $65–$80 million, including $35–$45 million for rental fleet and $20–$25 million for manufacturing expansion.

• Q3 rental and service revenues expected to remain in line with Q2, with over 20% year-over-year growth; product sales expected to normalize to Q1 levels.

• Management expects cash on hand, operations, and credit facility availability to be sufficient for the next 12 months.

• SG&A expected at ~$13 million per quarter; effective tax rate to remain near first half levels.