Npk International Inc. · NYSE:NPKI
Npk International — Q1 2025 Earnings Presentation
32 slides from Npk International's earnings presentation, May 2, 2025
Slide 1: May 2025 Investor Presentation
INVESTOR REL ATIONS May 2025 Investor Presentation © 2025 NPK International Inc.
Slide 2: Agenda
Agenda Business Overview Recent Performance Value Creation Roadmap Appendix 2
Slide 3: Safe Harbor
Safe Harbor DISCLAIMERS Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as “w
Slide 4: Business Overview
Business Overview 4
Slide 5: We Are a Pure-Play Specialty Rental & Services Company
We Are a Pure-Play Specialty Rental & Services Company PROVIDING WOR KSIT E ACCESS SOLUT IONS TO POWER & INFR ASTRUCTURE MARKETS Financial Highlights ABOUT NPK TTM Q1 2025 Revenue Revenue Adj. EBITDA* Adj. EPS* We are a temporary worksite access $233 $62 $0.30 solutions company that 34% $217 $49 $55
Slide 6: The Original Composite Mat
The Original Composite Mat Flexible Model Accommodates Varying Customer Needs DURA-BASE® ADVANCED-COMPOSIT E MAT SYSTEM We provide both rental and purchase options for our customers. Reasons Customers ✓ Capital preservation/optionality Our flagship product, DURA-BASE®, solution made from ✓ Project-b
Slide 7: Vertically Integrated Model Supports Specialty End-Markets
Vertically Integrated Model Supports Specialty End-Markets PRODUCTS AND SER VICES We combine industry-leading IP and deep manufacturing expertise with on-demand logistics support and installation. Engineering & Design Precision Manufacturing Logistics Planning & Installation Specialty Rental, Produc
Slide 8: We Own and Operate the Largest U.S. Composite Matting Fleet
We Own and Operate the Largest U.S. Composite Matting Fleet SCAL E TO CAPITALIZE ON MULTI-YEAR INVEST MENT CYCL ES ACROSS MULTIPL E END-MAR KETS Revenue Macro End-market Segment Demand Drivers Concentration Outlook Power Transmission • Need for significant sustained investment driven by aging infras
Slide 9: Significant Opportunity within Power Transmission Market
Significant Opportunity within Power Transmission Market STABLE AND GROWING INVESTMENTS IN AN AGING GR ID Total Estimated Transmission Capex and Power Demand Adaptation, Hardening and Resilience $45 4,500 as Drivers of Transmission Investment $40 T&D Capex ($Billion) $35 Transmission 4,000 $30 TWh 2
Slide 10: Our Specialty Rental Asset Generates ~35% IRR
Our Specialty Rental Asset Generates ~35% IRR RECYCL ABL E COMPOSITE MAT TING PROVIDES FOR LONG USEFUL R AW MATER IAL L IFE AND SUPERIOR IRR NPK Rental Mat Economic Case Material can be $10,000 recycled multiple times Annual Rental Revenue generation $8,000 revenue ~50% of cost remains consistent Mi
Slide 11: Recent Performance
Recent Performance 11
Slide 12: 1Q25 Performance Summary, 2025 Outlook
1Q25 Performance Summary, 2025 Outlook MO M EN TU M F ROM STRON G 4Q 24 PE R FO R MAN CE CON T IN U ED THRO U GH 1 Q2 5; DE MAN D O UTLO O K R EMAIN S RO BU ST First Quarter 2025 Business Outlook Performance Summary (As of May 2, 2025) Strong customer demand for rental and related services Increased
Slide 13: 1Q24 vs. 1Q25 Performance Bridge
1Q24 vs. 1Q25 Performance Bridge 1Q24 vs. 1Q25 Adjusted EBITDA from Continuing Operations* $ in millions $20 $12 * Represents a non-GAAP financial measure. See reconciliation to the most comparable GAAP measure in “Non-GAAP Financial Measures” slides within this presentation. 13
Slide 14: Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls
Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls RECENT PERFORMANCE Revenue Adjusted EBITDA* Adjusted EBITDA Margin* $ in millions $ in millions Adjusted EBITDA as % of total revenue +7% +32% +13% +59% +140 bps +510 bps * Represents a non-GAAP financial measure. See reconciliat
Slide 15: Demand Acceleration in 4Q24 and 1Q25
Demand Acceleration in 4Q24 and 1Q25 RECENT PERFORMANCE TTM Rental Revenue TTM Services Revenue TTM Product Sales Revenue $ in millions $ in millions $ in millions Rental revenue accelerated in 4Q24 and 1Q25 on Strategic shift away from lower margin service work Product sales fluctuate quarter-to-qu
Slide 16: Financial Guidance
Financial Guidance CURRENT AS OF MAY 2, 2025 For the Full Year 2025, NPK Currently Anticipates the Following: Consolidated Adjusted Consolidated Revenues Net Capital Expenditures EBITDA in a range of in a range of in a range of $240-$252 $64-$72 $35-$40 million million million 16
Slide 17: Value Creation Roadmap
Value Creation Roadmap 17
Slide 18: Organic and Inorganic Growth
Organic and Inorganic Growth ~$87 million of cash and ABL credit facility availability exiting 1Q 2025 COMMERCIAL GROW TH PR IORITIES Net Debt (Cash)* Our Organic Growth Priorities Pursuing the highest-return, value-enhancing projects ✓ Geographic network expansion to service new growth territories
Slide 19: Driving Asset and Cost Optimization
Driving Asset and Cost Optimization OPERAT IONAL EXCELL ENCE INITIATIVES Recent Operational Improvements Reducing Fixed Overhead, Improving Efficiency SG&A as % of total revenue Building a leaner, more efficient industrial critical infrastructure platform ~550 bps of SG&A margin improvement since FY
Slide 20: Seek to Enhance Return on Capital Employed
Seek to Enhance Return on Capital Employed CAPITAL ALLOCAT ION PRIOR ITIES Capital Allocation Priorities Committed to return of capital under share repurchase authorization ✓ Maintain modest leverage $ in Millions ✓ Organic investment to expand rental fleet, along with associated equipment ✓ Continu
Slide 21: Investment Conclusion
Investment Conclusion VALUE CREATION ROADMAP We are a pure-play worksite access solutions business NPK has become a leading, pure-play specialty rental and services company serving the global worksite access and critical infrastructure markets, creating a simpler, higher-margin, more profitable busi
Slide 22: Appendix
Appendix 5/2/2025 22
Slide 23: Experienced Executive Leadership Team
Experienced Executive Leadership Team APPENDIX Matthew S. Lanigan Gregg S. Piontek Lori Briggs Celeste Frugé President & Chief Executive Officer Chief Financial Officer Executive Vice President, Vice President, General Counsel, Business Operations Chief Compliance Officer & Corporate Secretary Matth
Slide 24: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) APPENDIX (1) Includes an income tax benefit of $1.3 million for the three months ended December 31, 2024, primarily reflecting the release of valuation allowances on U.S. state net operating loss carryforwards that are now expected to be realized fol
Slide 25: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) APPENDIX
Slide 26: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) APPENDIX The amounts above for 2024 include our former Fluids Systems segment, as we elected not to adjust the consolidated statements of cash flows to separately present cash flows attributable to discontinued operations.
Slide 27: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX
Slide 28: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX
Slide 29: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX
Slide 30: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX Adjusted Income (Loss) from Continuing Operations and Adjusted Income (Loss) from Continuing Operations Per Common Share TTM Consolidated March 31, (In thousands) 2022 2023 2024 2025 Income from continuing operations (GAAP) $ 822 $ 14,149 $ 35,599 $ 4
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX EBITDA from Continuing Operations and Adjusted EBITDA from Continuing Operations TTM Consolidated March 31, (In thousands) 2022 2023 2024 2025 Income from continuing operations (GAAP) $ 822 $ 14,149 $ 35,599 $ 41,920 Interest (income) expense, net 3,5
Slide 32: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX The following table reconciles the Company’s net cash provided by (used in) operating activities calculated in accordance with GAAP to the non- GAAP financial measure of Free Cash Flow: TTM Consolidated March 31, (In thousands) 2022 2023 2024 2025 Net