Npk International Inc. · NYSE:NPKI
Npk International — Q4 2024 Earnings Presentation
33 slides from Npk International's earnings presentation, Feb 27, 2025
Slide 1: Investor Presentation February 2025
INVESTOR REL ATIONS February 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 npk
Slide 5: We Are a Pure-Play Specialty Rental & Services Company
We Are a Pure-Play Specialty Rental & Services Company PROVIDING WORKSITE ACCESS SOLUTIONS TO POWER & INFRASTRUCTURE MARKETS Financial Highlights ABOUT NPK 2024 Revenue Revenue Adj. EBITDA* Adj. EPS* We are a temporary worksite access $55 $0.23 $217 solutions company that 33% $208 $49 manufactures,
Slide 6: The Original Composite Mat
The Original Composite Mat Flexible Model Accommodates Varying Customer Needs DURA-BASE® ADVANCED-COMPOSITE 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-by
Slide 7: Vertically Integrated Model Supports Specialty End-Markets
Vertically Integrated Model Supports Specialty End-Markets PRODUCTS AND SERVICES 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, Product
Slide 8: We Own and Operate the Largest U.S. Composite Matting Fleet
We Own and Operate the Largest U.S. Composite Matting Fleet SCALE TO CAPITALIZE ON MULTI-YEAR INVESTMENT CYCLES ACROSS MULTIPLE END-MARKETS Revenue Macro End-market Segment Demand Drivers Concentration Outlook Power Transmission • Need for significant sustained investment driven by aging infrastruct
Slide 9: Significant Opportunity within Power Transmission Market
Significant Opportunity within Power Transmission Market STABLE AND GROWING INVESTMENTS IN AN AGING GRID 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 20
Slide 10: Our Specialty Rental Asset Generates ~35% IRR
Our Specialty Rental Asset Generates ~35% IRR RECYCL ABLE COMPOSITE MATTING PROVIDES FOR LONG USEFUL RAW MATERIAL LIFE 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 Minimal
Slide 11: Recent Performance
Recent Performance npk
Slide 12: 4Q24 Performance Summary, 2025 Outlook
4Q24 Performance Summary, 2025 Outlook FOLLOWING STRONG 4Q24 PERFORMANCE, RENTAL DEMAND OUTLOOK REMAINS ROBUST FOR 2025 Fourth Quarter 2024 Business Outlook Performance Summary (As of February 26, 2025) Strong customer demand for rental and related services Introduced full-year 2025 guidance 4Q24 Re
Slide 13: 4Q23 vs. 4Q24 Performance Bridge
4Q23 vs. 4Q24 Performance Bridge RECENT PERFORMANCE 4Q23 vs. 4Q24 Adjusted EBITDA from Continuing Operations* $ in millions $20.0 $2 $18.0 $17 $4 $0 ($1) $16.0 ($1) $14.0 $13 $12.0 ($0) $10.0 $8.0 $6.0 $4.0 $2.0 $- 4Q23 Rental Pricing Rental Volume Service Product Sales FX SG&A & Other 4Q24 * Repres
Slide 14: Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls
Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls RECENT PERFORMANCE Consolidated Revenue Consolidated Adjusted EBITDA* Adjusted EBITDA Margin* $ in millions $ in millions Adjusted EBITDA as % of total revenue $54.9 $217.5 29.7% $207.6 $48.9 27.3% 25.2% 23.6% +5% +24% +12% +35%
Slide 15: Demand Acceleration in 4Q24 and Into Early 2025
Demand Acceleration in 4Q24 and Into Early 2025 RECENT PERFORMANCE TTM Rental Revenue TTM Services Revenue TTM Product Sales Revenue $ in millions $ in millions $ in millions Rental revenue accelerated in 4Q24 on both a QoQ Strategic shift away from lower margin service work Product sales fluctuate
Slide 16: Financial Guidance
Financial Guidance CURRENT AS OF FEBRUARY 27, 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 $230-$250 $60-$70 $35-$40 million million million 16
Slide 17: Value Creation Roadmap
Value Creation Roadmap npk
Slide 18: Organic and Inorganic Growth
Organic and Inorganic Growth ~$84 million of cash and ABL credit facility availability exiting 2024 COMMERCIAL GROWTH PRIORITIES $91 Net Debt (Cash)* Our Organic Growth Priorities $36 Pursuing the highest-return, value-enhancing projects Net Cash ✓ Geographic network expansion to service new growth
Slide 19: Driving Asset and Cost Optimization
Driving Asset and Cost Optimization OPERATIONAL EXCELLENCE INITIATIVES Recent Operational Improvements Reducing Fixed Overhead, Improving Efficiency SG&A as % of total revenue Building a leaner, more efficient industrial critical infrastructure platform ~480 bps of SG&A margin improvement since FY21
Slide 20: Seek to Enhance Return on Capital Employed
Seek to Enhance Return on Capital Employed CAPITAL ALLOCATION PRIORITIES Capital Allocation Priorities Consistent return of capital under $50 million share repurchase authorization ✓ Maintain modest leverage $ in Millions ✓ Organic investment to expand rental fleet, along with associated $46 equipme
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 2/27/2025 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 and $15.9 million for the three months and twelve months ended December 31, 2024, respectively, primarily reflecting the release of valuation allowances on U.S. federal and state net operati
Slide 25: Operating Results (unaudited)
Operating Results (unaudited) APPENDIX
Slide 26: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) APPENDIX
Slide 27: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (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
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX
Slide 32: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX
Slide 33: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) APPENDIX