Npk International Inc. · NYSE:NPKI
Npk International — Investor Presentation (February 2025)
33 slides from Npk International's investor presentation, Feb 27, 2025
Slide 1: Investor Presentation February 2025
IN V E STO R R E L AT IO N S February 2025 Investor Presentation © 2025 NPK International Inc.
Slide 2: Agenda
2 Business Overview Recent Performance Value Creation Roadmap Appendix Agenda
Slide 3: Safe Harbor
3 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
Slide 4: Business Overview
4 Business Overview
Slide 5: We Are a Pure-Play Specialty Rental & Services Company
5 We Are a Pure-Play Specialty Rental & Services Company P ROVI DI NG WOR KS IT E ACC E S S SO LU T IO NS TO POW ER & IN FR AST R U CTU R E M A R K ETS ABOUT NPK We are a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products, along with
Slide 6: The Original Composite Mat DURA-BASE
6 The Original Composite Mat D U R A - BA SE ® A DVAN C ED - C OM P OS IT E MAT SYSTE M Our flagship product, DURA-BASE®, solution made from 100% recyclable high-density polyethylene, was introduced in 1998 as the market’s first engineered thermoplastic worksite access matting. Today, with the large
Slide 7: Vertically Integrated Model Supports Specialty End-Markets
7 Vertically Integrated Model Supports Specialty End-Markets P RO DU CTS AN D SE R VI CE S • Introduced DURA-BASE® to the world over 25 years ago as the first 100% recyclable composite matting solution • Committed R&D, Project Technical Support team with industry-leading experience • Focus on reduci
Slide 8: End-market Revenue Concentration
End-market Revenue Concentration Power Transmission Oil & Gas Other Power Transmission • Need for significant sustained investment driven by aging infrastructure, transmission congestion, grid hardening efforts, and renewable interconnect • Substantial electricity demand growth (onshoring of manufac
Slide 9: Significant Opportunity within Power Transmission Market
9 Significant Opportunity within Power Transmission Market STAB L E A ND G ROW IN G I NV E STM E N TS IN A N AG IN G GR ID Total Estimated Transmission Capex and Power Demand $18 $19 $19 $21 $24 $25 $27 $30 $31 $35 $39 3,000 3,500 4,000 4,500 $10 $15 $20 $25 $30 $35 $40 $45 2016 2017 2018 2019 2020
Slide 10: Our Specialty Rental Asset Generates ~35% IRR
10 Our Specialty Rental Asset Generates ~35% IRR R ECYC L A BL E C OM PO S IT E MAT TI NG P ROVI D ES F O R LO NG U S E F U L R AW M AT ER IA L L IFE A N D SU P E R IO R I R R -$2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NPK Rental Mat
Slide 11: Recent Performance
11 Recent Performance
Slide 12: 4Q24 Performance Summary, 2025 Outlook
12 4Q24 Performance Summary, 2025 Outlook F O L LOWI NG STR ON G 4 Q2 4 P E R F OR M A NC E , R E NTA L D E M AN D OU T LO OK R E M A IN S R OB U ST FO R 2 0 2 5 Fourth Quarter 2024 Performance Summary Business Outlook (As of February 26, 2025) Strong customer demand for rental and related services
Slide 13: 4Q23 vs. 4Q24 Performance Bridge
4Q23 vs. 4Q24 Performance Bridge 13 R EC E N T P E R F OR M A NC E 4Q23 vs. 4Q24 Adjusted EBITDA from Continuing Operations* $ in millions * Represents a non-GAAP financial measure. See reconciliation to the most comparable GAAP measure in “Non-GAAP Financial Measures” slides within this presentatio
Slide 14: Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls
$207.6 $217.5 $46.5 $57.5 2023 2024 4Q23 4Q24 14 Strategic Focus on Fleet Optimization, Price Discipline, Cost Controls R EC E N T P E R F OR M A NC E Consolidated Revenue $ in millions Consolidated Adjusted EBITDA* $ in millions Adjusted EBITDA Margin* Adjusted EBITDA as % of total revenue * Repres
Slide 15: Demand Acceleration in 4Q24 and Into Early 2025
$74 $63 $64 $58 $52 $74 $67 $72 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $61 $66 $68 $67 $65 $60 $56 $56 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $79 $83 $87 $83 $84 $85 $84 $90 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 15 Demand Acceleration in 4Q24 and Into Early 2025 R EC E N T P E R F OR M A NC E TT
Slide 16: Financial Guidance
For the Full Year 2025, NPK Currently Anticipates the Following: Financial Guidance C U R R E N T AS O F FE B R UA RY 2 7 , 2 0 2 5 Consolidated Revenues in a range of Consolidated Adjusted EBITDA in a range of Net Capital Expenditures in a range of $230-$250 million $60-$70 million $35-$40 million
Slide 17: Value Creation Roadmap
17 Value Creation Roadmap
Slide 18: Organic and Inorganic Growth
18 Organic and Inorganic Growth C OM M E RC IA L G ROW TH PR IO R IT IE S ✓ Geographic network expansion to service new growth territories ✓ Rental fleet growth to match growing customer demand ✓ Increasing revenue density and customer relevance in served markets Pursuing the highest-return, value-e
Slide 19: Driving Asset and Cost Optimization
2/27/2025 19 Driving Asset and Cost Optimization O PE R AT IO NA L E XC E L L E NC E IN IT IAT IV E S ✓ Divestitures of under-performing business units began in 2022 and culminated with sale of remaining Fluids Systems segment in 3Q24 ✓ Targeted actions in 2023 and 2024 to streamline operational sup
Slide 20: Seek to Enhance Return on Capital Employed
20 Seek to Enhance Return on Capital Employed CAP ITA L A L LO CAT IO N P R I OR ITI E S ✓ Maintain modest leverage ✓ Organic investment to expand rental fleet, along with associated equipment ✓ Continually evaluate accretive inorganic growth opportunities to accelerate growth ✓ Return of capital vi
Slide 21: Investment Conclusion
Investment Conclusion 21 VALU E C R E ATI ON ROA DM A P 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 prof
Slide 22: Appendix
2/27/2025 22 Appendix
Slide 23: Experienced Executive Leadership Team
2/27/2025 23 Experienced Executive Leadership Team A PP E ND IX Matthew Lanigan joined NPK in April 2016 as President, Newpark Industrial Solutions, and was appointed as our Chief Executive Officer in March 2022. • From April 2014 to June 2015, Mr. Lanigan served as a Managing Director of Custom Fle
Slide 24: Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited) A PP E ND IX 24 (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
Slide 25: Operating Results (unaudited)
Operating Results (unaudited) A PP E ND IX
Slide 26: Consolidated Balance Sheets (unaudited)
Consolidated Balance Sheets (unaudited) A PP E ND IX
Slide 27: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) A PP E ND IX
Slide 28: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
Slide 29: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
Slide 30: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
Slide 31: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
Slide 32: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
Slide 33: Non-GAAP Financial Measures (unaudited)
Non-GAAP Financial Measures (unaudited) A PP E ND IX
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