NPK International beats Q1 revenue estimates, raises FY revenue outlook

Overview

• US temporary worksite access provider's Q1 revenue rose 16% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 was flat yr/yr at $0.12

• Company raised full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• NPK rasies 2026 revenue outlook to $310 mln-$325 mln

• Company expects 2026 adjusted EBITDA of $92 mln-$102 mln

• NPK plans 2026 capital expenditures of $75 mln-$90 mln, including $30 mln-$35 mln for expansion

Result Drivers

• RENTAL AND SERVICES DEMAND - Co said record rental and services revenues were driven by strong demand from utility customers and the impact of a recent acquisition

• PRODUCT SALES TO UTILITIES - Co said product sales rose due to continued strong demand from utility companies

• LOWER GROSS MARGIN - Co said gross margin declined due to elevated cross-rental activity and modestly lower fleet utilization

Company press release: ID:nBw2M5qdfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for NPK International Inc is $19.00, about 21.4% above its April 29 closing price of $15.65

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 22 three months ago

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