NPK International Inc 2025年度报告

1-877-MAT-ROADINVESTORS@NPKI.COMNPKI.COM ShareholdersT O O U R 2025 represented a year of significant progress andbuilding momentum for NPK as a pure-play specialtyrental and services business supporting the globalworksite access and critical infrastructure markets.We prioritized scaling our high return rental businessthrough geographic expansion, market share growthwithin established markets, as well as strategicallyaligned acquisitions while maintaining our focus onenhancing returns for NPK shareholders. Matthew S. LaniganPresident & CEO YEAR IN REVIEW Reflecting on the past year, we are very pleased with our performance against all of our stated goals: 1) Accelerate Organic Growth As part of our effort to accelerate revenue growth through the expansion of our rental business, weplaced a particular emphasis on penetrating larger-scale, longer-term projects, which we believewill help drive improvements in revenue stability and operational efficiency. Due in part to thesuccess of our efforts, rental and service revenues increased $38 million, or 26%, year-over-yearfor 2025, including a 39% increase in rental revenues. Direct sales also grew significantly in 2025,increasing by $22 million, or 30% to a total of $93 million for the year. We prioritized investment capital to support our organic growth objective, where over the pastseveral years, we have seen the strong market adoption of our specialty rental products anddifferentiated service offerings. During 2025, we made net investments of $37 million to growour DURA-BASE® rental fleet by nearly 16%. We also expanded our manufacturing capacity,increasing our production volume by approximately 15% over the prior year, enhancing our abilityto meet increasing customer demand. Further, with our revenue growth and the favorable macro-environment, we accelerated our manufacturing capacity expansion planning efforts, as we seek tobring additional production capacity online in the first half of 2027. 2) Pursue Inorganic Growth Throughout the past year, we continually pursued strategically aligned inorganic opportunities toaccelerate growth and enhance shareholder value, leveraging our scale to further increase ourrelevance to customers. As part of this effort, we evaluated several opportunities consistent withthis strategy, one of which aligned exceptionally well with our business. In November 2025, we acquired Grassform Plant Hire LTD, a U.K. leader in ground protection andtemporary roadway solutions with a fleet of more than 20,000 medium-duty composite mats. Thisacquisition was highly complementary to our existing U.K. operations and strengthens both ouroperational capabilities and scale through the integration of a highly experienced team. We believethe U.K. market provides meaningful opportunities for NPK, supported by a robust outlook forinfrastructure investments over the next several years. 3) Drive Operational Efficiency Since our late 2024 divestiture of the Fluids Systems business, we have advanced multiple initiativesto optimize our cost structure and strengthen operational efficiency, with the objective of reducingSG&A as a percentage of revenue to the mid-teens range in 2026. During 2025, we completed our required transitional support services for the divested Fluidsbusiness while simultaneously advancing a major ERP conversion project, recently completing therollout of a new cloud-based ERP system to all our legacy operations. We believe the rollout of thisnew ERP system is yet another significant milestone in our efforts to streamline our overhead costsand SG&A profile. As a result of these actions, SG&A as a percentage of revenue improved to 19.5% in 2025, comparedto 21.2% in 2024, while operating income from continuing operations grew by 45% year-over-year, asignificant improvement in our overall profitability. 4) Enhance Return on Invested Capital As a result of the operating leverage that our growth in profitability drives through our asset base,combined with our focused balance sheet management, we delivered an after-tax return on netassets of 11% in 2025, a substantial year-over-year improvement. We also executed meaningfully on our return of capital program, repurchasing 4% of our outstandingshares in 2025, at an average price of $6.70 per share and exited the year with two million fewershares outstanding vs the prior year. VALUE CREATION STRATEGY As we look ahead to 2026, we believe the U.S. and U.K. market dynamics remain strong, supportedby a robust outlook for infrastructure investments over the next several years. We are confident thatwe remain well-positioned to continue executing our disciplined capital allocation strategy, whichprioritizes investment in organic growth and strategic inorganic opportunities, balanced with theprogrammatic return of capital. Our strategic priorities for 2026 are clear: 1) Accelerate Organic Growth Our primary focus remains the scaling up of our rental business, including a combinatio