☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 9320 Lakeside Boulevard, Suite 100 The Woodlands, Texas 77381 (Address of principal executive offices) (Zip Code) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Exhibit 99.1 SECOND QUARTER 2025 RESULTS (all comparisons versus the prior year period unless otherwise noted) | | | | Second Quarter | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | (In millions) | 2025 | | | 2024 | | Change | | | Revenues | $ | 68.2 | $ | 66.8 | $ | 1.4 | | | Operating income from continuing operations | $ | 11.6 | $ | 12.5 | $ | (0.9) | | | Income from continuing operations per common share | | | | | | | | | - Diluted | $ | 0.10 | $ | 0.10 | $ | — | | | Adjusted EBITDA from ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-02960 NPK International Inc. (Exact name of registrant as specified in its charter) Delaware 72-1123385 (State or ot ...

Exhibit 99.1 | | | | First Quarter | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | (In millions) | | 2025 | | 2024 | | Change | | | Revenues | $ | 64.8 | $ | 49.0 | $ | 15.8 | | | Operating income from continuing operations | $ | 13.5 | $ | 7.0 | $ | 6.5 | | | Income from continuing operations per common share - Diluted | $ | 0.12 | $ | 0.05 | $ | 0.07 | | | Adjusted EBITDA from continuing operations | $ | 19.7 | $ | 12.4 | $ | 7.3 | | | Operating margin from continuing operations (%) | | 20.9 ...

Revenue Sources - In 2024, 67% of NPK International Inc.'s revenues were generated from the rental of recyclable composite matting systems, while 33% came from the sale of manufactured mats[25]. - Approximately 55% of rental and service revenues in 2024 were derived from the power transmission sector, with expectations for growth driven by increasing energy demand and investments in grid reliability[29]. - The company's largest customer accounted for 19% of total revenues in 2024, with 67% of revenues coming from the 20 largest customers[30]. - Revenues increased by 5% to $217.5 million in 2024, driven by a 24% increase in product sales revenues, while rental and service revenues declined by 3%[135]. - Total revenues for 2024 were $217.5 million, a 4.0% increase from $207.6 million in 2023[203]. - The company generated 67% of its 2024 revenues from the rental of recyclable composite matting systems, with the remaining 33% from sales of manufactured mats[212]. Business Operations and Strategy - NPK International Inc. completed the sale of its Fluids Systems segment on September 13, 2024, which had generated approximately 68% of total combined company revenue prior to the sale[44][46]. - The company aims to accelerate organic growth through geographic expansion and increasing market share, while also pursuing strategically-aligned inorganic growth opportunities[31]. - The company seeks to expand its product and service offerings and enter new markets, which involves inherent uncertainties and capital investment risks[61]. - The company is focused on operational efficiency and cost optimization to improve profitability while maintaining a strong balance sheet[31]. - The company plans to drive SG&A as a percentage of revenue to a mid-teens range by early 2026 through ongoing efficiency improvements[21]. Financial Performance - Operating income from continuing operations rose by 41% to $32.4 million in 2024, compared to $22.9 million in 2023[134]. - The gross profit margin improved to 35.5% in 2024 from 34.9% in 2023, attributed to a favorable revenue mix[136]. - The company reported a net loss of $150.3 million in 2024, primarily due to a loss from discontinued operations related to the Fluids Systems segment[134]. - Interest expense decreased by 36% to $2.6 million in 2024, reflecting a reduction in average debt outstanding[140]. - The company ended 2024 with total cash of $17.8 million and total debt of $7.7 million, providing a strong balance sheet to support growth strategies[21]. - The company's comprehensive loss for 2024 was $90,294 thousand, while in 2023, it recorded a comprehensive income of $18,863 thousand[205]. Capital Expenditures and Investments - Capital expenditures in 2024 amounted to $43,531 thousand, an increase from $29,232 thousand in 2023[210]. - Capital expenditures are expected to be between $35 million and $40 million in 2025, focusing on expanding the mat rental fleet[161]. - The company anticipates capital investments will focus on end-markets benefiting from increasing demand for electricity, such as power transmission and renewable energy[89]. Risks and Challenges - The company faces significant health, safety, and environmental risks, particularly in the electrical utility and oil and natural gas industries, which could lead to substantial liability claims[58]. - The company is highly dependent on the availability of HDPE, the primary raw material for its recyclable composite mats, which could impact profitability if costs increase[67]. - The company anticipates that inflation could adversely affect its results of operations and financial position by increasing overall costs, particularly if it cannot raise prices correspondingly[68]. - The company may experience labor shortages, which have increased labor costs and negatively impacted profitability[64]. - The company is subject to risks related to severe weather and natural disasters, which could disrupt operations and increase repair costs[79]. - The company faces risks related to public health crises that may significantly reduce demand for its products and services, impacting operating and financial results[81]. Cybersecurity and Compliance - The company has implemented a cybersecurity program to manage risks from cybersecurity threats[107]. - The company maintains appropriate levels of cybersecurity insurance covering various risks, including network security failures and privacy breaches[114]. - The company has a comprehensive incident response plan for cybersecurity threats, ensuring a coordinated approach to mitigate incidents[113]. - The company is subject to complex legal and regulatory requirements across multiple jurisdictions, which could result in significant compliance costs and potential fines[91]. Market Competition - The competitive landscape includes major players like Yak Mat (United Rentals) and a few competitors in composite mat sales, with NPK's proprietary technology providing a competitive edge[34]. - The company faces intense competition in its markets, with competitors increasingly marketing composite products that could impact its market share[71]. Shareholder and Stock Information - The board of directors authorized a securities repurchase program for up to $50.0 million, but no shares were repurchased in 2024 due to restrictions[125][127]. - The company has not paid any dividends during the last three fiscal years and does not intend to pay cash dividends in the foreseeable future[122]. - The company's common stock began trading on the NYSE under the ticker symbol "NPKI" on December 19, 2024[121]. - The company rebranded as NPK and commenced trading on the NYSE under the ticker symbol "NPKI" starting December 19, 2024[21]. Employee and Talent Management - NPK employed approximately 460 personnel as of December 31, 2024, with a focus on attracting and retaining talent to support long-term success[38].

Financial Performance - Revenues for Q4 2024 were $57.5 million, representing a 24% increase compared to Q4 2023[3] - Adjusted EBITDA for Q4 2024 was $17.1 million, up 35% year-over-year, with an Adjusted EBITDA margin of 29.7%[3][7] - Full-year 2024 revenues totaled $217.5 million, a 5% increase from $207.6 million in 2023[3][4] - Income from continuing operations for Q4 2024 was $8.0 million, or $0.09 per diluted share, compared to $5.2 million, or $0.06 per diluted share, in Q4 2023[7] - Operating income from continuing operations for the twelve months ended December 31, 2024, rose to $32,351 thousand, compared to $22,940 thousand for the same period in 2023, reflecting a 41% increase[19] - Net income for the twelve months ended December 31, 2024, was a loss of $150,262 thousand, significantly down from a net income of $14,516 thousand in 2023[21] - Adjusted Income from Continuing Operations for the three months ended December 31, 2024, was $7,097,000, compared to $341,000 for the previous quarter[24] - EBITDA from Continuing Operations for the twelve months ended December 31, 2024, was $54,138,000, compared to $47,425,000 for the previous year, reflecting a year-over-year increase of 14.4%[25] Revenue Growth - The company expects 2025 revenue growth of 10% and Adjusted EBITDA growth of 18% compared to 2024[5][6] - Specialty rental revenues reached a record $42 million in Q4 2024, driven by strong customer demand[10] - Revenues for the three months ended December 31, 2024, increased to $57,524 thousand, up 30% from $44,207 thousand in the previous quarter[18] - Rental and service revenues for the three months ended December 31, 2024, were $41,800 thousand, an increase from $32,408 thousand in the previous quarter[19] - Revenues for the three months ended December 31, 2024, increased to $57,524,000, up from $44,207,000 in the previous quarter, representing a growth of 29.5%[25] Expenses and Cash Flow - Selling, general and administrative expenses were $10.7 million in Q4 2024, down from $10.2 million in Q4 2023, representing 18.6% of revenues[8] - Free Cash Flow for the three months ended December 31, 2024, was $(15,909,000), compared to $(5,561,000) in the previous quarter, indicating a decline in cash flow[26] - The company reported a net cash used in operating activities of $(4,127,000) for the three months ended December 31, 2024[26] - The company incurred severance costs of $416,000 for the three months ended December 31, 2024[24] Assets and Liabilities - Total cash as of December 31, 2024, was $18 million, with total debt of $8 million[9] - Cash and cash equivalents increased to $17,756 thousand as of December 31, 2024, compared to $789 thousand at the end of 2023[20] - Total current assets decreased to $112,984 thousand as of December 31, 2024, down from $357,224 thousand in 2023, primarily due to the sale of the Fluids Systems business[20] - The company had total liabilities of $67,187 thousand as of December 31, 2024, down from $226,972 thousand in 2023[20] Capital Expenditures and Future Plans - Capital expenditures for 2025 are expected to be between $35 million and $40 million, with 80% allocated to expanding the rental fleet[6] - The company launched a new brand identity, changing its name to NPK International, and began trading under the ticker symbol 'NPKI' on December 19, 2024[10] Share Information - The weighted average shares outstanding for diluted earnings per share were 87,222 thousand for the three months ended December 31, 2024[18] - The weighted average common shares outstanding for diluted calculations was 87,222,000 for the three months ended December 31, 2024[24]

Financial Performance - Revenues decreased 23% to $44.2 million for Q3 2024, compared to $57.3 million for Q3 2023[59] - Rental and service revenues decreased by $5.7 million (15%) in Q3 2024, while product sales revenues decreased by $7.4 million (39%)[61] - Operating income from continuing operations was $1.2 million in Q3 2024, down from $6.3 million in Q3 2023, reflecting an 80% decline[59] - The company reported a net loss of $174.3 million in Q3 2024, compared to a net income of $7.7 million in Q3 2023[59] - Revenues decreased 1% to $159.965 million for the first nine months of 2024, compared to $161.193 million for the same period in 2023[74] - Rental and service revenues decreased by $10.389 million (9%) for the first nine months of 2024, while product sales revenues increased by $9.161 million (20%)[75] - Operating income from continuing operations increased by 23% to $20.707 million for the first nine months of 2024, compared to $16.863 million for the same period in 2023[74] Expenses and Cost Management - Selling, general and administrative expenses decreased by $2.9 million to $11.0 million in Q3 2024, with SG&A as a percentage of revenues at 24.9%[64] - Selling, general and administrative expenses decreased by $5.5 million (13%) to $35.335 million for the first nine months of 2024[79] - Interest expense decreased by 17% to $2.612 million for the first nine months of 2024, compared to $3.154 million for the same period in 2023[82] Cash Flow and Debt Management - The company ended Q3 2024 with $43 million in cash and $14 million in total debt[67] - Net cash provided by operating activities was $42.3 million for the first nine months of 2024, down from $63.8 million for the same period in 2023[87] - Total debt decreased to $13.963 million as of September 30, 2024, from $62.029 million at the end of 2023[89] - Total debt to capitalization ratio improved to 4.2% as of September 30, 2024, compared to 13.0% at the end of 2023[89] Tax and Financial Benefits - A $14.0 million tax benefit was recorded in Q3 2024, primarily due to the release of valuation allowances on U.S. net operating losses[68] - The benefit for income taxes from continuing operations was $9.626 million for the first nine months of 2024, compared to a provision of $4.9 million for the same period in 2023[83] Future Outlook - The company expects revenues to improve in Q4 2024 due to higher customer rental project activity and product sales[62] - The company aims to reduce SG&A as a percentage of revenue to the mid-teens range by early 2026 following the sale of the Fluids Systems business[54] Financing and Credit Facilities - As of September 30, 2024, the applicable margin for borrowings under the Amended ABL Facility was 1.50% for BSBY borrowings and 0.50% for base rate borrowings[91] - The aggregate commitments under the Credit Agreement were reduced from $175 million to $100 million following the September 2024 amendment[91] - The U.K. subsidiary entered a £7.0 million term loan and a £2.0 million revolving credit facility, with an interest rate of 8.2% as of September 30, 2024[91] - Total principal amounts outstanding under financing arrangements were $14.0 million as of September 30, 2024, with $5.5 million borrowed under the U.K. term loan and credit facility[97] - The Amended ABL Facility requires a minimum fixed charge coverage ratio of 1.00 to 1.00 for the most recently completed four fiscal quarters[91] - The financial covenant requiring the Consolidated Leverage Ratio to be less than or equal to 4.00 to 1.00 will be tested for each fiscal quarter starting from June 30, 2024[91] Asset Management - Capital expenditures for the first nine months of 2024 totaled $29.9 million, primarily directed towards expanding the mat rental fleet[88] - The Fluids Systems business was sold in September 2024, with deferred consideration and estimated liabilities due from the purchaser expected to be finalized in the fourth quarter of 2024[94] Risk Management - The company has not used off-balance sheet financial hedging instruments to manage foreign currency risks associated with operations in the U.K.[98] - The company entered $3.5 million of new finance lease liabilities during the first nine months of 2024[91] - The interest rate for the U.K. facilities was based on the Sterling Overnight Index Average plus a margin of 3.25% per year[91]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $44 million, a decline of 23% year-over-year, with adjusted EBITDA decreasing to $7.5 million, down $4.5 million from the previous year [11][12][36] - Adjusted EPS from continuing operations was breakeven in Q3, compared to $0.10 in Q2 and $0.03 in Q3 of the previous year [28] - Operating cash flow was $2 million in Q3, negatively impacted by growth in working capital prior to the divestiture [29] Business Line Data and Key Metrics Changes - Total rental and service revenues declined 11% sequentially and 15% year-over-year to $32 million in Q3 [23] - Revenues from product sales decreased to $12 million in Q3, down from record Q2 results [23] - Year-to-date rental revenues are up 1% over the prior year, while service revenues are down 21% [24] Market Data and Key Metrics Changes - The utility sector contributed 60% of year-to-date revenues, with nearly 55% of rental and service revenues coming from this sector [25] - A pronounced seasonal slowdown in utility sector activity in the southern region negatively impacted rental revenues [22][23] Company Strategy and Development Direction - The company is transitioning from an Oilfield Services business to a vertically integrated specialty Rental & Services business focused on critical infrastructure markets [13][14] - Plans include rebranding and aligning with the New York Stock Exchange for industry reclassification [15][18] - The company aims to achieve $5 million in cost savings by early 2026, with SG&A as a percentage of revenue expected to reach the mid-teens range [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong rebound in late September and October, with record rental volume achieved in October [12][33] - Full-year revenue guidance has been revised down to a range of $217 million to $223 million due to Q3 headwinds [36] - The company remains confident in the near-term and long-term outlook for utilities and critical infrastructure spending [32] Other Important Information - The company ended Q3 with total cash of $43 million and total debt of $14 million, resulting in a net cash position of $29 million [30] - There are over $15 million in net assets related to the Fluid sale, including a $5 million interest-bearing note receivable [31] Q&A Session Summary Question: Impact of project shifts - Management indicated that the shift of projects from transmission to renewable generation projects had an impact of approximately $1 million in Q3, with no definitive start date for the postponed projects [48][60] Question: Guidance for Q4 - Management expressed strong optimism for Q4, citing a swift rebound in customer activity and encouraging product sales [49][50] Question: Plant maintenance and CapEx - The maintenance at the Louisiana plant was necessary and has since been resolved, with CapEx for 2025 expected to be similar to 2024 [52][56] Question: Pipeline growth and regional expansion - Management noted strong quoting activity and a positive outlook for pipeline growth, with regional expansion efforts ongoing [57][91]

Revenue Performance - Revenue for Q3 2024 was $44.2 million, a decrease of 13.1% from $57.3 million in Q3 2023[2] - Revenues for Q3 2024 were $44.2 million, a decrease of 33.7% from $66.8 million in Q2 2024 and a decrease of 22.8% from $57.3 million in Q3 2023[24] - The Industrial Solutions segment generated revenues of $44.2 million, with operating income of $7.3 million, both lower than the previous year[3] - Industrial Solutions revenue for the three months ended September 30, 2024, was $44,207,000, a decrease of 33.8% compared to $66,791,000 for the previous quarter[39] - Total revenues for the nine months ended September 30, 2024, were $159,965,000, slightly down from $161,193,000 for the same period in 2023[39] - The company reported a total of $206,420,000 in revenues for the trailing twelve months ended September 30, 2024[41] Income and Profitability - Operating income from continuing operations was $1.2 million, down from $6.3 million in the prior year[3] - Operating income from continuing operations for Q3 2024 was $1.2 million, down from $12.5 million in Q2 2024 and $6.3 million in Q3 2023[24] - Net loss for Q3 2024 was $(174.3) million, compared to net income of $8.0 million in Q2 2024 and a net income of $7.7 million in Q3 2023[24] - Adjusted EBITDA from continuing operations was $7.5 million, representing a margin of 17.0%, down from $12.0 million and 21.0% in Q3 2023[12] - Adjusted EBITDA for the three months ended September 30, 2024, was $12,490,000, down 49.6% from $24,782,000 in the previous quarter[39] - Operating margin (GAAP) for the three months ended September 30, 2024, was 16.5%, a decline from 29.0% in the previous quarter[39] - Adjusted EBITDA margin (non-GAAP) for the three months ended September 30, 2024, was 28.3%, down from 37.1% in the previous quarter[39] Cash and Debt Position - Total cash as of September 30, 2024, was $43 million, with total debt of $14 million[7] - Cash and cash equivalents increased to $42.9 million as of September 30, 2024, up from $0.8 million at the end of 2023[27] - The company had cash, cash equivalents, and restricted cash of $43,384 thousand at the end of the period on September 30, 2024, up from $28,404 thousand at the end of the same period in 2023[29] Assets and Liabilities - Total assets decreased to $389.6 million as of September 30, 2024, down from $642.3 million at the end of 2023[27] - Total current liabilities decreased to $51.2 million as of September 30, 2024, compared to $136.3 million at the end of 2023[27] - The company reported a deferred tax asset of $17.5 million as of September 30, 2024, significantly up from $1.4 million at the end of 2023[27] Divestitures and Capital Expenditures - The company completed the sale of its Fluids Systems segment on September 13, 2024, receiving initial cash proceeds of $70 million[2] - The company incurred a loss of $(195.7) million on the sale of discontinued operations[24] - The company experienced a loss on divestitures amounting to $195,729 thousand during the nine months ended September 30, 2024[29] - The company reported capital expenditures of $29,940 thousand for the nine months ended September 30, 2024, compared to $20,134 thousand for the same period in 2023[29] Future Outlook - For the full year 2024, the company anticipates Industrial Solutions segment revenue between $217 million and $223 million[17] - The company expects a strong rebound in rental revenues in Q4 2024 following a seasonal slowdown in Q3[4] Shareholder Returns - The company has a robust return of capital program, with a $50 million authorization for share repurchases[9] Adjusted Metrics - Adjusted income from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was $10,156 thousand, compared to $13,174 thousand for the same period in 2023[30] - Adjusted EBITDA from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was $37,773 thousand, compared to $36,210 thousand for the same period in 2023[36] - Free cash flow (non-GAAP) for the nine months ended September 30, 2024, was $15,544 thousand, down from $46,660 thousand in the same period of 2023[37] - The adjusted EBITDA margin from continuing operations (non-GAAP) for the nine months ended September 30, 2024, was 23.6% compared to 22.5% for the same period in 2023[36] Share Count - The weighted average shares outstanding for basic shares were 86.4 million for Q3 2024, compared to 85.5 million in Q2 2024[24] - The weighted average common shares outstanding - diluted for the nine months ended September 30, 2024, was 87,490 thousand[30]

Group 1: Company Performance - Newpark Resources (NR) has returned 14.5% year-to-date, outperforming the average gain of 3.2% in the Oils-Energy group [4] - The Zacks Consensus Estimate for NR's full-year earnings has increased by 1.9% over the past 90 days, indicating improved analyst sentiment and earnings outlook [3] - Newpark Resources is currently ranked 2 (Buy) in the Zacks Rank system, suggesting strong potential for market performance [3] Group 2: Industry Context - Newpark Resources belongs to the Oil and Gas - Field Services industry, which has seen an average loss of 5.4% year-to-date, further highlighting NR's strong performance [5] - The Oils-Energy group consists of 247 companies and is currently ranked 12 in the Zacks Sector Rank, reflecting the overall strength of the sector [2] - Another outperforming stock in the Oils-Energy sector is Pedevco Corp. (PED), which has gained 11.8% year-to-date [4]