Newpark Resources(US:NR)2025-10-31 15:51Revenue Performance - For the first nine months of 2025, 66% of revenues were generated from the rental of recyclable composite matting systems, with a 40% increase in rental revenues year-over-year [66]. - Rental and service revenues increased by $30 million, or 29%, year-over-year for the first nine months of 2025, driven by larger-scale projects [68]. - Total revenues for the third quarter of 2025 increased by 56% to $68.8 million compared to $44.2 million in the third quarter of 2024 [70]. - Revenues increased 26% to $201.8 million for the first nine months of 2025, compared to $160.0 million for the same period in 2024, driven by a 29% increase in rental and service revenues and a 21% increase in product sales revenues [81]. Product Sales and Profitability - Product sales revenues surged by 108% to $24.6 million in the third quarter of 2025, reflecting strong customer adoption of manufactured composite matting products [71]. - The gross profit margin improved to 31.9% in the third quarter of 2025, up from 27.5% in the third quarter of 2024, due to a favorable revenue mix [70]. - Cost of revenues rose 23% to $129.4 million in the first nine months of 2025, resulting in a gross profit margin of 35.9%, up from 34.1% in 2024 [82]. - Net income for the first nine months of 2025 was $24.3 million, a significant recovery from a net loss of $159.0 million in the same period of 2024 [80]. Expenses and Taxation - Selling, general and administrative expenses as a percentage of revenues decreased to 19.3% in the third quarter of 2025 from 24.9% in the same quarter of 2024 [74]. - Selling, general and administrative expenses increased to $38.7 million, representing 19.2% of revenues, down from 22.1% in 2024 [84]. - The provision for income taxes from continuing operations was $3.0 million for the third quarter of 2025, reflecting an effective tax rate of 33% [78]. - The effective tax rate for the first nine months of 2025 was 28%, with a provision for income taxes from continuing operations of $10.0 million [88]. Share Repurchase and Investments - The company repurchased 3.0 million shares, representing 4% of outstanding shares, utilizing $20.4 million under its repurchase program during the first nine months of 2025 [69]. - The company made net investments of $26 million in the expansion of its rental fleet, increasing it by approximately 13% during the first nine months of 2025 [68]. - Capital expenditures for the first nine months of 2025 were $34.4 million, primarily focused on expanding the mat rental fleet [92]. - The company expects capital expenditures in 2025 to be between $45 million and $50 million, aimed at further market penetration [95]. Debt and Financial Position - As of September 30, 2025, total debt was $9.5 million, with a total debt to capitalization ratio of 2.8% [96]. - The company has $144.3 million of remaining availability under its Credit Facility, which provides financing of up to $150 million [97]. - The company had no borrowings under its Credit Facility as of September 30, 2025 [108]. Operational Highlights - The loss from discontinued operations, primarily from the former Fluids Systems segment, was significantly reduced to $409,000 in the third quarter of 2025 compared to a loss of $189.2 million in the same quarter of 2024 [79]. - Approximately 6% of consolidated revenues for the first nine months of 2025 were contributed by operations in the U.K. [109]. - The company has not used off-balance sheet financial hedging instruments to manage foreign currency risks [109].