NPK International Inc.

Thank you for standing by. My name is Carly and I will be your conference operator today. At this time, I would like to welcome everyone to the NPK International fourth quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Greg Piontek, Chief Financial Officer. Please go ahead.

Thank you, operator. I'd like to welcome everyone to the NPK International fourth quarter 2025 conference call. Joining me today is Matthew Lanigan, our President and Chief Executive Officer. Before handing over to Matthew, I'd like to highlight that today's discussion contains forward-looking statements regarding future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. Our comments on today's call may also include certain non-GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our quarterly earnings release, which can be found on our corporate website. There will be a replay of today's call, and it will be available by webcast within the investor relations section of our website at NPKI.com. Please note that the information disclosed on today's call is current as of February 26th, 2026. At the conclusion of our prepared remarks, we will open the line for questions. And with that, I'd like to turn the call over to our President and CEO, Matthew Lanigan.

Thanks Greg, and welcome to everyone joining us on today's call. We are very pleased with our strong fourth quarter performance, which reflects a record finish to 2025 and continues to highlight the merits of our long-term growth strategy. Total revenues for the fourth quarter increased 9% sequentially and 31% year-over-year, benefiting from sustained strength in rental fleet utilization, including the impacts of multiple large-scale utility projects discussed last quarter. Product sales demand also remained robust, contributing $25 million to fourth quarter revenue. The elevated utilization and our strong execution delivered a solid improvement in profitability, resulting in a fourth quarter adjusted EBITDA of $22 million, representing a 41% sequential and 27% year-over-year improvement. Our strong Q4 results are a direct reflection of our commitment to our key strategic priorities. As I reflect on our 2025 performance, I wanted to take a moment to highlight our achievements against each of the initiatives we laid out one year ago. Entering 2025, our highest priority was to accelerate organic rental growth, which we believe represents the stickiest and highest long-term driver of returns. For the full year 2025, we delivered $124 million in rental revenues, representing a 39% year-over-year growth, of which 37% was from organic growth and 2% was from our November acquisition of grass forms. To support our rental growth, we invested a net $37 million expanding our Jira-based fleet by 16% in the year. With the impact of roughly 20,000 composite mats added through the grass form acquisition, we ended the year with approximately 215,000 composite mats in our rental fleet. In addition to the strong rental growth, product sales grew by 30% year-over-year, reflecting continued robust demand for our industry-leading composite matting solutions. In total, we delivered $277 million of revenue for the year, up 27% year-over-year, while also expanding our gross margin by nearly 100 basis points to 36.4%, and expanding adjusted EBITDA margin by more than 200 basis points to 27.3%. As highlighted last quarter, a key component of our organic growth strategy is our continued focus on manufacturing capacity expansion, which accelerated in the second half of the year. Our total production volumes for 2025 increased by more than 15% year over year as we transitioned to 24-7 production and implemented manufacturing process modifications to enhance throughput. With the full-year benefit of these changes in 2026, we believe we have sufficient production capacity to meet our near-term growth needs. Looking longer term, our team is wrapping up the evaluation of manufacturing expansion options that aim to bring additional capacity online in the first half of 2027. and we'll provide more details on this in our first quarter earnings call. Our second priority coming into 2025 was the focused pursuit of strategic inorganic growth. Throughout the year, we actively evaluated several opportunities, assessing each for strategic and cultural alignment, as well as their ability to meet our required economic returns. We were very pleased to complete the acquisition of grass-formed plant hire in November, which strengthens our capabilities and enhances our scale. positioning us as a top-tier worksite access provider in the UK market. We welcome this talented, grass-formed team to the MPK and look forward to seeing our combined UK team deliver for our customers in this growing market. Our third priority for 2025 was the pursuit of operational efficiency. Over the past year, we completed our required transitional support services for the divested fluids business. while simultaneously advancing a major ERP conversion project. I'm pleased to highlight that we have now successfully rolled out the new ERP system to all our legacy operations. As with any ERP system conversion, this was a major undertaking, impacting nearly every process and employee in the company. We appreciate all the hard work from our dedicated team and are very pleased with the results to date as the organization adapts to the new system and begins to realize and expand the enabled efficiencies it creates. The ARP system is yet another significant milestone in our efforts to streamline our overhead costs and SG&A profile. Our fourth and final priority for 2025 was to enhance our 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, I'm very pleased to highlight that we delivered an after-tax return on net assets of 11% in 2025. a substantial year-over-year improvement. We also executed meaningfully on our return of capital program, repurchasing 4% of our outstanding shares in 2025 at an average price of $6.70 per share and exited the year with 2 million fewer shares outstanding versus the prior year. Overall, our team achieved all our stated objectives, with the strong execution culminating in 38% year-over-year improvement in adjusted EBITDA, and an 83% year-over-year improvement in adjusted EPS. We're extremely proud of our success during 2025 and look forward to carrying this momentum into 26. And with that, I'll turn the call over to Greg for his prepared remarks.