NPK International Inc.

Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the NPK International first quarter 2026 earnings. 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 one again. Thank you. I would now like to turn the call over to Gregg Piontek. Please go ahead.

Thank you, Operator. I'd like to welcome everyone to the NPK International First Quarter 2026 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 reconciliations 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 May 1st, 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, Gregg, and welcome to everyone joining us on today's call. We are very pleased with our strong start to 2026, which played out in line with our expectations discussed on last quarter's call. Despite the typical pause in customer projects around the year-end holidays, rental activity accelerated throughout the quarter, with total rental and service revenues setting another quarterly record at $52 million, a 4% sequential and 20% year-over-year increase. Product sales demand also remained robust, contributing $23 million to first quarter revenue. Off the back of our solid execution, we delivered $22 million adjusted EBITDA in the quarter, representing a 4% sequential and 14% year-over-year improvement. We're also very pleased with our first quarter cash flow, delivering $21 million of cash flow from operations and $5 million of free cash flow while also expanding our rental fleet by 4%, repaying our revolving credit facility and using $3 million to fund share repurchases. Overall, Q1 once again demonstrated our consistent, strong execution, which we believe are a direct reflection of our commitment to our key strategic priorities. As highlighted last quarter, the key component of our organic growth strategy is our manufacturing capacity expansion effort. Having substantially concluded our project evaluation, our board of directors recently approved our plans to increase our production capacity by approximately 50% from current levels. We expect to invest $40 to $45 million over the next five quarters to complete this project with the goal of bringing the additional capacity online by mid-2027. We are confident that this expansion, along with our continuing to bottlenecking initiatives, will support our growth and composite matting market share growth for the foreseeable future. With that, I'll turn the call to Gregg for his prepared remarks.