Is NPK International (NPKI) at an Inflection Point?

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2000 Index during the fourth quarter as well as in FY2025. The stock selection drove the underperformance of the Strategy in the quarter. The strategy’s emphasis on high-quality stocks lagged behind broader market trends. However, the firm expects the environment to be more favorable for high-quality businesses in 2026. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks like NPK International Inc. (NYSE:NPKI), noting it as a new purchase during the quarter. NPK International Inc. (NYSE:NPKI) is a temporary worksite access solutions company that manufactures recyclable composite matting products. NPK International Inc. (NYSE:NPKI) stock gained 17.00% over the past month, and its shares gained 84.88% in value over the past year. On January 22, 2026, NPK International Inc. (NYSE:NPKI) stock closed at $14.18 per share, with a market capitalization of $1.198 billion.

Riverwater Partners Small Cap Strategy stated the following regarding NPK International Inc. (NYSE:NPKI) in its fourth quarter 2025 investor letter:

“NPK International Inc. (NYSE:NPKI): During the quarter, we added NPK International Inc., a manufacturer, renter, and seller of composite matting solutions primarily serving utility and energy-related end markets. We view NPKI as a differentiated way to participate in the multi-year infrastructure buildout required to support grid expansion, electrification, and energy system upgrades. As new infrastructure is constructed, composite mats provide a stable working surface that protects the environment while offering meaningful advantages over traditional timber mats, including longer useful life, easier transportation, and superior long-term cost efficiency. Following several years of portfolio optimization, NPKI is now at an inflection point, positioned to benefit from incremental capacity additions, internal efficiency improvements, and accelerating customer adoption. Collectively, these factors support improving margins, stronger free cash flow generation, and an attractive risk-adjusted return profile as infrastructure investment continues to scale.”

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NPK International Inc. (NYSE:NPKI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held NPK International Inc. (NYSE:NPKI) at the end of the third quarter, up from 25 in the previous quarter. NPK International Inc. (NYSE:NPKI) reported Q3 2025 revenue of $69 million, a favorable result as utility activities typically eases during the period due to seasonal pullback. NPK International Inc. (NYSE:NPKI) reported While we acknowledge the risk and potential of NPK International Inc. (NYSE:NPKI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NPK International Inc. (NYSE:NPKI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered NPK International Inc. (NYSE:NPKI) and shared Meridian Small Cap Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.