Summary of NWPX Infrastructure FY Conference Call Company Overview - **Company Name**: NWPX Infrastructure (formerly Northwest Pipe Company) [1] - **Business Units**: - **Water Transmission Systems**: Focuses on high-pressure transmission of raw water to treatment centers, with pipe diameters ranging from 2 feet to 13 feet [4][5] - **Precast Business**: Acquired Geneva Pipe and Precast in January 2020, producing precast infrastructure products [6][10] Core Business Insights - **Water Transmission Systems**: - Market size estimated between $450 million and $700 million annually, with NWPX holding a 50% to 55% market share [10] - Business characterized by long project timelines, often taking up to 10 years to complete [10] - **Precast Business**: - More transactional and quicker cash cycle compared to Water Transmission, with better margins historically [10] - Targeting growth to reach $1 billion in total revenue, with current precast revenue around $200 million [11][12] Strategic Objectives - **M&A Growth**: - Interest in acquiring precast businesses despite high market multiples due to private equity interest [12][13] - Willing to consider higher debt leverage (up to 2.5x or 3x for transformational opportunities) [17][18] - **Market Positioning**: - Anticipating a strong bidding environment in Q4 2025, which will solidify backlog for 2026 [21][22] - IIJA funding expected to boost demand and margins in the Water Transmission business [23][24] Market Dynamics - **Bidding Environment**: - Current bidding environment characterized as "just okay," with expectations for improvement due to IIJA funding [54][56] - Historical margins in Water Transmission could reach 20% with increased demand [56] - **Precast Market Trends**: - Residential precast business in Utah remains strong, with revenue doubling from $41 million in 2020 to $82 million by the end of 2024 [33] - ParkUSA's business affected by interest rates but showing signs of recovery, with a projected strong year ahead [34] Financial Performance - **Revenue Growth**: - Revenue increased from $132 million in 2017 to over $500 million currently, with a long-term goal of reaching $1 billion [51] - **Cost Management**: - Steel prices remain stable despite tariffs, with current prices around $800 per ton [39] - Cement prices have stabilized after a 15% to 20% increase, with no significant upward movement expected [41] Additional Insights - **Product Spread Initiatives**: - Efforts to expand product offerings across different plants, aiming for $12 million in bookings this year [47][48] - **Emerging Opportunities**: - First-time appearance of data center projects in the bidding log, indicating potential new market segments [27][28] Conclusion - NWPX Infrastructure is positioned for growth with a focus on expanding its precast business and leveraging IIJA funding to enhance its Water Transmission Systems segment. The company is actively exploring M&A opportunities while maintaining a conservative approach to debt management. The overall market outlook appears stable, with potential for improved margins and revenue growth in the coming years.

Core Viewpoint - NWPX Infrastructure, Inc. is actively participating in the 24th Annual D.A. Davidson Diversified Industrials & Services Conference, highlighting its commitment to investor engagement and transparency [1]. Company Overview - NWPX Infrastructure, Inc. was founded in 1966 and is a leading manufacturer of water-related infrastructure products [2]. - The company operates under the Northwest Pipe Company brand and is the largest manufacturer of engineered water transmission systems in North America [2]. - NWPX produces various products including steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings [2]. - The company also offers solution-based products for diverse markets, including reinforced precast concrete products and lined precast sanitary sewer system components under the NWPX Geneva brand [2]. - Additionally, NWPX provides water distribution and management equipment through the NWPX Park brand, addressing growing water and wastewater infrastructure needs [2]. - NWPX is headquartered in Vancouver, Washington, and operates 13 manufacturing facilities across North America [2].

Core Viewpoint - NWPX Infrastructure has shown strong performance, with a stock increase of approximately 30% since June, outperforming the S&P 500 [1] Group 1: Company Performance - NWPX Infrastructure's stock has risen around 30% compared to the S&P 500 [1] Group 2: Analyst Background - The analyst has over 15 years of investment experience, focusing on mid-sized hedge funds with assets between $100 million and $500 million [1] - The analyst has experience as a sell-side analyst and is currently managing personal investments [1] - The investment strategy includes medium-term investing in value-unlocking catalysts and short selling in case of downside catalysts [1] Group 3: Sector Preferences - The analyst is a generalist but has a strong background in analyzing industrial, consumer, and technology sectors, where higher conviction investments are typically made [1]

Core Insights - NWPX Infrastructure (NWPX) is currently more attractive to value investors compared to Knife River (KNF) based on various financial metrics and analyst outlooks [1][3][7] Valuation Metrics - NWPX has a forward P/E ratio of 16.82, while KNF has a significantly higher forward P/E of 27.81 [5] - The PEG ratio for NWPX is 3.36, indicating a more favorable expected EPS growth rate compared to KNF's PEG ratio of 6.44 [5] - NWPX's P/B ratio stands at 1.26, contrasting with KNF's P/B ratio of 3.43, suggesting that NWPX is undervalued relative to its book value [6] Analyst Outlook - NWPX holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while KNF has a Zacks Rank of 5 (Strong Sell), reflecting a less favorable analyst outlook [3][7] - The Value grade for NWPX is B, whereas KNF has a Value grade of F, further supporting the conclusion that NWPX is the superior option for value investors [6][7]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) NWPX Infrastructure, Inc. reports unaudited H1 2025 net sales of **$249.3 million** and net income of **$13.0 million** [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net sales rose to **$133.2 million** with **$9.1 million** net income; six-month net income decreased to **$13.0 million** Condensed Consolidated Statements of Operations (in thousands) | Financial Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $133,182 | $129,505 | $249,297 | $242,720 | | **Gross profit** | $25,365 | $25,814 | $44,730 | $45,948 | | **Operating income** | $13,236 | $13,619 | $18,805 | $22,309 | | **Net income** | $9,063 | $8,619 | $13,027 | $13,857 | | **Diluted EPS** | $0.91 | $0.86 | $1.30 | $1.38 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached **$592.6 million** as of June 30, 2025, with liabilities at **$213.1 million** and equity at **$379.5 million** Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $264,002 | $262,488 | | **Total assets** | $592,580 | $589,653 | | **Total current liabilities** | $66,797 | $75,133 | | **Total liabilities** | $213,128 | $215,650 | | **Total stockholders' equity** | $379,452 | $374,003 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 net cash from operations improved to **$10.3 million**, with investing and financing activities using **$7.1 million** and **$6.1 million** Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $10,272 | $(3,815) | | **Net cash used in investing activities** | $(7,144) | $(10,573) | | **Net cash provided by (used in) financing activities** | $(6,104) | $14,848 | | **Change in cash and cash equivalents** | $(2,976) | $460 | | **Cash and cash equivalents, end of period** | $2,031 | $4,528 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's name change, segment renaming, share repurchase program, and contingencies including the Portland Harbor Superfund Site - The company changed its name from Northwest Pipe Company to **NWPX Infrastructure, Inc.** on June 12, 2025, concurrently renaming the 'Engineered Steel Pressure Pipe (SPP)' segment to 'Water Transmission Systems (WTS)'[27](index=27&type=chunk)[28](index=28&type=chunk) - The company has a share repurchase program of up to **$30 million**, repurchasing approximately **192,000 shares** for **$7.8 million** in H1 2025, with **$17.1 million** remaining available[42](index=42&type=chunk)[44](index=44&type=chunk) - The company is a potentially responsible party (PRP) for the Portland Harbor Superfund Site cleanup, but due to uncertainties, no accrual has been recorded for potential liability[53](index=53&type=chunk) - Backlog for the WTS segment was **$298 million** as of June 30, 2025, with approximately **48%** expected to be recognized in 2025[69](index=69&type=chunk) Segment Performance (in thousands) | Segment Performance (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Sales - WTS** | $163,034 | $169,530 | | **Net Sales - Precast** | $86,263 | $73,190 | | **Gross Profit - WTS** | $27,229 | $31,223 | | **Gross Profit - Precast** | $17,501 | $14,725 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2025 net sales growth of **2.7%** driven by Precast, offsetting WTS decline, with gross margin compression and adequate liquidity [Results of Operations](index=23&type=section&id=Results%20of%20Operations) H1 2025 net sales increased **2.7%** to **$249.3 million** (Precast growth, WTS decline), resulting in gross profit decrease and margin compression - WTS net sales decreased **3.8%** in H1 2025 due to a **14% decrease in tons produced**, partially offset by an **11% increase in selling price per ton**[100](index=100&type=chunk) - Precast net sales increased **17.9%** in H1 2025, driven by a **17% increase in volume shipped** and a **1% rise in selling prices**[101](index=101&type=chunk) - WTS gross profit decreased **12.8%** in H1 2025 due to lower volume, with the segment's gross margin falling to **16.7%** from **18.4%**[103](index=103&type=chunk) - Precast gross profit increased **18.9%** in H1 2025, primarily due to increased volume, with the segment's gross margin slightly improving to **20.3%** from **20.1%**[104](index=104&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operating cash flows and a **$125 million** credit agreement, with **$197.2 million** working capital and **$93 million** additional borrowing capacity - Working capital increased to **$197.2 million** as of June 30, 2025, from **$187.4 million** at year-end 2024[108](index=108&type=chunk) - Capital expenditures are projected to be between **$19 million and $22 million** in 2025, including approximately **$2 million** for a new reinforced concrete pipe mill[112](index=112&type=chunk) - As of June 30, 2025, the company had **$30.6 million** outstanding on its revolving line of credit, with an additional borrowing capacity of approximately **$93 million**[117](index=117&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures for commodity prices, interest rates, and foreign currency exchange rates are unchanged from the 2024 Form 10-K - The company refers to its 2024 Form 10-K for a discussion of market risks, indicating no material changes during the quarter[126](index=126&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no significant changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[128](index=128&type=chunk) - No significant changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[129](index=129&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) Routine legal actions are not expected to have a material impact; significant matters are detailed in Note 7 of the financial statements - The company states that its routine litigation is not expected to have a material impact, referring to Note 7, 'Commitments and Contingencies' for more significant proceedings[130](index=130&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K have occurred - The company directs investors to the risk factors discussed in its 2024 Form 10-K, indicating no material updates during the quarter[131](index=131&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **192,199 shares** for **$7.8 million** in Q2 2025, with **$17.1 million** remaining from its **$30 million** program Share Repurchase Activity (2025) | Period (2025) | Total Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value Remaining | | :--- | :--- | :--- | :--- | | April | 122,360 | $40.82 | $19,868,524 | | May | - | - | $19,868,524 | | June | 69,839 | $39.84 | $17,086,177 | | **Total Q2** | **192,199** | **$40.47** | **$17,086,177** | - Subsequent to quarter end, an additional **171,000 shares** were repurchased for **$7.2 million**, reducing remaining repurchase availability to **$9.9 million**[136](index=136&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) CFO Aaron Wilkins adopted a Rule 10b5-1 trading plan on May 23, 2025, for the potential sale of up to **5,000 shares** - CFO Aaron Wilkins adopted a Rule 10b5-1 trading plan on May 23, 2025, for the potential sale of up to **5,000 shares**[137](index=137&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and required SEC certifications - The report includes a list of filed exhibits, such as corporate governance documents and required SEC certifications[138](index=138&type=chunk)

Financial Data and Key Metrics Changes - Net sales reached a record high of $133.2 million, increasing by 2.8% year-over-year, driven by strong operational execution and demand across business segments [6][19] - Consolidated net income was $9.1 million, or $0.91 per diluted share, compared to $8.6 million, or $0.86 per diluted share in the previous year [19] - Free cash flow improved significantly to $3.1 million from negative $14.4 million in the prior year, marking a positive swing of $17.6 million [6][19] Business Segment Data and Key Metrics Changes - Water Transmission Systems (WTS) segment revenue totaled $84.6 million, down 5.5% year-over-year due to lower production volumes, partially offset by higher selling prices [7][19] - Precast segment revenue grew by 21.5% year-over-year to $48.6 million, driven by strong demand in the residential sector [8][20] - WTS gross margin decreased to 17.8%, down approximately 120 basis points year-over-year, while Precast gross margin decreased to 21.2%, down approximately 90 basis points [10][11] Market Data and Key Metrics Changes - The Dodge Momentum Index increased by 6.8% in June, indicating improving non-residential construction activity, with a year-over-year growth of 20% [9] - The commercial sector saw an 11% increase, while the institutional sector rose by 46% compared to the previous year [9] Company Strategy and Development Direction - The company rebranded to NWPX Infrastructure to reflect its growth in the water infrastructure sector and to position itself as a national solutions-driven provider [5] - The focus remains on organic growth and strategic acquisitions, with an emphasis on enhancing capacity utilization and operational efficiencies [13][17] - The company aims to maintain a safe workplace, focus on margin over volume, and return value to shareholders through share repurchases in the absence of M&A opportunities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving bidding environment and strengthening order book as they move through the remainder of 2025 [16][17] - The company anticipates that WTS revenue and margins will remain in line with or exceed those of 2024, with a solid backlog in place [15][16] - Non-residential construction is expected to strengthen in the second half of the year, contributing to improved margins [30][56] Other Important Information - The company repurchased approximately 363,000 shares for about $15 million, representing 3.6% of shares outstanding as of March 31, 2025 [18] - Capital expenditures for the second quarter were $3.5 million, with expectations for full-year CapEx in the range of $19 million to $22 million [22][23] Q&A Session Summary Question: Insights on the precast market trends - Management noted that while the residential precast market remains strong, the non-residential side is beginning to show signs of recovery with increasing order rates [30][31] Question: Future bidding climate for WTS - Management indicated that the bidding climate for WTS is expected to remain robust, with potential boosts from IIJA funding projects [35][36] Question: Impact of trade policies on revenue recognition - Management explained that trade policies had previously delayed revenue recognition but are now being managed effectively, with some revenue being recognized in the second quarter [48][49] Question: Timeline for order fulfillment in Geneva vs. Park - Management clarified that order fulfillment timelines differ significantly, with Geneva orders being fulfilled much quicker due to inventory management [61][62] Question: Backlog strength and steel pricing impact - Management stated that the increase in backlog is primarily driven by volume rather than price, as steel prices have stabilized [70][71]

Core Insights - NWPX Infrastructure reported revenue of $133.18 million for Q2 2025, a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate of $120.39 million by 10.63% [1] - The company achieved an EPS of $0.91, up from $0.86 a year ago, representing a surprise of 26.39% compared to the consensus estimate of $0.72 [1] Financial Performance Metrics - Net Sales for Precast Infrastructure and Engineered Systems reached $48.59 million, surpassing the average estimate of $41.96 million, with a year-over-year increase of 21.5% [4] - Net Sales for Water Transmission Systems were reported at $84.59 million, exceeding the average estimate of $78.43 million, but reflecting a year-over-year decline of 5.5% [4] - Gross profit for Precast Infrastructure and Engineered Systems was $10.31 million, above the average estimate of $9.92 million [4] - Gross profit for Water Transmission Systems was $15.06 million, compared to the average estimate of $12.82 million [4] Stock Performance - NWPX Infrastructure shares have returned -0.5% over the past month, while the Zacks S&P 500 composite has increased by 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - NWPX Infrastructure reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and showing an increase from $0.86 per share a year ago, resulting in an earnings surprise of +26.39% [1] - The company achieved revenues of $133.18 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.63%, compared to $129.51 million in the same quarter last year [2] - Over the last four quarters, NWPX Infrastructure has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has underperformed the market, losing about 13% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.01 on revenues of $129.51 million, and for the current fiscal year, it is $2.94 on revenues of $487.13 million [7] Group 3 - The Zacks Industry Rank indicates that the Building Products - Miscellaneous sector is currently in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for NWPX Infrastructure was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

[Company Overview and Highlights](index=1&type=section&id=Company%20Overview%20and%20Highlights) NWPX Infrastructure, Inc. completed its rebranding in June 2025, achieving record Q2 2025 results with $133.2 million in consolidated revenue and expanding gross margin [Company Information & Rebranding](index=1&type=section&id=Company%20Information%20%26%20Rebranding) NWPX Infrastructure, Inc. completed its name change in June 2025 and rebranded its SPP division to Water Transmission Systems (WTS) to better reflect its value contribution - Company name changed from Northwest Pipe Company to **NWPX Infrastructure, Inc.**, effective **June 12, 2025**[3](index=3&type=chunk) - The "Engineered Steel Pressure Pipe (SPP)" division has been rebranded as "Water Transmission Systems (WTS)" to better reflect its capabilities in engineering, manufacturing, and delivering critical integrated water pipeline systems[3](index=3&type=chunk) - The "Precast Infrastructure and Engineered Systems (Precast)" division name remains unchanged, with this rebranding not affecting divisional structure or reporting basis[3](index=3&type=chunk) [Management Commentary & Q2 2025 Highlights](index=1&type=section&id=Management%20Commentary%20%26%20Q2%202025%20Highlights) NWPX Infrastructure achieved record Q2 2025 performance with $133.2 million in consolidated revenue, 19.0% gross margin, and a significant increase in WTS backlog Q2 2025 Key Financial and Operational Highlights | Indicator | Amount/Data | Change | Notes | | :----------------------------------- | :---------- | :--- | :--- | | **Consolidated Net Sales** | $133.2 Million | +2.8% YoY | Highest historical record under current operating segments | | **Precast Segment Net Sales** | $48.6 Million | - | Record quarter | | **Diluted Net Earnings Per Share** | $0.91 | - | - | | **WTS Segment Backlog** | $298 Million | - | As of June 30, 2025 | | **WTS Segment Backlog (including confirmed orders)** | $348 Million | +20% QoQ | As of June 30, 2025, compared to end of Q1 | | **Precast Segment Order Book** | $56 Million | - | As of June 30, 2025 | | **Common Stock Repurchases** | $15.0 Million | - | April to July 2025, representing 3.6% of outstanding shares | | **Company Rebranding** | Completed | - | Completed in June 2025 | - Management anticipates Q3 WTS revenue and margins to be flat or higher than Q2, with Precast revenue remaining strong and margins continuing to improve[4](index=4&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) The company reported Q2 2025 net sales of $133.2 million, a 2.8% increase year-over-year, with net income rising to $9.1 million [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Consolidated net sales reached $133.2 million in Q2 2025, a 2.8% increase, while gross profit slightly decreased to $25.4 million, resulting in a 19.0% gross margin Q2 2025 Consolidated Financial Data | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YoY Change | | :----------------- | :------------------------ | :------------------------ | :------- | | **Net Sales** | $133.2 | $129.5 | +2.8% | | **Gross Profit** | $25.4 | $25.8 | -1.7% | | **Gross Margin** | 19.0% | 19.9% | -0.9 pp | | **Net Income** | $9.1 | $8.6 | +5.8% | | **Diluted Net Earnings Per Share** | $0.91 | $0.86 | +5.8% | [Water Transmission Systems (WTS) Segment Performance](index=2&type=section&id=Water%20Transmission%20Systems%20(WTS)%20Segment%20Performance) WTS segment net sales decreased by 5.5% to $84.6 million in Q2 2025, with gross profit declining to $15.1 million, but backlog significantly increased to $348 million Q2 2025 WTS Segment Key Data | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YoY Change | | :------------------------- | :------------------------ | :------------------------ | :------- | | **Net Sales** | $84.6 | $89.5 | -5.5% | | **Gross Profit** | $15.1 | $17.0 | -11.3% | | **Gross Margin** | 17.8% | 19.0% | -1.2 pp | | **Production Tonnage** | - | - | -10% YoY | | **Sales Price per Ton** | - | - | +4% YoY | WTS Segment Backlog | Indicator | June 30, 2025 (Million USD) | March 31, 2025 (Million USD) | June 30, 2024 (Million USD) | | :------------------------- | :------------------------ | :------------------------ | :------------------------ | | **Backlog** | $298 | $203 | $282 | | **Backlog (including confirmed orders)** | $348 | $289 | $348 | [Precast Infrastructure and Engineered Systems (Precast) Segment Performance](index=2&type=section&id=Precast%20Infrastructure%20and%20Engineered%20Systems%20(Precast)%20Segment%20Performance) Precast segment achieved record net sales of $48.6 million in Q2 2025, a 21.5% increase, with gross profit rising to $10.3 million and a 21.2% gross margin Q2 2025 Precast Segment Key Data | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YoY Change | | :----------------- | :------------------------ | :------------------------ | :------- | | **Net Sales** | $48.6 | $40.0 | +21.5% | | **Gross Profit** | $10.3 | $8.8 | +16.7% | | **Gross Margin** | 21.2% | 22.1% | -0.9 pp | | **Shipment Volume** | - | - | +13% YoY | | **Sales Price** | - | - | +7% YoY | Precast Segment Order Book | Indicator | June 30, 2025 (Million USD) | March 31, 2025 (Million USD) | June 30, 2024 (Million USD) | | :--------- | :------------------------ | :------------------------ | :------------------------ | | **Order Book** | $56 | $64 | $62 | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of June 30, 2025, the company reported $30.6 million in revolving loan borrowings, with $93 million in additional borrowing capacity, and $5.4 million in net cash from operations [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, total assets were $592.6 million, total liabilities $213.1 million, and total stockholders' equity $379.5 million, with $30.6 million in revolving loan borrowings June 30, 2025 Balance Sheet Key Data | Indicator | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--------------------- | :----------------------- | :----------------------- | | **Total Assets** | $592,580 | $589,653 | | **Total Liabilities** | $213,128 | $215,650 | | **Total Stockholders' Equity** | $379,452 | $374,003 | | **Cash and Cash Equivalents** | $2,031 | $5,007 | | **Borrowings on Line of Credit** | $30,644 | $24,677 | - As of June 30, 2025, the company had approximately **$93 million** in additional borrowing capacity under its revolving credit facility[11](index=11&type=chunk) [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Net cash from operating activities was $5.4 million in Q2 2025, a significant decrease year-over-year, primarily due to a $17.3 million reduction from working capital changes Q2 2025 Cash Flow and Capital Allocation | Indicator | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YoY Change | | :----------------------- | :------------------------ | :------------------------ | :------- | | **Net Cash from Operating Activities** | $5.4 | $22.3 | -75.8% | | **Capital Expenditures** | $3.5 | $6.1 | -42.6% | | **Common Stock Repurchases** | $7.8 | - | - | - The decrease in operating cash flow was primarily due to a **$17.3 million** reduction in cash from changes in working capital[11](index=11&type=chunk) - The company repurchased approximately **192,000 shares** of common stock for **$7.8 million** at an average price of **$40.47 per share** during Q2, with an additional **171,000 shares** repurchased for **$7.2 million** after the quarter end[11](index=11&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details on the Q2 2025 earnings conference call, an overview of NWPX Infrastructure, Inc., forward-looking statements, and non-GAAP financial measures [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company will host a conference call and webcast on August 8, 2025, at 7:00 AM PT to discuss Q2 2025 financial results, with replay options available - The conference call and webcast will be held on **August 8, 2025, at 7:00 AM PT**[12](index=12&type=chunk) - The webcast will be available on the company's investor relations website, investor.nwpipe.com, and will be archived after the call[12](index=12&type=chunk) - A telephone replay service will be available until **August 22, 2025**, by dialing **1‑844‑512‑2921** (U.S.) or **1‑412‑317‑6671** (International), with replay access code **13754578**[12](index=12&type=chunk) [About NWPX Infrastructure, Inc.](index=3&type=section&id=About%20NWPX%20Infrastructure%2C%20Inc.) Established in 1966, NWPX Infrastructure, Inc. is a leading North American manufacturer of water-related infrastructure products, operating 13 manufacturing facilities - NWPX Infrastructure, Inc., founded in **1966**, is a leading manufacturer of water-related infrastructure products[13](index=13&type=chunk) - The company is North America's largest manufacturer of engineered steel pressure pipe, producing steel casing, reinforced concrete cylinder pipe, and pipeline system joints and fittings[13](index=13&type=chunk) - The company also provides high-quality precast concrete products and lined precast sanitary sewer system components under the NWPX Geneva brand, and water distribution and management equipment under the NWPX Park brand[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains "forward-looking statements" based on current expectations, estimates, and projections, which are not guarantees of future performance and involve risks and uncertainties - Forward-looking statements are based on current expectations, estimates, and projections, and are not guarantees of future performance[14](index=14&type=chunk) - Actual results may differ materially from projections due to various factors including changes in product demand and market prices, product mix, order activity, raw material prices and availability, economic uncertainty, interest rate risks, supply chain challenges, labor shortages, and geopolitical trends[14](index=14&type=chunk) - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company provides "backlog including confirmed orders" as a non-GAAP financial measure to help investors assess ongoing operational performance and facilitate comparisons - The company provides "backlog including confirmed orders" as a non-GAAP financial measure to assist investors in evaluating operational performance[15](index=15&type=chunk) - This non-GAAP measure should be considered a supplement to, not a substitute for or superior to, GAAP financial measures[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents NWPX Infrastructure, Inc.'s condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows for specified periods [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details NWPX Infrastructure, Inc.'s net sales, cost of sales, gross profit, operating expenses, net income, and earnings per share for the three and six months ended June 30, 2025 and 2024 NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | | | | Three Months Ended June 30, | | | | Six Months Ended June 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | | 2025 | | 2024 | | Net sales: | | | | | | | | | | Water Transmission Systems | $ | 84,588 | $ | 89,523 | $ | 163,034 | $ | 169,530 | | Precast Infrastructure and Engineered | | | | | | | | | | Systems | | 48,594 | | 39,982 | | 86,263 | | 73,190 | | Total net sales | | 133,182 | | 129,505 | | 249,297 | | 242,720 | | Cost of sales: | | | | | | | | | | Water Transmission Systems | | 69,533 | | 72,542 | | 135,805 | | 138,307 | | Precast Infrastructure and Engineered | | | | | | | | | | Systems | | 38,284 | | 31,149 | | 68,762 | | 58,465 | | Total cost of sales | | 107,817 | | 103,691 | | 204,567 | | 196,772 | | Gross profit: | | | | | | | | | | Water Transmission Systems | | 15,055 | | 16,981 | | 27,229 | | 31,223 | | Precast Infrastructure and Engineered | | | | | | | | | | Systems | | 10,310 | | 8,833 | | 17,501 | | 14,725 | | Total gross profit | | 25,365 | | 25,814 | | 44,730 | | 45,948 | | Selling, general, and administrative expense | | 12,129 | | 12,195 | | 25,925 | | 23,639 | | Operating income | | 13,236 | | 13,619 | | 18,805 | | 22,309 | | Other income (loss) | | 21 | | (228) | | 28 | | (221) | | Interest expense | | (763) | | (1,823) | | (1,398) | | (3,297) | | Income before income taxes | | 12,494 | | 11,568 | | 17,435 | | 18,791 | | Income tax expense | | 3,431 | | 2,949 | | 4,408 | | 4,934 | | Net income | $ | 9,063 | $ | 8,619 | $ | 13,027 | $ | 13,857 | | Net income per share: | | | | | | | | | | Basic | $ | 0.91 | $ | 0.87 | $ | 1.31 | $ | 1.40 | | Diluted | $ | 0.91 | $ | 0.86 | $ | 1.30 | $ | 1.38 | | Shares used in per share calculations: | | | | | | | | | | Basic | | 9,882 | | 9,912 | | 9,908 | | 9,914 | | Diluted | | 9,961 | | 9,995 | | 10,041 | | 10,025 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents NWPX Infrastructure, Inc.'s financial position, including assets, liabilities, and stockholders' equity, as of June 30, 2025, and December 31, 2024 NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) | | | | | December 31, | | --- | --- | --- | --- | --- | | | | June 30, 2025 | | 2024 | | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 2,031 | $ | 5,007 | | Trade and other receivables, net | | 78,320 | | 66,946 | | Contract assets | | 102,876 | | 103,422 | | Inventories | | 76,477 | | 79,770 | | Prepaid expenses and other | | 4,298 | | 7,343 | | Total current assets | | 264,002 | | 262,488 | | Property and equipment, net | | 153,533 | | 150,456 | | Operating lease right-of-use assets | | 88,158 | | 87,747 | | Goodwill | | 55,504 | | 55,504 | | Intangible assets, net | | 25,025 | | 27,041 | | Other assets | | 6,358 | | 6,417 | | Total assets | $ | 592,580 | $ | 589,653 | | Liabilities and Stockholders' Equity | | | | | | Current liabilities: | | | | | | Current portion of long-term debt | $ | 2,994 | $ | 2,994 | | Accounts payable | | 30,794 | | 27,783 | | Accrued liabilities | | 23,740 | | 28,172 | | Contract liabilities | | 4,218 | | 11,197 | | Current portion of operating lease liabilities | | 5,051 | | 4,987 | | Total current liabilities | | 66,797 | | 75,133 | | Borrowings on line of credit | | 30,644 | | 24,677 | | Long-term debt | | 9,979 | | 11,476 | | Operating lease liabilities | | 86,662 | | 85,744 | | Deferred income taxes | | 8,757 | | 8,297 | | Other long-term liabilities | | 10,289 | | 10,323 | | Total liabilities | | 213,128 | | 215,650 | | Stockholders' equity: | | | | | | Common stock | | 98 | | 99 | | Additional paid-in-capital | | 121,010 | | 128,407 | | Retained earnings | | 259,358 | | 246,331 | | Accumulated other comprehensive loss | | (1,014) | | (834) | | Total stockholders' equity | | 379,452 | | 374,003 | | Total liabilities and stockholders' equity | $ | 592,580 | $ | 589,653 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines NWPX Infrastructure, Inc.'s cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024, and the ending cash and cash equivalents NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | | | | Six Months Ended June 30, | | | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | Cash flows from operating activities: | | | | | | Net income | $ | 13,027 | $ | 13,857 | | Adjustments to reconcile net income to net cash provided by (used in) | | | | | | operating activities: | | | | | | Depreciation and finance lease amortization | | 7,278 | | 7,106 | | Amortization of intangible assets | | 2,016 | | 2,016 | | Noncash operating lease expense | | 3,172 | | 2,966 | | Deferred income taxes | | 453 | | 227 | | Share-based compensation expense | | 2,692 | | 2,674 | | Other, net | | 841 | | 360 | | Changes in operating assets and liabilities: | | | | | | Trade and other receivables | | (11,829) | | (23,653) | | Contract assets, net | | (6,433) | | (3,311) | | Inventories | | 3,293 | | 3,497 | | Prepaid expenses and other assets | | 2,816 | | 3,976 | | Accounts payable | | 552 | | (6,316) | | Accrued and other liabilities | | (5,005) | | (4,722) | | Operating lease liabilities | | (2,601) | | (2,492) | | Net cash provided by (used in) operating activities | | 10,272 | | (3,815) | | Cash flows from investing activities: | | | | | | Purchases of property and equipment | | (7,165) | | (10,634) | | Other investing activities | | 21 | | 61 | | Net cash used in investing activities | | (7,144) | | (10,573) | | Cash flows from financing activities: | | | | | | Borrowings on line of credit | | 89,184 | | 105,324 | | Repayments on line of credit | | (83,217) | | (83,886) | | Payments on other debt | | (1,500) | | - | | Payments on finance lease liabilities | | (803) | | (712) | | Tax withholdings related to net share settlements of equity awards | | (2,313) | | (1,449) | | Repurchase of common stock | | (7,455) | | (4,429) | | Net cash provided by (used in) financing activities | | (6,104) | | 14,848 | | Change in cash and cash equivalents | | (2,976) | | 460 | | Cash and cash equivalents, beginning of period | | 5,007 | | 4,068 | | Cash and cash equivalents, end of period | $ | 2,031 | $ | 4,528 |

Core Insights - NWPX Infrastructure, Inc. reported record financial results for Q2 2025, with consolidated revenue reaching $133.2 million, a 2.8% increase year-over-year, driven by strong performance in both business segments [3][5][6] - The company achieved a gross margin of 19.0%, up 230 basis points from the previous quarter, reflecting improved production efficiency and market demand [3][5] - The Water Transmission Systems (WTS) segment generated $84.6 million in revenue, while the Precast segment achieved record revenue of $48.6 million, marking a 21.5% increase from the prior year [3][5][6] Company Name Change and Segment Renaming - Effective June 12, 2025, the company changed its name from Northwest Pipe Company to NWPX Infrastructure, Inc. [2] - The "Engineered Steel Pressure Pipe (SPP)" segment was renamed to "Water Transmission Systems (WTS)" to better reflect its capabilities [2] Financial Performance - Q2 2025 net income was $9.1 million, or $0.91 per diluted share, compared to $8.6 million, or $0.86 per diluted share in Q2 2024 [6] - The backlog for the WTS segment increased to $298 million, with total backlog including confirmed orders reaching $348 million, a 20% increase from the end of Q1 2025 [3][5][6] - The Precast segment's gross margin improved by 210 basis points sequentially, supported by higher shipping levels [3][5] Operational Highlights - The company repurchased $15.0 million of common stock from April to July 2025, representing 3.6% of its outstanding shares [5] - As of June 30, 2025, the company had $30.6 million in outstanding revolving loan borrowings and an additional borrowing capacity of approximately $93 million [6] Conference Call Information - A conference call to discuss the Q2 2025 financial results is scheduled for August 8, 2025, at 7:00 a.m. PT [12]