Core Viewpoint - NWPX Infrastructure, Inc. is set to release its financial results for the second quarter of 2025 on August 7, 2025, with a conference call scheduled for August 8, 2025, to discuss these results [1][2][5] Company Overview - NWPX Infrastructure, Inc. is a leading manufacturer of water-related infrastructure products, founded in 1966 [3] - The company is the largest manufacturer of engineered water transmission systems in North America, producing various products including steel casing pipe and bar-wrapped concrete cylinder pipe [3] - NWPX operates 13 manufacturing facilities across North America and is strategically positioned to meet the growing water and wastewater infrastructure needs [3]

Core Insights - The company has rebranded from Northwest Pipe Company to NWPX Infrastructure, Inc., reflecting its growth and innovation in the water infrastructure sector [1][2] - The rebranding signifies a transformation into a modern, solutions-driven infrastructure provider with a national presence, while maintaining its legacy of quality and integrity [1][2] - NWPX Infrastructure will continue to operate its engineered steel pressure pipe plants under the Northwest Pipe Company brand, while transitioning its precast business lines to NWPX Geneva and NWPX ParkUSA [2] Company Overview - Founded in 1966, NWPX Infrastructure is a leading manufacturer of water-related infrastructure products and the largest manufacturer of engineered water transmission systems in North America [5] - The company produces a variety of products including steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings, as well as high-quality reinforced precast concrete products [5] - NWPX Infrastructure operates 13 manufacturing facilities across North America and is strategically positioned to meet the growing needs of water and wastewater infrastructure [5]

Core Viewpoint - Northwest Pipe Company (NASDAQ: NWPX) is expected to experience growth acceleration in the latter half of the year and beyond, following a period of weather-related downtime in Q1 [1]. Company Performance - The company's results in Q1 were negatively impacted by weather-related downtime, but this is not expected to continue affecting performance moving forward [1]. Investment Strategy - The focus is on medium-term investing in ideas that have catalysts to unlock value and drive upside, as well as short selling in cases where there are downside catalysts [1].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended: March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to _______ Commission File Number: 0-27140 NORTHWEST PIPE COMPANY (Exact name of registrant as specified in its charter) Oregon 93-0557988 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

Financial Data and Key Metrics Changes - Net sales for the first quarter of 2025 were $116.1 million, up 2.6% year over year despite weather-related downtime and new trade policies affecting revenue and shipments [5][19] - Consolidated net income decreased to $4 million or $0.39 per diluted share, down from $5.2 million or $0.52 per diluted share in the first quarter of 2024 [19] - Consolidated gross profit decreased 3.8% to $19.4 million, resulting in a gross margin of 16.7%, compared to 17.8% in the prior year [11][21] Segment Performance Changes - Revenue from the Steel Pressure Pipe (SPP) segment was $78.4 million, down 2% year over year, attributed to lower production levels and weather-related downtime [6][19] - Precast segment revenue increased 13.4% to $37.7 million, driven by strong demand in the residential sector, despite a decrease in selling prices [9][20] - SPP backlog declined to $289 million as of March 31, 2025, from $310 million at the end of 2024, but intra-quarter backlog improved significantly to over $300 million [7][14] Market Data and Key Metrics Changes - The Dodge Momentum Index was down 7% in March 2025 from the previous month, but was 30% higher compared to March 2024, indicating improving strength in the nonresidential construction market [10] - Commercial sector construction activity increased by 32% year over year, while institutional sectors saw only modest growth [10] Company Strategy and Industry Competition - The company is focusing on strategic acquisitions within the precast space to enhance growth and competitive position [13] - Plans to expand product offerings and improve operational efficiency at precast plants are underway, with a goal to reach $100 million in revenue for both residential and park-related products by the end of 2026 [12][54] - The company anticipates strong bidding activity in the second and third quarters of 2025, aligning with 2024 levels [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter's performance, expecting stronger precast revenue and margins compared to the previous year [15] - The company remains optimistic about the long-term strength of the precast business, driven by pent-up demand and infrastructure investment needs in the U.S. [15][71] - Management acknowledged potential economic uncertainties but indicated that current business conditions do not reflect a slowdown [73] Other Important Information - The company plans to rebrand to NWPX Infrastructure to better reflect its mission and operating segments [16] - Positive free cash flow of $1.1 million was generated in the first quarter, a significant improvement from negative cash flow in the prior year [25] Q&A Session Summary Question: Issues associated with tariffs - Management discussed the impact of weather events and new trade policies on production and revenue, noting a significant backlog in the precast business and a rebound in orders [31][34][37] Question: Precast revenue outlook - Management indicated a conservative outlook for the second half of the year, but noted strong performance in the second quarter with improving margins [38] Question: SG&A expenses - SG&A expenses were higher due to seasonality and increased incentive compensation, but are expected to normalize in subsequent quarters [40][41] Question: Shipment delays and customer feedback - Management confirmed a rebound in shipments in April, with a strong order book indicating continued growth in the nonresidential sector [45][48] Question: Impact of retroactive tariffs - The first quarter was negatively impacted by approximately $400,000 from retroactive tariffs, with additional costs expected in the second quarter [50][51] Question: Precast growth plans - Management outlined growth plans for the precast segment, aiming for $100 million in revenue by 2026, with current momentum indicating potential for earlier achievement [53][54] Question: Steel costs and demand - Management noted that while steel prices have increased, they do not foresee a significant impact on demand for SPP products [62][68] Question: Economic outlook and recession risks - Management expressed confidence in continued strong performance, particularly in residential construction, despite broader economic concerns [71][73]

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 were $116.1 million, up 2.6% year over year, despite weather-related downtime and new trade policies affecting revenue [4][19] - Consolidated net income was $4 million, or $0.39 per diluted share, compared to $5.2 million, or $0.52 per diluted share in Q1 2024 [19] - Consolidated gross profit decreased 3.8% to $19.4 million, resulting in a gross margin of 16.7%, down from 17.8% in the prior year [10][21] Segment Performance Changes - Steel Pressure Pipe (SPP) segment revenue was $78.4 million, down 2% year over year, attributed to lower production levels and weather-related downtime [5][19] - Precast segment revenue increased 13.4% to $37.7 million, driven by strong demand in the residential sector, despite a 6% decrease in selling prices [7][20] - SPP gross profit decreased 14.5% to $12.2 million, with a gross margin of 15.5%, while Precast gross profit increased 22% to $7.2 million, with a gross margin of 19.1% [21] Market Data and Key Metrics Changes - The Dodge Momentum Index was down 7% in March 2025 compared to February, but up 30% year over year, indicating improving strength in the nonresidential construction market [9][46] - The commercial sector saw a 32% increase year over year, while institutional sectors showed only modest growth [9] Company Strategy and Industry Competition - The company plans to actively pursue acquisitions in the precast space to enhance growth and competitive position [12] - A corporate rebranding initiative to NWPX Infrastructure is set to be unveiled, aligning with the mission to manufacture durable infrastructure solutions [16] - The company aims to maintain a focus on margin over volume and strategic acquisition opportunities while implementing cost reductions [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter, anticipating strong bidding activity and improved margins, particularly in the SPP segment [13][14] - The residential construction side remains strong, with expectations for continued growth despite macroeconomic uncertainties [71][73] - Management noted that the company is well-positioned to handle tariff-related challenges and expects a rebound in nonresidential orders [35][46] Other Important Information - The company generated positive free cash flow of $1.1 million in Q1 2025, compared to negative $30.7 million in the prior year [24] - Capital expenditures for Q1 were $3.7 million, with expectations for full-year CapEx in the range of $19 million to $22 million [23] Q&A Session Summary Question: Understanding issues associated with tariffs - Management explained that weather events and new trade policies affected production and revenue, but recent orders have alleviated some of the tariff impacts [29][33] Question: Follow-up on precast momentum - Management noted a significant rebound in nonresidential orders in April, indicating a positive outlook for the second quarter [44][46] Question: Impact of SG&A expenses - SG&A expenses were higher due to seasonality and increased incentive compensation, but management expects this to normalize in subsequent quarters [37][39] Question: Retroactive tariffs impact - Management quantified the impact of retroactive tariffs at approximately $800,000 for the first half of the year, with ongoing efforts to manage costs [48][50] Question: Precast growth plans - Management discussed growth plans for the precast segment, aiming for $100 million in revenue by the end of 2026, with strong current momentum [52][54]

Core Insights - Northwest Pipe Co. (NWPX) reported revenue of $116.12 million for Q1 2025, reflecting a year-over-year increase of 2.6% and a surprise of +3.32% over the Zacks Consensus Estimate of $112.38 million [1] - The company's EPS for the same period was $0.39, down from $0.52 a year ago, resulting in an EPS surprise of -26.42% compared to the consensus estimate of $0.53 [1] Financial Performance Metrics - Net Sales for Precast Infrastructure and Engineered Systems reached $37.67 million, exceeding the two-analyst average estimate of $34.64 million, with a year-over-year change of +13.4% [4] - Net Sales for Engineered Steel Pressure Pipe amounted to $78.45 million, slightly above the estimated $77.74 million, but showed a -2% change compared to the previous year [4] - Gross profit for Precast Infrastructure and Engineered Systems was reported at $7.19 million, surpassing the average estimate of $6.14 million [4] - Gross profit for Engineered Steel Pressure Pipe was $12.17 million, which fell short of the average estimate of $13.91 million [4] Stock Performance - Shares of Northwest Pipe Co. have returned +2.7% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Northwest Pipe Co. reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.53 per share, representing a -26.42% earnings surprise [1] - The company posted revenues of $116.12 million for the quarter, exceeding the Zacks Consensus Estimate by 3.32% and showing an increase from $113.22 million year-over-year [2] Financial Performance - Earnings per share (EPS) for the current quarter was $0.39, down from $0.52 a year ago [1] - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Revenue for the quarter was $116.12 million, compared to $113.22 million in the same quarter last year [2] Market Performance - Northwest Pipe Co. shares have declined approximately 11.2% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.96, with projected revenues of $130.09 million, and for the current fiscal year, the EPS estimate is $3.41 on revenues of $496.52 million [7] - The Metal Products - Procurement and Fabrication industry is ranked in the top 17% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Company Overview and Strategy - Northwest Pipe Company (NWPX) is positioned to meet North America's growing needs for water distribution, management, infrastructure, and sustainability [7] - The company's growth strategy involves organic growth through "Product Spread" and accretive acquisitions in the precast-related space [56, 57] - NWPX prioritizes organic growth, debt repayment, accretive acquisitions, and stock repurchases in its capital allocation strategy [59, 60, 61, 62, 63] Market and Financial Performance - The total addressable market for steel pressure pipe is estimated at $450 to $650 million, with NWPX holding approximately $338 million (~52%) market share [38, 39] - The total addressable market for concrete pipe & precast is estimated at $14 billion, with NWPX holding approximately $155 million (~1%) market share [40] - The company's backlog including confirmed orders for the Engineered Steel Pressure Pipe segment was $289 million in Q1 2025 [72] - The order book for the Precast Infrastructure and Engineered Systems segment was $64 million in Q1 2025 [72] Acquisitions and Innovation - NWPX acquired Geneva Pipe and Precast on January 31, 2020, for $49.4 million (~7.5x EBITDA) [50, 96] - NWPX acquired ParkUSA on October 5, 2021, for $90.2 million (~6.2x EBITDA) [50, 100] - The company is a leader of innovation in water infrastructure, with recently developed technologies like the Radial Bending Joint and InfraShield Joint System [52, 55] Demand Drivers and Market Dynamics - Key demand drivers include aging water and wastewater systems, rising demand on developed water sources, drought conditions, and increasingly stringent regulatory policies [29, 30, 31] - Utility level projects funded by the Infrastructure Investment and Jobs Act ("IIJA") total $3.3 billion through state revolving fund ("SRF") and non-SRF programs [35] - The EPA divides and allots US $23.2 B for DWSRF and US $19.5 B for other programs among states, territories, and tribes every fiscal year [44]

Financial Performance - Net sales for Q1 2025 were $116.1 million, a 2.6% increase from $113.2 million in Q1 2024[4] - Net income for Q1 2025 was $4.0 million, or $0.39 per diluted share, compared to $5.2 million, or $0.52 per diluted share in Q1 2024[5] - Gross profit for Q1 2025 was $19.4 million, a 3.8% decrease from $20.1 million in Q1 2024, representing 16.7% of net sales[5] - Net income for the three months ended March 31, 2025, was $3,964,000, a decrease of 24.3% compared to $5,238,000 in the same period of 2024[21] Segment Performance - The backlog for the Engineered Steel Pressure Pipe segment was $203 million, with confirmed orders backlog totaling $289 million as of March 31, 2025[4] - The Precast segment generated $37.7 million in revenue, a 13.4% increase year-over-year, with a gross profit margin of 19.1%[10] - The SPP segment reported revenues of $78.4 million, a 2.0% decrease from $80.0 million in Q1 2024, driven by an 18% decrease in tons produced[10] - The Precast order book rose to $64 million, up 23% year-over-year, primarily due to growth in the non-residential segment[3] - The company anticipates continued growth in revenue and margins for both segments in the second half of 2025[3] Cash Flow and Assets - Net cash provided by operating activities was $4,848,000, a significant improvement from a net cash used of $26,089,000 in the same quarter of 2024[21] - Cash and cash equivalents increased to $5,285,000 from $5,007,000, marking a rise of 5.5%[21] - The company reported a change in cash and cash equivalents of $278,000, compared to $194,000 in the same period last year, an increase of 43.4%[21] - Total current assets decreased to $257,272,000 from $262,488,000, reflecting a decline of 1.8% year-over-year[19] - The company reported a decrease in trade and other receivables, net, to $60,104,000 from $66,946,000, a decline of 10.3%[19] Liabilities and Equity - Total liabilities decreased to $203,778,000 from $215,650,000, representing a reduction of 5.5% compared to the previous year[19] - Total stockholders' equity increased to $378,456,000 from $374,003,000, reflecting a growth of 1.2% year-over-year[19] - Borrowings on line of credit increased to $25,533,000 from $24,677,000, indicating a rise of 3.5%[19] Corporate Actions - The company repurchased $5.0 million of common stock in April 2025[4] - The company plans to change its name to NWPX Infrastructure, Inc. in June 2025, subject to shareholder approval[4] - The company incurred $3,670,000 in purchases of property and equipment, down from $4,570,000 in the previous year, a decrease of 19.7%[21]