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]

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].

Financial Performance - For the three months ended March 31, 2025, net sales increased to $116.1 million, up from $113.2 million in the same period of 2024, representing a growth of 2.5%[53] - The Engineered Steel Pressure Pipe segment generated net sales of $78.4 million, while the Precast Infrastructure and Engineered Systems segment reported net sales of $37.7 million, reflecting increases of 0.5% and 13.9% respectively compared to the prior year[66] - The gross profit for the Company decreased to $19.4 million for the three months ended March 31, 2025, down from $20.1 million in 2024, indicating a decline of approximately 3.7%[66] - Basic net income per share for the three months ended March 31, 2025, was $0.40, down from $0.53 in 2024, reflecting a decline of 24.5%[61] - The effective income tax rate for the three months ended March 31, 2025, was recorded at 19.8%, a decrease from 27.5% in the same period of 2024[59] Share Repurchase and Compensation - The Company repurchased approximately 127,000 shares for $3.7 million during the three months ended March 31, 2024, with $24.9 million remaining available for repurchases as of March 31, 2025[33] - The Company executed a Rule 10b5-1 trading plan in March 2025, designating up to $5 million for daily share repurchases between April 2, 2025, and July 31, 2025[32] - Share-based compensation expense for the three months ended March 31, 2025, totaled $1.138 million, compared to $1.025 million for the same period in 2024, reflecting a 11% increase[37] - The unvested balance of RSUs and PSAs as of March 31, 2025, was 229,797, with an estimated unrecognized compensation expense of $7.3 million expected to be recognized over a weighted-average period of 1.9 years[39] - The Company announced a share repurchase program of up to $30 million on November 2, 2023, which may be suspended or discontinued at any time[31] Assets and Liabilities - As of March 31, 2025, total inventories increased to $80.684 million from $79.770 million as of December 31, 2024, representing a 1.14% increase[25] - The fair value of the Company's financial assets as of March 31, 2025, was $3.729 million, down from $4.114 million as of December 31, 2024, indicating a decrease of 9.36%[28] - Contract assets at the end of the period were $105.0 million, while contract liabilities were $9.3 million, resulting in net contract assets of $95.7 million[56] - The Company has commitments of approximately $1.1 million related to its investment in a new reinforced concrete pipe mill as of March 31, 2025[47] - The Company has entered into letters of credit totaling $1.6 million as of March 31, 2025, related to workers' compensation insurance and a public improvement project[48] Environmental and Legal Matters - The Company has not recorded any liability related to the Portland Harbor Superfund Site as of the date of this filing due to the uncertainty of costs and responsibilities[40] - The Company participated in a Natural Resource Damage Assessment for the Portland Harbor Superfund Site, funding $0.4 million of the assessment without assuming additional payment obligations[42] Backlog and Future Expectations - As of March 31, 2025, the backlog for remaining performance obligations was $203 million, with expectations to recognize approximately 75% in 2025 and 22% in 2026[57] - The Company recognized net revisions in contract estimates that resulted in an increase in SPP net sales of $3.6 million for the three months ended March 31, 2025[51] Stock Incentive Plans - The Company has one active stock incentive plan, the 2022 Stock Incentive Plan, which provides for various equity awards to employees and directors[35]

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]