Northwest Pipe(NWPX) - 2025 Q2 - Quarterly Results

Company Overview and Highlights 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 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] - 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] - The "Precast Infrastructure and Engineered Systems (Precast)" division name remains unchanged, with this rebranding not affecting divisional structure or reporting basis[3] Management Commentary & Q2 2025 Highlights 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] Second Quarter 2025 Financial Results 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 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 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 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 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 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] Cash Flow and Capital Allocation 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] - 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] Additional Information 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 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] - The webcast will be available on the company's investor relations website, investor.nwpipe.com, and will be archived after the call[12] - 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] About NWPX Infrastructure, Inc. 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] - 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] - 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] Forward-Looking Statements 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] - 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] - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release[14] Non-GAAP Financial Measures 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] - This non-GAAP measure should be considered a supplement to, not a substitute for or superior to, GAAP financial measures[15] Condensed Consolidated Financial Statements 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 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 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 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 |