Northwest Pipe(US:NWPX)2025-10-30 20:06Financial Performance - Total net sales for the three months ended September 30, 2025, were $151.1 million, a 16.0% increase from $130.2 million in the same period of 2024[70]. - The Company recognized revenue of $221.1 million for the nine months ended September 30, 2025, compared to $220.6 million in 2024[73]. - WTS revenue for water infrastructure steel pipe products recognized over time increased net sales by $4.2 million and $8.4 million for the three and nine months ended September 30, 2025, respectively[68]. - Basic net income per share for the three months ended September 30, 2025, was $1.40, up from $1.03 in 2024, reflecting a 35.0% increase[79]. - Gross profit for the Water Transmission Systems segment increased to $22.1 million for the three months ended September 30, 2025, compared to $16.6 million in 2024, representing a 33.5% increase[84]. Debt and Financing - The Company had $27.6 million of outstanding revolving loan borrowings and $1.6 million of outstanding letters of credit as of September 30, 2025, with additional borrowing capacity of approximately $96 million[33]. - The weighted-average interest rate for outstanding borrowings was 5.84% as of September 30, 2025, down from 6.68% as of December 31, 2024[33]. - The Company’s obligations under the Amended Credit Agreement are secured by a senior security interest in substantially all of its assets[32]. - The Company’s consolidated senior leverage ratio was maintained at no greater than 3.00 to 1.00 as of September 30, 2025, in compliance with financial covenants[31]. - The fair value of the Company's long-term debt approximates its carrying value as of September 30, 2025, due to its variable interest rate based on current market rates[45]. Inventory and Assets - As of September 30, 2025, total inventories decreased to $74.5 million from $79.8 million as of December 31, 2024, reflecting a reduction of approximately 6.4%[29]. - Contract assets decreased to $96.9 million at the end of September 30, 2025, from $120.9 million at the end of September 30, 2024[73]. - The Company’s deferred compensation plan assets increased to $3.89 million as of September 30, 2025, from $4.11 million as of December 31, 2024[43]. Lease Obligations - The total lease liabilities increased to $98.9 million as of September 30, 2025, compared to $97.6 million as of December 31, 2024[36]. - The Company reported total lease costs of $3.36 million for the three months ended September 30, 2025, compared to $3.02 million for the same period in 2024, representing an increase of approximately 11.4%[37]. Shareholder Actions - The Company authorized a share repurchase program of up to $30 million for its outstanding common stock, with $9.1 million remaining available for repurchases as of September 30, 2025[46][48]. - During the three months ended September 30, 2025, the Company repurchased approximately 186,000 shares for an aggregate amount of $8.0 million, and during the nine months ended September 30, 2025, it repurchased approximately 379,000 shares for $15.8 million[48]. - The Company executed a Rule 10b5-1 trading plan in March 2025, designating up to $5 million for daily share repurchases, all of which were completed by April 15, 2025[47]. Regulatory and Compliance - The Company operates under numerous governmental permits and believes it is in material compliance with all applicable laws and regulations[62]. - The Company has not recorded any liability related to the Portland Harbor Superfund Site as it is unable to estimate an amount or range of costs for its obligation[57]. Future Commitments and Plans - The Company has commitments of approximately $2.1 million remaining related to its investment in a catch basin machine at the Orem, Utah facility as of September 30, 2025[64]. - The Company will adopt ASU 2025‑05 effective January 1, 2026, with no expected material impact on its financial position or cash flows[88]. - The Company’s Board of Directors approved the termination of its defined benefit plans, effective April 30, 2025, pending regulatory approvals[89]. - A noncash pension settlement charge between $1.5 million and $2.0 million is expected to be recorded in Q4 2025 due to the termination of the defined benefit plans[89]. - The Company entered into an agreement to purchase annuity contracts to transfer remaining obligations under the defined benefit plans on October 3, 2025[89]. Market Risks - For a detailed discussion of market risks associated with commodity prices, interest rates, and foreign currency exchange rates, refer to the 2024 Form 10-K[132].