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]