Northwest Pipe Company Announces First Quarter 2025 Financial Results

Rhea-AI Summary

Northwest Pipe Company reported Q1 2025 financial results with net sales of $116.1 million, up 2.6% year-over-year. The company earned $0.39 per diluted share, while maintaining a strong backlog of $203 million in its Steel Pressure Pipe (SPP) segment and $64 million in its Precast segment.

Despite weather disruptions and trade policy challenges, SPP segment generated $78.4 million in revenue at 15.5% margin, while Precast segment posted $37.7 million with a 19.1% margin. The company plans to rebrand as NWPX Infrastructure in June 2025, subject to shareholder approval.

Key highlights include:

• SPP backlog including confirmed orders: $289 million
• Precast order book up 23% year-over-year
• $5.0 million stock repurchase in April 2025
• Net cash from operations: $4.8 million

Positive

• Net sales increased 2.6% YoY to $116.1 million
• Precast segment revenue up 13.4% to $37.7 million with improved margins of 19.1%
• Precast order book grew 23% YoY to $64 million
• Strong cash flow with $4.8M provided by operations vs -$26.1M in Q1 2024
• Share repurchase of $5.0M completed in April 2025

Negative

• Net income declined to $0.39 per share from $0.52 YoY
• SPP segment revenue decreased 2% with 18% lower production volume
• SPP gross profit dropped 14.5% with margin decline to 15.5% from 17.8%
• SPP backlog decreased to $203M from $255M YoY
• Weather disruptions and trade policy uncertainty impacted operations

Insights

Financial Analyst

NWPX reports mixed Q1 results with revenue up 2.6% but EPS down; segments show divergent performance amid external challenges.

Northwest Pipe Company's Q1 2025 results present a mixed financial picture. Revenue increased 2.6% year-over-year to $116.1 million, but net income declined to $0.39 per diluted share from $0.52 in Q1 2024—a 25% decrease. The company attributed performance challenges to weather disruptions and uncertainties from new trade policies.

The two business segments show contrasting trajectories:

• The Engineered Steel Pressure Pipe (SPP) segment reported a 2.0% sales decline to $78.4 million and a more substantial 14.5% drop in gross profit. Margins compressed from 17.8% to 15.5%, resulting from an 18% decrease in production volume, partially offset by higher selling prices due to product mix shifts.
• The Precast Infrastructure segment delivered strong growth with sales up 13.4% to $37.7 million and gross profit increasing 22.0%. Margins improved from 17.7% to 19.1%, driven by a 21% volume increase.

Forward-looking indicators show mixed trends. The SPP backlog including confirmed orders stands at $289 million, down from $337 million year-over-year, though management notes Q2 bidding has rebounded above $300 million. The Precast order book grew 23% year-over-year to $64 million.

Cash flow management shows substantial improvement, with operations generating $4.8 million compared to consuming $26.1 million in Q1 2024. The company returned capital to shareholders through $5.0 million in stock repurchases.

Management expects similar SPP revenue but improving margins in Q2, with growth in both metrics during H2 2025. The Precast segment is anticipated to outperform Q2 2024, with stable H2 revenue but expanding margins. The planned name change to NWPX Infrastructure aligns with their infrastructure-focused evolution.

• Net sales of $116.1 million increased 2.6% year-over-year
• Net income of $0.39 per diluted share
• Backlog¹ of $203 million for the Engineered Steel Pressure Pipe segment ("SPP"); backlog including confirmed orders² of $289 million
• Order book³ of $64 million for the Precast Infrastructure and Engineered Systems segment ("Precast")
• Repurchased $5.0 million of common stock in April 2025
• Northwest Pipe Company plans to change its name to NWPX Infrastructure, Inc. in June, subject to shareholder approval

VANCOUVER, Wash., April 30, 2025 /PRNewswire/ -- Northwest Pipe Company (NASDAQ: NWPX) (the "Company"), a leading manufacturer of water-related infrastructure products, today announced its financial results for the first quarter ended March 31, 2025. The Company will broadcast its first quarter 2025 earnings conference call on Thursday, May 1, 2025 at 7:00 a.m. PT.

Management Commentary

"In the first quarter of 2025, we encountered a mix of external challenges ranging from weather disruptions across multiple facilities to the uncertainty brought on by new trade policies from the incoming administration," said Scott Montross, President and Chief Executive Officer of Northwest Pipe Company. "The month of March particularly was more affected than anticipated by issues arising from the new policies. Despite these headwinds, both of our business segments delivered fairly respectable results."

Montross continued, "As anticipated, first quarter SPP bidding was lighter, which temporarily reduced our backlog including confirmed orders to $289 million. Bidding activity has rebounded significantly in the second quarter, and our backlog including confirmed orders has now climbed well above $300 million. This current increase will help mitigate some of the cost pressures at our facility most impacted by trade-related issues as we progress through 2025. Our SPP segment generated $78.4 million in revenue at a 15.5% margin—respectable performance given the environment—and we anticipate similar revenues with improving margins in the second quarter. For the second half of 2025, we expect continued growth in both revenue and margin, setting the stage for another strong year for SPP."

Mr. Montross concluded, "In our Precast business, while the first quarter typically experiences a seasonal slowdown, this year saw higher weather-related downtime as well as trade policy uncertainty affecting non-residential construction shipments. Despite these factors, our Precast business posted $37.7 million in revenue and a 19.1% margin—marking a 13% and 140 basis point improvement, respectively, over the same period last year. Our quarter-ending Precast orderbook rose to $64 million, up 23% year-over-year, driven largely by growth in the non-residential segment. We expect our second quarter precast revenue and margins to come in stronger than the second quarter of 2024 and a second half of 2025 with revenue similar to 2024 but with improving margins. We are looking ahead to a strong second quarter and the launch of our new Company name—NWPX Infrastructure, Inc. This rebranding reflects our strategic evolution and aligns with the infrastructure-focused solutions we deliver across North America."

First Quarter 2025 Financial Results

Consolidated

• Net sales increased 2.6% to $116.1 million from $113.2 million in the first quarter of 2024.
• Gross profit decreased 3.8% to $19.4 million, or 16.7% of net sales, from $20.1 million, or 17.8% of net sales, in the first quarter of 2024.
• Net income was $4.0 million, or $0.39 per diluted share, compared to $5.2 million, or $0.52 per diluted share, in the first quarter of 2024.

Engineered Steel Pressure Pipe Segment (SPP)

• SPP net sales decreased 2.0% to $78.4 million from $80.0 million in the first quarter of 2024 driven by an 18% decrease in tons produced resulting from changes in project timing, partially offset by a 20% increase in selling price per ton due to changes in product mix.
• SPP gross profit decreased 14.5% to $12.2 million, or 15.5% of SPP net sales, from $14.2 million, or 17.8% of SPP net sales, in the first quarter of 2024 primarily due to decreased volume and changes in product mix.
• SPP backlog was $203 million as of March 31, 2025 compared to $213 million as of December 31, 2024 and $255 million as of March 31, 2024. Backlog including confirmed orders was $289 million as of March 31, 2025 compared to $310 million as of December 31, 2024 and $337 million as of March 31, 2024.

Precast Infrastructure and Engineered Systems Segment (Precast)

• Precast net sales increased 13.4% to $37.7 million from $33.2 million in the first quarter of 2024 driven by a 21% increase in volume shipped, partially offset by a 6% decrease in selling prices due to changes in product mix.
• Precast gross profit increased 22.0% to $7.2 million, or 19.1% of Precast net sales, from $5.9 million, or 17.7% of Precast net sales, in the first quarter of 2024 primarily due to changes in product mix.
• Precast order book was $64 million as of March 31, 2025 compared to $61 million as of December 31, 2024 and $52 million as of March 31, 2024.

Balance Sheet and Cash Flow

• As of March 31, 2025, the Company had $25.5 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately $98 million under the revolving credit facility.
• Net cash provided by (used in) operating activities was $4.8 million in the first quarter of 2025 compared to ($26.1) million in the first quarter of 2024 primarily due to a $31.1 million increase in cash from changes in working capital.
• Capital expenditures were $3.7 million in the first quarter of 2025 compared to $4.6 million in the first quarter of 2024.
• In April 2025, the Company repurchased approximately 122,000 shares at an average price of $40.82 per share for a total purchase price of $5.0 million pursuant to a Rule 10b5 1 trading plan.

1 Northwest Pipe Company defines "backlog" as the balance of remaining performance obligations under signed contracts for Engineered Steel Pressure Pipe products for which revenue is recognized over time.

2 Northwest Pipe Company defines "confirmed orders" as Engineered Steel Pressure Pipe projects for which the Company has been notified that it is the successful bidder, but a binding agreement has not been executed.

3 Northwest Pipe Company defines "order book" as unfulfilled orders outstanding at the measurement date for its Precast Infrastructure and Engineered Systems segment.

 

Conference Call Details

A conference call and simultaneous webcast to discuss the Company's first quarter 2025 financial results will be held on Thursday, May 1, 2025, at 7:00 a.m. Pacific Time. The call will be broadcast live on the Investor Relations section of the Company's website at investor.nwpipe.com and will be archived online upon completion of the conference call. For those unable to listen to the live call, a replay will be available approximately three hours after the event and will remain available until Thursday, May 15, 2025, by dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671 internationally and entering the replay access code: 13753058.

About Northwest Pipe Company

Founded in 1966, Northwest Pipe Company is a leading manufacturer of water-related infrastructure products. In addition to being the largest manufacturer of engineered water transmission systems in North America, the Company manufactures stormwater and wastewater technology products; high-quality precast and reinforced concrete products; pump lift stations; steel casing pipe; bar-wrapped concrete cylinder pipe; and one of the largest offerings of pipeline system joints, fittings, and specialized components. Strategically positioned to meet growing water and wastewater infrastructure needs, Northwest Pipe Company provides solution-based products for a wide range of markets under the ParkUSA, Geneva Pipe and Precast, Permalok®, and Northwest Pipe Company lines. The Company's diverse team is committed to quality and innovation while demonstrating the Company's core values of accountability, commitment, and teamwork. The Company is headquartered in Vancouver, Washington, and has 13 manufacturing facilities across North America. Please visit www.nwpipe.com for more information.

Forward-Looking Statements

Statements in this press release by Scott Montross contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and projections about the Company's business, management's beliefs, and assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements as a result of a variety of important factors. While it is impossible to identify all such factors, those that could cause actual results to differ materially from those estimated by the Company include changes in demand and market prices for its products, product mix, bidding activity and order modifications or cancelations, timing of customer orders and deliveries, production schedules, price and availability of raw materials, excess or shortage of production capacity, international trade policy and regulations, changes in trade policy (in particular with Canada and Mexico) and duties imposed on imports and exports and the related impacts on the Company, economic uncertainty and associated trends in macroeconomic conditions, including potential recession, inflation, and the state of the housing and commercial construction markets, interest rate risk and changes in market interest rates, including the impact on the Company's customers and related demand for its products, the Company's ability to identify and complete internal initiatives and/or acquisitions in order to grow its business, the Company's ability to effectively integrate future acquisitions into its business and operations that produce accretive financial results, effects of security breaches, computer viruses, and cybersecurity incidents, timing and amount of share repurchases, impacts of U.S. tax reform legislation on the Company's results of operations, and the impact on its customers and related demand for its products, adequacy of the Company's insurance coverage, supply chain challenges, labor shortages, impact of geopolitical trends, changes, and events, including the ongoing military conflicts in Ukraine and the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events, operating problems at the Company's manufacturing operations including fires, explosions, inclement weather, and floods and other natural disasters, material weaknesses in the Company's internal control over financial reporting and its ability to remediate such weaknesses, impacts of pandemics, epidemics, or other public health emergencies, and other risks discussed in the Company's Annual Report on Form 10‑K for the year ended December 31, 2024 and from time to time in its other Securities and Exchange Commission filings and reports. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. If the Company does update or correct one or more forward-looking statements, investors and others should not conclude that it will make additional updates or corrections with respect thereto or with respect to other forward-looking statements.

Non-GAAP Financial Measures

The Company is presenting backlog including confirmed orders. This non-GAAP financial measure is provided to better enable investors and others to assess the Company's ongoing operating results and compare them with its competitors. This should be considered a supplement to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP.

For more information, visit www.nwpipe.com.

Contact:
Aaron Wilkins
Chief Financial Officer
Northwest Pipe Company
investors@nwpipe.com

Or

Addo Investor Relations
nwpx@addo.com

NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts)
		Three Months Ended March 31,
		2025				2024
Net sales:
Engineered Steel Pressure Pipe		$	78,446			$	80,007
Precast Infrastructure and Engineered Systems			37,669				33,208
Total net sales			116,115				113,215
Cost of sales:
Engineered Steel Pressure Pipe			66,272				65,765
Precast Infrastructure and Engineered Systems			30,478				27,316
Total cost of sales			96,750				93,081
Gross profit:
Engineered Steel Pressure Pipe			12,174				14,242
Precast Infrastructure and Engineered Systems			7,191				5,892
Total gross profit			19,365				20,134
Selling, general, and administrative expense			13,796				11,444
Operating income			5,569				8,690
Other income			7				7
Interest expense			(635)				(1,474)
Income before income taxes			4,941				7,223
Income tax expense			977				1,985
Net income		$	3,964			$	5,238
Net income per share:
Basic		$	0.40			$	0.53
Diluted		$	0.39			$	0.52
Shares used in per share calculations:
Basic			9,933				9,916
Diluted			10,117				10,045

 

NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)
		March 31, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents		$	5,285			$	5,007
Trade and other receivables, net			60,104				66,946
Contract assets			104,965				103,422
Inventories			80,684				79,770
Prepaid expenses and other			6,234				7,343
Total current assets			257,272				262,488
Property and equipment, net			150,811				150,456
Operating lease right-of-use assets			86,314				87,747
Goodwill			55,504				55,504
Intangible assets, net			26,033				27,041
Other assets			6,300				6,417
Total assets		$	582,234			$	589,653
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt		$	2,994			$	2,994
Accounts payable			24,682				27,783
Accrued liabilities			22,042				28,172
Contract liabilities			9,304				11,197
Current portion of operating lease liabilities			5,041				4,987
Total current liabilities			64,063				75,133
Borrowings on line of credit			25,533				24,677
Long-term debt			10,728				11,476
Operating lease liabilities			84,511				85,744
Deferred income taxes			9,041				8,297
Other long-term liabilities			9,902				10,323
Total liabilities			203,778				215,650
Stockholders' equity:
Common stock			100				99
Additional paid-in-capital			128,924				128,407
Retained earnings			250,295				246,331
Accumulated other comprehensive loss			(863)				(834)
Total stockholders' equity			378,456				374,003
Total liabilities and stockholders' equity		$	582,234			$	589,653

 

NORTHWEST PIPE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
		Three Months Ended March 31,
		2025				2024
Cash flows from operating activities:
Net income		$	3,964			$	5,238
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and finance lease amortization			3,413				3,405
Amortization of intangible assets			1,008				1,008
Noncash operating lease expense			1,434				1,479
Deferred income taxes			744				(80)
Share-based compensation expense			1,138				1,025
Other, net			326				159
Changes in operating assets and liabilities:
Trade and other receivables			6,652				(4,965)
Contract assets, net			(3,436)				(18,054)
Inventories			(914)				(5,252)
Prepaid expenses and other assets			1,040				1,137
Accounts payable			(2,978)				(4,777)
Accrued and other liabilities			(6,364)				(5,171)
Operating lease liabilities			(1,179)				(1,241)
Net cash provided by (used in) operating activities			4,848				(26,089)
Cash flows from investing activities:
Purchases of property and equipment			(3,670)				(4,570)
Other investing activities			-				48
Net cash used in investing activities			(3,670)				(4,522)
Cash flows from financing activities:
Borrowings on line of credit			39,521				64,664
Repayments on line of credit			(38,665)				(29,286)
Payments on other debt			(750)				-
Payments on finance lease liabilities			(386)				(381)
Tax withholdings related to net share settlements of equity awards			(620)				(320)
Repurchase of common stock			-				(3,872)
Net cash provided by (used in) financing activities			(900)				30,805
Change in cash and cash equivalents			278				194
Cash and cash equivalents, beginning of period			5,007				4,068
Cash and cash equivalents, end of period		$	5,285			$	4,262

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/northwest-pipe-company-announces-first-quarter-2025-financial-results-302443027.html

SOURCE Northwest Pipe Company

FAQ

What are NWPX Q1 2025 earnings per share and revenue?

NWPX reported Q1 2025 earnings of $0.39 per diluted share with net sales of $116.1 million, representing a 2.6% increase year-over-year from $113.2 million in Q1 2024.

How much stock did NWPX buyback in April 2025?

NWPX repurchased approximately 122,000 shares at an average price of $40.82 per share, totaling $5.0 million in April 2025 through a Rule 10b5-1 trading plan.

What is NWPX's current backlog for Steel Pressure Pipe segment?

As of March 31, 2025, NWPX's Steel Pressure Pipe segment backlog was $203 million, with backlog including confirmed orders reaching $289 million.

Why is Northwest Pipe changing its name to NWPX Infrastructure?

The company plans to change its name to NWPX Infrastructure in June 2025 to reflect its strategic evolution and better align with its infrastructure-focused solutions across North America, subject to shareholder approval.

How did NWPX's Precast segment perform in Q1 2025?

NWPX's Precast segment posted $37.7 million in revenue with a 19.1% margin, showing a 13.4% revenue increase and 140 basis point margin improvement year-over-year, with order book growing to $64 million.