NWPX Infrastructure, Inc. Announces Second Quarter 2025 Financial Results

Rhea-AI Summary

NWPX Infrastructure (NASDAQ: NWPX) reported strong Q2 2025 financial results, achieving record net sales of $133.2 million, up 2.8% year-over-year. The company's Precast segment reached record sales of $48.6 million, while Water Transmission Systems (WTS) segment generated sales of $84.6 million.

Key highlights include net income of $0.91 per diluted share, WTS backlog of $298 million with confirmed orders reaching $348 million, and Precast order book of $56 million. The company completed a $15.0 million stock repurchase from April through July 2025, representing 3.6% of outstanding shares. Additionally, the company rebranded from Northwest Pipe Company to NWPX Infrastructure in June 2025.

Positive

• Record consolidated revenue of $133.2 million, up 2.8% year-over-year
• Record Precast segment revenue of $48.6 million, up 21.5% year-over-year
• Gross margin expanded to 19.0%, up 230 basis points from previous quarter
• WTS backlog including confirmed orders increased over 20% quarter-over-quarter to $348 million
• $15.0 million stock repurchase completed, showing confidence in company's future

Negative

• WTS net sales decreased 5.5% year-over-year to $84.6 million
• WTS gross profit margin declined to 17.8% from 19.0% year-over-year
• Operating cash flow decreased to $5.4 million from $22.3 million year-over-year
• Precast order book declined to $56 million from $64 million in previous quarter

Insights

Financial Analyst

NWPX delivered record quarterly sales with mixed segment performance; healthy backlog signals continued growth despite margin pressures.

NWPX Infrastructure posted a solid quarter with record consolidated revenue of $133.2 million, up 2.8% year-over-year, despite facing different trajectories in its two business segments. The company earned $0.91 per diluted share, improving from $0.86 in the year-ago period, while maintaining a robust balance sheet.

Breaking down segment performance reveals interesting dynamics. The Water Transmission Systems (WTS) segment saw revenue decline 5.5% to $84.6 million due to a 10% decrease in production volume, partially offset by a 4% increase in selling price per ton. More concerning was the 11.3% drop in WTS gross profit and corresponding margin compression from 19.0% to 17.8%. However, the segment's backlog grew significantly to $298 million from $203 million at the end of Q1, with confirmed orders pushing the total backlog to $348 million, suggesting stronger performance ahead.

The star performer was the Precast segment, which achieved record revenue of $48.6 million, jumping 21.5% year-over-year through a combination of 13% higher shipment volume and 7% higher selling prices. Gross profit increased 16.7% to $10.3 million, though margins contracted slightly from 22.1% to 21.2%. The segment's order book of $56 million has decreased from $64 million in Q1, which bears watching.

Consolidated gross margin fell 90 basis points year-over-year to 19.0%, though it improved 230 basis points sequentially, indicating production efficiency improvements. Cash flow generation weakened considerably, with operating cash flow dropping to $5.4 million from $22.3 million in Q2 2024 due to working capital changes. This merits attention as it could impact the company's ability to continue its share repurchase program, which has been aggressive with $15 million deployed from April through July, reducing outstanding shares by 3.6%.

Management's outlook suggests continued strength in Q3, with WTS revenues and margins expected to match or exceed Q2 levels, while Precast is anticipated to maintain strong revenue with improving margins. The healthy and growing backlog provides good visibility for the second half of 2025.

• Net sales of $133.2 million, a Company record under its current operating segments, increased 2.8% year-over-year
• Record net sales of $48.6 million for the Precast Infrastructure and Engineered Systems segment ("Precast")
• Net income of $0.91 per diluted share
• Backlog¹ of $298 million for the Water Transmission Systems segment ("WTS"); backlog including confirmed orders² of $348 million
• Order book³ of $56 million for Precast
• Repurchased $15.0 million of common stock from April 2025 through July 2025, representing 3.6% of the Company's shares outstanding
• Completed corporate rebranding to NWPX Infrastructure, Inc. in June 2025

VANCOUVER, Wash., Aug. 7, 2025 /PRNewswire/ -- NWPX Infrastructure, Inc. (NASDAQ: NWPX) (the "Company"), a leading manufacturer of water-related infrastructure products, today announced its financial results for the second quarter ended June 30, 2025. The Company will broadcast its second quarter 2025 earnings conference call on Friday, August 8, 2025 at 7:00 a.m. PT.

As previously announced, effective June 12, 2025, the Company's shareholders approved an Amendment to the Company's Articles of Incorporation to change the corporate name from Northwest Pipe Company to NWPX Infrastructure, Inc. and, at the same time, the Company renamed one of its two operating segments. The segment previously referred to as "Engineered Steel Pressure Pipe (SPP)" has been renamed "Water Transmission Systems (WTS)" to better reflect the value contribution specifically from the business unit's capabilities in engineering, production execution, and delivery of critical integrated water pipeline systems. The "Precast Infrastructure and Engineered Systems (Precast)" segment name remains unchanged. This change in naming convention does not affect the composition of the segments or the basis of segment reporting, as there have been no changes to how the Company's chief operating decision maker manages or evaluates performance. Historical results have been recast to reflect the updated segment name for all periods presented.

Management Commentary

"In the second quarter, NWPX Infrastructure delivered record results, demonstrating strong operational execution and demand across both business segments," said Scott Montross, President and Chief Executive Officer of NWPX Infrastructure, Inc. "We achieved consolidated revenue of $133.2 million, our highest ever for this configuration of the Company, driven by continued momentum in our WTS segment and record performance from our Precast segment. Gross margin expanded to 19.0%, up 230 basis points from the previous quarter, reflecting enhanced production efficiency and solid market demand."

Montross continued, "WTS revenue reached $84.6 million with significant margin expansion due to higher production levels and improved overhead absorption versus the previous quarter. Backlog including confirmed orders surged to $348 million, an increase of over 20% compared to the end of the first quarter, setting the stage for sustained strength in the second half of the year. We anticipate third quarter WTS revenues and margins to remain in-line with or exceed the second quarter."

"Additionally, our Precast segment delivered record revenue of $48.6 million, fueled by markedly higher shipping levels compared to the prior quarter. This performance led to a 210 basis point sequential improvement in our Precast gross margin. Our healthy order book and uptick in order velocity supports our expectation for Precast revenue to remain strong in the third quarter of 2025 with continued margin improvement," concluded Montross.

Second Quarter 2025 Financial Results

Consolidated

• Net sales increased 2.8% to $133.2 million from $129.5 million in the second quarter of 2024.
• Gross profit decreased 1.7% to $25.4 million, or 19.0% of net sales, from $25.8 million, or 19.9% of net sales, in the second quarter of 2024.
• 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 second quarter of 2024.

Water Transmission Systems Segment (WTS)

• WTS net sales decreased 5.5% to $84.6 million from $89.5 million in the second quarter of 2024 driven by a 10% decrease in tons produced resulting from changes in project timing, partially offset by a 4% increase in selling price per ton due to changes in product mix.
• WTS gross profit decreased 11.3% to $15.1 million, or 17.8% of WTS net sales, from $17.0 million, or 19.0% of WTS net sales, in the second quarter of 2024 due to decreased volume.
• WTS backlog was $298 million as of June 30, 2025 compared to $203 million as of March 31, 2025 and $282 million as of June 30, 2024. Backlog including confirmed orders was $348 million as of June 30, 2025 compared to $289 million as of March 31, 2025 and $348 million as of June 30, 2024.

Precast Infrastructure and Engineered Systems Segment (Precast)

• Precast net sales increased 21.5% to a quarterly record of $48.6 million from $40.0 million in the second quarter of 2024 driven by a 13% increase in volume shipped and a 7% increase in selling prices due to changes in product mix.
• Precast gross profit increased 16.7% to $10.3 million, or 21.2% of Precast net sales, from $8.8 million, or 22.1% of Precast net sales, in the second quarter of 2024 primarily due to increased volume.
• Precast order book was $56 million as of June 30, 2025 compared to $64 million as of March 31, 2025 and $62 million as of June 30, 2024.

Balance Sheet, Cash Flow, and Capital Allocation

• As of June 30, 2025, the Company had $30.6 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately $93 million under the revolving credit facility.
• Net cash provided by operating activities was $5.4 million in the second quarter of 2025 compared to $22.3 million in the second quarter of 2024 primarily due to a $17.3 million decrease in cash from changes in working capital.
• Capital expenditures were $3.5 million in the second quarter of 2025 compared to $6.1 million in the second quarter of 2024.
• The Company repurchased approximately 192,000 shares of its common stock at an average price of $40.47 per share for a total of $7.8 million during the second quarter of 2025, and subsequent to quarter end, the Company repurchased approximately 171,000 additional shares at an average price of $42.04 per share for a total purchase price of $7.2 million pursuant to a Rule 10b5‑1 trading plan.

1 NWPX Infrastructure, Inc. defines "backlog" as the balance of remaining performance obligations under signed contracts for Water Transmission Systems products for which revenue is recognized over time.
2 NWPX Infrastructure, Inc. defines "confirmed orders" as Water Transmission Systems projects for which the Company has been notified that it is the successful bidder, but a binding agreement has not been executed.
3 NWPX Infrastructure, Inc. 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 second quarter 2025 financial results will be held on Friday, August 8, 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 Friday, August 22, 2025, by dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671 internationally and entering the replay access code: 13754578.

About NWPX Infrastructure, Inc.

Founded in 1966, NWPX Infrastructure, Inc. is a leading manufacturer of water-related infrastructure products. Under the Northwest Pipe Company brand, the Company is the largest manufacturer of engineered water transmission systems in North America and produces steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings. The Company also provides solution-based products for a wide range of markets including high-quality reinforced precast concrete products and lined precast sanitary sewer system components, which are manufactured under the NWPX Geneva brand, as well as water distribution and management equipment including pump lift stations, wastewater pretreatment, and stormwater quality products through the NWPX Park brand. Strategically positioned to meet growing water and wastewater infrastructure needs, the Company's skilled team is committed to quality and innovation while upholding its core values of accountability, commitment, and teamwork. Headquartered in Vancouver, Washington, NWPX Infrastructure operates 13 manufacturing facilities across North America. For more information, please visit www.nwpx.com.

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 various military conflicts or tensions and the regional and global ramifications of these conditions, 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.nwpx.com.

Contact:
Aaron Wilkins
Chief Financial Officer
NWPX Infrastructure, Inc.
investors@nwpx.com

Or

Addo Investor Relations
nwpx@addo.com

 

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

 

NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
		June 30, 2025				December 31, 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

 

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

 

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SOURCE NWPX Infrastructure, Inc.

FAQ

What were NWPX Infrastructure's Q2 2025 earnings per share?

NWPX Infrastructure reported net income of $0.91 per diluted share in Q2 2025, compared to $0.86 per diluted share in Q2 2024.

How much is NWPX Infrastructure's current Water Transmission Systems backlog?

NWPX's WTS backlog was $298 million as of June 30, 2025, with backlog including confirmed orders reaching $348 million.

What was NWPX's stock buyback program in Q2 2025?

NWPX repurchased 192,000 shares at $40.47 per share for $7.8 million in Q2 2025, and additional 171,000 shares at $42.04 for $7.2 million after quarter end.

How did NWPX's Precast segment perform in Q2 2025?

The Precast segment achieved record revenue of $48.6 million, up 21.5% year-over-year, with gross profit increasing 16.7% to $10.3 million.

Why did NWPX change its company name in 2025?

The company rebranded from Northwest Pipe Company to NWPX Infrastructure in June 2025 and renamed its SPP segment to Water Transmission Systems (WTS) to better reflect its capabilities in engineering and water pipeline systems.