NWPX

Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET President and CEO - Scott Montross Chief Financial Officer - Aaron Wilkins Operator: Greetings, and welcome to the NWPX Infrastructure Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Scott Montross, President and CEO. Please go ahead. Scott Montross: Good morning, and welcome to NWPX's Second Quarter 2026 Earnings Conference Call. My name is Scott Montross, and I'm President and CEO of the company. I'm joined today by Aaron Wilkins, our Chief Financial Officer. By now, all of you should have access to our earnings press release, which was issued yesterday, July 29, at approximately 4:00 p.m. Eastern Time. This call is being webcast, and it is available for replay. As we begin, I'd like to remind everyone that statements made on this call regarding our expectations for the future are forward-looking statements, and actual results could differ materially. Please refer to our most recent Form 10-K for the year ended December 31, 2025, and in our other SEC filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward-looking statements. Thank you all for joining us today. I'll begin with a review of our second quarter performance and our outlook for the third quarter of 2026, and then Aaron will walk you through our financials in more detail. Second quarter marked another outstanding quarter for NWPX Infrastructure as we delivered record financial results across revenue, gross profit and EPS. Net sales were up 19.7% year-over-year to $159.5 million, primarily driven by strength in our Water Transmission Systems business. Consolidated gross profit totaled $34.4 million, up 35.5% from last year, with our gross margin expanding 250 basis points year-over-year to 21.5%. That momentum translated into strong bottom line performance, underscoring the operating leverage in our model with earnings of $1.62 per diluted share and free cash flow of $9.9 million or approximately $1.01 per share. These results reflect the strength of our diversified business model and the disciplined execution of our long-term strategy. Turning to our WTS segment. Revenue reached a quarterly record of $113.2 million, up 33.8% year-over-year with strong margin improvement. Our performance reflected higher production volume with tons produced up 26%, supported by strong project execution and favorable project timing. Additionally, selling prices per ton were up 6% year-over-year, driven by changes in product mix. We had another exceptionally strong booking quarter with robust bidding activity, sustaining continued healthy backlog and reinforcing demand strength across our markets. After having produced approximately 15% of the large NDA project in the second quarter, the WTS backlog, including confirmed orders, ended the quarter at $423 million, down only slightly from the $430 million at March 31 and well above the $348 million level we reported this time last year. This is a good indication of how strong the bidding was in the second quarter and continues to be in the third quarter. We also have a substantial pipeline of projects totaling more than $125 million that we've already bid on. While awards are still pending, we expect to secure a meaningful portion of these opportunities. As the large unplanned NDA project winds down, the WTS backlog levels will normalize to recent historical ranges. WTS gross profit increased 60.9% year-over-year to a record $24.2 million, resulting in a gross margin of 21.4%, up 360 basis points from last year. This improvement reflects higher volumes supported by strong customer demand and disciplined project execution as well as the related efficiency gains and higher overhead absorption that come with that level of production. In addition, we benefited from favorable product mix and pricing. Now turning to our Precast segment. Precast revenue slightly decreased 4.8% year-over-year to $46.3 million. Our performance reflected an 11% decrease in volume shipped as we experienced unusually heavy rainfall in Texas and customer-driven project delays at our Utah facilities during the months of April and May. However, our selling prices were up 7% over last year, reflecting favorable changes in product mix. Business conditions improved significantly in June, which led us to close out the quarter with strong momentum, with a quarter end precast order book of $61 million, up from $55 million at March 31 and above the $56 million level at June 30 of last year, positioning the business well for the remainder of the year. At Park, production increased 24% year-over-year, supported by 29% growth in revenue per yard shipped. This performance came despite elevated interest rates. We are continuing to see signs of improvement in the nonresidential demand trajectory as we move through 2026, particularly in data center projects that continue to bolster commercial construction activity. At Geneva, production was down 5% year-over-year, primarily reflecting the ongoing softness we've been seeing in the residential construction market. Production was mostly offset by growth in the nonresidential business, demonstrating the resilience in the Geneva market platform. That said, leading indicators remain solid in mid-2026, with the Dodge Momentum Index up 22% in June of this year versus June of 2025. The commercial sector was up 22% and the institutional sector was up 22%, indicating broad-based strength for nonresidential construction activity through the end of this year and into 2027. In addition, we are continuing to advance our Precast product spread strategy across the network, broadening our capabilities, increasing our capacity utilization and evaluating opportunities to introduce Precast into additional WTS facilities. Precast gross profit of $10.2 million was down 1.7%, which was directly related to the slow shipping months of April and May. However, we saw a gross margin improvement of 70 basis points to 21.9% from 21.2% last year, highlighting stronger pricing levels and better cost absorption despite lower volumes. We expect margins to continue recovering as nonresidential demand builds. I'll now turn to our outlook for the third quarter of 2026. On a consolidated basis, we expect our third quarter performance to be comparable to or stronger than the second quarter of 2026. In our Water Transmission Systems segment, we expect revenue and margins to be similar to the prior quarter, driven by strong production volume and product mix as well as the emergence of the previously discussed significant unplanned NDA project that began production in June and will extend through the third quarter. We continue to maintain a robust WTS backlog, elevated bidding levels that have continued into July are providing great visibility to near-term financial performance. Based on what we are seeing today, we expect full year bidding levels to be stronger than what we saw in 2025. We remain encouraged by the level of activity across current and upcoming Water Transmission projects, which continue to come with improved economics and margins. For a more complete view of these projects, please refer to our investor presentation on our website. Turning to Precast. We grew our order book in the second quarter of 2026, and we expect a stronger year for the Precast business overall with our momentum from June carrying over into the back half of the year. Demand remains healthy in the nonresidential market, supporting continued momentum across our Park and Geneva platforms. For the third quarter, we expect Precast revenue to be higher than both the third quarter of last year and the prior quarter with stable margins driven by solid demand, higher production levels with improved absorption and the strengthening order book. In closing, we delivered an outstanding second quarter, setting new records in revenue, gross profit and earnings per share. Demand across our end market remains healthy. Bidding activity continues to be elevated, and our Precast business is carrying positive momentum into the second half of the year. These factors reinforce our confidence that 2026 is shaping up to be a historic year for NWPX Infrastructure. I want to thank our team across the organization for their continued execution, their commitment to our strategy and to maintaining a strong safety culture. As we look ahead, our near-term priorities remain: one, maintaining a safe and rewarding workplace; two, focusing on margin over volume; three, intensifying our pursuit of strategic acquisitions; four, implementing our cost efficiencies across the organization; and five, returning value to the shareholders when M&A opportunities are limited. I will now turn the call over to Aaron, who will walk through our financials in greater detail. Aaron Wilkins: Thank you, Scott, and good morning to everyone joining the call today. Before we begin, I'd like to mention that unless otherwise stated, all financial measures in my remarks refer to the second quarter of 2026, and all comparisons will be year-over-year comparisons versus the second quarter of 2025. I'll begin with our profitability. We delivered record consolidated net income of $15.8 million in the second quarter or $1.62 per diluted share, up from $9.1 million or $0.91 per diluted share, reflecting improved operating leverage on higher revenues and the continued strength in execution across the business. This is the highest earnings per share posted in the company's history. Recall, the company excludes the third quarter of 2018, which was elevated by a onetime $21 million noncash gain on bargain purchase associated with our acquisition of Ameron Water Group. As we measure it, the previous record reflective of our operational performance was achieved in the third quarter of 2025. On the top line, consolidated net sales grew 19.7% to $159.5 million compared to $133.2 million last year. Our Water Transmission Systems segment posted record revenue in the second quarter, with sales rising 33.8% to $113.2 million versus $84.6 million. This growth was driven by a 26% increase in tons produced due largely to project timing and a 6% improvement in selling price per ton due to improved pricing and product mix. Precast sales were down 4.8% to $46.3 million compared to $48.6 million. The results reflected an 11% decrease in volume shipped due to adverse weather events and ongoing softness in the residential construction market, partially offset by a 7% increase in selling prices due to product mix. As a reminder, the products we manufacture are unique and the average sales prices for both of our operating segments as well as the Precast shipment volumes and WTS production volumes cannot be relied upon as comparable metrics due to variations in product mix between periods. We also achieved record consolidated gross profit, supported by higher volume and favorable pricing. Gross profit was $34.4 million, up 35.5%, representing 21.5% of sales, a 250 basis point improvement from $25.4 million or 19% of sales. In Water Transmission Systems, gross profit increased 60.9% to $24.2 million or 21.4% of segment sales, a 360 basis point improvement from $15.1 million or 17.8% of sales. The increase reflects higher production volume and the associated operational efficiency gains and higher pricing resulting from sustained strength in market demand and changes in product mix. Precast gross profit was down 1.7%, $10.1 million or 21.9% of segment sales compared to $10.3 million, representing a 70 basis point improvement from 21.2% of segment sales. Gross profit dollars were primarily impacted by lower shipment volumes. Selling, general and administrative expenses were $13.2 million, up 5% and represented 8.3% of net sales, an 80 basis point improvement from 9.1% of net sales a year ago, even with modest increases in incentive compensation expense. For the full year 2026, we now expect consolidated SG&A to range between $54 million and $56 million. Depreciation and amortization expense was $5.3 million compared to $4.9 million, and we now expect full year expense to be between $21 million and $23 million. Interest expense declined to $0.3 million from $0.8 million, reflecting lower average daily borrowings. Income tax expense was $5.6 million, resulting in an effective income tax rate of 26.3% compared to $3.4 million or a rate of 27.5% last year. The effective rates for both quarters were primarily impacted by nondeductible permanent differences. For the full year, we continue to expect an effective tax rate of approximately 24% to 26%. I'll now turn to our financial condition. At June 30, 2026, cash and cash equivalents improved to $19.3 million from $14.3 million at March 31. Our debt balance totaled $10 million, resulting in a net cash position of $9.3 million. At June 30, there were no outstanding borrowings under our credit facility, and we had approximately $124 million of additional borrowing capacity under the existing credit agreement. We continue to build cash on the balance sheet to support our growth and stockholder return priorities. Our improved profitability, coupled with favorable changes in working capital drove strong net cash provided by operating activities of $14.1 million, reflecting a 159% increase from $5.4 million last year. Capital expenditures were $4.2 million compared to $3.5 million last year. For the full year 2026, we continue to expect CapEx in the $20 million to $24 million range, including approximately $6 million for investment projects to support our Precast product spread strategy and broader Precast growth initiatives. As a result, we generated $9.9 million of positive free cash flow in the quarter compared to $1.9 million last year. For 2026, we are raising our full year free cash flow outlook to $56 million to $65 million, up from the prior range of $50 million to $56 million, reflecting stronger earnings and a more favorable billing schedules expected on Water Transmission System orders received. To close, the second quarter marked another period of exceptional performance, highlighted by record revenue, record gross profit and record profitability. We continue to generate strong free cash flow and further strengthened our balance sheet through disciplined capital deployment. Continued strength in demand for our products, combined with our focus on pricing and consistent operational execution positions us well to deliver strong financial results in the second half of this year. Thank you to our employees for their continued commitment to safety and excellence and to our shareholders for their continued support. I will now turn it over to the operator to begin the question-and-answer session. Operator: [Operator Instructions] First question, Julio Romero with Sidoti & Company. Julio Romero: I wanted to start on the Water Transmission Systems segment. You had very impressive year-over-year sales in the segment. And then, Scott, based on your comments of completing about 15% of the previously unplanned project, I think that implies the core business did significantly well in the quarter, up about 25% year-over-year, if my math is right. I guess maybe to start just reconciling that performance with the third quarter Water Transmission Systems segment outlook of similar revenue quarter-over-quarter. Are you implying that the -- for the third quarter that the core WTS segment sales are going to step down sequentially? Just kind of help us square those 2 pieces here. Scott Montross: No, I don't think that's it at all. I think when you look at -- looking back to the third quarter of last year, we were about $103 million of revenue in the water transmission side, Julio. This year, you're $113 million. So if you pull the piece out that's related to the NDA project, we were up to probably about $105 million of core business, okay? So when we get to the third quarter of the year, obviously, when you look at the third quarter over the last few years, the third quarter has been the biggest quarter of the year. And ultimately, we expect that quarter to be the biggest quarter of this year, too. We're a little bit cautious, and that's why when we gave our guidance in the earnings call, we said comparable to or stronger in the third quarter than the previous quarter, the second quarter. And the reason we're doing that is we've seen some pretty crazy weather patterns in Texas over the last several months. But sans those weather patterns, which we've kind of gotten our way through pretty well without having a problem, we expect the third quarter to be larger on water transmission, on Precast and with better profitability than we saw in the second quarter. And I think what you'll see as far as the base business, Julio, that the base business will be a little bit stronger than it was in the second quarter before you add the NDA piece on top of it. Julio Romero: Okay. Perfect. That's really, really helpful. And then I guess my follow-up is just thinking about current bidding levels for WTS, kind of future phase visibility you have both for the previously unplanned project and your core business. Just how do you see -- and then your comments about the segment backlog normalizing at recent historical levels as you work down the unplanned project. Just help us think about what you see the backlog shaping up in the back half of the year and how you see yourself entering '27? Scott Montross: Yes. I mean the bidding levels are really, really strong in the third quarter. They're -- what I would say is they're at least as strong as they were in the second quarter with the amount of work that we're seeing out there bidding, and we still have a lot of what we refer to pending unknowns to be awarded that are out there at this point. So I think what I would characterize is the bidding level this year is what I would -- is a little bit stronger than what we saw in 2025. And 2025, I think we ended up somewhere in the area of about 138,000 tons of bidding. And if you pull the NDA project out of the water transmission bidding this year, we're looking at having 150-some thousand bidding this year. So we're seeing a bit stronger bidding year than we did last year. And ultimately, it's coming with improving, like we said in the script, economics and margins as we move forward. And what was the second piece of that, Julio? Julio Romero: Just trying to think overall how you see the backlog ending 2026 heading into '27 and what that speaks to what -- how your '27 is shaping up relative to '26? Scott Montross: Yes. I think when you start looking at the backlog, when we reported before we started the NDA project, we reported a backlog of $430 million, ended this quarter with $423 million after running some of that, which gives you an indication if we're running somewhere in the area of $8 million or so of that project, it gives you an indication of how strong the bidding was in the quarter. But once we run through all that, and we will be run through most of that as we get through the third quarter and the beginning of the fourth quarter, then what you're going to see is a backlog that's pretty normal for the Water Transmission Systems business, probably somewhere between the low 300s to the mid-300s range is where you see that backlog just like we have for the last few years. It just returns to a normal range after that really the onetime project works its way through our system. Julio Romero: Got it. And then last question is just on the onetime project. Any increased visibility as to future phases of that project as it is now relative to 3 months ago? Scott Montross: No. We're seeing maybe a little bit more activity and discussion around it, but I wouldn't say anything that's definitive at this point, Julio. Operator: Next question, Tomo Sano with JPMorgan. Tomohiko Sano: On the WTS margin improvement, could you talk about what is actually driving by execution and efficiency? And if you could talk about how sustainable do you believe those -- the gains are in the back of house and so on, please? Scott Montross: Yes. So Tomo, what I would say, the story on the WTS side, the water transmission side is that during the second quarter, we had tons where tons produced were up 26% versus what we saw like last year in the second quarter, where, obviously, we had a margin that was significantly lower last year in the second quarter. But the selling prices were up about 6% and that kind of followed along with the steel cost, but the selling prices were actually up a bit higher than what the steel cost was. So as a result, we had a margin level that went to 21.4% or a growth of 360 basis points. Really what it was is a little bit more project pricing and better project pricing in the marketplace, a favorable project mix with the kind of projects that run well on our facilities. But the high production levels gave us better overhead absorption and absorbing the overhead also contributed to the margins. So that's really the story of the Water Transmission Systems business. And we think we see the same thing moving through the rest of this year. And what I would say is we've kind of gotten ourselves into a channel, Tomo, where the demand has gotten relatively stable to upward trending. And the longer that it stays that way, I think the higher that you continue to see the margins inch up over the period of time. So we believe it looks like that going into and through the third quarter. And the fourth quarter is a little bit different because it's normally the slowest quarter of the year. And this year, we'll have to see if it's going to be slower because it may not be that much slower. But we expect to see those upward trends on margin in those metrics as we go forward. Tomohiko Sano: Scott. On Precast side, forecast improvement in June, you talked about. And how should we think about exit rates for volumes and activity as you move into third quarter? And if you could talk about the demand outlook as well as the more normalized after some headwinds from the weather conditions, please? Scott Montross: Yes. I think we've been fortunate, Tomo, getting through the weather without a whole bunch of issues down there because at one point a couple of weeks ago, Central Texas was getting somewhere between 25 and 30 inches of rain. So we've been pretty fortunate. So obviously, when you look at the second quarter, it affected our production in April and May. But June came storming back. And what I would say is that we had a record month of revenue at Geneva in the month of June and a strong Park business and the margin improved by about 60 basis points. But I think the bigger thing is the order book grew pretty significantly from where it had been. So our order book grew up to about $61 million. And ultimately, what we're doing is we're coming out of the second quarter and moving into a third quarter that we expect to be stronger revenue-wise than what we saw last year's third quarter with improving margins because of the volume that we're doing. One of the other things that we're seeing, Tomo, is I think it's pretty obvious out there with interest rates being where they are, that the residential real estate residential construction piece is down a little bit. But we have really seen continued improvement over where we were last year in the nonresidential piece of the business. And if you look at the momentum index, they're both up 22% at this point in the year. So that bodes well probably for the next year. Our Geneva business has been more geared toward doing residential business in the past. But as that has slowed down, the Geneva business has gone way more toward the nonresidential side and filling up, and we're seeing that with those revenue numbers as we come out into the third quarter. And I think when we look at the Precast business, we're looking at the precast business with another record revenue year in 2026 and we're going to exit the year strong. And it appears that the nonresidential piece is going to continue with that strength and not be as affected by the residential as the interest rates. Tomohiko Sano: If I may squeeze one more last thing. You've discussed the ambitions for Precast to become comparable in size to WTS. Could you talk about what milestones, investments and M&A criteria should we track to gauge that progress, please? Scott Montross: Yes. I think what we're seeing is we're looking for more of on the Precast side, stuff that's similar to the Geneva business that we have with margin levels that are similar to better with good asset efficiency as we look at these things. And generally, we would like to find things that are relatively close to the existing plants, like when we acquired Boughton's Precast, they're in Colorado, and they folded right into the Geneva business. So really, Geneva has 4 plants now. That's the kind of thing we're looking for. But signs that and there's been a little bit of a shortage of opportunities on the Precast side. We're willing to look farther afield as long as the precast businesses have the metrics comparable to what we have with our businesses or better, and they have strong management groups. So that's going to be important for growing the Precast piece of it. I think that the other thing, Tomo, that we have to look at right now, along with growing the precast, are there other adjacencies to the precast that could also provide us opportunities for growth as we move forward, while the Precast business is a little bit -- the M&A we're seeing in the Precast is a little bit slower right now. So those are the things that we're kind of focused on at this point. It's really -- we'll add one plant at a time if we have to. We'll look at doing potentially greenfield sites in Precast if it makes sense. We'll look at something that may be an ancillary type business to infrastructure to precast to the WTS business. Those are all things that we have going forward in the process and looking for something else in the way of how we're going to grow. So that is a big -- probably a big priority, one of the biggest priorities we have right now to be able to continue to grow the company and provide higher levels of revenue and better levels of profitability. So hopefully, that answers the question. That was kind of a long-winded answer, but... Tomohiko Sano: Yes, that's really helpful. Congrats on the quarter. Operator: We have a follow-up from Ted Jackson with Northland Securities. Edward Jackson: Most of my questions have been answered, but I got a couple. And before I say, congrats on the quarter and the execution. And every quarter, we get on these calls and you just impress and then you actually just raised the bar. So congratulations. I wanted to ask an obvious one for me because I ask it all the time is I want to move around with steel and just kind of at a basic level, can you tell me like as a percentage of revenue, what steel was for the quarter? Scott Montross: Yes. When you look at where we are the steel as a percentage of cost of sales, it's at about 34% or 35% right now. It is high. Obviously, that's a pass-through for us. So it's -- for us, Ted, as we've said in the past, that's something that creates higher project pricing, which doesn't necessarily improve project margin, but it improves the total gross profit dollars in those things. So we're not afraid of higher steel prices as long as we can get steel. Edward Jackson: Yes, that's the most important part. And I mean, honestly, the fact that you can -- that your margins are doing what they're doing with what's going on in steel just tells you -- tell everyone how strong your business is. With regards to steel prices, I mean, it's not a fair metric. But I mean, like last quarter, I think you guys commented that pricing in steel was up 18%. And when I kind of look at different kind of metrics. I mean, I would suggest that pricing is up another 18%, 20% year-to-year. So maybe kind of square the circle as to how you were able to -- when I think about your volume being up so high, your pricing -- I mean not that it wasn't up a lot, but I think you said 6%. How does steel factor into that? It would seem to me that pricing would have been a bigger driver in the quarter than it was given the steel backdrop. And so what am I missing there? Scott Montross: Well, I don't think so -- when you look at pricing in the quarter, I mean, our -- on the WTS side, our revenue per ton was up about 6%. So if you look at that 6% is a higher number than if we're looking at steel costs and what we actually consumed when we got in, steel cost was up about 24%. But that 6% in steel actually was a higher dollar value than that 24% -- or the 6% on price was a higher dollar value than what that 24% on steel was in the cost, okay? So that's a piece of the puzzle. The other piece of the puzzle is the tons we were running -- the tons were up 26% quarter over last year's quarter. So the overhead absorption you're getting is pretty significant, too, and contributing to the margin. So steel is helping, but the overhead absorption is helping probably more than anything at this point. Edward Jackson: But what it's also telling me is that your -- I know that there's a variable of kind of the value of the product you're delivering and how that has -- can have a lot of sway on margin. Your revenue the last few quarters has clearly been skewed towards better margin, better margin projects. And you're essentially guiding that you're going to continue to see that mix? Scott Montross: We've seen a very favorable product mix with the jobs that have been coming through. I mean it's -- when you look at it in the market and the bidding market, the number of jobs coming through are pretty large at this point. So you can sit back a lot of times because the backlog is in the shape it is and kind of pick the ones that fit you with your best cost position and do some product mix improvement on the backlog. And we've seen a bunch of that. And as a result, the margin that we see in backlog is looking pretty good when you look at maybe where we've been in the past. So I think that's a little bit of what you're seeing, too. We've seen some pretty favorable project mix. Edward Jackson: You got to be more selective. That's interesting. That's a nuance I wouldn't have thought of, but I mean... Scott Montross: You can be when there's enough projects that are coming out. Edward Jackson: What do you guys think in terms of like when you look forward for the remainder of this year, kind of next year in your deck for cost of steel, kind of what are you viewing it as on a per-ton basis? Scott Montross: I think the cost for steel, we're starting to see steel that obviously, published prices are over $1,200 a ton now, right? So I think the -- and I think that continues to inch its way up because you probably find those public prices are a little bit in arrears of what actual pricing is in the steel market. And I think you're going to continue to see that move up. One of the reasons is with the tariff situation that's been applied a lot to a lot of the foreign steel coming in, you've basically -- you've limited supply or supply has been limited in the United States to the capacity that's existing into the United States. And as a result, the price continues to move up in the marketplace. And again, for us, I mean, we saw it during COVID reached or almost reached $2,000 a ton. I won't be bold enough to predict that. But I think we're going to continue to see that inch up. And I think maybe $1,400 a ton is maybe a number that could happen and maybe more. I think it's going to continue to inch up, Ted, because I'm not sure what stops it from inching up until it gets high enough where it offsets the value of the tariffs on steel coming in where steel is just going to kind of pour in because the domestic steel has gotten high enough. So where that tipping point is at this point, I'm not sure because the tariffs are applied to the foreign steel being shipped into the country are pretty convoluted, and it's hard to kind of get a dead reckoning on those, if you know what I mean. Edward Jackson: But is it fair to assume, I mean, when I look at like that Midwest flat-rolled contract, I mean, it's up 23% year-over-year. When I think about the fact that typically, you kind of -- your pricing kind of works off of a lag that your steel costs now are pushing modestly north of $1,000 a ton and they continue to climb just because of -- as all this goes through. Is that kind of more or less kind of regurgitating your answer? Scott Montross: You can expect to see that as we move through this period of time. And remember, you're moving into the time of the year now where a lot of the big mills are doing their outages. So that's a further restriction on supply in the marketplace. And that just is more of a lever to cause price increases as we move forward. And again, we're good with the steel price increases. As long as we can get steel, it just means higher project pricing and more gross profit dollars. Edward Jackson: Shifting and then just into productivity. I mean you're ramping up volume at pretty astronomical levels. What is your utilization rate at this point within your plants? Are you starting to get -- I'm saying to the point where your ability to handle more volume is you becoming constrained? Scott Montross: Well, what I would say is that because we have 6 WTS plants across the country and obviously, you have different demand levels in different regions, we're probably at about a 65% utilization rate right now. Remember, we run one shift on these plants, right? And there's nothing that says that you can't add another shift. The thing that we get to is you generally see it busy in specific areas, right? So then it gets a little bit harder to take some business in an area that's already relatively full in their marketplace. But as far as -- and then what we do, we'll move projects around a little bit so we can absorb it. But we're not even close to being filled to what capacity is, Ted. Edward Jackson: Okay. And then my last question, and sorry for asking so many, but usually, when I'm at the end of the list, I don't get to ask so many, this is great. On the expenses, operating expenses, SG&A, and this is just against my model, it was actually higher than I would have expected. And I was kind of curious within that line item on the P&L, what was driving within -- I mean, is it more from like commission-oriented stuff? Is there anything in there? Or was that just kind of off base with regards to my forecast? I mean what does that mean for the remainder of the year? Aaron Wilkins: I think we've kind of flatten out. Obviously, you always see the first quarter is kind of the high mark, generally speaking. The thing that's really kind of pushed things up for us in the SG&A is the incentive comp and associated employee benefits that go a little bit of pressure on some professional fees, but really those drivers. And so I think right now, we're getting to a point we're kind of topping out on the incentive comp. So I'm expecting relatively consistent performance on the SG&A line through the third and fourth quarter. Edward Jackson: You broke up, you said that a blank performance for SG&A [indiscernible] quarter? Aaron Wilkins: Relatively consistent with the second quarter. Edward Jackson: Okay, that's it for me. Congrats again. Thanks again for taking all the questions and congrats on the quarter. Operator: I would like to turn the floor over to Scott for closing remarks. Scott Montross: Yes. Just a few closing remarks. Obviously, quarter was a strong second quarter with a bunch of records in revenue, gross profit and EPS. I think the one thing we're seeing is more consistency in the results over a period of time, significantly improved free cash flow. And those things are starting to show up in the share price for us. Water Transmission, obviously, is going through pretty exceptional performance with record revenues and pretty much all of those things across the board and a lot of bidding activity. And even with the weather-related stuff in Precast, we came through the second quarter pretty well. And I think it bodes well for how we're looking at things. And we're continuing to advance our long-term strategy, broadening the Precast capabilities across the network and evaluating opportunities to produce products that produce Precast in additional WTS plants. And the other thing I would say is even without -- or if we never got the -- that significantly previously unplanned NDA project, even without that, I think we would be heading toward another record year supported by the strong demand and the bidding that we're seeing. And looking at the third quarter, obviously, when we did the press release, we're being a little bit cautious because of the weather issues that we've been seeing in Texas because those things can always affect the business, especially with how severe that weather has been but we expect a strong third quarter with both segments positioned for year-over-year growth and improving margins and sustained demand and really, really reinforcing our confidence that 2026 is shaping up to be a historic year for NWPX. So I thank everybody. We thank everybody for your attention on the call, and we will talk to you again in late October. So thank you very much. Operator: This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation. Before you buy stock in Nwpx Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nwpx Infrastructure wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Nwpx Infrastructure. The Motley Fool has a disclosure policy. NWPX Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. NWPX Infrastructure (NWPX) drew investor attention after reporting second quarter 2026 earnings, with revenue of $159.48 million and net income of $15.83 million, along with higher figures for the first half. See our latest analysis for NWPX Infrastructure. NWPX Infrastructure’s latest earnings arrive after a powerful run, with the share price rising 101.29% year to date and the 1 year total shareholder return reaching 212.95%. The 30 day share price return is down 12.08%, suggesting some recent cooling after strong momentum. If NWPX Infrastructure’s move has you rethinking where pipelines and grid upgrades fit in your portfolio, it can be useful to see what else is moving across related infrastructure and power names through our screener for 35 power grid technology and infrastructure stocks After a run like this and a pullback that leaves NWPX Infrastructure trading above the latest analyst price target, the choice is simple but not easy. Does it make more sense to commit now, or to wait for a better entry point? The most followed narrative puts NWPX Infrastructure’s fair value at $109.33, which sits below the last close of $126.87 and frames today’s debate. Read the complete narrative. Read the complete narrative. Want to see what underpins that gap between price and fair value? The narrative focuses on measured revenue growth, modest margin improvement, and a future earnings multiple that still assumes solid execution. Result: Fair Value of $109.33 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still meaningful offsets, including NWPX Infrastructure’s record backlog cited in recent research and its access to US$93 million in available credit. Find out about the key risks to this NWPX Infrastructure narrative. The analyst narrative relies on earnings forecasts and a future P/E to suggest NWPX Infrastructure appears about 16% overvalued at $126.87 compared with a $109.33 fair value. At present, the stock trades on a 29.1x P/E, which is below peers on 63.9x but above its own 21x fair ratio. That combination points to both perceived quality and valuation risk. Does the current price reflect sector enthusiasm more than company specific progress? See what the numbers indicate about this price in our valuation breakdown. See what the numbers say about this price — find out in our valuation breakdown. The debate around NWPX Infrastructure is already sharp, so it makes sense to move quickly and test the story against the data yourself. To see which positives investors are focused on, take a closer look at the 3 key rewards. If NWPX Infrastructure has sharpened your focus, do not stop here. Use the Simply Wall St screener to compare fresh ideas before the next move passes you by. Spot potential value plays early by scanning screener containing 20 high quality undiscovered gems with strong fundamentals before they gain wider attention. Secure more predictable profiles by filtering for 89 resilient stocks with low risk scores that aim to keep volatility in check. Target resilient balance sheets by reviewing companies in the solid balance sheet and fundamentals stocks screener (46 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NWPX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in NWPX Infrastructure, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 19.7% year over year to $159.5 million, while net income increased to a record $15.8 million, or $1.62 per diluted share. Gross margin expanded 250 basis points to 21.5%. WTS led growth: Water Transmission Systems revenue jumped 33.8% to $113.2 million, supported by higher production, pricing and favorable project mix. Backlog remained strong at $423 million, including production on a large NDA project. Outlook strengthened: NWPX expects third-quarter results to match or exceed Q2 performance and raised full-year free cash flow guidance to $56 million-$65 million, up from $50 million-$56 million. 3 Under-The-Radar Small Caps Making New All-Time Highs NWPX Infrastructure (NASDAQ:NWPX) reported record second-quarter results for 2026, as higher Water Transmission Systems production, favorable project mix and pricing helped lift revenue, gross profit and earnings per share. Net sales increased 19.7% year over year to $159.5 million, while consolidated gross profit rose 35.5% to $34.4 million. Gross margin expanded 250 basis points to 21.5%. Net income reached a record $15.8 million, or $1.62 per diluted share, compared with $9.1 million, or $0.91 per diluted share, in the prior-year period. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now President and CEO Scott Montross said the company generated $9.9 million in free cash flow during the quarter, or about $1.01 per share. CFO Aaron Wilkins called the $1.62 per-share result the company’s highest earnings per share from operations, excluding a one-time non-cash bargain-purchase gain recorded in 2018. Water Transmission Systems, or WTS, posted quarterly record revenue of $113.2 million, up 33.8% from a year earlier. Production volume increased 26%, while selling prices per ton increased 6%, which management attributed to improved pricing and changes in product mix. → 3 Value ETFs to Consider as Growth Stocks Lag Behind WTS gross profit climbed 60.9% to $24.2 million, and segment gross margin rose 360 basis points to 21.4%. Montross said the gains reflected higher production volume, better overhead absorption, favorable project mix and stronger project pricing. The segment’s backlog, including confirmed orders, stood at $423 million at June 30, down slightly from $430 million at the end of the first quarter but above $348 million a year earlier. The company said it had produced approximately 15% of a large, previously unplanned NDA project during the second quarter. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Montross said the backlog remained elevated despite production on that project because of strong booking activity. He said NWPX had bid on more than $125 million of additional projects and expected to win a meaningful share, though awards remained pending. As the NDA project moves through production, management expects the WTS backlog to return to a more typical range. Montross said that level would likely be in the low-$300 million to mid-$300 million range after most of the project is completed during the third and early fourth quarters. Management said bidding activity remained strong through July and projected that full-year bidding would exceed 2025 levels. Montross said that excluding the NDA project, the company expected to bid on more than 150,000 tons in 2026, compared with roughly 138,000 tons in 2025. Precast revenue declined 4.8% to $46.3 million, as shipment volume fell 11%. The company cited unusually heavy rainfall in Texas and customer-driven project delays at its Utah facilities during April and May. Selling prices increased 7%, reflecting product mix. Precast gross profit was approximately $10.1 million, down 1.7% from the prior year, but gross margin improved 70 basis points to 21.9%. Management said pricing and cost absorption improved despite lower volumes. Montross said business conditions improved considerably in June. The Geneva operation recorded a monthly revenue record during June, while ParkUSA posted strong performance. The Precast order book increased to $61 million at quarter-end, compared with $55 million at March 31 and $56 million a year earlier. At ParkUSA, production rose 24% year over year and revenue per yard shipped increased 29%. Geneva production declined 5%, primarily due to softness in residential construction, though growth in non-residential work partly offset that decline. Management said non-residential demand, including data center activity, continued to support commercial construction. Montross also pointed to the Dodge Momentum Index, which was up 22% in June from the prior year in both commercial and institutional categories. NWPX said consolidated third-quarter performance should be comparable to or stronger than the second quarter. In WTS, revenue and margins are expected to be similar to the prior quarter, supported by production on the NDA project, strong volume and product mix. Montross told analysts that, absent severe weather disruptions, the company expected third-quarter revenue to be higher in both WTS and Precast, with improved profitability compared with the second quarter. He said the third quarter has historically been the company’s largest quarter of the year. For Precast, the company expects third-quarter revenue to exceed both the prior quarter and the third quarter of 2025, while margins remain stable as production rises and the order book strengthens. The company raised its full-year free cash flow outlook to $56 million to $65 million, from a previous range of $50 million to $56 million. Wilkins said the increase reflects stronger earnings and more favorable expected billing schedules on WTS orders. Full-year SG&A expense is expected to range from $54 million to $56 million. Depreciation and amortization is expected to be $21 million to $23 million. Capital expenditures are projected at $20 million to $24 million, including about $6 million for Precast product-spread and growth investments. The effective tax rate is expected to be approximately 24% to 26%. At June 30, NWPX held $19.3 million of cash and cash equivalents and $10 million of debt, resulting in net cash of $9.3 million. The company had no borrowings outstanding under its credit facility and approximately $124 million of available borrowing capacity. Montross said the company’s near-term priorities include safety, maintaining a focus on margins, pursuing strategic acquisitions, implementing cost efficiencies and returning capital to shareholders when acquisition opportunities are limited. Northwest Pipe Company, together with its subsidiaries, engages in the manufacture and supply of water-related infrastructure products in North America. It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast). The SPP segment offers large-diameter and high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. Its products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NWPX Infrastructure Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record financial results in Q2 2026 with net sales up 19.7% year-over-year to $159.5 million, driven by strength in water transmission systems. Consolidated gross profit increased 35.5% to $34.4 million, with gross margin expanding 250 basis points to 21.5%. Water transmission systems segment achieved record revenue of $113.2 million, up 33.8% year-over-year, with strong margin improvement of 360 basis points. Robust bidding activity and a healthy backlog of $423 million, with a substantial pipeline of over $125 million in pending projects. Strong free cash flow of $9.9 million, with full-year free cash flow outlook raised to $56-$65 million, reflecting improved profitability and working capital management. Precast segment revenue decreased 4.8% year-over-year to $46.3 million due to heavy rainfall in Texas and customer-driven project delays in Utah. Precast volume shipped declined 11% year-over-year, impacted by adverse weather and ongoing softness in the residential construction market. Uncertainty around future phases of the large unplanned NDA project, with no definitive visibility on additional awards. Steel costs continue to rise due to tariffs and supply constraints, potentially pressuring margins if not fully passed through. Precast gross profit slightly decreased 1.7% year-over-year, directly related to slow shipping months in April and May. Warning! GuruFocus has detected 6 Warning Signs with MAA. Is NWPX fairly valued? Test your thesis with our free DCF calculator. Q: Can you reconcile the strong Q2 WTS performance with the Q3 outlook of similar revenue quarter-over-quarter? Does this imply core WTS sales will step down sequentially?A: Scott Montross, President and CEO: No. In Q3 2025, WTS revenue was about $103 million. In Q2 2026, it was $113 million. If you remove the NDA project piece, the core business was about $105 million. We expect Q3 to be the biggest quarter of the year. We are a bit cautious due to crazy weather patterns in Texas, but we expect WTS and precast to be larger with better profitability than Q2. The base business will be a bit stronger than Q2 before adding the NDA piece. Q: How do you see current bidding levels for WTS and the backlog shaping up for the back half of 2026 and into 2027, especially as the unplanned NDA project winds down?A: Scott Montross, President and CEO: Bidding levels are very strong in Q3, at least as strong as Q2. We have a lot of pending awards. The bidding level this year is a bit stronger than 2025. In 2025, we bid about 138,000 tons. Excluding the NDA project, we are looking at 150,000 tons bidding this year, with improving economics and margins. Once the NDA project runs through (mostly by Q3 and early Q4), the WTS backlog will normalize to a normal range, likely between the low $300 million to mid $300 million, similar to the last few years. Q: What is driving the WTS margin improvement, and how sustainable are these gains?A: Scott Montross, President and CEO: In Q2, tons produced were up 26% year-over-year, and selling prices were up about 6%, which was a bit higher than steel cost increases. This resulted from better project pricing, a favorable project mix, and high production levels giving us better overhead absorption. We expect to see the same trend through the rest of the year. Demand has become relatively stable to upward trending, and the longer it stays that way, the higher margins should inch up. We expect these upward trends to continue into Q3 and potentially Q4. Q: On the precast side, can you discuss the improvement in June and the demand outlook for Q3?A: Scott Montross, President and CEO: After a slow April and May due to heavy rainfall in Texas, June came back strongly. Geneva had a record revenue month, and margins improved by about 60 basis points. The order book grew to about $61 million. We expect Q3 to have stronger revenue than last year with improving margins due to higher volume. While residential construction is down due to interest rates, nonresidential demand is improving, with the Dodge Momentum Index up 22% in both commercial and institutional sectors. We are looking at another record revenue year for precast in 2026. Q: You have ambitions for Precast to become comparable in size to WTS. What milestones, investments, and M&A criteria should we track?A: Scott Montross, President and CEO: We are looking for precast businesses similar to Geneva with similar or better margins and good asset efficiency. We prefer acquisitions close to existing plants, like Boughton Precast in Colorado. If opportunities are scarce, we will look further afield as long as the metrics are comparable or better and they have strong management. We are also evaluating adjacencies to precast for growth. We will add one plant at a time, consider greenfield sites, or look at ancillary businesses to infrastructure, precast, or WTS. This is a top priority for growth. Q: With steel prices up significantly, how did pricing only increase 6% in WTS when steel costs were up 24%?A: Scott Montross, President and CEO: The 6% increase in revenue per ton represents a higher dollar value than the 24% increase in steel cost per ton. Additionally, tons produced were up 26%, providing significant overhead absorption, which contributed more to margin improvement than steel. We have also seen a very favorable product mix, as we can be more selective with projects due to the strong backlog, picking those that best fit our cost position. Q: What is your view on steel costs for the remainder of the year?A: Scott Montross, President and CEO: Published steel prices are over $1,200 a ton and are likely to continue inching up due to tariffs limiting foreign supply. We saw steel reach almost $2,000 a ton during COVID. I think $1,400 a ton is a possible number, and it could go higher. The tariffs are convoluted, making it hard to predict the tipping point. We are fine with steel price increases as long as we can get steel, as it means higher project pricing and more gross profit dollars. Q: What is your plant utilization rate? Are you becoming constrained with the high volume?A: Scott Montross, President and CEO: We have 6 WTS plants across the country and are probably at about a 65% utilization rate. We run one shift on these plants, so we could add another shift. It gets harder to take business in areas that are already full, but we can move projects around. We are not even close to being filled to capacity. Q: SG&A was higher than expected in Q2. What is driving that, and what does it mean for the rest of the year?A: Aaron Wilkins, CFO: The main driver is incentive compensation and associated employee benefits, along with some pressure from professional fees. We are topping out on incentive comp, so I expect relatively consistent SG&A performance through Q3 and Q4. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NWPX Infrastructure (NWPX) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.81%. A quarter ago, it was expected that this steel pipe maker would post earnings of $0.68 per share when it actually produced earnings of $1.08, delivering a surprise of +58.82%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. NWPX Infrastructure, which belongs to the Zacks Steel - Speciality industry, posted revenues of $159.48 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.19%. This compares to year-ago revenues of $133.18 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NWPX Infrastructure shares have added about 102% since the beginning of the year versus the S&P 500's gain of 8.5%. While NWPX Infrastructure has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NWPX Infrastructure was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.50 on $167.6 million in revenues for the coming quarter and $4.97 on $597.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Steel - Speciality is currently in the top 2% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Metallus (MTUS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This maker of steel large bars and seamless mechanical tubing is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +30%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Metallus' revenues are expected to be $331.05 million, up 8.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NWPX Infrastructure, Inc. (NWPX) : Free Stock Analysis Report Metallus Inc. (MTUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record net sales of $159.5 million, up 19.7% year-over-year, and record gross profit of $34.4 million, up 35.5% year-over-year Record Water Transmission Systems segment ("WTS") net sales of $113.2 million, up 33.8% year-over-year, and record WTS gross profit of $24.2 million, up 60.9% year-over-year Precast Infrastructure and Engineered Systems segment ("Precast") net sales of $46.3 million, down 4.8% year-over-year, and Precast gross profit of $10.1 million, down 1.7% year-over-year Record second quarter net income of $15.8 million, or $1.62 per diluted share WTS backlog1 of $305 million; backlog including confirmed orders2 of $423 million Precast order book 3 of $61 million VANCOUVER, Wash., July 29, 2026 /PRNewswire/ -- NWPX Infrastructure, Inc. (NASDAQ: NWPX) ("NWPX Infrastructure" and the "Company"), a leading manufacturer of water-related infrastructure products, today announced its financial results for the second quarter ended June 30, 2026. The Company will broadcast its second quarter 2026 earnings conference call on Thursday, July 30, 2026 at 7:00 a.m. PT. Management Commentary "The second quarter of 2026 marked another outstanding quarter for NWPX Infrastructure as we delivered record financial results highlighted by revenue of $159.5 million, gross profit of $34.4 million, representing a 21.5% gross margin, and diluted earnings per share of $1.62," said Scott Montross, President and Chief Executive Officer of NWPX Infrastructure. "These results reflect the strength of our diversified business model and the disciplined execution of our long-term strategy." Mr. Montross continued, "Our Water Transmission Systems segment once again delivered exceptional performance, establishing new quarterly records with revenue of $113.2 million and gross profit of $24.2 million. Gross margin expanded 360 basis points over the prior-year quarter to 21.4%, demonstrating the continued benefits of disciplined project execution and favorable pricing. We also exited the quarter with WTS backlog including confirmed orders of approximately $423 million, supported by robust bidding activity throughout the quarter, which is continuing into the third quarter." "In our Precast Infrastructure and Engineered Systems segment, the quarter began slower than anticipated as unusually heavy rainfall in Texas and customer-driven project delays at our Utah facilities impacted activity during April and May. However, business conditions improved significantly during June, allowing the segment to finish the quarter with strong momentum. Gross margins improved 70 basis points compared to the second quarter of 2025, and our order book ended the quarter at $61 million, positioning the business well for the remainder of the year." Mr. Montross concluded, "Looking ahead, we expect performance in the third quarter of 2026 to be comparable to, or stronger than, the second quarter of 2026. Demand across our end markets remains healthy, bidding activity continues at elevated levels, and our Precast business is carrying positive momentum into the second half of the year. As a result, 2026 is shaping up to be a historic year for NWPX Infrastructure." Second Quarter 2026 Financial Results Consolidated Net sales increased 19.7% to $159.5 million from $133.2 million in the second quarter of 2025. Gross profit increased 35.5% to $34.4 million, or 21.5% of net sales, from $25.4 million, or 19.0% of net sales, in the second quarter of 2025. Net income increased 74.7% to $15.8 million, or $1.62 per diluted share, compared to $9.1 million, or $0.91 per diluted share, in the second quarter of 2025. The second quarter 2026 marked the highest net income in the Company's history aside from the third quarter of 2018 which included a $21.9 million bargain purchase gain associated with the acquisition of Ameron Water Transmission Group, LLC.4 Water Transmission Systems Segment (WTS) WTS net sales increased 33.8% to $113.2 million from $84.6 million in the second quarter of 2025 driven by a 26% increase in tons produced resulting from changes in project timing and a 6% increase in selling price per ton due to changes in product mix. WTS gross profit increased 60.9% to $24.2 million, or 21.4% of WTS net sales, from $15.1 million, or 17.8% of WTS net sales, in the second quarter of 2025 due to increased volume, including related operational efficiency gains, and favorable project pricing and product mix. WTS backlog was $305 million as of June 30, 2026, compared to $373 million as of March 31, 2026, and $298 million as of June 30, 2025. Backlog including confirmed orders was $423 million as of June 30, 2026, compared to $430 million as of March 31, 2026, and $348 million as of June 30, 2025. Precast Infrastructure and Engineered Systems Segment (Precast) Precast net sales decreased 4.8% to $46.3 million from $48.6 million in the second quarter of 2025 driven by an 11% decrease in volume shipped partially offset by a 7% increase in selling prices primarily due to changes in product mix. Precast gross profit decreased 1.7% to $10.1 million, or 21.9% of Precast net sales, from $10.3 million, or 21.2% of Precast net sales, in the second quarter of 2025. Precast order book was $61 million as of June 30, 2026, compared to $55 million as of March 31, 2026, and $56 million as of June 30, 2025. Balance Sheet and Cash Flow As of June 30, 2026, the Company had no outstanding revolving loan borrowings and additional borrowing capacity of approximately $124 million under the revolving credit facility. Net cash provided by operating activities was $14.1 million in the second quarter of 2026 compared to $5.4 million in the second quarter of 2025 primarily due to a $7.5 million increase in net income adjusted for noncash items and a $1.1 million increase in cash from changes in working capital. Capital expenditures were $4.2 million in the second quarter of 2026 compared to $3.5 million in the second quarter of 2025. Conference Call Details A conference call and simultaneous webcast to discuss the Company's second quarter 2026 financial results will be held on Thursday, July 30, 2026, 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.nwpx.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, August 13, 2026, by dialing 1‑844‑512‑2921 in the U.S. or 1‑412‑317‑6671 internationally and entering the replay access code: 13761312. About NWPX Infrastructure 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, lined precast sanitary sewer system structures, water distribution and management equipment including pump lift stations, wastewater pretreatment, and stormwater quality products. The Company has broadened its manufacturing footprint by bringing lined and engineered precast products into production at additional facilities. This increases the Company's capacity and improves regional availability. 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, the Company operates 14 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 and other costs central to producing and shipping our products, excess or shortage of production capacity, product quality assurance failures that result in decreased sales and operating margin, product returns, product liability, warranty, or other claims, 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 organic and inorganic initiatives 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, increased use of artificial intelligence by us and our competitors, as well as related legal and regulatory requirements, 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, delays or reductions in state or local government spending due to revisions to federal appropriations brought on by policy changes, staffing levels or the inability to pass budget reconciliation legislation, adequacy of the Company's insurance coverage, supply chain challenges, the Company's ability to attract and retain talented employees, 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, effectiveness of future implementations or conversions of enterprise resource planning or other key systems, 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, 2025 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 WilkinsChief Financial OfficerNWPX [email protected] Or Addo Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/nwpx-infrastructure-announces-second-quarter-2026-financial-results-302838109.html

Financial results to be released after market close on July 29, 2026 Conference call to begin at 7:00 a.m. PT on July 30, 2026 VANCOUVER, Wash., July 15, 2026 /PRNewswire/ -- NWPX Infrastructure, Inc. (NASDAQ: NWPX) ("NWPX Infrastructure" and the "Company"), a leading manufacturer of water-related infrastructure products, announced today that it intends to release its financial results for the second quarter ended June 30, 2026, on Wednesday, July 29, 2026. Scott Montross, NWPX Infrastructure's President and Chief Executive Officer, and Aaron Wilkins, Senior Vice President and Chief Financial Officer, will host a conference call to discuss the Company's second quarter 2026 results on Thursday, July 30, 2026, at 7:00 a.m. Pacific Time. The call will be broadcast live over the Internet hosted on the Investor Relations section of the Company's website at www.nwpx.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, August 13, 2026, by dialing 1-844-512-2921 in the U.S. or 1-412-317-6671 internationally and entering the replay access code: 13761312. About NWPX Infrastructure 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, lined precast sanitary sewer system structures, water distribution and management equipment including pump lift stations, wastewater pretreatment, and stormwater quality products. The Company has broadened its manufacturing footprint by bringing lined and engineered precast products into production at additional facilities. This increases the Company's capacity and improves regional availability. 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, the Company operates 14 manufacturing facilities across North America. For more information, please visit www.nwpx.com. Contact: Aaron Wilkins Chief Financial Officer NWPX Infrastructure, Inc.(360) 397-6294 [email protected] Or Addo Investor Relations [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/nwpx-infrastructure-to-release-second-quarter-2026-financial-results-on-july-29-302826758.html