NWPX CEO Says Filling The Gap Left By Its Biggest Project In 2027 Is 'A Tall Order'
Scott Montross says a record $435 million backlog and heavy bidding may not fully replace a one-off project that drove $31 million of third-quarter sales.
NWPX Infrastructure, which makes large-diameter steel water pipe and precast concrete products, cannot promise it will replace the revenue from a one-off project that wraps up soon, CEO Scott Montross told analysts on the company's third-quarter earnings call. Asked whether backlog could hold water transmission revenue at least flat in 2027, he said filling the hole is "a tall order" but "not completely impossible."
A $56 million project winds down
Montross put the total value of the so-called NDA project at "right around $56 million." About $40 million was done through the second and third quarters, and some of the remaining $16 million should come in the fourth quarter, depending on how fast the contractor can take delivery. Some may spill into the start of next year.
The project generated about $31 million of revenue in the third quarter, the company said. Rumors of follow-on projects have not turned into anything yet, Montross said, and further work will depend on "the administration and what their stance on those things are."
The company is not giving 2027 guidance. Montross said the answer hinges on fourth-quarter bidding and on steel prices, and added, "I'm not going to say that we're going to fill all this in at this point."
Record backlog and breakneck bidding
The water transmission backlog, including confirmed orders, ended the quarter at a record $435 million, according to the company's third-quarter results. That compares with $423 million at June 30 and $301 million a year earlier. Montross said the company converted about $144 million of work into backlog in the third quarter, its biggest bidding quarter of the year.
The fourth quarter is the second biggest bidding quarter for water transmission, and Montross called the pace "breakneck." He said the company will carry an order book into 2027 in which "most of this stuff" is already booked.
Without the NDA project, nine-month water transmission revenue would have been about 10% above the same period of 2025, he said. Net sales rose 18.7% to a record $179.4 million, and net income rose 35% to $18.2 million, or $1.86 per diluted share.
Precast, data centers and what is next
Precast revenue edged up 0.6% to $47.5 million as some customers delayed shipments. Montross said the company expects a steady fourth quarter and stronger consolidated performance than in the fourth quarter of 2025. Full-year free cash flow is now expected at $62 million to $72 million, said CFO Aaron Wilkins.
The next earnings call is expected in February or early March, Montross said.
Fourth-quarter water transmission bidding, which Montross expects to be the year's second biggest, will show how much of 2027 is already booked.
Sources
- NWPX Infrastructure Announces Third Quarter 2026 Financial Results — Yahoo Finance
- ex_996700.htm — sec.gov
- NWPX Infrastructure (NWPX) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates — Yahoo Finance
- Northwest Pipe (NASDAQ:NWPX) delivers strong Q3 2026 numbers — Yahoo Finance
- NWPX Infrastructure: Q3 Earnings Snapshot — Associated Press
