NWPX Infrastructure Posts Record $179.4 Million Quarter As Water Pipe Sales Climb 27%
The water-infrastructure maker's net income rose 35.0% to $18.2 million, and management expects a stronger fourth quarter than a year ago.
NWPX Infrastructure, which makes water-related infrastructure products, reported record third-quarter net sales of $179.4 million, up 18.7% from $151.1 million a year earlier, in results released Wednesday. Net income rose 35.0% to $18.2 million, and management said it expects a fourth quarter stronger than last year's.
Pipe sales drive the record
Gross profit rose 18.8% to a record $38.2 million, holding at a 21.3% margin. Earnings came to $1.86 per diluted share, against $1.38 a year earlier, the company reported.
The Water Transmission Systems segment, which makes large-diameter steel pipe, joints and fittings mainly for drinking water systems, did the heavy lifting. Its sales climbed 27.0% to $131.9 million, helped by a 19% rise in selling price per ton from product mix and a 7% increase in tons produced from project timing. Segment gross profit rose 23.4% to $27.3 million, though gross margin slipped to 20.7% from 21.3% on mix.
Backlog including confirmed orders hit a record $435 million, up from $423 million at June 30 and $301 million a year earlier, even after $31.0 million of revenue was recognized on one project in the quarter. Signed backlog alone fell to $264 million from $305 million at June 30.
Precast flat, acquisitions fill the gap
The Precast Infrastructure and Engineered Systems segment, which makes precast concrete pipe, manholes, vaults and stormwater products, grew sales 0.6% to $47.5 million. Boughton's Precast and Serpentix together added $2.1 million, offsetting a 9% drop in volume shipped at legacy facilities. Gross margin improved to 22.9%, and the order book rose to $67 million from $55 million a year earlier.
The company completed its purchase of Serpentix, a maker of conveyor systems used mainly in municipal wastewater plants, on September 2, 2026. It followed the February 2026 Boughton deal. CEO Scott Montross called data center demand "an attractive opportunity" for the segment.
Cash, debt and the outlook
Operating cash flow was $27.4 million for the quarter, versus $21.0 million a year earlier. The company had $18.5 million drawn on its revolving credit line and about $105 million of additional borrowing capacity at September 30.
Montross said that despite two major holidays and weather disruptions, the company anticipates a fourth quarter stronger than both the fourth quarter of 2025 and the first quarter of 2026. He expects WTS backlog to stay elevated through year-end and Precast to remain steady.
Management holds its earnings call Thursday, October 29, at 7:00 a.m. Pacific time.
