Highlights

  • Second quarter 2026 net sales were $159.5 million, compared with $133.2 million, and net income was $15,834 thousand, compared with $9,063 thousand.
  • Diluted net income per share was $1.62 for the second quarter, compared with $0.91 in the second quarter of 2025.
  • Water Transmission Systems backlog was $305 million as of June 30, 2026, with approximately 53% expected to be recognized in 2026.
  • Management raised its 2026 free cash flow outlook to $56 million to $65 million from $50 million to $56 million.

NWPX Infrastructure, Inc. (NASDAQ: NWPX) shares were trading at USD 99.15 on October 27, 2026, up 2.36%, with a relative volume at time of 2.39. The water infrastructure manufacturer completed the acquisition of Boughton's Precast in Pueblo, Colorado on February 23, 2026, and filed its quarterly report for the period ended June 30, 2026 on July 30, 2026, along with a raised 2026 free cash flow outlook from management.

NWPX Infrastructure is incorporated in Oregon and is headquartered in Vancouver, Washington. It makes water-related infrastructure products and operates two segments: Water Transmission Systems, under the Northwest Pipe Company brand, and Precast Infrastructure and Engineered Systems. The Water Transmission Systems segment produces steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings, and the Precast segment makes reinforced precast concrete and stormwater products. The company operates 14 manufacturing facilities across North America.

Second Quarter Results

Net sales were $159.5 million in the second quarter of 2026, up 19.7% from $133.2 million in the second quarter of 2025. Water Transmission Systems net sales were $113,199 thousand, compared with $84,588 thousand, and Precast net sales were $46,277 thousand, compared with $48,594 thousand. The company said a $57 million confidential project awarded earlier in 2026 contributed $8.4 million of revenue in the quarter.

Gross profit was $34.4 million, or 21.5% of net sales, compared with $25.4 million, or 19.0%. Water Transmission Systems gross profit was $24.2 million, up 60.9%, which the company attributed to increased volume, operational efficiency gains, and project pricing and product mix. Precast gross profit was $10.1 million, down 1.7% from $10.3 million.

Selling, general and administrative expense was $13.2 million, up 8.9%, primarily due to $0.7 million in higher incentive compensation expense. Operating income was $21,151 thousand, compared with $13,236 thousand. Net income was $15,834 thousand, or $1.62 per diluted share, compared with $9,063 thousand, or $0.91.

First Six Months, Backlog and Balance Sheet

For the first six months of 2026, net sales were $297.7 million, compared with $249.3 million, and net income was $26,368 thousand, or $2.69 per diluted share, compared with $13,027 thousand, or $1.30. Net cash provided by operating activities was $43.3 million, compared with $10.3 million. The Boughton acquisition used $8.9 million, net of cash acquired.

Cash and cash equivalents were $19.3 million at June 30, 2026, compared with $2.3 million at December 31, 2025. The company had no outstanding revolving loan borrowings, $10.0 million of long-term debt, $90.6 million of operating lease liabilities and $7.5 million of finance lease liabilities.

Water Transmission Systems backlog was $305 million as of June 30, 2026. The company expects to recognize approximately 53% of the remaining performance obligations in 2026, 33% in 2027 and the balance thereafter.

Risks and Contingencies

The company disclosed that it was notified in 2000 of potential liability under CERCLA related to the Portland Harbor Superfund Site. A complaint filed in 2017 by the Confederated Tribes and Bands of the Yakama Nation against potentially responsible parties, including the company, seeks cost recovery and compensation for natural resources damages. The case has been stayed, and the company said it does not have sufficient information to determine the likelihood of a loss or the amount of damages that could be allocated to it. The company said it cannot provide assurance that its insurance policies will cover all costs.

Outlook

On its second quarter call, management said it expects consolidated third quarter performance to be comparable to or stronger than the second quarter of 2026. It expects full-year 2026 free cash flow of $56 million to $65 million, raised from $50 million to $56 million, capital expenditures of $20 million to $24 million, SG&A expense of $54 million to $56 million, depreciation and amortization of $21 million to $23 million, and an effective tax rate of 24% to 26%.