NWPX Infrastructure (NWPX) Q1 2026 earnings summary

Executive summary

• Delivered record first quarter results in 2026, with net sales up 19.1% to $138.3 million and record gross profit of $26.7 million, driven by strong growth in both Water Transmission Systems (WTS) and Precast segments.

• Net income more than doubled to $10.5 million ($1.08 per share), with free cash flow at $25.7 million and robust operational execution.

• WTS backlog hit a record $430 million, up from $346 million at year-end and $289 million a year ago; Precast order book at $55 million.

• Completed acquisition of Boughton's Precast in Colorado, expanding geographic reach and supporting strategic growth.

• Strategic acquisitions and organic growth initiatives have more than tripled company size since 2018, with a 17% CAGR in revenue over seven years.

Financial highlights

• Net sales increased 19.1% to $138.3 million; WTS sales up 19.1% to $93.5 million; Precast sales up 18.9% to $44.8 million.

• Gross profit rose 37.7% to $26.7 million (19.3% margin); WTS gross profit up 42.3% to $17.3 million (18.5% margin); Precast gross profit up 30% to $9.3 million (20.9% margin).

• Consolidated net income was $10.5 million, up from $4 million year-over-year; diluted EPS was $1.08, up from $0.39.

• Net cash provided by operating activities was $29.3 million, up from $4.8 million year-over-year; cash and cash equivalents increased to $14.3 million.

• Free cash flow guidance raised to $50–$56 million for 2026; consistent annual free cash flow with $47.1 million in 2025.

Outlook and guidance

• Management expects 2026 to be a record year, with higher WTS and Precast revenue and margins in Q2 2026, supported by robust backlog, strong bidding activity, and a significant new project.

• Full-year bidding levels and backlog anticipated to remain elevated, supporting strong visibility and historic profitability.

• Expected to capitalize on increased demand from federal and state water infrastructure funding, including IIJA allocations.

• Continued focus on margin over volume, operational efficiencies, and strategic expansion through acquisitions.

• CapEx expected at $20–$24 million for 2026, including $6 million for precast growth initiatives.