NWPX Infrastructure (NWPX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with net sales of $159.5 million (up 19.7% year-over-year), gross profit of $34.4 million (up 35.5%), and net income of $15.8 million ($1.62 per diluted share, up 74.7%), driven by strong Water Transmission Systems (WTS) performance and resilient Precast operations.

• WTS segment set new records with $113.2 million in net sales (up 33.8%) and $24.2 million in gross profit (up 60.9%), while Precast segment saw net sales decline 4.8% to $46.3 million, with gross profit at $10.1 million.

• Strategic growth supported by acquisitions (Geneva Pipe, ParkUSA, Boughton Precast), robust backlogs, and healthy bidding activity.

• Positioned to benefit from significant federal and state infrastructure investments and rising demand for water system upgrades.

• Operates 14 manufacturing facilities across North America, focusing on water transmission and precast infrastructure for water, wastewater, and stormwater systems.

Financial highlights

• Q2 2026 consolidated net income was $15.8 million, up from $9.1 million year-over-year; diluted EPS reached $1.62, the highest in company history.

• Gross margin improved to 21.5% (up 250 bps year-over-year); WTS gross margin at 21.4% (up 360 bps), Precast at 21.9% (up 70 bps).

• Cash and equivalents rose to $19.3 million; net cash position of $9.3 million with no outstanding credit facility borrowings.

• Operating cash flow was $14.1 million, up 159% year-over-year; CapEx for the quarter was $4.2 million.

• Q2 2026 backlog for WTS at $423 million; Precast order book at $61 million.

Outlook and guidance

• Q3 2026 performance expected to be comparable to or stronger than Q2, with both segments positioned for year-over-year growth and improving margins.

• Full-year free cash flow outlook raised to $56–$65 million; CapEx guidance for 2026 is $20–$24 million.

• Management expects to benefit from federal infrastructure spending, though timing of project funding remains a risk.

• Effective tax rate for 2026 expected at 24–26%.

• Strategic focus on expanding Precast to match WTS business size and continued pursuit of accretive acquisitions.