NWPX Infrastructure reported record third-quarter sales and gross profit, with earnings rising 35% from a year earlier as its Water Transmission Systems business delivered strong growth. The Vancouver-based manufacturer also pointed to record water-system orders including confirmed bids, completed its second acquisition of 2026, and said it expects stronger performance in the fourth quarter than in either the year-earlier quarter or the first quarter of 2026.
Third-quarter results
- Net sales rose 18.7% to $179.4 million from $151.1 million a year earlier. Gross profit increased 18.8% to $38.2 million, while the gross margin held at 21.3%.
- Net income climbed 35% to $18.2 million, or $1.86 per diluted share, compared with $13.5 million, or $1.38 per share, in the third quarter of 2025. It was the company’s highest quarterly net income apart from the third quarter of 2018, when results included a $21.9 million gain from an acquisition.
Water Transmission Systems
- WTS sales rose 27% to a record $131.9 million. The increase reflected a 19% rise in selling price per ton, driven by product mix, and a 7% increase in tons produced, which NWPX attributed to project timing.
- WTS gross profit grew 23.4% to a record $27.3 million. Its gross margin eased to 20.7% from 21.3% a year earlier, as product mix offset the benefit of higher volume and selling prices.
- WTS backlog under signed contracts was $264 million at September 30, up from $257 million a year earlier but down from $305 million at the end of June. Including projects for which NWPX has been notified it is the successful bidder but has not yet signed a contract, the total was a record $435 million. That compares with $301 million a year earlier and $423 million at June 30.
- NWPX said it recognized $31 million of revenue during the quarter from its NDA project, while the broader WTS backlog including confirmed orders still increased from the prior quarter.
Precast and acquisitions
- Precast sales edged up 0.6% to $47.5 million. The Boughton and Serpentix acquisitions contributed a combined $2.1 million in sales, partly offset by a 9% decline in shipments from legacy Precast facilities.
- Precast gross profit rose 8.6% to $10.9 million, and its gross margin improved to 22.9% from 21.3%, primarily because of product mix. Its order book was $67 million at quarter-end, compared with $55 million a year earlier and $61 million at June 30.
- NWPX completed its acquisition of Serpentix Conveyor on September 2. Serpentix makes engineered conveyor systems used mainly at municipal wastewater treatment plants and industrial manufacturing facilities. It was the company’s second acquisition this year, following Boughton in February.
Cash, outlook and business context
- Operating cash flow was $27.4 million, up from $21 million a year earlier. Capital expenditures were $7 million, compared with $7.8 million.
- At September 30, NWPX had $18.5 million drawn on its revolving credit facility and approximately $105 million of additional borrowing capacity.
- Management said it expects fourth-quarter performance to exceed both the fourth quarter of 2025 and the first quarter of 2026, despite the usual holiday and weather disruptions. It expects WTS backlog to remain elevated through year-end and Precast to remain steady.
- Management also highlighted continued growth in its Precast data-center business as an attractive opportunity.
The quarter’s growth was concentrated in WTS, while Precast’s modest sales increase reflected acquisition contributions that more than offset weaker shipments at legacy facilities. The signed WTS backlog and confirmed-order total offer different measures of future work: the latter includes successful bids that do not yet have binding contracts.