NWPX Infrastructure (NWPX) Q1 2026 earnings summary

Executive summary

• Net sales rose 19.1% year-over-year to $138.3 million for Q1 2026, with record gross profit of $26.7 million and strong growth in both Water Transmission Systems (WTS) and Precast segments.

• Net income increased to $10.5 million ($1.08 per diluted share), more than doubling from $4.0 million ($0.39 per share) in the prior year.

• WTS and Precast segments delivered record sales, gross profit, and margin expansion, with WTS backlog reaching $430 million and Precast order book at $55 million.

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

• Gross margin improved to 19.3% from 16.7% year-over-year; operating income more than doubled to $12.7 million from $5.6 million.

• WTS net sales up 19.1% to $93.5 million; Precast net sales up 18.9% to $44.8 million year-over-year.

• 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, with consistent annual free cash flow.

• SG&A expenses were $14 million (10.1% of sales), with full-year guidance of $53–$55 million.

Outlook and guidance

• Management expects 2026 to be a record year, with strong momentum, robust bidding activity, and a significant unplanned WTS project.

• Backlog and order book anticipated to remain elevated, supporting strong revenue and profitability visibility.

• Capital expenditures for 2026 projected at $20–$24 million, including investments in precast growth initiatives.

• 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.