NWPX Posts Record $179.4 Million in Net Sales in Third Quarter
Key Facts
NWPX Infrastructure reported record net sales of $179.4 million for the quarter ended September 30, 2026, up 18.7% from $151.1 million in the same period of 2025. Net income rose 35% to $18.2 million, or $1.86 per diluted share, compared with $13.5 million and $1.38 per share a year earlier. The company reported results on October 28 and said gross profit increased 18.8% to $38.2 million. But gross margin remained at 21.3%, unchanged from the third quarter of 2025. The results reflect uneven growth across its two segments, with water transmission systems driving the increase while shipment volumes at legacy precast infrastructure facilities remained under pressure.
Sales in the Water Transmission Systems (WTS) segment rose 27% to $131.9 million, from $103.9 million a year earlier. The company attributed the increase to a 19% rise in selling price per ton because of product mix, and a 7% increase in tons produced due to project timing. In the second quarter, segment sales were $113.2 million, up 33.8% year over year, with production up 26% and prices up 6%. The comparison shows the segment continued to expand in the third quarter, although annual sales growth was slower than in the previous quarter. After its second-quarter results, management had forecast third-quarter results to be comparable or stronger, amid healthy demand and elevated bidding activity.
Signed WTS backlog stood at about $264 million on September 30, down from $305 million on June 30, but above $257 million on September 30, 2025. Including confirmed orders, the total reached $435 million, compared with $423 million at the end of June and $301 million a year earlier. The company says confirmed orders relate to projects for which it has been notified that it won the bid, but for which no binding agreement has yet been signed; that figure therefore differs from the value of signed contracts alone. Signed backlog was $305 million at the end of the second quarter, compared with $373 million on March 31 and $298 million a year earlier. Total orders, including confirmed orders, stood at $423 million at the end of June, making the latest backlog reading one of a quarterly decline in signed contracts against an annual increase in the broader total.
In the precast infrastructure and engineered systems segment, sales increased 0.6% to $47.5 million, despite a 9% decline in shipment volume at legacy facilities. The acquisitions of Boughton's Precast and Serpentix contributed sales of $2.1 million, offsetting some of the decline in activity at existing facilities. In the second quarter, segment sales fell 4.8% to $46.3 million, as an 11% decline in shipments was partly offset by a 7% increase in prices. Unusually heavy rain in Texas and project delays at Utah facilities affected activity during April and May, before working conditions improved clearly in June. On September 2, the company completed its acquisition of Serpentix, a manufacturer of engineered conveyor systems used primarily at municipal wastewater treatment plants and industrial facilities.
Net cash from operating activities rose to $27.4 million in the third quarter, from $21.0 million in the same period of 2025. This came alongside higher earnings, while gross margin held at its year-earlier level. In July, Chief Executive Scott Montross said second-quarter results reflected the strength of the diversified business model and disciplined execution of the long-term strategy. He also said demand across end markets remained healthy and bidding activity stayed elevated, adding that "2026 is shaping up to be a historic year for NWPX Infrastructure." Third-quarter results show continued expansion in water sales, alongside a slight improvement in the other segment's sales thanks to contributions from the two acquisitions.
Management expects fourth-quarter 2026 performance to be stronger than in the fourth quarter of 2025 and the first quarter of 2026, with WTS orders remaining elevated through year-end and Precast business stable. The earnings conference call was scheduled for Thursday, October 29, 2026, at 7:00 a.m. Pacific time. The forecast follows net sales of $159.5 million in the second quarter, up 19.7% from a year earlier, and the company then setting a new record in the third quarter. After its second-quarter results, management said 2026 could be a historic year, citing healthy demand and continued elevated bidding activity. The fourth-quarter outlook pairs continued strength in the water segment with an expectation of stability in the precast infrastructure segment.