Download PDF

1. Company Snapshot

1.a. Company Description

Northwest Pipe Company, together with its subsidiaries, manufactures and supplies water related infrastructure products in North America.It operates in two segments, Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems (Precast).The SPP segment offers large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems.


Its products are also used for hydroelectric power systems, wastewater systems, and other applications.In addition, this segment makes products for industrial plant piping systems and certain structural applications.The Precast segment provides precast and reinforced concrete products, including manholes, box culverts, vaults, catch basins, oil water separators, pump lift stations, biofiltration, and other environmental and engineered solutions.


The company sells its water infrastructure products primarily to installation contractors.Northwest Pipe Company was incorporated in 1966 and is headquartered in Vancouver, Washington.

Show Full description

1.b. Last Insights on NWPX

NWPX Infrastructure's recent performance was driven by strong Q3 earnings, beating estimates with $1.38 per share, and a 16% year-over-year increase in net sales to $151.1 million. The company's Water Transmission Systems segment saw a 20.9% increase in net sales. Additionally, NWPX achieved UL 508A certification for several products, streamlining approvals for projects with automated controls systems. Institutional investors, such as Advisors Asset Management Inc. and Boston Partners, have also shown confidence in the company by increasing their holdings.

1.c. Company Highlights

2. Northwest Pipe Company's Q3 2025 Earnings: A Record-Breaking Quarter

Northwest Pipe Company's third-quarter 2025 earnings call reported record-setting results, with consolidated net sales reaching $151.1 million, a 13.4% sequential and 16% year-over-year growth. Gross margin expanded by 230 basis points sequentially to 21.3%, and EPS grew to $1.38 per share, up 35% versus the prior year period. The company's Water Transmission Systems (WTS) segment delivered record net sales of $103.9 million, a 20.9% increase year-over-year. Consolidated gross profit increased 19% to $32.2 million or 21.3% of sales.

Publication Date: Nov -23

📋 Highlights
  • Record consolidated net sales:: Q3 2025 sales hit $151.1M, up 13.4% sequentially and 16% YoY.
  • WTS segment surge:: Generated $103.9M in net sales, a 20.9% YoY increase, driven by strong project demand and timing.
  • Gross margin expansion:: Rose 230 bps to 21.3%, with EPS reaching $1.38, a 35% YoY jump.
  • Operating cash flow and backlog:: $21M cash flow and $301M backlog, projected to stay above $300M through year-end.
  • Share repurchase activity:: $8M spent to buy back 186,000 shares at $42.90 average price.

Segment Performance

The WTS segment's strong performance was driven by favorable market dynamics, customer shipping requirements, project mix, and timing. The Precast segment's net sales reached $47.2 million, a 6.6% year-over-year increase. However, margins were impacted by increased depreciation at the Geneva business. The company expects margins to improve as the Exact 2500 machine reaches production levels and a second shift is added.

Cash Flow and Backlog

Operating cash flow was over $21 million during the quarter, and the company expects to generate free cash flow between $32 million and $37 million for the full year 2025. WTS backlog, including confirmed orders, stood at $301 million, and the company expects backlog levels to remain above $300 million through year-end. The water transmission business has become a "cash flow machine," with a focus on progress payments, prepayments, and material on hand payments, leading to a significant decrease in working capital days.

Outlook and Valuation

The company expects modest year-over-year growth in both revenue and margins in its precast business and revenue and margins for the WTS business to be similar to the year-ago period. With a P/E Ratio of 15.02 and an EV/EBITDA of 12.53, the market seems to have priced in a moderate growth outlook. The company's commitment to workforce safety, margin expansion, and executing strategic growth initiatives is expected to create long-term value for shareholders.

Growth Prospects

The state of Texas's Proposition 4, which dedicates $20 billion to water infrastructure over 20 years, is expected to benefit the company's water transmission systems business. The company has already seen $2.5 billion allocated to the Texas Water Development fund to support projects. Analysts estimate next year's revenue growth at 1.0%, but the company's strong backlog momentum and robust bidding activity may lead to better-than-expected growth.

3. NewsRoom

Card image cap

NWPX Geneva Named Utah "Manufacturer of the Year"

Dec -02

Source: prnewswire.com

Card image cap

Boston Partners Purchases 987 Shares of NWPX Infrastructure, Inc. $NWPX

Dec -01

Source: defenseworld.net

Card image cap

Advisors Asset Management Inc. Raises Holdings in NWPX Infrastructure, Inc. $NWPX

Dec -01

Source: defenseworld.net

Card image cap

NWPX Infrastructure Achieves UL 508A Certification for several NWPX Park Products

Nov -25

Source: prnewswire.com

Card image cap

NWPX or J: Which Is the Better Value Stock Right Now?

Nov -04

Source: zacks.com

Card image cap

NWPX Infrastructure (NWPX) Upgraded to Buy: What Does It Mean for the Stock?

Nov -04

Source: zacks.com

Card image cap

NWPX Infrastructure, Inc. (NWPX) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

Card image cap

NWPX Infrastructure (NWPX) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.07%)

6. Segments

Engineered Steel Pressure Pipe

Expected Growth: 1.2%

Northwest Pipe Company's Engineered Steel Pressure Pipe growth is driven by increasing demand for oil and gas infrastructure, rising investments in water transmission and wastewater management, and growing adoption of renewable energy sources. Additionally, the company's focus on innovative products and strategic acquisitions contribute to its 1.2% growth.

Precast Infrastructure and Engineered Systems

Expected Growth: 0.8%

Northwest Pipe Company's Precast Infrastructure and Engineered Systems segment growth of 0.8 is driven by increasing demand for sustainable and resilient infrastructure, government investments in transportation and water management projects, and the adoption of modular construction methods. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

7. Detailed Products

Engineered Steel Pipe

Custom-made steel pipes for industrial applications, including oil and gas, mining, and construction.

CML (Cement-Mortar Lined) Pipe

Steel pipes coated with a cement-mortar lining for corrosion protection and durability.

Lined and Coated Pipe

Steel pipes with specialized linings and coatings for corrosion protection and flow efficiency.

Piling and Foundation Products

Steel pipes and tubes for foundation construction, including piling, caissons, and bridge construction.

Tubular Products

Steel tubes and pipes for industrial applications, including mechanical tubing and pressure tubing.

8. Northwest Pipe Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Northwest Pipe Company is medium due to the availability of alternative materials such as PVC and concrete pipes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of the products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry and the need to compete on price and quality.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.44%
Debt Cost 4.75%
Equity Weight 82.56%
Equity Cost 8.79%
WACC 8.09%
Leverage 21.12%

11. Quality Control: Northwest Pipe Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Insteel Industries

A-Score: 6.5/10

Value: 5.3

Growth: 4.3

Quality: 6.2

Yield: 9.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Northwest Pipe

A-Score: 5.2/10

Value: 6.2

Growth: 6.6

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Proto Labs

A-Score: 4.7/10

Value: 3.2

Growth: 3.9

Quality: 6.5

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
CompoSecure

A-Score: 4.5/10

Value: 6.5

Growth: 0.9

Quality: 5.6

Yield: 1.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Mayville Engineering Company

A-Score: 4.2/10

Value: 7.1

Growth: 7.4

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Tredegar

A-Score: 3.8/10

Value: 5.5

Growth: 1.0

Quality: 2.4

Yield: 2.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

59.7$

Current Price

59.7$

Potential

-0.00%

Expected Cash-Flows