NWPX Infrastructure Q3 Net Sales Rise 18.7% to Record $179.4 Million

NWPX Infrastructure, Inc. (NWPX ) reported record net sales of $179.4 million for the third quarter ended September 30, 2026, an increase of 18.7% from $151.1 million in the same period of 2025, according to the company’s third-quarter 2026 earnings release issued October 28, 2026. The Vancouver, Washington-based manufacturer of water-related infrastructure products also reported record gross profit of $38.2 million, up 18.8% from $32.2 million a year earlier, and net income of $18.2 million, or $1.86 per diluted share, up 35.0% from $13.5 million, or $1.38 per diluted share.

Gross profit represented 21.3% of net sales in both the third quarter of 2026 and the prior-year quarter. Operating income was $24.3 million compared with $19.0 million a year earlier, while selling, general, and administrative expense was $13.9 million compared with $13.1 million. Income tax expense was $5.7 million compared with $4.7 million. The company stated the quarter produced the highest net income in its history aside from the third quarter of 2018, which included a $21.9 million bargain purchase gain associated with the acquisition of Ameron Water Transmission Group, LLC.

Segment Results

Water Transmission Systems segment net sales increased 27.0% to a record $131.9 million from $103.9 million in the third quarter of 2025, driven by a 19% increase in selling price per ton due to changes in product mix and a 7% increase in tons produced resulting from changes in project timing, the company reported. Segment gross profit rose 23.4% to a record $27.3 million, or 20.7% of segment net sales, from $22.1 million, or 21.3%, a year earlier. The company attributed the increase to higher volume and selling prices, which it said have risen in line with input costs, and attributed the gross margin decrease to changes in product mix.

Water Transmission Systems backlog stood at $264 million as of September 30, 2026, compared with $305 million as of June 30, 2026, and $257 million as of September 30, 2025. Backlog including confirmed orders reached a record $435 million, compared with $423 million and $301 million on those respective dates. The company defines backlog as the balance of remaining performance obligations under signed segment contracts for which revenue is recognized over time, and confirmed orders as projects for which it has been notified it is the successful bidder but a binding agreement has not been executed; it presents backlog including confirmed orders as a non-GAAP financial measure. President and Chief Executive Officer Scott Montross said the company recognized $31.0 million in revenue associated with its NDA project during the quarter.

Precast Infrastructure and Engineered Systems net sales increased 0.6% to $47.5 million from $47.2 million. The company said the acquisitions of Boughton’s Precast, Inc. and Serpentix together contributed $2.1 million in net sales, partially offset by a 9% decrease in volume shipped at legacy Precast facilities. Segment gross profit increased 8.6% to $10.9 million, or 22.9% of segment net sales, from $10.0 million, or 21.3%, primarily due to changes in product mix.

The Precast order book was $67 million as of September 30, 2026, compared with $61 million as of June 30, 2026, and $55 million as of September 30, 2025. Serpentix contributed $10 million to the order book, including $8 million of remaining performance obligations for which revenue is recognized over time. Montross pointed to an approximate 160-basis-point improvement in Precast gross margin and said the company is “particularly encouraged by the continued growth of our data center business” within the segment.

Balance Sheet and Nine-Month Results

As of September 30, 2026, the company had $18.5 million of outstanding revolving loan borrowings and additional borrowing capacity of approximately $105 million under its revolving credit facility. Net cash provided by operating activities was $27.4 million in the third quarter, compared with $21.0 million a year earlier, an increase the company attributed primarily to a $5.6 million increase in net income adjusted for noncash items and a $0.8 million increase in net cash provided by changes in working capital. Capital expenditures were $7.0 million, compared with $7.8 million in the third quarter of 2025.

For the nine months ended September 30, 2026, net sales were $477.1 million, compared with $400.4 million in the prior-year period, and net income was $44.6 million, or $4.55 per diluted share, compared with $26.5 million, or $2.66 per diluted share. Net cash provided by operating activities for the nine months was $70.7 million, compared with $31.3 million. Cash used for the acquisition of businesses, net of cash acquired, was $58.6 million. Total assets were $694.6 million at September 30, 2026, compared with $579.6 million at December 31, 2025, and goodwill was $83.3 million, compared with $55.5 million at the end of 2025.

The company completed its acquisition of Serpentix Conveyor, LLC on September 2, 2026. Serpentix manufactures engineered conveyor systems used primarily in municipal wastewater treatment plants and industrial manufacturing facilities. The transaction was NWPX Infrastructure’s second acquisition of 2026, following the February 2026 acquisition of Boughton.

Looking ahead, Montross said the company currently anticipates stronger fourth-quarter performance than both the fourth quarter of 2025 and the first quarter of 2026, despite the typical impact of two major holidays and weather-related disruptions. He said the company expects Water Transmission Systems backlog to remain elevated through year-end, supported by continued demand for critical water infrastructure, while the Precast business is expected to remain steady.

The company will hold a conference call and simultaneous webcast to discuss the results on Thursday, October 29, 2026, at 7:00 a.m. Pacific Time, broadcast live on the investor-relations section of its website. A replay will be available approximately three hours after the call and will remain available until Thursday, November 12, 2026.

Founded in 1966 and headquartered in Vancouver, Washington, NWPX Infrastructure operates 15 manufacturing facilities across North America. Under the Northwest Pipe Company brand, the company describes itself as the largest manufacturer of engineered water transmission systems in North America; its products include steel casing pipe, bar-wrapped concrete cylinder pipe, pipeline system joints and fittings, reinforced precast concrete products, and wastewater pretreatment and conveyor systems.