NWPX Infrastructure Q3 sales beat estimates on water transmission systems segment strength

Overview

• U.S. water infrastructure maker's Q3 sales rose 18.7%, beating analyst expectations

• Net income for Q3 rose 35% yr/yr to $18.2 mln, with diluted EPS at $1.86

• On September 2nd the company completed acquisition of Serpentix Conveyor, expanding engineered systems segment

Outlook

• NWPX Infrastructure expects Q4 performance to exceed Q4 2025 and Q1 2026

• Company expects WTS backlog to remain elevated through year-end, supported by demand for water infrastructure

• Precast business is expected to remain steady through year-end

Result Drivers

• WTS SEGMENT GROWTH - Water Transmission Systems segment sales rose 27% yr/yr, driven by a 19% increase in selling price per ton and a 7% rise in tons produced due to changes in project timing

• PRECAST SEGMENT ACQUISITIONS - Precast segment sales were up 0.6% yr/yr, with acquisitions of Boughton and Serpentix contributing $2.1 mln in net sales, partially offset by a 9% decrease in volume at legacy facilities

• PRODUCT MIX IMPACT - Changes in product mix contributed to higher selling prices in WTS and improved gross margin in Precast, but led to a slight decrease in WTS gross margin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy."

• Wall Street's median 12-month price target for NWPX Infrastructure, Inc. is $108.00, about 8.2% above its October 27 closing price of $99.84

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance

• Oct 27 - Zurn Elkay Water Solutions Q3 sales rise on product category growth

• Oct 27 - Engineered components maker Crane's Q3 sales beat, partly on acquisitions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)