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Northwest Pipe (NWPX)
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Northwest Pipe Company (NWPX) AI Stock Analysis

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NWPX

Northwest Pipe Company

(NASDAQ:NWPX)

Rating:72Outperform
Price Target:
$57.00
▲(12.07% Upside)
Northwest Pipe Company receives a strong overall score driven by robust financial performance and positive sentiment from the latest earnings call. The company's strategic initiatives and backlog growth are promising, despite some challenges in specific segments. Technical indicators suggest bullish momentum, but caution is advised due to overbought signals. The valuation is attractive for growth investors, further supporting the stock's potential.

Northwest Pipe Company (NWPX) vs. SPDR S&P 500 ETF (SPY)

Northwest Pipe Company Business Overview & Revenue Model

Company DescriptionNorthwest 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.
How the Company Makes MoneyNorthwest Pipe Company generates revenue primarily through the sale of its water transmission and infrastructure products. Key revenue streams include the manufacturing and distribution of steel and reinforced concrete pipe, as well as custom fabrication services for water systems. The company serves a diverse customer base, including municipalities, contractors, and utility companies, which provides stability and a consistent demand for its products. Significant partnerships with governmental and industrial clients, along with participation in large-scale infrastructure projects, further enhance NWPX's revenue potential. Additionally, NWPX may benefit from government funding initiatives aimed at upgrading and maintaining water infrastructure, thereby creating opportunities for increased sales and expansion in its core markets.

Northwest Pipe Company Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: 19.05%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlights a strong financial performance with record net sales and significant improvement in free cash flow. The Precast segment showed substantial growth, and the company's strategic initiatives, including share repurchases and backlog growth, are positive indicators. However, challenges persist in the WTS segment with reduced revenue and in the nonresidential Precast market. Overall, the positives outweigh the negatives, reflecting a positive sentiment.
Q2-2025 Updates
Positive Updates
Record Quarterly Net Sales
Net sales reached $133.2 million, a new quarterly high, increasing 2.8% over the prior year, driven by strong demand and operational execution.
Strong Precast Segment Performance
Precast revenue grew 21.5% year-over-year to a record $48.6 million, driven by sustained momentum in the residential sector and increased production and shipment levels.
Significant Free Cash Flow Improvement
Positive free cash flow of $3.1 million in the first half of 2025 versus negative $14.4 million the first half of 2024, a positive swing of $17.6 million.
WTS Backlog Growth
WTS backlog improved by over 20% to $348 million as of June 30, indicating strong future demand and bidding opportunities.
Share Repurchase Program
Repurchased approximately 363,000 shares worth $15 million, representing 3.6% of the ending shares outstanding at March 31, 2025, showcasing strong capital allocation strategy.
Negative Updates
Decline in WTS Segment Revenue
WTS segment revenue decreased 5.5% to $84.6 million year-over-year, primarily due to lower production volumes.
Nonresidential Precast Challenges
Nonresidential construction faced macroeconomic headwinds with slower demand and pricing improvements, impacted by high interest rates and trade policies.
Gross Margin Decline
Consolidated gross profit decreased 1.7% year-over-year, with gross margin down to 19% from 19.9% due to changes in product mix and lower production volumes.
Company Guidance
During the NWPX Infrastructure Second Quarter 2025 Earnings Call, significant metrics were highlighted, showcasing the company's strong performance and strategic direction. The company reported net sales of $133.2 million for the quarter, marking a 2.8% increase year-over-year, and net income of $9.1 million, or $0.91 per diluted share. The Water Transmission Systems (WTS) segment generated $84.6 million in revenue, despite a 5.5% year-over-year decrease, attributed primarily to lower production volumes. However, the Precast segment saw a robust 21.5% growth in revenue, reaching $48.6 million. The WTS backlog improved by over 20% to $348 million as of June 30, 2025, from $289 million on March 31. Consolidated gross profit for the quarter was $25.4 million, with a gross margin of 19%. The company also reported positive free cash flow of $3.1 million for the first half of 2025, a $17.6 million improvement from the negative $14.4 million in the prior year. Additionally, the Dodge Momentum Index grew by 6.8% in June, indicating improving nonresidential construction activity. The company is focused on strategic growth initiatives, including product spread strategies and capital investments, while maintaining a healthy financial position with $30.6 million in outstanding borrowings and $93 million in additional borrowing capacity.

Northwest Pipe Company Financial Statement Overview

Summary
Northwest Pipe Company demonstrates strong financial health, with consistent profitability and efficient cash flow management. While revenue growth is modest, the company maintains solid profit margins and a stable balance sheet. Cash flow indicators are particularly strong, showcasing excellent cash conversion and operational efficiency. The balanced debt-to-equity ratio and strong equity base contribute to financial stability, though close monitoring of equity trends is advisable.
Income Statement
78
Positive
The company shows a solid gross profit margin with a TTM figure of 19.1%, indicating efficient production management. The net profit margin is healthy at 6.6% TTM, reflecting profitability. However, revenue growth is modest, with a slight increase of 0.6% from the previous year, suggesting stable but slow growth. EBIT and EBITDA margins are strong at 9.1% and 11.1% TTM, respectively, highlighting good operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio is moderate at 0.34, showing a balanced financial structure. Return on equity is solid at 8.7% TTM, indicating effective utilization of shareholder funds. The equity ratio of 65.0% TTM suggests a strong capital base, reducing financial risk. However, a slight decrease in stockholders' equity compared to total assets may warrant attention.
Cash Flow
85
Very Positive
Free cash flow shows impressive growth at 92.9% TTM, reflecting strong cash management and operational efficiency. The operating cash flow to net income ratio is robust at 2.61, indicating excellent cash generation relative to accounting income. The free cash flow to net income ratio is also strong at 2.01, reinforcing the company's ability to convert net income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue499.13M492.55M444.36M457.67M333.31M285.91M
Gross Profit94.19M95.41M77.64M85.86M44.25M50.52M
EBITDA54.81M67.42M49.94M62.15M29.98M41.12M
Net Income33.38M34.21M21.07M31.15M11.52M19.05M
Balance Sheet
Total Assets592.58M589.65M597.88M601.34M547.68M373.01M
Cash, Cash Equivalents and Short-Term Investments2.03M5.01M4.07M3.68M3.00M37.93M
Total Debt135.33M136.70M162.94M188.63M185.19M45.43M
Total Liabilities213.13M215.65M257.52M283.07M264.30M103.39M
Stockholders Equity379.45M374.00M340.36M318.27M283.38M269.63M
Cash Flow
Free Cash Flow51.81M34.25M35.16M-5.62M-19.07M41.74M
Operating Cash Flow69.14M55.05M53.45M17.54M-5.81M56.09M
Investing Cash Flow-17.31M-20.74M-20.37M-23.05M-100.15M-61.43M
Financing Cash Flow-54.33M-33.38M-32.70M6.19M71.03M12.26M

Northwest Pipe Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.86
Price Trends
50DMA
43.20
Positive
100DMA
41.77
Positive
200DMA
45.47
Positive
Market Momentum
MACD
2.71
Negative
RSI
68.52
Neutral
STOCH
71.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWPX, the sentiment is Positive. The current price of 50.86 is above the 20-day moving average (MA) of 46.67, above the 50-day MA of 43.20, and above the 200-day MA of 45.47, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWPX.

Northwest Pipe Company Risk Analysis

Northwest Pipe Company disclosed 27 risk factors in its most recent earnings report. Northwest Pipe Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Northwest Pipe Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$719.33M23.268.87%3.06%9.44%53.83%
72
Outperform
$498.43M15.389.14%5.83%33.50%
66
Neutral
$108.88M11.4711.00%14.32%
61
Neutral
$291.97M16.667.37%-16.95%66.04%
61
Neutral
$10.07B6.270.58%3.01%2.91%-45.05%
57
Neutral
$718.68M37.86-1.73%3.42%-7.98%-124.63%
40
Underperform
$57.50M15.81-8.37%-3.95%88.17%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NWPX
Northwest Pipe Company
50.86
5.10
11.15%
AP
Ampco-Pittsburgh
2.80
0.81
40.70%
GIFI
Gulf Island Fabrication
6.75
1.00
17.39%
IIIN
Insteel Industries
36.88
4.21
12.89%
RYI
Ryerson Holdings
21.77
2.19
11.18%
MEC
Mayville Engineering Company
13.93
-5.49
-28.27%

Northwest Pipe Company Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Northwest Pipe Company Rebrands to NWPX Infrastructure
Neutral
Jun 13, 2025

On June 12, 2025, Northwest Pipe Company officially changed its corporate name to NWPX Infrastructure, Inc., following shareholder approval at the annual meeting. This change was accompanied by amendments to the company’s Articles of Incorporation and Bylaws to reflect the new name. Additionally, shareholders elected two directors, approved executive compensation, and ratified the appointment of Baker Tilly US, LLP as the independent accountants for the year ending December 31, 2025.

Shareholder Meetings
Northwest Pipe Company Holds Annual Shareholder Meeting
Neutral
Jun 12, 2025

On June 12, 2025, Northwest Pipe Company held its Annual Meeting of Shareholders, during which a presentation was delivered to its shareholders. The presentation, dated the same day, was provided as part of a report but is not intended to be filed under the Exchange Act, nor incorporated into any registration statement under the Securities Act of 1933.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025