NWPX Infrastructure, Inc.

Consolidated net sales were $159.5 million, up 19.7% year over year from $133.2 million. Net income was $15.8 million, or $1.62 per diluted share, versus $9.1 million, or $0.91 per diluted share, last year. Gross profit was $34.4 million, up 35.5%, and gross margin was 21.5%, up 250 basis points from 19.0%. WTS revenue rose 33.8% to $113.2 million and WTS gross margin expanded to 21.4% from 17.8%; Precast revenue declined 4.8% to $46.3 million, while Precast gross margin improved to 21.9% from 21.2%. For Q3, management said consolidated performance should be comparable to or stronger than Q2; WTS revenue and margins are expected to be similar to Q2, and Precast revenue is expected to be higher than both Q3 last year and Q2. For 2026, SG&A is expected to be $54 million to $56 million, D&A $21 million to $23 million, CapEx $20 million to $24 million, tax rate about 24% to 26%, and free cash flow $56 million to $65 million.

Scott Montross framed the quarter as another outstanding one and said the business is showing more consistency, better free cash flow, and continued operating leverage. He emphasized that WTS demand and bidding remain elevated, even without the large unplanned NDA project, and said the company is still advancing its long-term strategy by broadening Precast capabilities across the network and looking at additional acquisition opportunities. His tone was confident but slightly cautious on near-term weather impacts in Texas.

Aaron Wilkins highlighted record consolidated net income of $15.8 million and EPS of $1.62, plus record gross profit of $34.4 million on 21.5% gross margin. He noted SG&A was $13.2 million, up 5%, and said the full-year SG&A outlook is $54 million to $56 million, D&A is $21 million to $23 million, and the effective tax rate should be about 24% to 26%. He also pointed to a stronger balance sheet with $19.3 million of cash, $10 million of debt, a net cash position of $9.3 million, and $124 million of additional borrowing capacity, while raising full-year free cash flow guidance to $56 million to $65 million.

Analysts focused on whether WTS growth was being driven by the unplanned NDA project or by the core business, and management said the core business was still strong and that third-quarter WTS should be the biggest quarter of the year. Questions also centered on backlog durability into 2027; management said WTS backlog should normalize into the low-300s to mid-300s after the project winds down, but bidding is stronger than 2025 and continues to come with better economics. On margins, management attributed WTS improvement to better pricing, favorable mix, and overhead absorption, while Precast was said to be recovering as weather issues fade and nonresidential demand strengthens.