Thu, Oct 31, 8:11 PM (62 days ago)
Northwest Pipe Company (NWPX) reported strong financial results for Q3 2024, with net sales of $130.2 million, a 9.7% increase from $118.7 million in Q3 2023. Year-to-date sales also rose by 11.6% to $372.9 million. The Engineered Steel Pressure Pipe segment contributed significantly to this growth, driven by an 18% increase in production volume despite a 9% decline in selling prices. Gross profit surged 40% to $27 million, reflecting improved margins from increased production efficiency. Operating income for the quarter reached $15.4 million, up from $9.1 million, with net income more than doubling to $10.3 million, yielding a diluted EPS of $1.02. Cash flow from operations was $18.9 million year-to-date, down from $44.4 million in the previous year, primarily due to working capital changes. The company maintains a robust liquidity position with $5.7 million in cash and $60.7 million in revolving loan borrowings. Concerns persist regarding input costs, particularly steel, which constitutes 35% of project costs, and potential economic headwinds. The company’s share repurchase program remains active, with $24.9 million authorization available. Overall, NWPX is well-positioned to capitalize on infrastructure spending trends, particularly from federal initiatives.