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Northwest Pipe Company
(NASDAQ:NWPX)
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Rating:73Outperform
Price Target:
$117.00
▲(5.80% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving financial performance and a strong, guidance-raising earnings call with higher free cash flow expectations. Offsetting factors are weaker near-term technical positioning (below key short-term moving averages) and a less attractive valuation (29.1 P/E with no dividend yield provided).
Positive Factors
WTS backlog and bidding
A sizable backlog and active bid pipeline support forward revenue visibility in the core Water Transmission Systems business. Stronger bidding activity can replenish awarded work over time, helping sustain production utilization and reinforce the company’s position in municipal and industrial water infrastructure.
Negative Factors
Steel cost exposure
Steel represents a substantial cost input, so sustained price inflation can compress margins when contracts or project pricing cannot adjust quickly enough. Higher and volatile steel costs also make bidding discipline more important and can increase earnings variability across project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
WTS backlog and bidding
A sizable backlog and active bid pipeline support forward revenue visibility in the core Water Transmission Systems business. Stronger bidding activity can replenish awarded work over time, helping sustain production utilization and reinforce the company’s position in municipal and industrial water infrastructure.
Read all positive factors
Northwest Pipe Company (NWPX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$992.92M
Dividend YieldN/A
Average Volume (3M)135.94K
Price to Earnings (P/E)20.4
Beta (1Y)0.94
Revenue Growth15.12%
EPS Growth50.31%
CountryUS
Employees1,318
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.06
Shares Outstanding9,637,202
10 Day Avg. Volume132,836
30 Day Avg. Volume135,941
Financial Highlights & Ratios
PEG Ratio3.50
Price to Book (P/B)1.55
Price to Sales (P/S)1.16
P/FCF Ratio12.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$112.50Price Target Upside1.73% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.43
Revenue Forecast (FY)$603.70M
Northwest Pipe Company Business Overview & Revenue Model
Company Description
NWPX Infrastructure, Inc., along with its affiliated entities, specializes in the production and distribution of crucial components for water-related infrastructure throughout North America, including Canada. The company's operations are divided i...
How the Company Makes Money
NWPX makes money primarily by manufacturing and selling large-diameter steel pipe and related water transmission products to customers involved in water infrastructure projects. Revenue is generally project-driven: customers (often municipalities,...
Northwest Pipe Company Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture led by record revenue, gross profit and EPS driven primarily by the Water Transmission Systems segment and elevated bidding activity. Free cash flow generation, net cash position and an increased FCF outlook reinforce financial strength. Near-term risks include Precast weather-driven volume disruption, steel price inflation and the wind-down/uncertainty of a large unplanned NDA project that will normalize backlog. Overall, the positive achievements and upward guidance materially outweigh the identified headwinds.Positive Updates
Record Consolidated Financial Performance
Net sales up 19.7% YoY to $159.5M; consolidated gross profit $34.4M, up 35.5% YoY; consolidated gross margin expanded 250 bps to 21.5%; net income $15.8M vs $9.1M last year and EPS of $1.62 per diluted share (record), up from $0.91.
Negative Updates
Precast Revenue and Volume Pressure from Weather and Project Delays
Precast revenue declined 4.8% YoY to $46.3M with shipment volumes down 11%, primarily due to unusually heavy rainfall in Texas and customer-driven project delays in Utah during April–May, which reduced gross profit dollars (Precast gross profit down 1.7%).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Financial Performance
Net sales up 19.7% YoY to $159.5M; consolidated gross profit $34.4M, up 35.5% YoY; consolidated gross margin expanded 250 bps to 21.5%; net income $15.8M vs $9.1M last year and EPS of $1.62 per diluted share (record), up from $0.91.
Read all positive updates
Company Guidance
Management guided Q3 2026 to be comparable to or stronger than Q2 (Q2 net sales $159.5M, gross profit $34.4M, EPS $1.62), with Water Transmission Systems (Q2 revenue $113.2M, WTS gross margin 21.4%) expected to see similar revenue and margins quarter‑over‑quarter driven by strong production, product mix and the unplanned NDA project (began production in June, runs through Q3); WTS backlog finished Q2 at $423M (vs $430M at 3/31) with a >$125M bid pipeline, bidding levels expected stronger than 2025 (roughly 150k tons bidding vs ~138k in 2025) and backlog normalizing to the low‑ to mid‑$300Ms as the NDA project winds down. Precast is expected to deliver higher Q3 revenue than both Q3’25 and Q2’26 (Q2 precast revenue $46.3M, margin 21.9%) with stable/improving margins supported by a $61M order book. Full‑year guidance includes SG&A of $54–56M, depreciation & amortization $21–23M, CapEx $20–24M (including ≈$6M for Precast initiatives), an effective tax rate of ~24–26%, and raised full‑year free cash flow to $56–65M; balance sheet at 6/30 showed cash $19.3M, debt $10M (net cash $9.3M) and ~$124M unused borrowing capacity.Northwest Pipe Company Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 574.44M | 526.17M | 492.55M | 444.36M | 457.67M | 333.31M |
| Gross Profit | 119.93M | 103.81M | 95.41M | 77.64M | 85.86M | 44.25M |
| EBITDA | 85.47M | 68.57M | 67.42M | 49.94M | 62.15M | 29.98M |
| Net Income | 48.75M | 35.41M | 34.21M | 21.07M | 31.15M | 11.52M |
Balance Sheet | ||||||
| Total Assets | 651.90M | 579.63M | 589.65M | 597.88M | 601.34M | 547.68M |
| Cash, Cash Equivalents and Short-Term Investments | 19.32M | 2.27M | 5.01M | 4.07M | 3.68M | 3.00M |
| Total Debt | 100.58M | 102.80M | 136.70M | 162.94M | 188.63M | 192.06M |
| Total Liabilities | 233.30M | 184.85M | 215.65M | 257.52M | 283.07M | 264.30M |
| Stockholders Equity | 418.60M | 394.78M | 374.00M | 340.36M | 318.27M | 283.38M |
Cash Flow | ||||||
| Free Cash Flow | 79.65M | 47.11M | 34.25M | 35.16M | -5.62M | -19.07M |
| Operating Cash Flow | 100.35M | 67.28M | 55.05M | 53.45M | 17.54M | -5.81M |
| Investing Cash Flow | -29.52M | -20.15M | -20.74M | -20.37M | -23.05M | -100.15M |
| Financing Cash Flow | -53.54M | -49.87M | -33.38M | -32.70M | 6.19M | 71.03M |
Northwest Pipe Company Technical Analysis
Neutral
110.59
Price Trends
112.06
Negative
120.22
Negative
98.01
Positive
Market Momentum
-2.58
Negative
45.90
Neutral
70.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWPX, the sentiment is Neutral. The current price of 110.59 is above the 20-day moving average (MA) of 103.71, below the 50-day MA of 112.06, and above the 200-day MA of 98.01, indicating a neutral trend. The MACD of -2.58 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $992.92M | 20.42 | 12.16% | ― | 15.12% | 50.31% | |
66 Neutral | $240.42M | 7.19 | 15.30% | 8.39% | 14.97% | 8162.28% | |
64 Neutral | $563.91M | 15.55 | 9.92% | 3.86% | 17.06% | 16.89% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $382.50M | -18.68 | -6.63% | ― | 11.77% | -196.68% |
* Basic Materials Sector Average
NWPX
Northwest Pipe Company
105.99
53.84
103.24%
IIIN
Insteel Industries
29.56
-7.88
-21.04%
TG
Tredegar
7.03
-0.69
-8.94%
MEC
Mayville Engineering Company
16.44
2.73
19.91%
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.