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Northwest Pipe Company
(NASDAQ:NWPX)
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Rating:71Outperform
Price Target:
$110.00
▼(-0.53% Downside)
Action:Upgraded
Date:10/29/26
The score is primarily driven by improved financial performance (stronger scale, margins, and lower leverage) and a very positive earnings outlook supported by record backlog and favorable free-cash-flow guidance. These are partially offset by weaker technical momentum (negative MACD and price below key moving averages) and only moderate valuation support based on the provided P/E, with no dividend yield data.
Positive Factors
Revenue and margin expansion
Northwest Pipe has materially expanded both scale and profitability since 2021, showing that revenue growth is translating into stronger earnings. Higher margins create more internal funding capacity, support investment in growth initiatives, and improve resilience across the infrastructure project cycle.
Negative Factors
Cyclical construction exposure
Demand remains linked to cyclical construction activity, with muted residential conditions and softness in parts of commercial work already affecting project flow. Although institutional activity is stronger, uneven end markets can delay orders, reduce utilization, and make revenue and margins less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Northwest Pipe has materially expanded both scale and profitability since 2021, showing that revenue growth is translating into stronger earnings. Higher margins create more internal funding capacity, support investment in growth initiatives, and improve resilience across the infrastructure project cycle.
Read all positive factors
Northwest Pipe Company (NWPX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$960.54M
Dividend YieldN/A
Average Volume (3M)114.32K
Price to Earnings (P/E)18.0
Beta (1Y)0.92
Revenue Growth15.12%
EPS Growth50.31%
CountryUS
Employees1,318
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.55
Shares Outstanding9,637,202
10 Day Avg. Volume110,130
30 Day Avg. Volume114,323
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 Cap1.17
Enterprise Value/Revenue1.86
Enterprise Value/Gross Profit8.92
Enterprise Value/Ebitda13.14
Forecast
1Y Price Target
$112.50Price Target Upside1.73% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.43
Revenue Forecast (FY)$603.78M
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:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record consolidated revenue, gross profit, earnings per share, free cash flow, WTS revenue, WTS gross profit, and backlog. WTS demand and bidding momentum were described as exceptionally strong, while Precast maintained year-over-year revenue growth and improved margins despite lower volumes and delayed shipments. The main challenges were muted residential construction, softness in portions of commercial construction, lower WTS gross margin from project mix, uncertainty around follow-on NDA work, and potential moderation in working-capital benefits. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Record Consolidated Revenue and Earnings
Third-quarter net sales increased 18.7% year-over-year to a record $179.4 million, while gross profit rose 18.8% to a record $38.2 million. Net income increased 35% to $18.2 million, or $1.86 per diluted share, and operating income increased 27.7%. The $1.86 diluted EPS was the highest quarterly earnings per share posted in the company's history, excluding the third quarter of 2018, which included a one-time $21 million non-cash bargain purchase gain.
Negative Updates
Lower Precast Shipment Volume
Precast volume shipped decreased 4% year-over-year, partially offsetting a 3% increase in selling prices driven primarily by favorable product mix.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Consolidated Revenue and Earnings
Third-quarter net sales increased 18.7% year-over-year to a record $179.4 million, while gross profit rose 18.8% to a record $38.2 million. Net income increased 35% to $18.2 million, or $1.86 per diluted share, and operating income increased 27.7%. The $1.86 diluted EPS was the highest quarterly earnings per share posted in the company's history, excluding the third quarter of 2018, which included a one-time $21 million non-cash bargain purchase gain.
Read all positive updates
Company Guidance
For the fourth quarter of 2026, NWPX Infrastructure currently anticipates stronger performance than both the fourth quarter of 2025 and the first quarter of 2026; WTS backlog is expected to remain elevated through year-end, full-year base bidding levels, not including the NDA project, are expected to be stronger than in 2025, and the NDA project is expected to make an additional contribution during the fourth quarter and possibly into 2027 as well. Precast is expected to remain steady in the fourth quarter, and 2026 is expected to be a record year for Precast revenue. For full-year 2026, consolidated SG&A is expected to range between $55 million and $56 million, depreciation expense is expected to be between $22 million and $23 million, the effective tax rate is expected to be approximately 23%-24%, capital expenditures are expected in the $21 million-$23 million range, including approximately $6 million for investment in projects to support the Precast product spread strategy and broader growth initiatives, and free cash flow is expected to be in the range of $62 million-$72 million. Through the first nine months of 2026, without the contribution from the NDA project, WTS revenue would have been approximately 10% higher than the same period of 2025.Northwest Pipe Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 602.76M | 526.17M | 492.55M | 444.36M | 457.67M | 333.31M |
| Gross Profit | 125.97M | 103.81M | 95.41M | 77.64M | 85.86M | 44.25M |
| EBITDA | 85.53M | 68.57M | 67.42M | 49.94M | 62.15M | 29.98M |
| Net Income | 53.48M | 35.41M | 34.21M | 21.07M | 31.15M | 11.52M |
Balance Sheet | ||||||
| Total Assets | 694.58M | 579.63M | 589.65M | 597.88M | 601.34M | 547.68M |
| Cash, Cash Equivalents and Short-Term Investments | 6.06M | 2.27M | 5.01M | 4.07M | 3.68M | 3.00M |
| Total Debt | 119.65M | 102.80M | 136.70M | 162.94M | 188.63M | 192.06M |
| Total Liabilities | 257.29M | 184.85M | 215.65M | 257.52M | 283.07M | 264.30M |
| Stockholders Equity | 437.28M | 394.78M | 374.00M | 340.36M | 318.27M | 283.38M |
Cash Flow | ||||||
| Free Cash Flow | 86.83M | 47.11M | 34.25M | 35.16M | -5.62M | -19.07M |
| Operating Cash Flow | 106.75M | 67.28M | 55.05M | 53.45M | 17.54M | -5.81M |
| Investing Cash Flow | -78.39M | -20.15M | -20.74M | -20.37M | -23.05M | -100.15M |
| Financing Cash Flow | -24.97M | -49.87M | -33.38M | -32.70M | 6.19M | 71.03M |
Northwest Pipe Company Technical Analysis
Neutral
110.59
Price Trends
103.84
Negative
117.32
Negative
101.43
Negative
Market Momentum
-1.87
Negative
46.39
Neutral
71.79
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 100.14, above the 50-day MA of 103.84, and above the 200-day MA of 101.43, indicating a bearish trend. The MACD of -1.87 indicates Negative momentum. The RSI at 46.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $960.54M | 17.96 | 12.93% | ― | 15.12% | 50.31% | |
68 Neutral | $7.32B | 14.92 | 18.16% | 0.13% | 2.59% | 42.29% | |
67 Neutral | $114.00M | 14.82 | 14.11% | 0.93% | -1.65% | -35.86% | |
65 Neutral | $9.81B | 22.32 | 23.40% | 0.58% | 10.37% | 4.62% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $3.08B | 22.05 | 8.72% | ― | 12.13% | -8.86% | |
40 Underperform | $727.51M | -10.42 | -3.47% | ― | ― | -371.94% |
* Basic Materials Sector Average
NWPX
Northwest Pipe Company
99.67
43.20
76.50%
WMS
Advanced Drainage Systems
130.11
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-5.97%
ACA
Arcosa
149.15
57.05
61.93%
SMID
Smith-Midland
21.49
-16.50
-43.43%
KNF
Knife River Corporation
54.25
-5.68
-9.48%
RMIX
Suncrete Inc Class A
9.90
-1.42
-12.54%
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.