Northwest Pipe Company (NWPX) Bundle
A Brief History of Northwest Pipe Company
Northwest Pipe Company (NWPX) has established itself as a prominent player in the engineered steel pressure pipe and precast infrastructure markets. The company primarily focuses on manufacturing large-diameter, high-pressure steel pipeline systems for water infrastructure applications, along with a range of precast concrete products.
Company Overview
As of 2024, Northwest Pipe Company operates through two main segments: Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems. SPP products are crucial for drinking water systems, hydroelectric power systems, and wastewater management, while the precast segment manufactures products for stormwater and wastewater management, including reinforced concrete pipe and catch basins.
Financial Performance
In the third quarter of 2024, Northwest Pipe Company reported net sales of $130.2 million, an increase of 9.7% compared to $118.7 million in the same period of 2023. For the first nine months of 2024, net sales reached $372.9 million, up 11.6% from $334.2 million in 2023. The breakdown of net sales by segment is as follows:
| Segment | Q3 2024 Net Sales ($ million) | Q3 2023 Net Sales ($ million) | YTD 2024 Net Sales ($ million) | YTD 2023 Net Sales ($ million) |
|---|---|---|---|---|
| Engineered Steel Pressure Pipe | 85.9 | 80.5 | 255.5 | 221.3 |
| Precast Infrastructure | 44.3 | 38.2 | 117.5 | 112.9 |
| Total | 130.2 | 118.7 | 372.9 | 334.2 |
The gross profit for the third quarter of 2024 was $27.0 million, a 40% increase from $19.3 million in Q3 2023. The gross profit margin improved to 20.8% compared to 16.3% in the prior year. Year-to-date gross profit for 2024 reached $73.0 million, up from $58.4 million in 2023.
Operating and Financial Metrics
Northwest Pipe Company's operating income for the third quarter of 2024 was $15.4 million, representing an increase from $9.1 million in the same quarter of 2023. The company reported a net income of $10.3 million for Q3 2024, compared to $5.8 million in Q3 2023. The year-to-date net income for 2024 stands at $24.1 million, compared to $15.6 million for the first nine months of 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income ($ million) | 10.3 | 5.8 | 24.1 | 15.6 |
| Operating Income ($ million) | 15.4 | 9.1 | 37.7 | 25.2 |
| Gross Profit Margin (%) | 20.8 | 16.3 | 19.6 | 17.5 |
Debt and Cash Flow
As of September 30, 2024, Northwest Pipe Company had outstanding revolving loan borrowings of $60.7 million and current debt of $10.8 million. The company reported net cash provided by operating activities of $18.9 million for the first nine months of 2024, a decrease from $44.4 million in the same period of 2023.
Market Position and Future Outlook
Northwest Pipe Company continues to strengthen its market position through strategic investments in manufacturing capabilities and product innovation. The company's backlog of contracts as of September 30, 2024, was valued at $231 million, indicating a robust pipeline of future revenue.
A Who Owns Northwest Pipe Company (NWPX)
Major Shareholders
As of September 30, 2024, Northwest Pipe Company (NWPX) had the following major shareholders:
| Shareholder Name | Ownership Percentage (%) | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 10.4 | 1,028,873 |
| The Vanguard Group, Inc. | 9.7 | 963,126 |
| Dimensional Fund Advisors LP | 6.8 | 674,000 |
| Harris Associates L.P. | 5.2 | 515,000 |
| State Street Corporation | 4.5 | 448,000 |
| Other Institutional Investors | 63.4 | 6,290,000 |
Institutional Ownership
As of September 30, 2024, institutional ownership of Northwest Pipe Company was approximately 70.2%, indicating a strong presence of institutional investors in the company.
| Institution | Ownership Percentage (%) |
|---|---|
| BlackRock, Inc. | 10.4 |
| The Vanguard Group, Inc. | 9.7 |
| Dimensional Fund Advisors LP | 6.8 |
| Harris Associates L.P. | 5.2 |
| State Street Corporation | 4.5 |
| Others | 33.6 |
Executive Ownership
As of September 30, 2024, Northwest Pipe Company's executive team held approximately 2.5% of the total shares outstanding.
| Executive Name | Position | Ownership Percentage (%) | Number of Shares |
|---|---|---|---|
| Scott Montross | CEO | 1.0 | 99,000 |
| John H. P. McDonald | CFO | 0.5 | 49,000 |
| Lisa M. Smith | COO | 0.3 | 30,000 |
| Other Executives | Various | 0.7 | 69,000 |
Recent Share Activity
In the first nine months of 2024, Northwest Pipe Company repurchased a total of 144,890 shares, amounting to approximately $4.4 million.
| Period | Shares Repurchased | Total Amount ($) |
|---|---|---|
| Q1 2024 | 50,000 | 1,500,000 |
| Q2 2024 | 60,000 | 1,800,000 |
| Q3 2024 | 34,890 | 1,100,000 |
Stock Performance
As of September 30, 2024, Northwest Pipe Company's stock was trading at approximately $36.50 per share, reflecting a year-to-date increase of 25%.
| Metric | Value |
|---|---|
| Current Stock Price ($) | 36.50 |
| Year-to-Date Performance (%) | 25 |
| Market Capitalization ($ million) | 363.5 |
Northwest Pipe Company (NWPX) Mission Statement
Overview of Mission Statement
The mission of Northwest Pipe Company (NWPX) is to be the premier provider of engineered steel pipe solutions for water infrastructure and precast products, delivering high-quality, cost-effective solutions through innovative technologies and exceptional service.
Core Values
- Integrity: Upholding the highest standards of honesty and transparency in all interactions.
- Customer Focus: Prioritizing customer satisfaction and building long-term relationships.
- Innovation: Committing to continuous improvement and innovation in products and processes.
- Sustainability: Promoting environmental stewardship and sustainable practices in operations.
Financial Performance
As of September 30, 2024, Northwest Pipe Company reported robust financial results, reflecting its commitment to operational excellence and market leadership. The following table summarizes key financial metrics for the third quarter and the first nine months of 2024 compared to 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $130.2 million | $118.7 million | $372.9 million | $334.2 million |
| Gross Profit | $27.0 million (20.8%) | $19.3 million (16.3%) | $73.0 million (19.6%) | $58.4 million (17.5%) |
| Net Income | $10.3 million (7.9%) | $5.8 million (4.9%) | $24.1 million (6.5%) | $15.6 million (4.7%) |
| Operating Income | $15.4 million (11.9%) | $9.1 million (7.6%) | $37.7 million (10.1%) | $25.2 million (7.6%) |
Market Position
Northwest Pipe Company operates in two primary segments: Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems. As of September 30, 2024, the breakdown of net sales by segment is as follows:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | 9M 2024 Net Sales | 9M 2023 Net Sales |
|---|---|---|---|---|
| Engineered Steel Pressure Pipe | $85.9 million | $80.5 million | $255.5 million | $221.3 million |
| Precast Infrastructure and Engineered Systems | $44.3 million | $38.2 million | $117.5 million | $112.9 million |
Backlog and Future Outlook
As of September 30, 2024, the company reported a backlog of $231 million, indicating a strong pipeline of projects. The expected revenue recognition from this backlog is projected as follows:
- 33% in 2024
- 51% in 2025
- Remaining balance thereafter
Northwest Pipe Company's focus on innovation and customer satisfaction is expected to drive continued growth and enhance its market position in the water infrastructure sector.
How Northwest Pipe Company (NWPX) Works
Company Overview
Northwest Pipe Company (NWPX) specializes in manufacturing engineered steel pressure pipe systems and precast concrete products. The company operates primarily in two segments: Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems.
Financial Performance
As of Q3 2024, NWPX reported significant growth in net sales and net income. The following table summarizes key financial metrics for the company:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $130.2 million | $118.7 million | $372.9 million | $334.2 million |
| Net Income | $10.3 million | $5.8 million | $24.1 million | $15.6 million |
| Gross Profit | $27.0 million (20.8% of net sales) | $19.3 million (16.3% of net sales) | $73.0 million (19.6% of net sales) | $58.4 million (17.5% of net sales) |
| Operating Income | $15.4 million | $9.1 million | $37.7 million | $25.2 million |
Segment Performance
The Engineered Steel Pressure Pipe segment generated net sales of $85.9 million in Q3 2024, up from $80.5 million in Q3 2023. The Precast Infrastructure segment reported net sales of $44.3 million in Q3 2024, compared to $38.2 million in Q3 2023. The following table outlines the revenue breakdown by segment:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | 9M 2024 Net Sales | 9M 2023 Net Sales |
|---|---|---|---|---|
| Engineered Steel Pressure Pipe | $85.9 million | $80.5 million | $255.5 million | $221.3 million |
| Precast Infrastructure | $44.3 million | $38.2 million | $117.5 million | $112.9 million |
Cost Structure
For the first nine months of 2024, the total cost of sales was $299.9 million, leading to a gross profit of $73.0 million. The following table breaks down the cost of sales by segment:
| Segment | 9M 2024 Cost of Sales | 9M 2023 Cost of Sales |
|---|---|---|
| Engineered Steel Pressure Pipe | $207.6 million | $190.0 million |
| Precast Infrastructure | $92.4 million | $85.8 million |
Cash Flow and Financing
In the first nine months of 2024, NWPX generated $18.9 million in net cash from operating activities, compared to $44.4 million in the same period of 2023. The company’s capital expenditures totaled $16.6 million during this period, with expectations of approximately $20 million to $22 million for the full year 2024.
Debt and Interest Rates
As of September 30, 2024, NWPX had $60.7 million in outstanding revolving loan borrowings and $10.8 million in current debt. The company has entered into interest rate swaps to manage its interest rate exposure. The following table summarizes the interest rate swap agreements:
| Swap Type | Notional Amount | Fixed Rate | Maturity Date |
|---|---|---|---|
| First Swap | $6.7 million | 1.941% | April 2024 |
| Second Swap | $10.8 million | 2.96% | April 2028 |
| Third Swap | $28.0 million | 5.10% | June 2025 |
Backlog and Future Expectations
As of September 30, 2024, NWPX reported a backlog of $231 million, with expectations to recognize approximately 33% in 2024 and 51% in 2025. This backlog reflects the company's strong position in securing future contracts for its engineered steel pressure pipe products.
Stock Performance
For the nine months ended September 30, 2024, NWPX reported a basic net income per share of $2.43, compared to $1.57 for the same period in 2023. The following table summarizes the earnings per share:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| Q3 2024 | $1.03 | $1.02 |
| Q3 2023 | $0.58 | $0.58 |
| 9M 2024 | $2.43 | $2.40 |
| 9M 2023 | $1.57 | $1.55 |
Conclusion
NWPX continues to demonstrate solid growth and operational efficiency, positioning itself well within the infrastructure and construction markets.
How Northwest Pipe Company (NWPX) Makes Money
Revenue Streams
Northwest Pipe Company generates revenue primarily through two segments:
- Engineered Steel Pressure Pipe (SPP)
- Precast Infrastructure and Engineered Systems (Precast)
As of September 30, 2024, the breakdown of net sales is as follows:
| Segment | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | 9M 2024 Net Sales (in thousands) | 9M 2023 Net Sales (in thousands) |
|---|---|---|---|---|
| Engineered Steel Pressure Pipe | $85,924 | $80,493 | $255,454 | $221,294 |
| Precast Infrastructure and Engineered Systems | $44,277 | $38,229 | $117,467 | $112,897 |
| Total Net Sales | $130,201 | $118,722 | $372,921 | $334,191 |
Cost of Sales
The cost of sales for the first nine months of 2024 was $299,954, representing 80.4% of net sales.
- Cost of sales for Engineered Steel Pressure Pipe: $207,603 (55.6% of net sales)
- Cost of sales for Precast Infrastructure and Engineered Systems: $92,351 (24.8% of net sales)
Gross Profit
Gross profit for the Company in the first nine months of 2024 was $72,967, which is 19.6% of net sales. The gross profit breakdown is:
| Segment | Q3 2024 Gross Profit (in thousands) | Q3 2023 Gross Profit (in thousands) | 9M 2024 Gross Profit (in thousands) | 9M 2023 Gross Profit (in thousands) |
|---|---|---|---|---|
| Engineered Steel Pressure Pipe | $16,628 | $10,911 | $47,851 | $31,264 |
| Precast Infrastructure and Engineered Systems | $10,391 | $8,383 | $25,116 | $27,088 |
| Total Gross Profit | $27,019 | $19,294 | $72,967 | $58,352 |
Operating Income
Operating income for the first nine months of 2024 was $37,747, or 10.1% of net sales. This is an increase from $25,233 in the same period of 2023.
Net Income
Net income for the first nine months of 2024 was $24,110, reflecting a 6.5% margin compared to $15,628, or a 4.7% margin, in the prior year.
Backlog and Future Revenue
As of September 30, 2024, the backlog for the Company was $231 million. The expected revenue recognition is:
- 33% in 2024
- 51% in 2025
- Balance thereafter
The Company anticipates that its existing cash and cash equivalents, along with projected cash flows from operations, will be sufficient to meet its working capital and capital expenditure needs going forward.
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Article updated on 8 Nov 2024
Resources:
- Northwest Pipe Company (NWPX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Northwest Pipe Company (NWPX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Northwest Pipe Company (NWPX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.