NWPX Infrastructure — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net sales reached a record $179.4 million, an 18.7% increase from $151.1 million in the third quarter of 2025.
• Gross profit increased 18.8% to a record $38.2 million, representing a consolidated gross margin of 21.3%, compared to $32.2 million (21.3% margin) in the prior year period.
• Net income rose 35.0% to $18.2 million, or $1.86 per diluted share, compared to $13.5 million, or $1.38 per diluted share, in the third quarter of 2025.
• Net income for the quarter was the second-highest in company history, excluding the third quarter of 2018 which included a $21.9 million bargain purchase gain.
• Operating income was $24.3 million, compared to $19.0 million in the third quarter of 2025.
• Net cash provided by operating activities was $27.4 million in the third quarter of 2026, up from $21.0 million in the same period of 2025.
• Capital expenditures were $7.0 million in the third quarter of 2026, down from $7.8 million in the third quarter of 2025.

Guidance and Future Outlook:

• Management anticipates stronger performance in the fourth quarter of 2026 compared to both the fourth quarter of 2025 and the first quarter of 2026.
• WTS backlog is expected to remain elevated through year-end, supported by continued demand for critical water infrastructure.
• The Precast business is expected to remain steady.
• Management projects concluding 2026 as an exceptionally strong record year and entering 2027 with significant momentum.
• Outlook acknowledges typical impacts from two major holidays and weather-related disruptions in the fourth quarter.

Business Segments and Product Lines:

• Water Transmission Systems (WTS):
  • Net sales increased 27.0% to $131.9 million from $103.9 million in the prior year period.
  • Growth was driven by a 19% increase in selling price per ton due to product mix changes and a 7% increase in tons produced due to project timing.
  • Gross profit increased 23.4% to $27.3 million, with a gross margin of 20.7% (down from 21.3% in the prior year) due to product mix changes.
  • WTS backlog was $264 million as of September 30, 2026, compared to $257 million in the prior year.
  • WTS backlog including confirmed orders reached a record $435 million as of September 30, 2026, compared to $301 million in the prior year.
• Precast Infrastructure and Engineered Systems (Precast):
  • Net sales increased 0.6% to $47.5 million from $47.2 million in the prior year.
  • Sales growth was driven by acquisitions of Boughton's Precast, Inc. and Serpentix, which contributed $2.1 million, partially offset by a 9% decrease in volume shipped at legacy facilities.
  • Gross profit increased 8.6% to $10.9 million, with a gross margin of 22.9% (up from 21.3% in the prior year) primarily due to product mix.
  • Precast order book was $67 million as of September 30, 2026, compared to $55 million in the prior year.
  • The data center business within the Precast segment continues to show growth.
• Acquisitions:
  • Completed the acquisition of Serpentix Conveyor, LLC on September 2, 2026.
  • Serpentix contributed $2.1 million in net sales and $10 million to the Precast segment's order book as of September 30, 2026.
  • This marks the company's second acquisition of 2026, following the acquisition of Boughton in February 2026.

Market and Competitive Landscape:

• The company operates as the largest manufacturer of engineered water transmission systems in North America.
• Demand for critical water infrastructure remains strong, supporting elevated WTS backlog levels.
• The data center business is identified as an attractive opportunity within the Precast segment.

Risks and Challenges:

• Potential impacts from weather-related disruptions and major holidays in the fourth quarter.
• Risks include changes in demand, market prices, product mix, bidding activity, and order modifications or cancellations.
• Risks related to raw material price and availability, production capacity, and supply chain disruptions.
• Potential impacts from economic uncertainty, inflation, interest rate changes, and government spending delays.
• Risks associated with integrating future acquisitions and cybersecurity incidents.

Management Commentary and Tone:

• CEO Scott Montross described the quarter as "outstanding" with record financial performance across key metrics.
• Management highlighted the strength and resilience of the business, disciplined execution, and ability to capitalize on favorable market conditions.
• Management expressed "very optimistic" sentiment regarding the strength of the business and future opportunities.
• The tone emphasized the record backlog providing excellent visibility into future production activity.

Other Key Points:

• As of September 30, 2026, the Company had $18.5 million of outstanding revolving loan borrowings and approximately $105 million in additional borrowing capacity.
• The Company has 15 manufacturing facilities across North America.
• Goodwill increased to $83.3 million as of September 30, 2026, from $55.5 million as of December 31, 2025.
• Contract liabilities increased to $44.7 million as of September 30, 2026, from $8.8 million as of December 31, 2025.
• The company reported a conference call and webcast scheduled for October 29, 2026, at 7:00 a.m. PT.