NWPX Infrastructure, Inc. Q1 FY2025 earnings call

• First quarter net sales were $116.1 million, up 2.6% despite weather and trade policy headwinds, with profitability at $0.39 per diluted share and positive free cash flow. - SPP was impacted by lower production, weather downtime, and trade policies, but bidding volume improved in Q2. - Precast was driven by residential strength but offset by non-residential softness; order book improved with Dodge Momentum Index showing improving non-residential market. - Organic growth efforts included bidding on over $14M projects outside Texas and booking Park projects, with plans to expand precast. Focus on acquisitions in precast space. - Upcoming rebranding to NWPX Infrastructure.

SPP Segment: Revenue was $78.4 million, down 2% year-over-year, contributing approximately 67.5% to total net sales. It was affected by lower production levels, weather downtime, and trade policies. Backlog declined to $289 million but improved in Q2 to over $300 million. Precast Segment: Revenue increased 13.4% year-over-year to $37.7 million, contributing ~32.5% to total net sales. Driven by residential demand at Geneva, but non-residential was softer. Order book improved to $64 million.

• SPP: Anticipate revenue similar to Q1 2025 with improving margins; bidding levels expected to be in line with 2024. - Precast: Second quarter expected to have stronger revenue and margins; second half SPP revenues/margins similar to 2024, precast similar but with improving margins.

• Weather and downtime in Q1 caused unscheduled downtime at facilities. - Trade policies temporarily affected SPP revenue/shipments and posed cost pressures. - Macroeconomic uncertainty impacted non-residential construction, interest rates, and material pricing.

Q: Discussion on tariffs and beyond it in Q2 A: Trade policies affected SPP, but orders helped alleviate impact; precast non-residential is rebounding.

Q: Precast non-residential momentum and revenue outlook A: Non-residential is rebounding, second quarter expected to be strong, second half like last year but with upside.

Q: SG&A and its trajectory A: SG&A higher due to seasonality, will decrease as year progresses.

Q: Retroactive and new tariffs impact A: Retroactive tariffs impacted first quarter, new tariffs managed, working with customers to pass costs.

Q: Precast growth plans and Orem facility A: Growth plans, residential strong, non-residential picking up, order book near record.

Q: Steel costs, demand impact, and Mexican plant A: Steel costs ~30% of COGS, no material impact on tonnage yet; Mexican plant handles non-U.S. orders