NWPX Infrastructure, Inc. Q1 FY2026 earnings call

• Scott Montross started by reviewing first quarter performance and second quarter outlook. • Water transmission systems had a strong start with record revenue and margin growth despite early quarter downtime due to adverse weather. • Precast segment achieved record revenue driven by favorable product mix and increased sales volume in non-residential business. • Progress in strategic growth initiatives such as expanding precast capabilities and completing the acquisition of Belton Precast. • Near-term priorities include maintaining a safe workplace, focusing on margin over volume, intensifying pursuit of strategic acquisitions, implementing cost efficiencies, and returning value to shareholders.

WTS segment: Revenue reached $93.5 million in Q1, up 19% year-over-year. Tons produced were up 18%, and selling prices were up 1% year-over-year. WTS gross profit was $17.3 million, up 42% year-over-year, with a gross margin of 18.5%. Precast segment: Revenue was $44.8 million, up 19% year-over-year. Selling prices increased by 14% year-over-year, and volume shipped was up 4%. Precast gross profit was $9.3 million, up 30% year-over-year, with a gross margin of 20.9%.

• Expect higher revenue and margins in the WTS segment for the second quarter compared to prior periods, with full-year bidding levels stronger than 2025 and backlog remaining elevated. • Anticipate precast revenue to be higher in the second quarter than last year with stable margins. • Full-year free cash flow outlook raised to 50-56 million from the prior range of 40-46 million. • 2026 is expected to be a historic year with continued momentum in both segments.

Q: Regarding the significant previously unplanned project under NDA, how additive is it to the 2026 outlook and potential beyond?

A: The project is in the area of about $50 million, short-fused with some potential to leak into 2027, and there are multiple phases planned that could be additive to future years.

Q: Color on the increase in cash flow tied to contract liabilities?

A: Cash flows are driven by special business efforts like getting steel build in advance, MOH payments, and progress payments, with $20 million collections in Feb/March.

Q: Capacity utilization in the WTS segment?

A: There is a lot more room to take on additional work as capacity utilization is around 70-72% as a high point, and they can move stuff between plants and add shifts if needed.