NWPX Infrastructure Sees Net Income Rise, Lease Assets Grow

Ticker: NWPX · Form: 10-Q · Filed: Aug 8, 2025 · CIK: 1001385

Nwpx Infrastructure, INC. 10-Q Filing Summary
FieldDetail
CompanyNwpx Infrastructure, INC. (NWPX)
Form Type10-Q
Filed DateAug 8, 2025
Risk Levellow
Pages16
Reading Time19 min
Key Dollar Amounts$0.01
Sentimentbullish

Sentiment: bullish

Topics: Infrastructure, Steel Pipe, Precast Concrete, Earnings Growth, Lease Assets, Executive Compensation, Q2 2025

Related Tickers: NWPX

TL;DR

**NWPX is quietly growing its bottom line and asset base, making it a solid, if unspectacular, buy for long-term infrastructure exposure.**

AI Summary

NWPX Infrastructure, Inc. reported a net income of $145,980 for the three months ended June 30, 2025, a significant increase from $139,221 in the prior-year period. Diluted net income per share remained stable at $0.01 for both the three and six months ended June 30, 2025, and the comparable periods in 2024. The company's weighted-average number of antidilutive shares not included in the computation of diluted net income per share was approximately 25,700 for the three months ended June 30, 2025, indicating potential for higher EPS if these shares were included. Depreciation and amortization for the Water Transmission (WTS) segment decreased slightly to $2.9 million for the three months ended June 30, 2025, from $2.9 million in the prior year, and for the Precast segment increased to $0.8 million from $0.7 million. Finance lease right-of-use assets, net of accumulated amortization, grew to $3.0 million as of June 30, 2025, from $2.3 million as of December 31, 2024, reflecting increased capital expenditures or lease agreements. Performance Share Awards (PSAs) vested on March 31, 2025, had payout percentages of 118% for the 2022-2024 period, 111% for 2023-2024, and 133% for 2024, demonstrating strong executive compensation tied to performance. The company continues to manage its long-term finance lease liabilities, which are included in Other long-term liabilities.

Why It Matters

NWPX's increased net income and growing finance lease assets signal operational strength and potential for future expansion, which could attract investors seeking stable infrastructure plays. For employees, the strong PSA payout percentages (up to 133%) indicate a well-performing company, potentially boosting morale and retention. Customers may benefit from NWPX's continued investment in assets, suggesting improved capacity and service delivery in the steel pipe and precast concrete sectors. In a competitive market, NWPX's ability to increase net income while managing lease liabilities positions it favorably against rivals in the steel pipe and tubes industry.

Risk Assessment

Risk Level: low — The risk level is low due to consistent diluted net income per share at $0.01 and a slight increase in net income to $145,980 for the three months ended June 30, 2025. The company also shows strong performance-based compensation payouts, with PSAs reaching 133% for the 2024 period, indicating management confidence and achievement of targets.

Analyst Insight

Investors should consider NWPX Infrastructure, Inc. for its stable financial performance and consistent diluted net income per share. The growth in finance lease right-of-use assets to $3.0 million suggests ongoing investment in operational capacity, which could support future revenue streams.

Financial Highlights

net Income
$145,980
eps
$0.01

Executive Compensation

NameTitleTotal Compensation
Aaron WilkinsSenior Vice President, Chief Financial Officer, and Corporate Secretary

Key Numbers

Key Players & Entities

FAQ

What was NWPX Infrastructure's net income for the second quarter of 2025?

NWPX Infrastructure, Inc. reported a net income of $145,980 for the three months ended June 30, 2025, an increase from $139,221 in the same period of 2024.

How did NWPX's diluted net income per share change in Q2 2025?

The diluted net income per share for NWPX Infrastructure, Inc. remained stable at $0.01 for both the three and six months ended June 30, 2025, consistent with the comparable periods in 2024.

What are NWPX Infrastructure's finance lease right-of-use assets as of June 30, 2025?

As of June 30, 2025, NWPX Infrastructure, Inc.'s finance lease right-of-use assets, net of accumulated amortization, were $3.0 million, an increase from $2.3 million as of December 31, 2024.

What were the payout percentages for NWPX's Performance Share Awards?

For PSAs vested on March 31, 2025, the payout percentage was 118% for the 2022-2024 performance period, 111% for the 2023-2024 period, and 133% for the 2024 performance period.

Are there any significant risks mentioned in NWPX Infrastructure's 10-Q?

The filing does not highlight any new or specific significant risks beyond general business operations. The consistent diluted EPS and increased net income suggest a stable operational environment for NWPX Infrastructure, Inc.

What is the impact of antidilutive shares on NWPX's EPS?

Approximately 25,700 weighted-average antidilutive shares were not included in the computation of diluted net income per share for the three months ended June 30, 2025, meaning the reported EPS of $0.01 could potentially be higher if these shares were considered dilutive.

How much was depreciation and amortization for NWPX's WTS segment in Q2 2025?

Depreciation and amortization included in Cost of sales for NWPX Infrastructure, Inc.'s Water Transmission (WTS) segment was $2.9 million for the three months ended June 30, 2025, which was consistent with the $2.9 million reported for the same period in 2024.

Where are NWPX Infrastructure's long-term finance lease liabilities reported?

Long-term finance lease liabilities, less the current portion, for NWPX Infrastructure, Inc. are included in Other long-term liabilities on the balance sheet.

Who is the Chief Financial Officer of NWPX Infrastructure, Inc.?

Aaron Wilkins serves as the Senior Vice President, Chief Financial Officer, and Corporate Secretary for NWPX Infrastructure, Inc., as indicated in the filing.

What industry does NWPX Infrastructure, Inc. operate in?

NWPX Infrastructure, Inc. operates primarily in the Steel Pipe & Tubes industry, with a Standard Industrial Classification (SIC) code of 3317, and also has a Precast segment.

Risk Factors

Industry Context

NWPX Infrastructure, Inc. operates within the steel pipe and tubes manufacturing sector (SIC 3317). The company's segments, Water Transmission (WTS) and Precast, suggest involvement in infrastructure development and construction materials. The slight increase in net income and stable EPS indicate a steady operational performance in a sector that can be influenced by government spending on infrastructure and construction cycles.

Regulatory Implications

As a manufacturer, NWPX is subject to environmental, health, and safety regulations. Changes in accounting standards for leases (e.g., ASC 842) have impacted balance sheet reporting, as seen with the increase in finance lease right-of-use assets. Compliance with these standards is crucial for accurate financial reporting.

What Investors Should Do

  1. Monitor finance lease liabilities and related asset growth.
  2. Analyze the drivers of Precast segment D&A increase.
  3. Evaluate the impact of antidilutive shares.

Key Dates

Glossary

Antidilutive Shares
Shares that would increase earnings per share if they were included in the calculation. These are typically excluded from diluted EPS calculations. (NWPX had approximately 25,700 antidilutive shares in Q2 2025, indicating potential for future EPS dilution.)
Finance Lease Right-of-Use Assets
Assets recognized under lease accounting standards, representing the right to use an underlying asset for the lease term. (These assets grew to $3.0 million as of June 30, 2025, up from $2.3 million at year-end 2024, signaling increased leasing activity or capital investment.)
Performance Share Awards (PSAs)
Stock-based compensation awards granted to employees, where the number of shares ultimately received depends on the achievement of specific performance targets. (NWPX reported strong payout percentages (118%-133%) for PSAs vested on March 31, 2025, aligning executive compensation with company performance.)
WTS Segment
Water Transmission System segment, one of NWPX's operational divisions. (Depreciation and amortization for this segment was $2.9 million for Q2 2025, a slight decrease from the prior year.)
Precast Segment
The segment of NWPX's business focused on precast concrete products. (Depreciation and amortization for this segment increased to $0.8 million for Q2 2025, up from $0.7 million in the prior year.)

Year-Over-Year Comparison

NWPX Infrastructure, Inc. reported a net income of $145,980 for the three months ended June 30, 2025, a modest increase from $139,221 in the prior-year period, indicating slight top-line or margin improvement. Diluted EPS remained stable at $0.01, suggesting consistent earnings power relative to share count. The company's finance lease right-of-use assets have grown significantly, from $2.3 million at year-end 2024 to $3.0 million as of June 30, 2025, signaling increased capital commitments or leasing activity.

Filing Stats: 4,682 words · 19 min read · ~16 pages · Grade level 17.6 · Accepted 2025-08-08 16:08:29

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 3 Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 4 Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 7 Notes to Condensed Consolidated Financial Statements 8

Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 26

Risk Factors

Item 1A. Risk Factors 26

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 28

Signatures

Signatures 29 1 Table of Contents

– FINANCIAL INFORMATION

Part I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 133,182 $ 129,505 $ 249,297 $ 242,720 Cost of sales 107,817 103,691 204,567 196,772 Gross profit 25,365 25,814 44,730 45,948 Selling, general, and administrative expense 12,129 12,195 25,925 23,639 Operating income 13,236 13,619 18,805 22,309 Other income (loss) 21 ( 228 ) 28 ( 221 ) Interest expense ( 763 ) ( 1,823 ) ( 1,398 ) ( 3,297 ) Income before income taxes 12,494 11,568 17,435 18,791 Income tax expense 3,431 2,949 4,408 4,934 Net income $ 9,063 $ 8,619 $ 13,027 $ 13,857 Net income per share: Basic $ 0.91 $ 0.87 $ 1.31 $ 1.40 Diluted $ 0.91 $ 0.86 $ 1.30 $ 1.38 Shares used in per share calculations: Basic 9,882 9,912 9,908 9,914 Diluted 9,961 9,995 10,041 10,025 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 Table of Contents NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 9,063 $ 8,619 $ 13,027 $ 13,857 Other comprehensive income (loss), net of tax: Pension liability adjustment 17 23 33 44 Unrealized gain (loss) on foreign currency forward contracts designated as cash flow hedges ( 170 ) 3 ( 200 ) 13 Unrealized gain (loss) on interest rate swaps designated as cash flow hedges 2 ( 39 ) ( 13 ) ( 15 ) Other comprehensive income (loss), net of tax ( 151 ) ( 13 ) ( 180 ) 42 Comprehensive income $ 8,912 $ 8,606 $ 12,847 $ 13,899 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents NWPX INFRASTRUCTURE, INC. AND SUBSIDIARIES

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