Key Highlights

  • Record net sales rose 18.7% to USD 179.4 million, and diluted EPS of USD 1.86 beat the USD 1.65 consensus.
  • Water Transmission Systems sales jumped 27.0% to a record USD 131.9 million, lifting segment gross profit 23.4%.
  • Backlog including confirmed orders reached a record USD 435 million, while signed WTS backlog stood at USD 264 million.
  • Precast gross margin improved roughly 160 basis points to 22.9%, and the Serpentix conveyor acquisition closed on September 2.

NWPX Infrastructure, Inc. (NASDAQ:NWPX), the water-related infrastructure manufacturer, reported third-quarter 2026 net sales of USD 179.4 million, up 18.7% from USD 151.1 million a year earlier and above a consensus estimate of USD 167.74 million. Net income climbed 35.0% to USD 18.2 million, or USD 1.86 per diluted share, compared with USD 13.5 million, or USD 1.38 per share, in the prior-year quarter. The EPS result was above a consensus estimate of USD 1.65.

Gross profit rose 18.8% to a record USD 38.2 million, holding the consolidated gross margin at 21.3%, the same level as a year ago. The company noted that quarterly net income was its highest since the third quarter of 2018, a period that included a USD 21.9 million bargain purchase gain.

Segment Performance and Cash Flow

Water Transmission Systems net sales increased 27.0% to USD 131.9 million. A 19% rise in selling price per ton, tied to product mix, and a 7% increase in tons produced, tied to project timing, drove the gain. Segment gross profit grew to USD 27.3 million, though gross margin eased to 20.7% from 21.3% on mix. CEO Scott Montross noted that the quarter included USD 31.0 million of revenue from a single project covered by a nondisclosure agreement.

Precast Infrastructure and Engineered Systems net sales edged up 0.6% to USD 47.5 million. The Boughton and Serpentix acquisitions added USD 2.1 million, offsetting a 9% drop in volume shipped at legacy facilities. Gross profit rose 8.6% to USD 10.9 million, lifting the margin to 22.9% from 21.3%, again on mix. Management highlighted continued growth in its data center business within the segment.

Operating cash flow was USD 27.4 million versus USD 21.0 million a year earlier, and capital expenditures were USD 7.0 million. The company carried USD 18.5 million of revolver borrowings with about USD 105 million of additional capacity.

Backlog and Management Outlook

Signed WTS backlog was USD 264 million at September 30, down from USD 305 million at June 30 but above USD 257 million a year earlier. Including confirmed orders, WTS backlog reached USD 435 million, compared with USD 423 million at the end of June and USD 301 million a year ago. The Precast order book rose to USD 67 million from USD 61 million at June 30, with Serpentix contributing USD 10 million.

Management said it anticipates fourth-quarter performance above both the fourth quarter of 2025 and the first quarter of 2026, despite two major holidays and weather-related disruption. It projects WTS backlog to remain elevated through year-end and Precast activity to stay steady. The company did not publish numerical financial guidance in the release.

Disclosures to Follow

Four readings frame the next report. The first is WTS backlog, which stood at USD 264 million signed and USD 435 million including confirmed orders, against USD 305 million and USD 423 million at June 30. The second is WTS gross margin of 20.7%, which slipped from 21.3% on product mix. The third is Precast volume, which fell 9% at legacy plants even as the order book climbed to USD 67 million. The fourth is the integration of Serpentix, the second acquisition of 2026 after Boughton in February.