NWPX Infrastructure beats Q2 sales estimates, says Q3 could be better

Overview

• US water infrastructure maker's Q2 sales rose 20% yr/yr, beating analyst expectations

• Q2 net income climbed 75% yr/yr to record level, driven by Water Transmission Systems segment

• Precast segment sales fell on weather and project delays, but order book improved by quarter-end

Outlook

• Company expects Q3 performance to be comparable to or stronger than Q2 2026

• Company says demand remains healthy and bidding activity continues at elevated levels

• Company says Precast business is carrying positive momentum into the second half of the year

Result Drivers

• WTS VOLUME AND PRICING - Water Transmission Systems segment growth driven by 26% increase in tons produced from project timing and 6% higher selling prices due to product mix

• OPERATIONAL EFFICIENCY - WTS gross profit rose on increased volume, operational efficiency gains, and favorable project pricing and product mix

• WEATHER AND PROJECT DELAYS - Precast segment sales and profit fell due to heavy rainfall in Texas and customer-driven project delays in Utah during April and May

Company press release: ID:nPn6VgBYQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron steel peer group is "buy."

• Wall Street's median 12-month price target for NWPX Infrastructure Inc is $108.00, about 14.5% below its July 28 closing price of $126.25

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment

• July 28 - Veralto Q2 results beat estimates on industrial water treatment demand; raises outlook

• July 28 - Zurn Elkay Water Q2 sales beat estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)