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Mar 31, 2022
Northwest Pipe Q1 2022 Earnings Report
Reported a strong first quarter with increased net sales and gross profit, driven by growth in both the Engineered Steel Pressure Pipe and Precast Infrastructure and Engineered Systems segments.
Key Takeaways
Northwest Pipe Company announced a 51.2% increase in net sales to $109.3 million and a 68.5% increase in gross profit to $14.8 million for the first quarter of 2022. Net income was $3.6 million, or $0.36 per diluted share, while adjusted net income was $4.2 million, or $0.42 per diluted share.
Net sales increased by 51.2% year-over-year to $109.3 million.
Gross profit increased by 68.5% year-over-year to $14.8 million.
Record order book of $66 million for the Precast Infrastructure and Engineered Systems segment.
Backlog including confirmed orders of $341 million for the Engineered Steel Pressure Pipe segment, a new quarterly record.
Northwest Pipe
Northwest Pipe
Northwest Pipe Revenue by Segment
Revenue by Segment
Precast Infrastructure and Engineered Systems Revenue
CapyFin.com Forward Guidance
The company expects bidding to be fairly solid throughout 2022 and backlog to remain elevated compared to recent historical levels. The improving quality of the backlog is expected to lead to SPP margin expansion into the mid-teens beginning in the second quarter. The order book to continue to grow for the near term which should facilitate further margin expansion as we progress through what appears to be a very strong precast market in 2022
Positive Outlook
- Strong steel pressure pipe bidding expected to continue throughout 2022.
- Backlog expected to remain elevated compared to recent historical levels.
- Improving quality of backlog expected to lead to SPP margin expansion into the mid-teens beginning in the second quarter.
- Precast order book expected to continue to grow in the near term.
- Further margin expansion expected in the precast market as we progress through 2022.
Challenges Ahead
- SPP gross profit margins remained muted in the first quarter due to the extremely small bidding market and associated bidding pressures experienced in 2021.
- First quarter SPP margins were reduced for a product liability settlement reserve recorded in the quarter.
- Changes in product mix impacted SPP gross profit.
- Pressure on project pricing impacted SPP gross profit.
- Supply chain challenges.