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Mar 31, 2023
Northwest Pipe Q1 2023 Earnings Report
Northwest Pipe Company's first quarter results for 2023 were announced, revealing challenges due to severe weather and customer delays, with a near-record backlog in the SPP segment and a solid precast order book.
Key Takeaways
Northwest Pipe Company faced a challenging first quarter due to weather and customer-driven delays, but the Engineered Steel Pressure Pipe segment backlog remained strong. The Precast segment also showed resilience with a solid order book.
Engineered Steel Pressure Pipe segment ended the quarter with a near record $370 million in backlog including confirmed orders.
SPP revenue is expected to increase towards 2022 levels starting in Q2, with improved margins.
Precast segment's order book was $58 million.
Non-residential business at ParkUSA locations continues to show strength.
Northwest Pipe
Northwest Pipe
Forward Guidance
The company anticipates SPP revenue to increase to 2022 levels with improved margins in Q2. Precast revenue is expected to improve over Q1 2023, and the full year performance is expected to be down only modestly from 2022 with similar margin levels.
Positive Outlook
- SPP revenue expected to be on an upward trajectory back towards 2022 levels, with improved margins.
- Second quarter Precast revenue expected to improve over the first quarter of 2023
- Precast segment’s full year performance to be down only modestly from a record year in 2022
- Precast segment anticipates similar margin levels to 2022.
- Non-residential business at ParkUSA locations continues to show strength.
Challenges Ahead
- First quarter was challenging due to severe weather events and customer driven production delays.
- Precast segment's order book down 12% from the same quarter in 2022
- Residential housing market stresses primarily affecting Geneva locations
- Economic uncertainty and associated trends in macroeconomic conditions, including potential recession, inflation, and the state of the housing market
- Ongoing military conflicts in Ukraine and related consequences