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Jun 30, 2022
Northwest Pipe Q2 2022 Earnings Report
Net sales increased, gross profit increased significantly, and net income rose, driven by strong performance in both the SPP and Precast segments and the acquisition of ParkUSA.
Key Takeaways
Northwest Pipe Company reported a strong second quarter with significant year-over-year increases in net sales, gross profit, and net income. The company benefited from the acquisition of ParkUSA and strong performance in both its Engineered Steel Pressure Pipe (SPP) and Precast Infrastructure and Engineered Systems segments.
Net sales increased 60.6% year-over-year to $118.5 million.
Gross profit increased 152.5% year-over-year to $24.1 million.
Net income was $9.7 million, or $0.97 per diluted share.
Precast order book reached a record of $75 million.
Northwest Pipe
Northwest Pipe
Northwest Pipe Revenue by Segment
Revenue by Segment
Precast Infrastructure and Engineered Systems Revenue
CapyFin.com Forward Guidance
For the third quarter of 2022, the SPP business was on track to generate similar revenue and improving margins compared to the second quarter of 2022. However, recent severe weather events in late July and early August forced shutdowns at both the Adelanto, California and St. Louis, Missouri plants due to flooding which may adversely impact revenue and margins if the shutdowns become extended. As such, the company currently anticipates its third quarter SPP revenue could be down slightly from the second quarter of 2022 with gross margins that are flat to modestly higher.
Positive Outlook
- SPP business was on track to generate similar revenue compared to Q2 2022.
- SPP business was on track to improve margins compared to Q2 2022.
Challenges Ahead
- Severe weather events in late July and early August forced shutdowns at Adelanto, California and St. Louis, Missouri plants due to flooding.
- Shutdowns may adversely impact revenue and margins if they become extended.
- Third quarter SPP revenue could be down slightly from the second quarter of 2022.
- Gross margins are expected to be flat to modestly higher.