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Dec 31, 2024
Northwest Pipe Q4 2024 Earnings Report
Northwest Pipe Company reported a stronger-than-normal fourth quarter with increased net sales and gross profit, driven by strong performance in its Engineered Steel Pressure Pipe segment.
Key Takeaways
Northwest Pipe Company delivered a robust fourth quarter in 2024, with total net sales increasing by 8.6% year-over-year to $119.6 million. This growth was primarily fueled by a strong performance in the Engineered Steel Pressure Pipe (SPP) segment, which saw a 9.9% increase in net sales and a significant rise in gross profit. The company also achieved a record annual gross profit and net income per diluted share for the full year 2024.
Fourth quarter net sales increased 8.6% year-over-year to $119.6 million.
SPP segment net sales increased 9.9% to $82.5 million, with a gross margin of 17.9%.
Precast segment net sales increased 5.9% to $37.1 million, with a gross margin of 20.7%.
Net income for the fourth quarter was $10.1 million, or $1.00 per diluted share.
Revenue by Segment
Forward Guidance
Northwest Pipe Company anticipates a strong SPP backlog and robust Precast order book entering 2025. While a light bidding environment is expected for SPP in Q1, strong activity is projected for Q2 and Q3, aligning with 2024 levels. The residential Precast business remains strong, with a surge in non-residential orders indicating improved strength for 2025. Overall, Q1 2025 is expected to resemble Q1 2024 due to weather impacts.
Positive Outlook
- Strong SPP backlog and robust Precast order book entering 2025.
- Anticipated strong SPP bidding activity in the second and third quarters of 2025.
- Full-year SPP bidding levels expected to align closely with 2024.
- Residential Precast business remains strong.
- Surge in non-residential Precast order book indicates improved strength in 2025.
Challenges Ahead
- Expected light bidding environment in SPP during the first quarter of 2025.
- First quarter of 2025 expected to resemble first quarter of 2024.
- Weather events in various locations across the country continue to have an impact in Q1 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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