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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.
Northwest Pipe
Northwest Pipe
Northwest Pipe Revenue by Segment
Revenue by Segment
Engineered Steel Pressure Pipe Revenue
CapyFin.comPrecast Infrastructure and Engineered Systems Revenue
CapyFin.com 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.
- Market softness in non-residential construction demand for Precast in Q4 2024.
- Potential for economic uncertainty and macroeconomic trends to impact demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income