Northwest Pipe Company · Q4 2022 earnings

Briefing

Net sales and gross profit increased, resulting in higher net income and adjusted net income.

Northwest Pipe Company reported a 4.2% increase in net sales to $106.8 million, a 61.1% increase in gross profit to $21.9 million, and a net income of $8.0 million, or $0.79 per diluted share, for the fourth quarter of 2022. The Engineered Steel Pressure Pipe segment saw a slight increase in net sales, while the Precast Infrastructure and Engineered Systems segment experienced a significant increase in net sales and gross profit.

• Net sales increased by 4.2% to $106.8 million compared to Q4 2021.
• Gross profit increased significantly by 61.1% to $21.9 million compared to Q4 2021.
• Net income increased to $8.0 million, or $0.79 per diluted share, compared to $2.3 million, or $0.23 per diluted share, in Q4 2021.
• SPP backlog was $274 million as of December 31, 2022.

Headline financials

Revenue & EPS history

The company expects a challenging first quarter in 2023, similar to the first quarter of 2022, due to customer-driven delays, severe weather events, and uncertainty in the residential housing market. SPP business levels are expected to normalize after the first quarter, while the Precast segment is likely to be moderately affected by housing market uncertainty.