#USA #Vancouver #financial results #Q4 2024 #Northwest Pipe

Northwest Pipe Company's Record Financial Performance in 2024

Northwest Pipe Company, a notable leader in the manufacturing of water-related infrastructure products, recently delivered a remarkable financial report for the fourth quarter and the full year ending December 31, 2024. This report highlights a consistent upward trajectory in the company's financial performance, showcasing not only growth in sales but also achievements in profit margins and operational efficiency.

Fourth Quarter Highlights

In the fourth quarter of 2024, Northwest Pipe's net sales reached an impressive $119.6 million, an increase of 8.6% compared to the same quarter in the previous year. This growth is a testament to the company's strategic operations and robust market demand for its engineered steel pressure pipe (SPP) and precast infrastructure products, even amidst fluctuating market conditions. The gross profit for this quarter escalated to $22.4 million, representing a 16.3% increase, with a gross margin of 18.8% of net sales.

Net income for the fourth quarter also saw a significant boost, amounting to $10.1 million, or $1.00 per diluted share, compared to $5.4 million, or $0.54 per diluted share, in the last quarter of 2023. Notably, this uptick included a favorable income tax adjustment contributing $2.3 million, ultimately resulting in an adjusted net income of $7.8 million, or $0.77 per diluted share.

Segment Performance

The Engineered Steel Pressure Pipe segment (SPP) was a notable performer, showing a 9.9% increase in net sales to $82.5 million, bolstered by a robust bidding environment. The gross profit for SPP surged 32.2% to $14.8 million, reflecting the efficiencies gained from increased production volume and improved product mix. As of the close of 2024, the SPP backlog stood strong at $213 million, which includes confirmed orders totaling $310 million.

Contrasti̇ngly, the Precast Infrastructure and Engineered Systems segment reported an upward swing in net sales of 5.9%, totaling $37.1 million. Despite a decrease in selling prices attributed to product mix changes, the gross margin remained healthy at 20.7%. The order book for Precast also rose significantly, indicating a positive market outlook with orders amounting to $61 million.

Annual Performance Overview

For the entire year of 2024, Northwest Pipe Company achieved remarkable financial records across all categories. Consolidated net sales for the year totaled $492.5 million, marking a 10.8% increase from $444.4 million in 2023, setting a new record for the company. The gross profit mirrored this upward trend, increasing by 22.9% to reach $95.4 million.

The net income for 2024 skyrocketed to $34.2 million — translating to $3.40 per diluted share, compared to $21.1 million, or $2.09 from the previous year. This performance included a similar tax adjustment of $2.3 million, resulting in an adjusted net income of $31.9 million.

Operational Efficiency

Cash flows from operating activities showcased significant strength, amounting to $55.1 million for the full year, surpassing the $53.5 million seen in 2023. This increase reflects the company’s rigorous management of working capital alongside increased revenues and effective cost control measures.

In terms of safety performance, Northwest Pipe achieved a commendable record with a total recordable incident rate of just 1.25. This statistic underscores the company’s commitment to maintaining a safe working environment for its employees throughout its operations, an aspect highly valued in its corporate culture.

Looking Ahead

As Northwest Pipe Company enters 2025, it stands on solid ground with a promising SPP backlog and a strong Precast order book. While some analysts suggest a quieter bidding environment initially in SPP for Q1, expectations for robust bidding activity in the latter half of the year remain high. Management anticipates an alignment of bidding levels with those reported in 2024, reflecting optimism about ongoing growth in the residential and non-residential markets.

In conclusion, Northwest Pipe Company's robust financial results, driven by effective operational strategies and a commitment to safety, highlight not only their current achievements but also a promising outlook for the future. The company continues to solidify its standing in the market as a primary contributor to water-related infrastructure across North America, reaffirming its strategic position in a growing industry landscape.