Northwest Pipe Company Reports 10.8% Increase in Net Sales for Fiscal Year 2024

Northwest Pipe Company reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total net sales rising by 10.8% to $492.5 million, compared to $444.4 million in 2023. The Engineered Steel Pressure Pipe (SPP) segment saw a 14% increase in sales, reaching $337.9 million, driven by a 33% rise in production volume, although this was partially offset by a 14% decrease in selling price per ton. The Precast Infrastructure and Engineered Systems segment also experienced growth, with sales increasing by 4.5% to $154.6 million, attributed to a 28% increase in volume shipped, despite a 15% decline in selling prices.

The company's gross profit improved by 22.9% to $95.4 million, representing 19.4% of net sales, up from 17.5% in the previous year. The SPP segment's gross profit surged by 47.6% to $62.6 million, while the Precast segment's gross profit decreased by 6.9% to $32.8 million. Selling, general, and administrative expenses rose by 7.7% to $47.2 million, primarily due to increased compensation costs. Net income for the year was reported at $34.2 million, or 6.9% of net sales, compared to $21.1 million, or 4.8%, in 2023.

In terms of operational developments, Northwest Pipe Company maintained a workforce of 1,358 employees as of December 31, 2024, with no employees under collective bargaining agreements. The company continues to focus on enhancing its manufacturing capabilities, including the installation of a fully automated production system for concrete pipe and manhole components at its Salt Lake City facility. The company also reported a backlog of $213 million in SPP contracts, down from $273 million in the previous year, indicating fluctuations in project commitments.

Looking ahead, Northwest Pipe Company anticipates continued growth driven by federal and state initiatives aimed at improving water infrastructure, including the Infrastructure Investment and Jobs Act, which allocates $55 billion for clean drinking water projects. The company expects to benefit from increased funding for water infrastructure projects, although it remains cautious about potential economic headwinds, including inflation and interest rate fluctuations. The management's outlook suggests a focus on leveraging its manufacturing capabilities and strategic positioning to capitalize on the growing demand for water-related infrastructure products.