The following is a summary of the Northwest Pipe Company (NWPX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Northwest Pipe Company reported a 14.2% year-over-year increase in Q1 2024 net sales, reaching $113.2 million.
The Steel Pressure Pipe segment saw a 25.9% revenue increase, while the Precast segment revenue declined by 6.6%.
The consolidated gross profit for Q1 went up by 21.5% year-over-year to $20.1 million.
A net income of $5.2 million was reported for Q1 2024, a significant increase from $2.4 million in Q1 2023.
Selling, general, and administrative expenses saw a reduction of 3.6%, but interest expense increased due to rising interest rates.
Business Progress:
The company saw significant bidding activity and project wins in Q1, leading to a Steel Pressure Pipe backlog of $337 million.
It plans to focus on product spread strategy and M&A opportunities for business growth in 2024.
The company repurchased approximately 127,000 shares for a total of $3.7 million in Q1 2024.
Despite the decline of Precast segment revenue, the company expressed confidence in the Precast business's long-term prospects.
The company aims to maintain a revenue run rate of $80 million for Steel Pressure Pipe and forecasts increased precast bookings and a stronger Q2 for the precast segment.
In terms of strategy, the company is considering share buybacks and M&A activity for growth.
The company expects a growth continuation in their Steel Pressure Pipe sector due to improved bidding environment, and a stronger 2024 for the Precast segment despite macroeconomic challenges and increased interest rates.
More details: Northwest Pipe Co IR
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