# NWPX Infrastructure, Inc.: Form 10-Q for the period ended Jun 30, 2025

- Company: [NWPX Infrastructure, Inc.](/companies/nwpx.md) (CIK 1001385)
- Form: 10-Q
- Filed: 2025-08-08
- Accepted by EDGAR: Aug 8, 2025, 16:08 ET
- Period: 2025-06-30
- Accession: 0001437749-25-025720
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1001385/000143774925025720/nwpx20250630_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1001385/000143774925025720/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $133.2m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $249.3m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $107.8m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $204.6m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $25.4m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-01-01 to 2025-06-30 | $44.7m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-04-01 to 2025-06-30 | $12.1m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-01-01 to 2025-06-30 | $25.9m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $13.2m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $18.8m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $763.0k | us-gaap:InterestExpense |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $1.4m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $3.4m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $4.4m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $9.1m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $13.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.91 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $1.30 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.91 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $1.31 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 9,961,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 10,041,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $10.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $7.2m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 6 months, 2025-01-01 to 2025-06-30 | $7.5m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-06-30 | $2.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $264.0m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $592.6m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $66.8m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $213.1m | us-gaap:Liabilities |
| Long-term debt | at 2025-06-30 | $10.0m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-06-30 | $3.0m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-06-30 | $379.5m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 32,817 characters.

### Forward-Looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report on Form 10‑Q for the quarter ended June 30, 2025 (“2025 Q2 Form 10‑Q”) contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and projections about our business, management’s beliefs, and assumptions made by management. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “should,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements as a result of a variety of important factors. While it is impossible to identify all such factors, those that could cause actual results to differ materially from those estimated by us include:

- changes in demand and market prices for our products;
- product mix;
- bidding activity and order modifications or cancelations;
- timing of customer orders and deliveries;
- production schedules;
- price and availability of raw materials;
- excess or shortage of production capacity;
- international trade policy and regulations;
- changes in trade policy (in particular with Canada and Mexico) and duties imposed on imports and exports and the related impacts on us;
- economic uncertainty and associated trends in macroeconomic conditions, including potential recession, inflation, and the state of the housing and commercial construction markets;
- interest rate risk and changes in market interest rates, including the impact on our customers and related demand for our products;
- our ability to identify and complete internal initiatives and/or acquisitions in order to grow our business;
- our ability to effectively integrate future acquisitions into our business and operations that produce accretive financial results;
- effects of security breaches, computer viruses, and cybersecurity incidents;
- timing and amount of share repurchases;
- impacts of U.S. tax reform legislation on our results of operations, and the impact on our customers and related demand for our products;
- adequacy of our insurance coverage;
- supply chain challenges;
- labor shortages;
- impact of geopolitical trends, changes, and events, including various military conflicts or tensions and the regional and global ramifications of these conditions;
- operating problems at our manufacturing operations including fires, explosions, inclement weather, and floods and other natural disasters;
- material weaknesses in our internal control over financial reporting and our ability to remediate such weaknesses;
- impacts of pandemics, epidemics, or other public health emergencies; and
- other risks discussed in Part I — Item 1A. “Risk Factors” of our Annual Report on Form 10‑K for the year ended December 31, 2024 (“2024 Form 10‑K”) and from time to time in our other Securities and Exchange Commission (the “SEC”) filings and reports.

19

Such forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this 2025 Q2 Form 10‑Q. If we do update or correct one or more forward-looking statements, investors and others should not conclude that we will make additional updates or corrections with respect thereto or with respect to other forward-looking statements.

### Overview

NWPX Infrastructure, Inc., formerly known as Northwest Pipe Company, is a leading manufacturer of water-related infrastructure products, and operates in two segments, Water Transmission Systems (“WTS”), operating as the Northwest Pipe Company brand, and Precast Infrastructure and Engineered Systems (“Precast”), which includes the brands NWPX Geneva and NWPX Park. For detailed descriptions of these segments, see Note 11, “Segment Information” of the Notes to Condensed Consolidated Financial Statements in Part I – Item 1. “Financial Statements” of this 2025 Q2 Form 10‑Q.

Under our Northwest Pipe Company brand, we are the largest manufacturer of engineered water transmission systems in North America and produce steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings. We also provide solution-based products for a wide range of markets including high-quality reinforced precast concrete products and lined precast sanitary sewer system components, which are manufactured under our NWPX Geneva brand, as well as water distribution and management equipment including pump lift stations, wastewater pretreatment, and stormwater quality products through our NWPX Park brand. Strategically positioned to meet growing water and wastewater infrastructure needs, our skilled team is committed to quality and innovation while upholding our core values of accountability, commitment, and teamwork. Headquartered in Vancouver, Washington, we operate 13 manufacturing facilities across North America.

Our water infrastructure products are sold generally to installation contractors, who include our products in their bids to federal, state, and municipal agencies, privately-owned water companies, or developers for specific projects. We believe our sales are substantially driven by spending on urban growth and new water infrastructure with a recent trend towards spending on water infrastructure replacement, repair, and upgrade. Within the total range of products, our steel pipe best addresses the larger-diameter, higher-pressure pipeline applications, while our precast concrete products mainly serve stormwater and sanitary sewer systems.

### Company Name

Our shareholders approved an amendment to our Articles of Incorporation to change our corporate name from Northwest Pipe Company to NWPX Infrastructure, Inc. at the Annual Meeting of Shareholders held on June 12, 2025 (the “Name Change”). That same day, we effectuated the Name Change by filing an amendment of our Articles of Incorporation with the Oregon Secretary of State and amended and restated our Bylaws to reflect the Name Change.

At the same time, we renamed one of our two operating segments. The segment previously referred to as “Engineered Steel Pressure Pipe (SPP)” has been renamed “Water Transmission Systems (WTS)” to better reflect the value contribution specifically from our business unit’s capabilities in engineering, production execution, and delivery of critical integrated water pipeline systems. The “Precast Infrastructure and Engineered Systems (Precast)” segment name remains unchanged. This change in naming convention does not affect the composition of the segments or the basis of segment reporting, as there have been no changes to how our chief operating decision maker manages or evaluates performance.

### Our Current Economic Environment

Demand for our Precast products is generally influenced by general economic conditions such as housing starts, population growth, interest rates, and rates of inflation. According to the United States Census Bureau, privately-owned housing starts were at a seasonally adjusted annual rate of 1.3 million in June 2025 and 1.5 million in December 2024, and the population of the United States is expected to increase by approximately 2 million people in 2025. While the housing market has softened recently, we continue to see strength in Texas and Utah which are two of the four states in the United States with the highest capital expenditures per capita according to the June 2025 Bluefield Research *Insight Report – U.S. & Canada Water & Wastewater Pipe CAPEX Forecasts, 2025-2035 (“*Bluefield Report”) and the states in which our Precast manufacturing facilities are located, the current elevated federal funds rate could continue to temper demand for our precast products.

Our WTS projects are often planned for many years in advance, as we operate that business with a long-term time horizon for which the projects are sometimes part of 50‑year build-out plans. As previously reported, we experienced a reduced level of project bidding in the first quarter of 2025 that rebounded significantly in the second quarter, and we continue to expect full-year 2025 bidding levels to align closely with the level of project bidding we experienced in 2024, as long-term demand for water infrastructure projects in the United States remains relatively strong. Additionally, while our WTS business faces possible head winds from recessionary concerns in the broader domestic economy, we currently believe it more likely a modest increase in funding will be brought on by the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act (“IIJA”)) and the Inflation Reduction Act. According to the Bluefield Report, approximately $4 billion earmarked under the IIJA has currently been awarded to Drinking Water State Revolving Loan Fund recipients via subawards, leaving most of the $55 billion spending package available; we expect to benefit from this spending late in the cycle due to the long project timelines.

Purchased steel typically represents approximately 30% of our WTS projects’ cost of sales, and higher steel costs generally result in higher selling prices and revenue; however, volatile fluctuations in steel markets can affect our business. WTS contracts are generally quoted on a fixed-price basis, and volatile steel markets can result in selling prices that no longer correlate to the cost available at the time of steel purchase. Our average price of purchased steel was $943 per ton in the first six months of 2025, compared to annual averages of $914 per ton in 2024 and $994 per ton in 2023.

Economic uncertainty, including the impacts of U.S. global economic policy, raw material shortages, inflationary pressures, potential risks of a recession, and disruptions in the financial markets could have an adverse effect on our business. More specifically, we believe the recently enacted trade policies, and the growing uncertainty around the tariffs and related countermeasures, could dampen construction activity and impact our costs, particularly in the short term. These costs will be mitigated to the extent possible. Rising delays in the planning pipeline suggest that developers are already bracing for impact, grappling with higher tariffs, dwindling federal funding, and ongoing labor shortages. We expect heightened risk of economic volatility as long as the uncertainty remains, though the direct and indirect impact on our business will also depend on future developments, which cannot be predicted.

### Results of Operations

The following tables set forth, for the periods indicated, certain financial information regarding costs and expenses expressed in dollars (in thousands) and as a percentage of total net sales.

| Net sales: | Three Months Ended June 30, 2025 $% of Net Sales |  | Three Months Ended June 30, 2024 $% of Net Sales |  |
| --- | ---: | ---: | ---: | ---: |
| Water Transmission Systems | $84,588 | 63.5% | $89,523 | 69.1% |
| Precast Infrastructure and Engineered Systems | 48,594 | 36.5 | 39,982 | 30.9 |
| Total net sales | 133,182 | 100.0 | 129,505 | 100.0 |
| Cost of sales: |  |  |  |  |
| Water Transmission Systems | 69,533 | 52.2 | 72,542 | 56.0 |
| Precast Infrastructure and Engineered Systems | 38,284 | 28.8 | 31,149 | 24.1 |
| Total cost of sales | 107,817 | 81.0 | 103,691 | 80.1 |
| Gross profit: |  |  |  |  |
| Water Transmission Systems | 15,055 | 11.3 | 16,981 | 13.1 |
| Precast Infrastructure and Engineered Systems | 10,310 | 7.7 | 8,833 | 6.8 |
| Total gross profit | 25,365 | 19.0 | 25,814 | 19.9 |
| Selling, general, and administrative expense | 12,129 | 9.1 | 12,195 | 9.4 |
| Operating income | 13,236 | 9.9 | 13,619 | 10.5 |
| Other income (loss) | 21 | - | (228) | (0.2) |
| Interest expense | (763) | (0.5) | (1,823) | (1.4) |
| Income before income taxes | 12,494 | 9.4 | 11,568 | 8.9 |
| Income tax expense | 3,431 | 2.6 | 2,949 | 2.2 |
| Net income | $9,063 | 6.8% | $8,619 | 6.7% |

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| Net sales: | Six Months Ended June 30, 2025 $% of Net Sales |  | Six Months Ended June 30, 2024 $% of Net Sales |  |
| --- | ---: | ---: | ---: | ---: |
| Water Transmission Systems | $163,034 | 65.4% | $169,530 | 69.8% |
| Precast Infrastructure and Engineered Systems | 86,263 | 34.6 | 73,190 | 30.2 |
| Total net sales | 249,297 | 100.0 | 242,720 | 100.0 |
| Cost of sales: |  |  |  |  |
| Water Transmission Systems | 135,805 | 54.5 | 138,307 | 57.0 |
| Precast Infrastructure and Engineered Systems | 68,762 | 27.6 | 58,465 | 24.1 |
| Total cost of sales | 204,567 | 82.1 | 196,772 | 81.1 |
| Gross profit: |  |  |  |  |
| Water Transmission Systems | 27,229 | 10.9 | 31,223 | 12.8 |
| Precast Infrastructure and Engineered Systems | 17,501 | 7.0 | 14,725 | 6.1 |
| Total gross profit | 44,730 | 17.9 | 45,948 | 18.9 |
| Selling, general, and administrative expense | 25,925 | 10.4 | 23,639 | 9.7 |
| Operating income | 18,805 | 7.5 | 22,309 | 9.2 |
| Other income (loss) | 28 | - | (221) | (0.1) |
| Interest expense | (1,398) | (0.5) | (3,297) | (1.4) |
| Income before income taxes | 17,435 | 7.0 | 18,791 | 7.7 |
| Income tax expense | 4,408 | 1.8 | 4,934 | 2.0 |
| Net income | $13,027 | 5.2% | $13,857 | 5.7% |

### Three and Six Months Ended June 30, 2025 Compared to Three and Six Months Ended June 30, 2024

***Net sales.*** Net sales increased 2.8% to $133.2 million in the second quarter of 2025 compared to $129.5 million in the second quarter of 2024 and increased 2.7% to $249.3 million in the first six months of 2025 compared to $242.7 million in the first six months of 2024.

WTS net sales decreased 5.5% to $84.6 million in the second quarter of 2025 compared to $89.5 million in the second quarter of 2024 driven by a 10% decrease in tons produced resulting from changes in project timing, partially offset by a 4% increase in selling price per ton due to changes in product mix. WTS net sales decreased 3.8% to $163.0 million in the first six months of 2025 compared to $169.5 million in the first six months of 2024 driven by a 14% decrease in tons produced resulting from changes in project timing, partially offset by an 11% increase in selling price per ton due to changes in product mix. Bidding activity, backlog, and production levels may vary significantly from period to period, thereby affecting sales volumes.

Precast net sales increased 21.5% to $48.6 million in the second quarter of 2025 compared to $40.0 million in the second quarter of 2024 driven by a 13% increase in volume shipped and a 7% increase in selling prices due to changes in product mix. Precast net sales increased 17.9% to $86.3 million in the first six months of 2025 compared to $73.2 million in the first six months of 2024 driven by a 17% increase in volume shipped and a 1% increase in selling prices due to changes in product mix.

***Gross profit.*** Gross profit decreased 1.7% to $25.4 million (19.0% of net sales) in the second quarter of 2025 compared to $25.8 million (19.9% of net sales) in the second quarter of 2024 and decreased 2.7% to $44.7 million (17.9% of net sales) in the first six months of 2025 compared to $45.9 million (18.9% of net sales) in the first six months of 2024.

WTS gross profit decreased 11.3% to $15.1 million (17.8% of WTS net sales) in the second quarter of 2025 compared to $17.0 million (19.0% of WTS net sales) in the second quarter of 2024 due to decreased volume. WTS gross profit decreased 12.8% to $27.2 million (16.7% of WTS net sales) in the first six months of 2025 compared to $31.2 million (18.4% of WTS net sales) in the first six months of 2024 due to decreased volume.

Precast gross profit increased 16.7% to $10.3 million (21.2% of Precast net sales) in the second quarter of 2025 compared to $8.8 million (22.1% of Precast net sales) in the second quarter of 2024 primarily due to increased volume shipped. Precast gross profit increased 18.9% to $17.5 million (20.3% of Precast net sales) in the first six months of 2025 compared to $14.7 million (20.1% of Precast net sales) in the first six months of 2024 primarily due to increased volume shipped.

***Selling, general, and administrative expense.*** Selling, general, and administrative expense decreased 0.5% to $12.1 million (9.1% of net sales) in the second quarter of 2025 compared to $12.2 million (9.4% of net sales) in the second quarter of 2024 primarily due to $0.4 million in lower professional fees and $0.3 million in lower incentive compensation expense, partially offset by $0.4 million in higher base compensation and benefits expense. Selling, general, and administrative expense increased 9.7% to $25.9 million (10.4% of net sales) in the first six months of 2025 compared to $23.6 million (9.7% of net sales) in the first six months of 2024 primarily due to $1.4 million in higher base compensation and benefits expense and $1.1 million in higher incentive compensation expense, partially offset by $0.5 million in lower professional fees.

***Income taxes.*** Income tax expense was $3.4 million in the second quarter of 2025 (an effective income tax rate of 27.5%) compared to $2.9 million in the second quarter of 2024 (an effective income tax rate of 25.5%) and was $4.4 million in the first six months of 2025 (an effective income tax rate of 25.3%) compared to $4.9 million in the first six months of 2024 (an effective income tax rate of 26.3%). The estimated effective income tax rates for the second quarter of 2025 and the second quarter and first six months of 2024 were primarily impacted by non-deductible permanent differences. The estimated effective income tax rate for the first six months of 2025 were primarily impacted by non-deductible permanent differences, partially offset by the tax windfalls recognized upon the vesting of equity awards. The estimated effective income tax rate can change significantly depending on the relationship of permanent income tax differences to estimated pre-tax income or loss. Accordingly, the comparison of estimated effective income tax rates between periods is not meaningful in all situations.

### Liquidity and Capital Resources

### Sources and Uses of Cash

Our principal sources of liquidity generally include operating cash flows and our credit agreement. From time to time our long-term capital needs may be met through the issuance of additional debt or equity. Our principal uses of liquidity generally include capital expenditures, working capital, organic growth initiatives, acquisitions, share repurchases, and debt service. Information regarding our cash flows for the six months ended June 30, 2025 and 2024 are presented in our Condensed Consolidated Statements of Cash Flows contained in Part I – Item 1. “Financial Statements” of this 2025 Q2 Form 10‑Q, and are further discussed below.

As of June 30, 2025, our working capital (current assets minus current liabilities) was $197.2 million compared to $187.4 million as of December 31, 2024. Cash and cash equivalents totaled $2.0 million and $5.0 million as of June 30, 2025 and December 31, 2024, respectively.

Fluctuations in WTS working capital accounts result from timing differences between production, shipment, invoicing, and collection, as well as changes in levels of production and costs of materials. We typically have a relatively large investment in working capital, as we generally pay for materials, labor, and other production costs in the initial stages of a project, while payments from our customers are generally received after finished product is delivered. A portion of our revenues are recognized over time as the manufacturing process progresses; therefore, cash receipts typically occur subsequent to when revenue is recognized and the elapsed time between when revenue is recorded and when cash is received can be significant. As such, our payment cycle is a significantly shorter interval than our collection cycle, although the effect of this difference in the cycles may vary by project, and from period to period.

As of June 30, 2025, we had $30.6 million of outstanding revolving loan borrowings, $13.0 million of outstanding long-term debt, $91.7 million of operating lease liabilities, and $7.1 million of finance lease liabilities. As of December 31, 2024, we had $24.7 million of outstanding revolving loan borrowings, $14.5 million of outstanding long-term debt, $90.7 million of operating lease liabilities, and $6.8 million of finance lease liabilities.

### Net Cash Provided by (Used in) Operating Activities

Net cash provided by (used in) operating activities was $10.3 million in the first six months of 2025 compared to ($3.8) million in the first six months of 2024. Net income, adjusted for non-cash items, provided $29.5 million of operating cash flow in the first six months of 2025 compared to $29.2 million of operating cash flow in the first six months of 2024. The net change in working capital used $19.2 million of operating cash flow in the first six months of 2025 compared to $33.0 million in the first six months of 2024.

### Net Cash Used in Investing Activities

Net cash used in investing activities was $7.1 million in the first six months of 2025 compared to $10.6 million in the first six months of 2024. Capital expenditures were $7.2 million in the first six months of 2025 compared to $10.6 million in the first six months of 2024, which includes $0.3 million in the first six months of 2025 and $1.0 million in the first six months of 2024 of investment in our new reinforced concrete pipe mill, $0.3 million in the first six months of 2025 and $2.3 million in the first six months of 2024 for the construction of a building at our Salt Lake City, Utah facility for the new mill, and the remainder primarily for standard capital replacement. We currently expect capital expenditures in 2025 to be approximately $19 million to $22 million, which includes approximately $2 million of investment in our new reinforced concrete pipe mill and associated ancillary equipment, and the remainder primarily for standard capital replacement.

### Net Cash Provided by (Used in) Financing Activities

Net cash provided by (used in) financing activities was ($6.1) million in the first six months of 2025 compared to $14.8 million in the first six months of 2024. Net borrowings on the line of credit were $6.0 million in the first six months of 2025 compared to $21.4 million in the first six months of 2024. Net payments on other debt were $1.5 million in the first six months of 2025. No payments on other debt were made in the first six months of 2024. Repurchases of common stock were $7.5 million in the first six months of 2025 compared to $4.4 million in the first six months of 2024.

We anticipate that our existing cash and cash equivalents, cash flows expected to be generated by operations, and additional borrowing capacity under our credit agreement and other loans will be adequate to fund our working capital, debt service, capital expenditure requirements, and share repurchases for the foreseeable future. To the extent necessary, we may also satisfy capital requirements through additional bank borrowings, senior notes, term notes, subordinated debt, and finance and operating leases, if such resources are available on satisfactory terms. We have from time to time evaluated and continue to evaluate opportunities for acquisitions and expansion. Any such transactions, if consummated, may necessitate additional bank borrowings or other sources of funding.

On December 4, 2023, our shelf registration statement on Form S‑3 (Registration No. 333‑275691) covering the potential future sale of up to $150 million of our equity and/or debt securities or combinations thereof, was declared effective by the SEC. This shelf registration statement, which replaced the registration statement on Form S‑3 that expired on November 3, 2023, provides another potential source of capital, in addition to other alternatives already in place. We cannot be certain that funding will be available on favorable terms or available at all. To the extent that we raise additional funds by issuing equity securities, our shareholders may experience significant dilution. As of the date of this 2025 Q2 Form 10‑Q, we have not yet sold any securities under this registration statement, nor do we have an obligation to do so. Please refer to the factors discussed in Part I – Item 1A. “Risk Factors” in our 2024 Form 10‑K.

On November 2, 2023, we announced our authorization of a share repurchase program of up to $30 million of our outstanding common stock. The program does not commit to any particular timing or quantity of purchases, and the program may be suspended or discontinued at any time. Under the program, shares may be purchased in open market, including through plans adopted pursuant to Rule 10b5‑1 of the Exchange Act, or in privately negotiated transactions administered by our broker. At this time, we have elected to limit our share repurchase transactions to only those transactions made under Rule 10b5‑1 trading plans, which we believe consider our liquidity, including availability of borrowings and covenant compliance under our credit agreement, and other capital allocation priorities of the business. For a summary of our Rule 10b5‑1 trading plans and shares repurchased during the second quarter of 2025, see Part II — Item 2. “Unregistered Sales of Equity Securities and Use of Proceeds” of this 2025 Q2 Form 10‑Q. Please refer to the factors discussed in Part I – Item 1A. “Risk Factors” in our 2024 Form 10‑K.

### Credit Agreement

The Credit Agreement dated June 30, 2021 with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the lenders from time to time party thereto, including the initial sole lender, Wells Fargo (the “Lenders”), as amended by the Incremental Amendment dated October 22, 2021, the Second Amendment to Credit Agreement dated April 29, 2022, and the Third Amendment to Credit Agreement dated June 29, 2023 (together, the “Amended Credit Agreement”) provides for a revolving loan, swingline loan, and letters of credit in the aggregate amount of up to $125 million (“Revolver Commitment”), with an option for us to increase that amount by $50 million, subject to provisions of the Amended Credit Agreement. The Amended Credit Agreement will expire, and all obligations outstanding will mature, on June 29, 2028. We may prepay outstanding amounts at our discretion without penalty at any time, subject to applicable notice requirements. As of June 30, 2025 under the Amended Credit Agreement, we had $30.6 million of outstanding revolving loan borrowings, $1.6 million of outstanding letters of credit, and additional borrowing capacity of approximately $93 million.

Revolving loans under the Amended Credit Agreement bear interest at rates related to, at our option and subject to the provisions of the Amended Credit Agreement, either: (i) Base Rate (as defined in the Amended Credit Agreement) plus the Applicable Margin; (ii) Adjusted Term Secured Overnight Finance Rate (“SOFR”) (as defined in the Amended Credit Agreement) plus the Applicable Margin; or (iii) Adjusted Daily Simple SOFR (as defined in the Amended Credit Agreement) plus the Applicable Margin. The “Applicable Margin” is 1.75% to 2.35%, depending on our Consolidated Senior Leverage Ratio (as defined in the Amended Credit Agreement) and the interest rate option chosen. Interest on outstanding revolving loans is payable monthly. Swingline loans under the Amended Credit Agreement bear interest at the Base Rate plus the Applicable Margin. As of June 30, 2025, the weighted-average interest rate for outstanding borrowings was 6.15%. The Amended Credit Agreement requires the payment of a commitment fee of between 0.30% and 0.40%, based on the amount by which the Revolver Commitment exceeds the average daily balance of outstanding borrowings (as defined in the Amended Credit Agreement). Such fee is payable monthly in arrears. We are also obligated to pay additional fees customary for credit facilities of this size and type.

The letters of credit outstanding as of June 30, 2025 relate to workers’ compensation insurance and a public improvement project. Based on the nature of these arrangements and our historical experience, we do not expect to make any material payments under these arrangements.

The Amended Credit Agreement contains customary representations and warranties, as well as customary affirmative and negative covenants, events of default, and indemnification provisions in favor of the Lenders. The negative covenants include restrictions regarding the incurrence of liens and indebtedness, annual capital expenditures, certain investments, acquisitions, and dispositions, and other matters, all subject to certain exceptions. The Amended Credit Agreement requires us to regularly provide financial information to Wells Fargo and to maintain a consolidated senior leverage ratio no greater than 3.00 to 1.00 (subject to certain exceptions) and a minimum consolidated earnings before interest, taxes, depreciation, and amortization (as defined in the Amended Credit Agreement) of at least $35 million for the four consecutive fiscal quarters most recently ended. Pursuant to the Amended Credit Agreement, we have also agreed that we will not sell, assign, or otherwise dispose or encumber, any of our owned real property. The occurrence of an event of default could result in the acceleration of the obligations under the Amended Credit Agreement. We were in compliance with our financial covenants as of June 30, 2025, and expect to continue to be in compliance in the near term.

Our obligations under the Amended Credit Agreement are secured by a senior security interest in substantially all of our and our subsidiaries’ assets.

### Long-term Debt

On October 28, 2024, we converted the outstanding balance of the Interim Funding Agreement dated August 2, 2022 with Wells Fargo Equipment Finance, Inc. (“WFEF”), as amended January 23, 2023, March 15, 2023, July 21, 2023, and November 2, 2023 into a $15 million term loan with WFEF that was used to fund our new reinforced concrete pipe mill. The term loan matures on October 28, 2029, bears interest at the SOFR Average plus 2.22%, is payable in monthly installments of $0.3 million plus accrued interest, and is secured by the pipe mill. As of June 30, 2025, the outstanding balance of the term loan was $13.0 million and the weighted-average interest rate for outstanding borrowings was 6.53%. The term loan may be prepaid in full at any time provided that we pay a prepayment fee equal to 2% of the outstanding principal balance if repaid in the first 30 months of the loan.

### Recent Accounting Pronouncements

For a description of recent accounting pronouncements affecting our Company, including the dates of adoption and estimated effects on financial position, results of operations, and cash flows, see Note 12, “Recent Accounting and Reporting Developments” of the Notes to Condensed Consolidated Financial Statements in Part I – Item 1. “Financial Statements” of this 2025 Q2 Form 10‑Q.

### Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements included in Part I – Item 1. “Financial Statements” of this 2025 Q2 Form 10‑Q, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of our Condensed Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, we evaluate all of our estimates, including those related to revenue recognition, goodwill, income taxes, and litigation and other contingencies. Actual results may differ from these estimates under different assumptions or conditions.

There have been no significant changes in our critical accounting estimates during the three and six months ended June 30, 2025 as compared to the critical accounting estimates disclosed in our 2024 Form 10‑K.

## Market risk

As filed, 229 characters.

For a discussion of our market risk associated with commodity prices, interest rates, and foreign currency exchange rates, see Part II – Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in our 2024 Form 10‑K.

## Controls and procedures

As filed, 1,500 characters.

### Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a‑15(e) and 15d‑15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are designed to provide reasonable assurance that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosures.

In connection with the preparation of this Quarterly Report on Form 10‑Q for the quarter ended June 30, 2025, our management, under the supervision and with the participation of our CEO and CFO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025. As a result of the assessment, our CEO and CFO have concluded that, as of June 30, 2025, our disclosure controls and procedures were effective.

### Changes in Internal Control over Financial Reporting

There were no significant changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 609 characters.

In addition to the other information set forth in this 2025 Q2 Form 10‑Q, the factors discussed in Part I – Item 1A. “Risk Factors” in our 2024 Form 10‑K and any subsequently filed quarterly reports on Form 10‑Q could materially affect our business, financial condition, or operating results. The risks described in our 2024 Form 10‑K and subsequent Form 10‑Q’s are not the only risks facing us. There are additional risks and uncertainties not currently known to us or that we currently deem to be immaterial, that may also materially adversely affect our business, financial condition, or operating results.

Filed Aug 8, 2025.
Source: SEC EDGAR, the filing index for accession 0001437749-25-025720. Last ingested by Listed: Oct 30, 2026, 12:42 ET. No prices; not investment advice.