Steel Product Producers

Northwest Pipe profits soar in first quarter

May 2, 2024

First quarter ended March 31	2024	2023	% Change
Net sales	$113.2	$99.1	14.2%
Net income (loss)	$5.2	$2.4	121.8%
Per diluted share	$0.52	$0.23	126.1%

(in millions of dollars except per share)

Northwest Pipe’s first-quarter profits more than doubled year over year (y/y), and the company expects a strong performance in both its steel pressure pipe and precast segments for the remainder of the year.

The Vancouver, Wash.-based pipe producer reported net income of $5.2 million in Q1’24, up from $2.4 million a year earlier, on net sales that increased 14% to $113.2 million.

Precast infrastructure and engineered systems segment (precast)

Q1 net sales in Northwest’s precast segment dropped 6.6% y/y to $33.2 million despite a 23% jump in shipment volumes. The company said this was due to a 24% decline in selling prices driven by changes in product mix.

“Following a slow first quarter, which is generally the case in our precast segment, we are expecting fairly strong improvement in both revenue and margins for the second quarter and a strong remainder of the year,” Scott Montross, president and CEO, said in a statement on Wednesday.

Engineered steel pressure pipe segment (SPP)

Net sales in Northwest’s SPP segment rose 25.9% y/y to $80 million in Q1’24. Tons produced spiked 54% “primarily from changes in project timing, partially offset by an 18% decrease in selling price per ton primarily due to product mix,” the company said.

Montross said that during Q1, the SPP business “had very strong bidding activity and production levels.”

“We are anticipating a second quarter that is in line with the first and continued strength throughout 2024,” he added.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.