Nwpx Infrastructure, Inc. · NASDAQ:NWPX
Nwpx Infrastructure — Q3 2024 Earnings Presentation
32 slides from Nwpx Infrastructure's earnings presentation, Oct 31, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION www.nwpipe.com JULY 2024 October 2024
Slide 2: Legal Statements
INVESTOR PRESENTATION | 2 LEGAL STATEMENTS FORWARD LOOKING STATEMENTS Statements in this presentation 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
Slide 3: About Northwest Pipe Company
INVESTOR PRESENTATION | 3 Widely-recognized reputation for quality, service, and ABOUT Founded in manufacturing capabilities NORTHWEST 1966 13 Locations strategically PIPE COMPANY Headquartered in Vancouver, WA placed manufacturing facilities with 12 in the U.S. and one in Mexico Positioned to meet
Slide 4: Wide-Ranging Product Capabilities
INVESTOR PRESENTATION | 4 WHAT WE DO WIDE-RANGING PRODUCT CAPABILITIES PRECAST CONCRETE ENVIRONMENTAL & RCP PIPE SOLUTIONS & UTILITIES TRENCHLESS PIPE ENGINEERED STEEL PIPE STEEL PRESSURE PIPE PRECAST INFRASTRUCTURE
Slide 5: Strategic Footprint with Customer Access Across the U.S.
INVESTOR PRESENTATION | 5 STRATEGIC FOOTPRINT WITH CUSTOMER ACCESS ACROSS THE U.S. CORPORATE HEADQUARTERS ENGINEERED STEEL PRESSURE PIPE PLANTS PRECAST INFRASTRUCURE AND ENGINEERED SYSTEMS PLANTS
Slide 6: Demand Drivers
INVESTOR PRESENTATION | 6 WHY WE DO WHAT WE DO DEMAND - DRIVERS Aging water and wastewater systems Increasingly stringent regulatory policies • Existing infrastructure need upgrades, repairs, and replacements • Increased public awareness of problems with the quality of drinking • Underinvestment in
Slide 7: Large Addressable Market Opportunity
INVESTOR PRESENTATION | 7 LARGE STEEL PRESSURE PIPE ADDRESSABLE Addressable Market NWPX’s Share: MARKET NWPX's Share $296 M (~56%) OPPORTUNITY TOTAL ADDRESSABLE MARKET $450 - $600 M CONCRETE PIPE & PRECAST NWPX’s Share: Addressable Market NWPX's Share $148 M (~4%) TOTAL ADDRESSABLE MARKET $3 - $5 B
Slide 8: Engineered Steel Pressure Pipe
INVESTOR PRESENTATION | 8 ENGINEERED STEEL • Manufactures large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which PRESSURE PIPE are primarily related to drinking water systems. • Products also used for hydroelectric power systems, WELL-POISED INDUSTRY
Slide 9: Precast Infrastructure & Engineered Systems Segment
INVESTOR PRESENTATION | 9 PRECAST High-quality precast and reinforced concrete products INFRASTRUCTURE & typically used in non-pressure conveyance as well as wastewater pretreatment, stormwater quality, and water ENGINEERED SYSTEMS distribution and management. SEGMENT Precast footprint in Texas and
Slide 10: Leader of Innovation in Water Infrastructure
INVESTOR PRESENTATION | 10 RADIAL BENDING JOINT COMPOSITE FRP PANELS A first of its kind for the industry, this patent- Made for maintenance-free corrosion pending Permalok® joint enables steel pipe to protection these panels can be made be installed along a curved radius in in any size and extend t
Slide 11: Growth Strategy
INVESTOR PRESENTATION | 11 Create transformational growth and GROWTH profitability in order to drive shareholder value through organic growth “Product STRATEGY Spread” and acquisitions PRECAST PRODUCT SPREAD STRATEGY: ACQUISITION STRATEGY: Produce and ship ParkUSA products out of legacy Continuing t
Slide 12: Capital Allocation Strategy
INVESTOR PRESENTATION | 12 CAPITAL ALLOCATION STRATEGY Use of Cash Priorities ORGANIC GROWTH ACCRETIVE AQUISITIONS • Evaluating potential M&A in the precast-related market • Prioritizing organic growth through Product Spread strategy with the goal of Precast becoming the same size as the for ParkUSA
Slide 13: Demand Drives Strong Performance
INVESTOR PRESENTATION | 13 DEMAND DRIVES STRONG PERFORMANCE Backlog1 and Order Book2 Maintained strong SPP Revenue Grew SPP revenues by over 2x since 2017 ($ Millions) backlog and Precast order ($ Millions) and more than tripled the size of the book in 2023 Company with the addition of Precast $372
Slide 14: Q3 2024 Highlights
INVESTOR PRESENTATION | 14 Q3 2024 HIGHLIGHTS Backlog including confirmed orders1 of $282 million Strong order book2 of $57 million for the Precast for the Engineered Steel Pressure Pipe segment Infrastructure and Engineered Systems segment Net Sales by Segment Gross Profit by Segment ($ Millions) S
Slide 15: Corporate Responsibility
INVESTOR PRESENTATION | 15 HEALTH & SAFETY DIVERSITY & INCLUSION CORPORATE RESPONSIBILITY ENVIRONMENTAL STEWARDSHIP Environmental, Social, and Governance Focus
Slide 16: Health & Safety
INVESTOR PRESENTATION | 16 CORPORATE RESPONSIBILITY HEALTH & SAFETY • Industry-leading safety performance over the last four years1 significantly below the national and comparable industry average2 • Average total recordable incident rate: 1.51 • Average days away rate: 0.29 • Prioritizing employee
Slide 17: Diversity & Inclusion
INVESTOR PRESENTATION | 17 CORPORATE RESPONSIBILITY DIVERSITY & INCLUSION • Cultivating workforce diversity at all levels of the Company • Ensuring that employee groups are culturally and socially accepted, welcomed, and equally treated in the workplace • 51% of U.S. employees are from underrepresen
Slide 18: Environmental Stewardship
INVESTOR PRESENTATION | 18 CORPORATE RESPONSIBILITY ENVIROMENTAL STEWARSHIP • Prioritizing continuous improvement in reducing environmental impact • Minimizing air pollution from operational facilities with emissions control devices and reduction programs beyond complying with local air permitting r
Slide 19: Strategic and Operational Initiatives
INVESTOR PRESENTATION | 19 STRATEGIC AND OPERATIONAL INITIATIVES Maintain a safe Improve performance Continue to implement workplace where through a persistent cost reductions and employees are proud focus on margin over efficiencies at all levels to work volume of the Company Intensify our focus on
Slide 20: Investment Highlights
INVESTOR PRESENTATION | 20 INVESTMENT HIGHLIGHTS Large addressable market provides opportunities for further expansion Strong balance sheet Diversification strategy helps reduce impacts from market cyclicality and improve free cash flow generation Experienced management team with over 100 years of c
Slide 21: Appendix
INVESTOR PRESENTATION | 21 APPENDIX
Slide 22: Geneva Pipe and Precast
INVESTOR PRESENTATION | 22 STRATEGIC ACQUISITION: GENEVA PIPE • Completed the acquisition of Geneva Pipe and Precast on AND PRECAST January 31, 2020 for $49.4 million (~7.5x EBITDA) • Three reinforced concrete pipe, utilities, and precast products plants located in Utah • Products used for conveyanc
Slide 23: ParkUSA
INVESTOR PRESENTATION | 23 STRATEGIC ACQUISITION: PARKUSA • Completed the acquisition of ParkUSA on October 5, 2021 for $90.2 million (~6.2x EBITDA) • Technology leader in water infrastructure with strong brand reputation and customer relationships • Manufacture both precast concrete and steel fabri
Slide 24: Favorable SPP Market Dynamics
INVESTOR PRESENTATION | 24 FAVORABLE SPP MARKET DYNAMICS • U.S. water consumption equal to 82 gallons per person per day • Substantial non-revenue water loss: = • 2.1 trillion gallons of treated drinking water lost annually due to water main breaks (250,000 – 300,000 per year in the US) • 6 billion
Slide 25: Favorable SPP Market Dynamics
INVESTOR PRESENTATION | 25 FAVORABLE SPP MARKET DYNAMICS APPROPRIATIONS: Congressionally authorized and approved spending for specific purposes, such as the federal capitalization grants to the SRF programs. ALLOTMENTS: Portion of appropriated IIJA SRF funding that the EPA divides and allots among s
Slide 26: U.S. Water Infrastructure Needs
INVESTOR PRESENTATION | 26 U.S. WATER Total 20-year State Need by Water INFRASTRUCTURE Infrastructure Project Category1 NEEDS 9% 4% 3% TOTAL STATE NEED: • The 20-year national water infrastructure need for across the U.S. is estimated by the 7th Drinking $625 Billion 17% Water Infrastructure Needs S
Slide 27: Eastern Water Transmission Projects
INVESTOR PRESENTATION | 27 WATER TRANSMISSION PROJECTS EASTERN WATER TRANSMISSION PROJECTS H.R.3684 Infrastructure Investment and Jobs Act has been signed into law adding $55 billion in federal funding for relevant, water infrastructure projects through Fiscal Year 2026.
Slide 28: Eastern Market Update: Houston and Florida
INVESTOR PRESENTATION | 28 WATER TRANSMISSION PROJECTS EASTERN MARKET UPDATE Houston – Surface Water Program Florida • Bidding 1,500 tons of pipe in 2024 across • Seeing increased bidding activity due to population growth multiple projects • Additional 11,900 tons of pipe expected to bid in 2024 • A
Slide 29: Eastern Market Update: North Dakota and South Carolina
INVESTOR PRESENTATION | 29 WATER TRANSMISSION PROJECTS EASTERN MARKET UPDATE North Dakota – Red River Valley South Carolina Water Supply Project • Seeing an increase in pipeline construction • 140-mile 87,000-ton project • 1,840 tons of pipe anticipated to bid on an existing program in • 2023 fundin
Slide 30: Western Water Transmission Projects
INVESTOR PRESENTATION | 30 WATER TRANSMISSION PROJECTS WESTERN WATER TRANSMISSION PROJECTS
Slide 31: Western Market Update: California
INVESTOR PRESENTATION | 31 WATER TRANSMISSION PROJECTS WESTERN MARKET UPDATE California – Prop 1 $7.5 B Bond for California Water Reuse Programs Water Infrastructure • MWD & LA Sanitation District Regional Reuse Pilot Project – • The Sites Reservoir – water storage project with over 30 treat and rec
Slide 32: Western Market Update: Southern Nevada and New Mexico
INVESTOR PRESENTATION | 32 WATER TRANSMISSION PROJECTS WESTERN MARKET UPDATE So. Nevada – Water Authority New Mexico • Awarded first contract for the expansion of the southern • U.S. Bureau of Reclamation’s Navajo-Gallup Supply Program – part of the water delivery system; construction the final majo