Northwest Pipe Company (NASDAQ:NWPX) Q3 2023 Earnings Call Transcript

But I think I’d equally say we’re excited about the Precast business as well as that’s held up with the amount of headwinds that we’ve had this year. So I think those are both positive signs and really bode well for the business as we get back into stronger markets.

Ted Jackson: Okay. Well, I’m going to end and just say, the free cash flow is what I care the most about, and I was – I’m very – I mean I’m going to point out that if you look at your year-to-date cash flow generation, you’re almost at the same level that you were in 2020. And we’ll see what happens with the fourth quarter. But it’s great to see the success you’re having in the business, and I look forward to seeing you continue to grow that free cash flow. Now I’ll get out of line. Thanks.

Scott Montross: Thanks, Ted.

Operator: Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I’ll turn the floor back to Mr. Montross for any final comments.

Scott Montross: Yes. I’d just like to say, I’d like to thank everybody again for joining us today. And obviously, we came into 2023 with a pretty high backlog, and we’ve maintained a pretty high backlog for the last several quarters. I think we’re pretty steady with that going into 2024. I think we’re well positioned to handle significant opportunities coming up in the water transmission Steel Pressure Pipe business. And even though the precast business is off its record highs that we saw in 2022, that still remains strong. And our long-term view about the Precast business remains unchanged. We are focused on growing in that business and growing that business in the relative near term to the similar size that we have, our Steel Pressure Pipe business.

And I think – the biggest thing, again, is to reiterate, we’ve come through a year in 2023 that has had quite a bit of headwinds. Steel Pressure Pipe was a small market. And like I said before, you look back several years ago to markets that were this size and the margin generation in those markets were really ugly. And even though this year is a little bit disappointing or this quarter was a little bit disappointing, the margins aren’t great, but they’re significantly better than what we’ve seen in the past with markets this size, which again, I think represents more of a market resiliency based on the current market configuration and due to the consolidation that we’ve had in that market, and it really bodes well for bigger markets.

And I think it’s the same thing for Precast. I mean there’s been a lot of headwinds there, interest rates, and it’s off last year’s records highs but we’re still bumping along pretty good in a business that also has a lot of headwinds. So we’re really looking forward to these markets, continuing to grow and expand as we go forward. We appreciate everybody’s time. And thank you, and we’ll – I guess we’ll talk to you in March. Is that it March. So thank you.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.