NORTHWEST PIPE CO

Management Commentary

“Our second quarter results were very strong despite the weather-related challenges we encountered in Texas which disrupted production, shipping, and order intake,” said Scott Montross, President and Chief Executive Officer of Northwest Pipe Company. “We delivered record quarterly revenue of$89.5 million in our Steel Pressure Pipe business and enjoyed continued strength in the residential side of our Precast business despite persistent interest rate headwinds. In addition, record quarterly profitability levels, coupled with effective working capital management, led to strong free cash flow4 generation of$16.2 million in the second quarter, up significantly versus last year. The SPP segment benefitted from the strong pipeline of bidding opportunities in the first half of this year. We expect our SPP business to remain strong for the rest of 2024. In Precast, reduced production and shipments on the non-residential construction portion of our business at Park offset much of the strength we saw on the residential side at Geneva, primarily due to multiple severe weather events in Texas. Following a slow first half of the year in Precast, we are expecting a stronger third quarter with improving revenue and gross margins.”