NWPX Infrastructure: 2Q Results: WTS Strength Offsets Weather-Pressured Precast

研报英文原文证据摘录

NWPX Infrastructure: 2Q Results: WTS Strength Offsets Weather-Pressured Precast

Tomohiko Sano AC North America Equity Research

(1-212) 622-1099 03 August 2026 J P M O R G A N

tomohiko.sano@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

NWPX Infrastructure is the dominant North American

manufacturer of engineered steel water pipe (~56% market

share) with a rapidly scaling Precast platform (~1% share of a

$14B TAM), positioned to benefit from a generational water

infrastructure replacement cycle ($625B identified need). A

record $430M WTS backlog in 1Q, improving capacity

utilization, and M&A optionality support durable revenue

growth and margin expansion, while emerging data center

demand represents a potential kicker still in its early stages. We

YTD 1m 3m 12m see a multi-year demand cycle where execution, reliability, and

Abs 97.0% -17.9% 25.2% 194.6% speed drive customer stickiness in a specification-driven market

Rel 78.9% -14.8% 20.5% 162.0%

with limited alternatives.

Company Data

Valuation

Shares O/S (mn) 10

52-week range ($) 152.03-40.01 Our $130 price target is based on a ~13x EV/EBITDA multiple,

Market cap ($ mn) 1,204.95 roughly in line with where the stock currently trades and

Exchange rate 1.00 approximately double its historical average, reflecting the

Free float (%) 96.6%

3M ADV (mn) 0.20 company's transformation into a diversified water infrastructure

3M ADV ($ mn) 25.7 platform. While we appreciate the long-term trajectory, the

Volatility (90 Day) 47 significant re-rating already embedded in shares leads us to see

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 0|2|0 better relative risk/reward elsewhere in our coverage universe,

supporting our Neutral rating.

Key Metrics (FYE Dec)