NWPX Infrastructure, Inc. Goodwill & Intangibles Disclosure
| 5. | GOODWILL AND INTANGIBLE ASSETS: |
Goodwill
The Company has recorded goodwill of $55.5 million as of December 31, 2025 and 2024 in connection with its business acquisitions within the Precast segment. The Company performed its annual goodwill impairment test as of November 30, 2025, utilizing a qualitative analysis, and did not identify that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. It is possible that future changes in circumstances, judgments, or assumptions, including prolonged economic weakness or unexpected significant declines in Precast operating results or projections, may result in goodwill impairment charges in the future.
Intangible Assets
Intangible assets consist of the following (in thousands):
| Gross Carrying | Accumulated | Intangible | ||||||||||
| Amount | Amortization | Assets, Net | ||||||||||
| As of December 31, 2025 | ||||||||||||
| Customer relationships | $ | 27,831 | $ | (12,735 | ) | $ | 15,096 | |||||
| Trade names and trademarks | 12,825 | (6,224 | ) | 6,601 | ||||||||
| Patents | 1,627 | (316 | ) | 1,311 | ||||||||
| Total | $ | 42,283 | $ | (19,275 | ) | $ | 23,008 | |||||
| As of December 31, 2024 | ||||||||||||
| Customer relationships | $ | 27,831 | $ | (10,025 | ) | $ | 17,806 | |||||
| Trade names and trademarks | 12,825 | (4,979 | ) | 7,846 | ||||||||
| Patents | 1,627 | (238 | ) | 1,389 | ||||||||
| Total | $ | 42,283 | $ | (15,242 | ) | $ | 27,041 | |||||
The estimated amortization expense for each of the next five years and thereafter is as follows (in thousands):
| Year ending December 31, | ||||
| 2026 | $ | 4,033 | ||
| 2027 | 4,033 | |||
| 2028 | 4,033 | |||
| 2029 | 3,958 | |||
| 2030 | 3,766 | |||
| Thereafter | 3,185 | |||
| Total amortization expense | $ | 23,008 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 4, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.