NWPX Infrastructure, Inc. Revenue Disclosure
| 15. | REVENUE: |
Net sales by geographic region, based on the location of the customer, were as follows (in thousands):
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net sales by geographic region: | ||||||||||||
| United States | $ | 487,614 | $ | 475,105 | $ | 420,925 | ||||||
| Canada | 38,389 | 17,443 | 23,430 | |||||||||
| Total | $ | 526,003 | $ | 492,548 | $ | 444,355 | ||||||
No WTS customer accounted for more than 10% of total net sales for the years ended December 31, 2025 and 2024. WTS customer accounted for 10% of total net sales for the year ended December 31, 2023. No Precast customer accounted for more than 10% of total net sales for the years ended December 31, 2025, 2024, and 2023.
During the years ended December 31, 2025, 2024, and 2023, the Company recognized revenue of $6.1 million, $4.5 million, and ($1.1) million, respectively, from performance obligations satisfied (or partially satisfied) in previous periods as a result of changes in the transaction price or revisions to contract estimates.
Disaggregation of Revenue
The following table disaggregates revenue by recognition over time or at a point in time, as the Company believes it best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors (in thousands):
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Over time | $ | 350,879 | $ | 337,945 | $ | 296,381 | ||||||
| Point in time | 175,124 | 154,603 | 147,974 | |||||||||
| Net sales | $ | 526,003 | $ | 492,548 | $ | 444,355 | ||||||
Accounts Receivable, Contract Assets, and Contract Liabilities
The following table summarizes the Company’s accounts receivable, contract assets, and contract liabilities (in thousands):
| December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Accounts receivable | $ | 78,171 | $ | 66,946 | $ | 47,645 | ||||||
| Contract assets | 91,036 | 103,422 | 120,516 | |||||||||
| Contract liabilities | (8,794 | ) | (11,197 | ) | (21,450 | ) | ||||||
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and billings. The changes in the contract assets and contract liabilities balances during the years ended December 31, 2025, 2024, and 2023 were not materially affected by any other factors.
The Company recognized revenue that was included in the contract liabilities balance at the beginning of each period of $11.2 million, $20.6 million, and $17.0 million during the years ended December 31, 2025, 2024, and 2023, respectively.
Backlog
Backlog represents the balance of remaining performance obligations under signed contracts for WTS water infrastructure steel pipe products for which revenue is recognized over time. As of December 31, 2025, backlog was $234 million. The Company expects to recognize approximately 72% of the remaining performance obligations in , 24% in , and the balance thereafter.
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 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.