NWPX Infrastructure, Inc. Q2 FY2025 Earnings Call

Greetings, and welcome to the NWPX Infrastructure Second Quarter 2025 Earnings Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Scott Montross, CEO. Thank you, sir. You may begin.

Good morning, and welcome to Northwest Pipe Company's Second Quarter 2025 Earnings Conference Call. My name is Scott Montross, and I am President and CEO of the company. I'm joined today by Aaron Wilkins, our Chief Financial Officer. By now, all of you should have access to our earnings press release, which was issued yesterday, August 7, 2025, at approximately 4:00 p.m. Eastern Time. This call is being webcast and is available for replay. As we begin, I'd like to remind everyone that the statements made on this call regarding our expectations for the future are forward-looking statements, and actual results could differ materially. Please refer to our most recent Form 10-K for the year ended December 31, 2024, and in our other SEC filings for a discussion of such risk factors that could cause actual results to differ materially from our expectations. We undertake no obligation to update any forward-looking statements. Thank you all for joining us today. I'll begin with a review of our second quarter performance and outlook for 2025. Aaron will then walk you through our financials in greater detail. We are pleased to report on the continued strong momentum in the second quarter in which we achieved record-setting performance. These results reaffirmed the strength of our strategic plan and disciplined execution. Before diving into the financials, I want to highlight a pivotal shift that reflects our strategic direction, our recent rebranding to NWPX Infrastructure. This new corporate identity reflects our growth in the water infrastructure sector, removing geographic and product constraints while positioning us as a national solutions-driven infrastructure provider. With an expanded portfolio that now goes beyond Steel Pressure Pipe, we've defined our segment naming convention with Water Transmission Systems or WTS, replacing engineered Steel Pressure Pipe, SPP, while retaining the Northwest Pipe branding for our suite of engineered Water Transmission System products to preserve our strong market recognition. Our Precast Infrastructure and Engineered Systems segment name remains unchanged. We are confident in our trajectory and our ability to scale our success under the NWPX Infrastructure banner. Now turning to our second quarter results. Net sales of $133.2 million reached a new quarterly high under our current configuration of the company, increasing 2.8% over the prior year and demonstrating strong operational execution and demand across both of our business segments. Our performance was driven by continued momentum in our Water Transmission business and record performance from our Precast segment. That translated into healthy margins, driving profitability of $0.91 per diluted share for the quarter. Through disciplined working capital management, we delivered positive free cash flow of $3.1 million in the first half of 2025 versus negative $14.4 million in the first half of 2024, a positive swing of $17.6 million, reinforcing our financial strength and positioning us for continued momentum through the remainder of the year. To further break down our segment-level results, revenue from our WTS segment totaled $84.6 million down 5.5% year-over-year, primarily due to lower production volumes resulting from the mix of projects produced in the second quarter. The decline in WTS net sales was partially offset by higher realized selling prices, also largely due to changes in product mix. Encouragingly, the impact of new trade policies that led to various customer-related shipping delays in the first quarter has largely subsided. Through this period of market uncertainty, our team has remained highly effective, actively engaging with our customers, executing disciplined pricing strategies, and securing an increased volume of bids. Our WTS backlog, including confirmed orders, significantly improved by over 20% to $348 million as of June 30 from $289 million as of March 31 and was consistent with levels as of June 30 last year. We expect the third quarter to be the largest bidding quarter of the year, and we continue to anticipate full-year 2025 bidding levels to be in line with or modestly higher than 2024. Now turning to our Precast segment. Precast revenue grew 21.5% year-over-year to a new quarterly record of $48.6 million. This growth was fueled by sustained momentum on the residential side of our Geneva business, where strong demand drove higher production and shipment levels, while overall volume remains solid. Gains were partially tempered by the slower to improve results in the non-residential construction-related portion of our Precast business, as broader macroeconomic headwinds, including effects from the new trade policies and persistently high interest rates, continue to impact commercial construction activity. However, we are continuing to see some signs of improvement at a modest rate. The Dodge Momentum Index grew 6.8% in June due to steadily improving nonresidential construction activity, but expected weaker consumer spending and travel demand, as well as funding uncertainty may still be muting projects going into the planning queue. However, the Dodge Momentum Index was 20% higher in June of 2025 versus last year, signaling year-over-year growth in nonresidential construction planning. The commercial sector was up 11% versus the prior year, while the institutional sector was up 46%, albeit compared to a weak June in 2024. On the pricing front, the residential portion of our Precast business saw positive momentum related to continued strong demand at Geneva. However, these pricing gains were partially offset by the slower to improve demand and pricing in our nonresidential business, reflecting a more cautious environment. As of June 30, our Precast order book was $56 million, down from the near-record levels of $64 million as of March 31 and $62 million as of June 30, 2024. On the residential side of our business, Geneva order activity remains strong with bookings coming in at an elevated rate, with volume being fulfilled more quickly, which helps explain why the current order book appears lighter versus the prior year. Additionally, a notable portion of the order book stem from the nonresidential side of our Precast business, signaling improving momentum and strengthening demand throughout the remainder of 2025. Our consolidated gross profit in the second quarter was $25.4 million, down 1.7% year-over-year, resulting in a gross margin of 19% compared to 19.9% in the prior year. Our WTS gross margin of 17.8% declined by approximately 120 basis points over last year due to lower production volumes and the associated decline in overhead absorption. This was largely driven by the mix of projects we produced during the quarter, though the impact was partially offset by improved selling prices. It is important to note that our WTS margin is up 230 basis points sequentially over the first quarter of 2025, with positive momentum continuing to build. Our Precast gross margin of 21.2% decreased by approximately 90 basis points over last year, primarily due to changes in product mix. Margins in our residential construction business at Geneva improved year-over-year, supported by strong demand and operational efficiency. This strength was offset by the slower to improve portion of our nonresidential commercial construction side of our business, which has been more affected by the Fed stance on monetary policy and the uncertainty around trade policy. However, our Precast gross margin did improve 220 basis points sequentially over the previous quarter. The improvement was modest on the nonresidential side, but more substantial on the residential portion. Next, I'd like to discuss progress on our product spread strategy. In the second quarter, we bid on $14.9 million worth of projects outside of Texas and successfully booked $2.5 million in new orders, supporting our efforts to enhance capacity utilization and maximize operational efficiencies at our Precast plants. In addition, we booked approximately $632,000 of Park-related projects at the Geneva plants in Utah. Our 2025 goal is to book $3 million of Park-related products at Geneva. As part of the third component of our product spread strategy, we've also begun expanding Park and other free cash-related products to additional legacy locations, positioning us to broaden our market reach and long-term growth. Our goal for 2025 remains to book over $12 million in Park-related and other Precast projects outside of Texas with further benefits to come in 2026 and beyond. With respect to our broader growth strategy, we remain focused on both organic growth and M&A, though we are currently prioritizing organic expansion due to lack of viable acquisition candidates. While our disciplined acquisition criteria remains unchanged, we would consider a single-location Precast facility if it strategically strengthens our presence in targeted geographies. That said, we remain well-positioned to move quickly should a larger, more impactful acquisition opportunity arise. Ideally, any such opportunity would enhance our manufacturing capacity and operational efficiency while also broadening our geographic footprint and expanding our product offerings. Next, I'd like to summarize our outlook for the third quarter of 2025. In our WTS business, we anticipate revenue and margins to remain in line with or exceed those of the second quarter of 2025. Production levels are expected to increase modestly, which should contribute to improved overhead absorption. We entered 2025 with a solid backlog in place and continue to expect strong bidding activity in the second half of the year. Full-year bidding levels are currently projected to be modestly higher than those of 2024, reinforcing our confidence in another strong year of performance for WTS. In our Precast segment, our healthy and growing order book, coupled with anticipated higher production levels and better absorption supports our expectations for Precast revenue to remain strong in the third quarter of 2025 with continued margin improvement versus the first two quarters of 2025. On a consolidated basis, we expect revenues for the third quarter of 2025 to modestly improve from the third quarter of 2024. For the second half of the year, we continue to expect WTS revenues and margins to be similar to 2024 levels with Precast revenue also being similar to 2024 levels, but with improved margins. In closing, I want to thank our talented team at NWPX Infrastructure for their strong execution of our strategy and unwavering commitment to safety. Looking ahead, we're optimistic about the improving bidding environment and the strengthening order book as we move through the remainder of 2025. Looking ahead, our priorities are to: one, maintain a safe workplace where our employees are proud to work; two, focus on margin over volume; three, intensify our efforts on strategic acquisition opportunities to grow the company; four, implement continued cost reductions and efficiencies at all levels of the company; and number five, in the absence of M&A opportunities, to return value to our shareholders through share repurchases. I will now turn the call over to Aaron, who will walk through our financials in greater detail.

Thank you, Scott, and good morning, everyone. Before I begin, I'd like to highlight our continued focus on enhancing shareholder returns, consistent with our capital allocation strategy. Through July 31, the final trading day in our most recent Rule 10b5-1 trading plan, we repurchased approximately 363,000 shares or approximately $15 million worth of our common stock for an average price of $41.21 per share. This represents 3.6% of the ending shares outstanding at March 31, 2025. Given the health of our balance sheet, we believe it is prudent to continue to take advantage of market opportunities for future share repurchases while also continuing to invest strategically to grow our business. Next, I'll turn to our second quarter profitability. Consolidated net income was $9.1 million or $0.91 per diluted share compared to $8.6 million or $0.86 per diluted share in the second quarter of 2024. Second quarter consolidated net sales increased 2.8% to $133.2 million compared to $129.5 million in the year-ago quarter. Sales for the Water Transmission Systems segment decreased 5.5% to $84.6 million compared to $89.5 million in the second quarter of 2024. The decline was driven by a 10% reduction in tons produced, resulting from changes in project timing, partially offset by a 4% increase in selling price per ton due to changes in product mix. Precast segment sales in the second quarter increased 21.5% to a record $48.6 million compared to $40 million a year ago. Performance was driven by a 13% increase in volume shipped as demand in our Geneva operations in Utah remain strong and a 7% increase in selling prices due to changes in product mix. As a reminder, the products we manufacture are unique. Shipment volumes in the case of Precast, production volumes in the case of WTS, and the corresponding average sales prices for both segments do not always provide comparable metrics between periods, which are highly dependent on the composition of each segment's product mix. Our second quarter consolidated gross profit decreased 1.7% to $25.4 million or 19% of sales compared to $25.8 million or 19.9% of sales in the second quarter of 2024. WTS gross profit decreased 11.3% to $15.1 million or 17.8% of segment sales compared to gross profit of $17 million or 19% of segment sales in the second quarter of 2024 primarily due to decreased production volume as well as changes in product mix. Free cash gross profit increased 16.7% to $10.3 million or 21.2% of segment sales from $8.9 million or 22.1% of segment sales in the second quarter of 2024, primarily due to changes in product mix. Selling, general and administrative expenses declined by less than 1% to $12.1 million compared to $12.2 million in the second quarter of 2024 as lower professional fees and incentive compensation expense were partially offset by higher base compensation. As a percent of sales, our SG&A improved to 9.1% from 9.4% in the prior year. For the full year 2025, we now estimate our consolidated selling, general, and administrative expenses to be in the range of $50 million to $51 million. Depreciation and amortization expense in the second quarter of 2025 was $4.9 million compared to $4.7 million in the year-ago quarter. For the full year, we continue to expect depreciation and amortization expense to be approximately $18 million to $20 million. Interest expense decreased to $0.8 million from $1.8 million in the second quarter of 2024, due primarily to a decrease in average daily borrowings. For the full year 2025, we continue to expect interest expense of approximately $3 million. Our second quarter income tax expense was $3.4 million resulting in an effective income tax rate of 27.5%, which was primarily impacted by nondeductible permanent differences. This compares to $2.9 million in the year-ago quarter, or an effective income tax rate of 25.5%, which was also impacted by nondeductible permanent differences. We continue to expect our tax rate for full year 2025 within the range of 24% to 26%. Next, I will transition to our financial condition. For the second quarter, net cash provided by operating activities was $5.4 million compared to $22.3 million in the second quarter of 2024. The $16.9 million decline was primarily due to changes in working capital. Our capital expenditures for the second quarter were $3.5 million compared to $6.1 million in the second quarter of 2024. For the full year 2025, we continue to expect CapEx in the range of $19 million to $22 million, including about $5 million for various investment projects, most notably to support Precast product spread as well as initiatives to grow both our Park and Geneva businesses to $100 million top line in the near term. Accordingly, we produced positive second quarter free cash flow of $1.9 million compared to $16.2 million in the year-ago quarter. For full year 2025, we continue to anticipate free cash flow to range between $23 million and $30 million. Strengthening consistent cash generation remains a top priority for our leadership team, which is focused on driving growth both organically and through prospective M&A as appropriately valued opportunities arise. As of June 30, 2025, we had $30.6 million of outstanding borrowings on our credit facility, leaving approximately $93 million in additional borrowing capacity on our credit line. Our balance sheet remains healthy with ample liquidity to execute our capital allocation priorities. To close, we are very proud of our strong execution we delivered in the second quarter, resulting in record-setting results. Our performance highlights the strength and adaptability of our business model and reinforces our confidence in our ability to drive continued momentum through the remainder of 2025 and beyond. We thank our employees for their unwavering focus on safety and operational excellence, which has been instrumental in achieving these results. We also appreciate the continued confidence and support of our shareholders as we execute our long-term strategy. I will now turn it over to the operator to begin the question-and-answer session.

The first question comes from Brent Thielman with D.A. Davidson.

I guess the first question would just be on Precast. It seems like somewhat kind of bifurcated market trends you're experiencing there. It sounds like residential fairly healthy for you, somewhat surprising in this climate, but nonres is working against you to some degree. So I don't know, Scott, if you can talk about whether you're seeing any inflection points on the weaker side of the Precast business, whether there's some kind of pent-up optimism that maybe something turns there in the second half based on inquiries, customer conversations, be curious there.

Yes. I think the trade policy has impacted the nonresidential side of the Precast business at the beginning of the year, causing a slowdown. However, we are now seeing an increase in order rates for the nonresidential sector, which is regaining strength and returning to a more normal pace, something we haven't experienced in a while. The Dodge Momentum Index indicates what the nonresidential sector will do in the future, reflecting current planning that typically enters production about a year later. We are beginning to see significant improvement now. As we moved into July, revenue levels for nonresidential projects have returned to normal, along with improving margins. We are confident that the nonresidential segment will remain strong for the remainder of the year after a slow first half. Regarding Geneva, the performance has been exceptional. Although the overall order book for Precast seems slightly down, Geneva is processing orders much more rapidly than usual due to the high volume. Currently, we are about 16 percent ahead in production and shipping compared to last year at this time. This strength is expected to carry on into the latter half of the year as order books and margins continue to improve in the nonresidential segment. The momentum index supports this positive outlook.

And so Scott, to the degree that we see this sort of ramp up in the non-resi piece, which I think is more associated with Park. Would that be an accelerant for your margins here in the second half?

Yes, we expect the margins to improve in the second half, mainly due to the recovery and the growth of the nonresidential side of the business.

And then I appreciated the comments on WTS for the second half. Bidding plan that third quarter sounds pretty strong. Any indications or early indications on 2026, just as we try to think about the sustainability of WTS contributions into next year or even Scott growth potential for the business in the next year?

Yes. I think what we're seeing is a market that as we go forward to 2026 that is at least equal to what we've seen in 2024 and 2025 with the potential of some of the IIJA funding kicking in toward later in the year. I mean some of the IIJA-funded projects like sites reservoir in California starting to be more and more talked about. So that could give the end of the year a little bit of a boost and there's other projects going on right now, Brent that are IIJA funded the Eastern New Mexico Rural Water District is another one that continues to produce segments and jobs for us. So what I think is you see a year that is similar to '24 and '25, although it looks like '25 is going to be a little bit bigger than what we saw in 2024 based on what we're seeing right now. But you see a year in '26 that starts out like that with the potential of getting stronger later in the year.

Sorry, last one just on some of the investments, it sounds like maybe more of a push for organic investments in the business here. You talked about some of that CapEx going to product spread initiatives, I guess anything else to call out that you're looking at internally in terms of focus and CapEx here in the next kind of 12, 18 months, Scott?

Besides, obviously, M&A opportunities that we continue to look at. I think the idea is what we call product spread. Obviously, that started with the idea of taking the products from Park and being able to produce them at Geneva, which is happening all the time. Now with more along the lines of, okay, what kind of Precast products can we do at what steel at the Water Transmission Systems plants? And right now, we're in the process of doing projects out of the Tracy facility, which, obviously, when we bought them, had some Precast structure there, but it was just very niche type stuff. We're doing some projects out of there now with the idea of also starting to do some of the projects out of our Portland plant that kind of fit. And some of the initial investment, Brent, are more informs because it's going to be ready mix, port type stuff to begin with because, as you know, we make cement for cement mortar lining and coding at our steel pressure pipe plants, but we don't have aggregate adding capabilities to make the concrete. So initially, it's going to start with ready mix and it starts with Tracy and with Portland, but also the idea of spreading that Precast product to additional legacy Water Transmission Systems plants. So that's really going to be the focus of organic growth. And as we acquire additional Precast facilities, which we will eventually do here when something comes up that makes sense, we would also look at moving those Park type products to those additional Precast facilities that are in different geographies and that don't have a product like that in those geographies at this point. And that's part of the thing with our product spread, Brent. We have a group that works on just product spread. And they're focused on looking at bidding on Park products in the Southeast, in California, in the central part of the country. And really, what that starts to do is it serves as a proxy for we're looking at acquiring a Precast plant, right, because we can get a really two for one there, you get the Precast product and then you can add the Park product. And ultimately, the product portfolio grows at that facility wherever it is. And that was a lot of words about a lot of things. So I don't know if I specifically answered your question, what you wanted.

The next question comes from Julio Romero with Sidoti.

So I wanted to start on the Water Transmission Systems segment. Very nice performance there in the quarter. You mentioned strong execution and the trade policy is something that you seem to be managing through pretty well here. Can you maybe help us understand some of the trade and tariff impacts that you called out in the first quarter and help us kind of better understand how they've improved from the first quarter?

In the first quarter, some of the administration's trade policies hindered our ability to recognize certain revenue and gross profit that we typically would have. We anticipated a recovery in the second quarter, and it seems we did regain some of that revenue, with the possibility of a bit more coming back in the third quarter. This has resulted in a spreading of the impact across those periods. The most noticeable effect has been at our SLRC Mexico facility, where tariffs are being passed on. However, it appears that people are becoming accustomed to these tariffs, making them less significant. Additionally, we are securing work from our SLRC facility that involves shipping to Canada, where there are no tariffs. Recently, we booked a significant job worth around $24 million to $25 million, and now we have another substantial project for the same facility going to Canada. This situation raises questions about the long-term implications of these trade policies on the SLRC facility. It's important to note that our fully burdened costs at this facility are comparable to those at other plants, allowing us to remain competitive. We are also seeking exemption from the tariffs, as all the products are made from U.S.-sourced steel that is processed in Mexico and then shipped back, ultimately providing US customers with lower ownership costs. Eventually, we hope to receive this exemption. In the meantime, we continue to ship to Canada and secure projects that yield solid margins. The impact of the tariffs has led us to adjust where we focus our job placements, but with six main Steel Pressure Pipe plants, we have the flexibility to navigate these changes effectively.

Great. Really helpful context there. And I wanted to talk a little bit about what you mentioned about markets seeming to accept the tariff situation, and that's kind of what it is. And just moving along anyway. Did additional maybe tariff announcements in the quarter cause any renewed delays or any changes in customer behavior? And if so, have they extended into July?

Customer behavior didn't change much. There was a brief period of internal concerns due to the tariff adjustments, specifically the shift from 25% to 50%. The 25% tariff applied to various costs, while the 50% impacted just the steel cost. Overall, this situation didn't significantly affect our operations moving forward. Although there was some initial confusion as we navigated the changes, it's important to note that we have the flexibility to manage our resources effectively, so the overall impact was minimal.

That was very helpful. Following up on Brent's question about Precast and the differing trends in the end markets, I understand you mentioned that nonresidential volume is being fulfilled more quickly. Is that volume leverage, even though at a lower blended rate in the segment, affecting what occurred in the second quarter?

The volume being consumed more quickly is happening on the residential side at Geneva. They are 16% to 20% ahead on invoicing compared to last year. So, what was the question regarding the nonresidential side?

I understand. So residential side had better volume in the quarter. And I guess that offset kind of nonres at the moment. Is that...

Yes, I think you're viewing the situation correctly as it currently appears to be quite stable at Geneva with respect to revenue, production, and margins. We're entering a phase where the nonresidential sector is beginning to improve in terms of production, revenue, and margins. Consequently, we anticipate that the second half of the year for the Precast business will be quite strong.

Our next question comes from Ted Jackson with Northland Securities. Yes, at the moment, I think you're looking at it the right way because what we have is a very stable situation at Geneva right now with revenue, production, and margins. We're entering a phase where nonresidential is beginning to improve, not only in terms of production and revenue but also on the margin side. Therefore, we believe the second half of the year for the Precast business will be quite strong.

Congrats on the quarter. And Aaron, I wanted to call out and say thank you for putting a full cash flow statement in the press release. I know you did that for me.

We did do that for you.

It was a joke, but a serious one. I know you. Many of the questions I intended to ask have already been addressed. However, I wanted to revisit the Precast. Geneva, in the residential business, the order turnaround is quicker than in the Park business. So my first question is, what is the average timeline from order intake to delivery for the engine? And what is it for Park? Has the difference always been this way?

On the Geneva side, you are working with the Precast Infrastructure products. This may involve items already in inventory since that's somewhat of an inventory business. It can be as quick as receiving an order today and shipping it tomorrow. However, if the items need to be produced at the Geneva facilities, it could take about three to four weeks. We are careful about measuring and managing our order book so it doesn't get too far ahead of us. If it does, we miss out on opportunities to take advantage of rising prices when demand increases. Typically, we manage it to approximately 1.5 to 2 months of orders, with about 2.5 months being the maximum. On the Park side, the situation is quite different. While there may be some generic Park products, like meter vaults or grease traps, in stock, when items are out of stock, we need to ensure we are collecting the necessary components, whether valves, meters, or fittings, to install them in the vaults. Generally, for Geneva products that are not in stock, it could take around five to seven weeks. One significant factor affecting the Geneva business is the Exact 2500, which is now fully commissioned and shipping products to the market at a much higher rate than the previous transmatic model. This means that orders are being fulfilled much more quickly, leading to an increased velocity of orders being turned around, shipped, and invoiced. Did you have anything to add to that, Ted?

No, you said the new equipment that's in Park?

No. The new equipment is in Geneva, the Exact 2500.

I initially thought it would be in Geneva. While I was writing a note, I got sidetracked. My next question concerns the SPP backlog, and congratulations on its strength. It seems stronger than anticipated; while we didn't expect it to fall dramatically, the performance has exceeded our expectations. The price of steel has increased significantly and will continue to affect your profit and loss statement. Regarding our backlog number, is the increase primarily due to volume or price? Could you provide some insight into how these metrics are affecting the ongoing strength of your backlog for residential projects?

The steel price has been relatively stagnant. It increased slightly at the start of the year, reaching around $900 when the tariff announcements were made. Currently, steel pricing is in the $875 range, which isn't significantly affecting project costs. While higher steel prices are beneficial for us, the current trade policy tariffs are not pushing steel prices up; they remain low. The focus should be on the volume of orders and tons added to our backlog. Since the beginning of the year, we've added almost 40,000 tons of projects to our backlog as of mid-July. Therefore, concerning the current steel prices and the influx of orders for steel pressure pipe, the situation is more tied to the volume of tons.

Okay. And then, Aaron, I always ask this question. I'm kind of curious as a percentage of your cost kind of what was steel during the quarter?

Yes, it's still hovering about 30%, Ted.

At this time, I would like to turn the call back over to Mr. Scott Montross for closing remarks.

Yes. I'd like to thank everybody again for joining us today and just leave you with a few takeaways. We're very, very pleased with the operational execution market that's been relatively dynamic so far as we've gone through this year. And ultimately, I think it confirms the strategic choices that we've made over the last several years in the results that we've been able to deliver and really the creation of a more resilient company. And I think that our strong execution is driving revenue growth and positive free cash flow. And I think a lot of that free cash flow, I have to say is related to the Water Transmission Systems business because I think for a lot of years, that business tied up a great deal of cash in the company. And now the focus on cash flow has really turned that Water Transmission business into a cash flow generating machine. So I think the numbers that we're seeing, the backlogs, the order book is really a clear reflection of a healthy demand in performance across both business segments. And I think looking ahead for the remainder of 2025, we expect the bidding in the Water Transmission side of the business to remain robust and with elevated levels versus what we saw in 2024, we expect the order book and backlog to remain strong and build momentum through this first half into the second half of the year and going into 2026. The residential side of our Precast business continues to perform exceptionally well, driving record results in again, we're seeing signs of slow and steady growth on the nonresidential side. And we expect the results to come in for the Precast side of the business in 2025. We expect those results to come in very strong. I think in summary, we continue to uphold our core priorities of ensuring the safety of our workforce and driving margin expansion and executing on the strategic growth initiatives and creating long-term value for our shareholders. And I'd like to thank everybody again for your time and continued support, and we look forward to speaking with you again in the third quarter call in November. So thank you very much.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.