Oct 29, 2026 earnings call — Record quarter driven by Water Transmission Systems
Reported record consolidated net sales of $179.4 million this quarter.
Revenue $0.2B (est $0.2B) · EPS $1.86 (est $1.65)
Key quotes
"The WTS backlog, including confirmed orders, ended the quarter at a record $435 million, up from $423 million at June 30 and well above the $301 million level we reported last year at this time."
"Through the third quarter, we quoted $33.5 million of data center project, booked in excess of $11 million worth of data center orders, and we are currently working on turning several additional large data center projects into new orders."
"In addition, during the quarter, we completed the acquisition of Serpentix Conveyor, a manufacturer of engineered conveyor systems used primarily in municipal wastewater treatment plants and industrial manufacturing facilities."
Analyst Q&A 4
Precast data centers and Serpentix acquisition
Q (Julio Romero · Sidoti): Analyst asked how much of the $33.5 million quoted data center work has shipped versus in the order book, how the quoting pipeline looks into 2027, and how data center margins compare with traditional Precast. He also asked how Serpentix complements Boughton's, the broader Precast segment, and its margin profile and expected 2027 contribution.
A: Management said data-center projects generally have higher margins than normal Precast work and estimated about $7 million of that quoting has shipped so far this year. They expect quoting, booking, and shipments to increase as they move into 2027 and said data center orders are helping fill gaps from weaker residential demand. On Serpentix, they said it is a wastewater conveyance business adjacent to Park Process, has a significantly greater margin profile than Precast, and could be a platform for growth.
"Well, I'll say the margin profile on those is generally higher than what we see on normal Precast orders." — Scott Montross (CEO)
Residential vs non-residential and data centers
Q (Ethan · JPMorgan): Analyst asked what they are seeing in residential versus non-residential end markets given Geneva moved to about 40% residential from ~50/50. He also asked about commercial softness pockets and how large data center project sizes could be versus historical work into 2027.
A: Management said residential is slower due to interest rates and they are filling production with non-residential work, including institutional projects like hospitals and schools; institutional work is up about 12% or 13% year-over-year. They said pockets of commercial softness exist but institutional work has grown to replace some residential weakness. On data centers, they said projects have ranged from $300,000 and $400,000 up to potential $3 million and $5 million jobs, and that 2027 could be larger if the data center market continues.
"I would say that a lot of data centers bidding that we've done, we've seen projects that are $300,000, $400,000." — Scott Montross (CEO)
NDA timing, WTS backlog, cash conversion
Q (Ted Jackson · Northland): Analyst asked whether the remaining NDA project revenue will ship in Q4 or bleed into 2027 and if follow-on NDA projects exist. He also asked whether WTS could keep volume flat in 2027 without follow-ons, and he asked Aaron about contract liabilities, cash conversion, and the amount of steel in COGS.
A: Management said the total NDA project value was right around $56 million and about $40 million has shipped so far; they expect some of the remaining $16 million in the fourth quarter but some may bleed into early 2027 and there are no confirmed follow-on NDA projects yet. They said WTS momentum is very strong—Q3 converted about $144 million into backlog and bidding remains intense into the fourth quarter. Aaron said they have pre-billed WTS significantly, the cash conversion cycle is around 99 days versus 150 a year ago and should moderate between those levels, and steel in COGS this quarter was about 28%.
"I would say that the total project value of the NDA project was right around $56 million." — Scott Montross (CEO)
Precast Q4 outlook, delays, and steel impact
Q (Ted Jackson · Northland): Analyst asked whether 'Precast steady in the fourth quarter' is being compared to prior year or to the third quarter, whether delayed shipments were slips not cancellations, and how much of backlog growth is from volume versus higher steel prices.
A: Management said the 'steady' comparison is more against the third quarter and that Precast looks pretty steady heading into Q4. They said the delayed shipments are delays that mostly slip into the fourth quarter or early next year rather than cancellations, and Q4 is validated by orders in hand. On backlog and steel, they said backlog growth is driven by both higher volumes and higher steel prices, noting revenue per ton is up about 19% quarter-to-quarter while steel is up about 12%, so volume has been a significant contributor.
"I think it is probably more against the third quarter, is the way we are looking at it right now." — Scott Montross (CEO)