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Note 10 - Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

10.

Segment Information

 

The operating segments reported below are based on the nature of the products sold and the manufacturing process used by the Company and are the segments of the Company for which discrete financial information is available and for which operating results are regularly evaluated by the Company’s CODM, its Chief Executive Officer.

 

The Company’s Engineered Steel Pressure Pipe (SPP) segment manufactures large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. These products are also used for hydroelectric power systems, wastewater systems, seismic resiliency, and other applications. In addition, SPP makes products for industrial plant piping systems and certain structural applications. SPP has manufacturing facilities located in Portland, Oregon; Adelanto and Tracy, California; Parkersburg, West Virginia; Saginaw, Texas; St. Louis, Missouri; and San Luis Río Colorado, Mexico.

 

The Company’s Precast Infrastructure and Engineered Systems (Precast) segment manufactures stormwater and wastewater technology products, high-quality precast and reinforced concrete products, including reinforced concrete pipe, manholes, box culverts, vaults, and catch basins, pump lift stations, oil water separators, biofiltration units, and other environmental and engineered solutions. Precast has manufacturing facilities located in Dallas, Houston, and San Antonio, Texas; and Orem, Salt Lake City, and St. George, Utah.

 

The CODM uses gross profit to assess performance of each segment by comparing actual gross profit results to historical results and previously forecasted financial information, and to determine allocation of operating and capital resources. The Company does not allocate selling, general, and administrative expenses, interest, other non-operating income or expense items, or taxes to segments, and there are no intersegment revenues. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

 

The following table summarizes net sales, cost of sales, and gross profit based on the Company’s reportable segments (in thousands):

 

   

Three Months Ended March 31,

  
   

2025

    

2024

  

Net sales:

                

Engineered Steel Pressure Pipe

   $ 78,446     $ 80,007  

Precast Infrastructure and Engineered Systems

     37,669       33,208  

Total net sales

   $ 116,115     $ 113,215  
                 

Cost of sales:

                

Engineered Steel Pressure Pipe (1)

   $ 66,272     $ 65,765  

Precast Infrastructure and Engineered Systems (2)

     30,478       27,316  

Total cost of sales

   $ 96,750     $ 93,081  
                 

Gross profit:

                

Engineered Steel Pressure Pipe

   $ 12,174     $ 14,242  

Precast Infrastructure and Engineered Systems

     7,191       5,892  

Total gross profit

   $ 19,365     $ 20,134  

 

(1)

 Depreciation and amortization included in Cost of sales for the SPP segment was $2.5 million and $2.7 million for the three months ended March 31, 2025 and 2024, respectively.
   
(2) Depreciation and amortization included in Cost of sales for the Precast segment was $0.8 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively.

 

The Company’s total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the CODM.