Greetings and welcome to the NWPX Infrastructure Inc. third quarter 2025 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press * 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Mr. Scott Montross, CEO. Thanks, sir. You may begin. Good morning and welcome to NWPX Infrastructure Inc.'s third 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, October 29, 2025 at approximately 4:00 P.M. Eastern Time. This call is being webcast and it 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 third quarter performance and share our updated outlook for the remainder of 2025. Aaron will then walk through our financials in greater detail. We're proud to report another quarter of record-setting results, delivering the highest quarterly revenue, gross profit, and EPS in our company's history. Consolidated net sales reached $151.1 million, representing growth of 13.4% sequentially and 16% year over year. Gross margin expanded by 230 basis points sequentially to 21.3%. EPS grew to $1.38 per share, up 35% versus the prior year period and we generated over $21 million in operating cash flow during the quarter. These strong results underscore our disciplined execution against our strategic priorities and the sustained demand across both our Water Transmission Systems and Precast segments. Let's begin with our WTS segment which delivered record net sales of $103.9 million, a 20.9% increase year over year. This performance was fueled by favorable market dynamics including stronger than expected customer shipping requirements. Project mix and timing, tons produced rose 14% year over year driven by sustained customer demand, while revenue per ton benefited modestly from trade policy dynamics and disciplined pricing strategies. Importantly, while our strong cash flow generation in the third quarter can be attributed to the collective efforts of the entire company, the WTS business was a notable contributor. We saw this trajectory throughout 2025 with improving cash flow through the first nine months of this year versus 2024. This builds on the significant improvements we've achieved over the last few years. Bidding activity remained robust throughout the quarter, and we expect even greater momentum heading into the fourth quarter. At quarter end, our Water Transmission Systems backlog, including confirmed orders, stood at $301 million. While this reflects a sequential decline from $348 million in June due to the elevated shipping activity, it marks an increase from the $282 million a year ago. We anticipate backlog levels will remain above $300 million through year end, supported by what we expect to be the strongest bidding quarter of the year. In addition, as part of our commitment to environmental stewardship, we recently published our first third-party verified Environmental Product Declaration or EPD for cement mortar lined welded steel pipe. The EPD measures embodied carbon and overall product life cycle impacts and helps us meet by clean and other state-level transparency requirements. It also helps differentiate us from competitors in sustainability-driven bids. This milestone underscores our dedication to transparency and sustainability in infrastructure development. For additional details on water transmission projects underway at NWPX Infrastructure Inc., I encourage you to review our investor presentation available on our website. Turning to the Precast segment, our net sales reached $47.2 million, marking a 6.6% year-over-year increase and landing just shy of the record set last quarter while shipment volumes declined modestly. An 8% increase in average selling price reflects our pricing discipline. We saw notable strength in our park- related non-residential business, which has navigated persistent macroeconomic headwinds, including trade policy uncertainty and elevated interest rates. Third quarter results reflect early signs of stabilization and improving trajectory in this business. Residential activity at the Geneva facility moderated slightly during the quarter, partially offsetting gains. Our Precast order book closed the quarter at $55 million, in line with recent levels and demonstrating consistent stability over the past several quarters. Looking ahead, we anticipate improved demand and accelerated project starts as interest rates ease. On a consolidated basis, gross profit reached a record $32.2 million, representing a margin of 21.3%, up 50 basis points from 20.8% in the third quarter of 2024. Water Transmission Systems gross profit reached $22.1 million with a margin of 21.3%, up approximately 190 basis points year over year and 350 basis points sequentially. This margin expansion reflects strong customer demand, favorable project pricing, and consistent operational execution, all while sustaining a healthy backlog. Precast gross profit totaled $10 million, down modestly from both the second quarter and the third quarter of 2024, with gross margins that were flat with the prior quarter. Margins were temporarily impacted by mix shifts at Geneva and increased depreciation associated with new equipment investments. Production volumes rose year over year with Park up double digits and Geneva up high single digits. Absorption rates are beginning to improve, and we anticipate margin recovery as nonresidential demand continues to build. Momentum within the nonresidential portion of our Precast business is showing encouraging signs of recovery and is expected to contribute positively to our margins. Let me now turn to our capital allocation strategy. Growth remains our top priority in the third quarter. We continue to advance our Precast product spread strategy across multiple levels: first, optimizing capacity at our park plants by booking orders outside of Texas; second, producing and shipping Park products from Geneva; third, producing and shipping Geneva products from Park locations; and fourth, expanding precast-related offerings to additional Northwest Pipe Company legacy locations, which includes Water Transmission Systems plants. We currently have two Water Transmission Systems plants that are in the process of getting their National Precast Concrete Association certification. We booked $3.3 million in Precast product spread orders in the third quarter, and our full year goal remains to book over $12 million in product spread projects outside of Texas. We also made targeted organic investments, including the installation of a Catch Basin machine at our Orem plant for Geneva, which will expand our production capabilities. Additionally, we are investing in new forms at our Water Transmission Systems plants to support Precast production and further advance our product spread strategy. On the M&A front, we continue to evaluate acquisition opportunities in the Precast space, including single plant candidates that would expand our geographic reach and capabilities. Our acquisition criteria remains disciplined, and we are actively exploring several options. Other capital priorities include paying down debt and returning value to shareholders. During the third quarter, we repurchased approximately 186,000 shares at an average price of $42.90 totaling $8 million. In summary, we remain on track to deliver a record year in 2025. We are well positioned for continued momentum in 2026. Looking ahead, we're expecting to see a normal fourth quarter due to seasonal factors such as two major holidays, but more importantly severe weather related events which we have a lot of experience with over the last few years. In the fourth quarter, we anticipate modest year over year growth in both revenue and margins in our precast business and revenue and margins for the Water Transmission Systems business to be similar to the year ago period. Our record setting performance throughout the year underscores the strength and resilience of our business model, the durability of our end markets, and the exceptional commitment of our employees who continue to drive consistent execution across both segments. As always, our priorities remain clear: 1. maintaining a safe and rewarding workplace, 2. focusing on margin over volume, 3. intensifying our pursuit of strategic acquisitions, 4. implementing cost efficiencies across the organization, and 5. returning value to our shareholders when M&A opportunities are limited. Thank you to our entire team for your continued dedication and execution. I will now turn it over to Aaron who will walk you through our financials in greater detail. Thank you Scott and good morning everyone. As Scott mentioned, we delivered record-setting results this quarter, achieving the highest quarterly revenue, gross profit, and earnings per share in our company's history. In particular, the Water Transmission Systems segment's performance was exceptional, benefiting from several tailwinds including higher than expected volume as well as cost efficiencies realized on improved plant utilization and favorable costing against our project estimates. We believe that shifts in the competitive landscape combined with a favorable demand environment have created conditions where strong quarterly results such as those seen in the third quarter are occasionally achievable. However, we do not consider this level of performance to represent a new baseline for the WTS segment. I'll now turn to our third quarter profitability. Consolidated net income was $13.5 million or $1.38 per diluted share, compared to $10.3 million or $1.02 per diluted share in the third quarter of 2024. This is the highest earnings per share posted in the company's history outside of the third quarter of 2018, which was elevated by a one-time $22 million non-cash gain on bargain purchase associated with our acquisition of Ameron Water Group. Our results since that acquisition, including the record results achieved in the third quarter of 2025, serve as continued validation of that acquisition's positive contributions to the organization. Our third quarter consolidated net sales increased 16% to a record $151.1 million compared to $130.2 million in the year-ago quarter. Sales for the Water Transmission Systems segment increased 20.9% to a record $103.9 million compared to $85.9 million in the third quarter of 2024. The increase was driven by a 14% increase in tons produced resulting from changes in project timing and a 6% increase in selling price per ton due to changes in product mix. Precast segment sales in the third quarter increased 6.6% to $47.2 million compared to $44.3 million a year ago. Our performance was driven by an 8% increase in selling prices due to changes in product mix, which was partially offset by a 2% decrease in volume shipped. As a reminder, the products we manufacture are unique. Shipment volumes in the case of Precast and production volumes in the case of Water Transmission Systems 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 third quarter consolidated gross profit increased 19% to $32.2 million or 21.3% of sales compared to $27 million or 20.8% of sales in the third quarter of 2024. Water Transmission Systems gross profit increased 33% to a record $22.1 million or 21.3% of segment sales compared to gross profit of $16.6 million or 19.4% of segment sales in the third quarter of 2024, primarily driven by higher pricing due largely to changes in product mix as well as higher production volumes and associated operational efficiency gains. Precast gross profit decreased 3.4% to $10 million or 21.3% of segment sales from $10.4 million or 23.5% of segment sales in the third quarter of 2024, primarily due to changes in product mix. Selling, general and administrative expenses increased 13.2% to $13.1 million compared to $11.6 million in the third quarter of 2024 due to higher compensation and benefits expense. However, as a percentage of sales, SG&A improved to 8.7% from 8.9% in the prior year. For the full year 2025, we now estimate our consolidated selling, general and administrative expenses to be approximately $52 million. Depreciation and amortization expense in the third quarter of 2025 was $4.2 million compared to $4.1 million in the year-ago quarter. For the full year, we expect depreciation and amortization expense to be approximately $19 million. Interest expense decreased to $0.8 million from $1.5 million in the third quarter of 2024 due primarily to a decrease in average daily borrowings. For the full year 2025, we expect interest expense of approximately $3 million. Our third quarter income tax expense was $4.7 million resulting in an effective income tax rate of 26%. This compares to $3.7 million in the year-ago quarter or an effective income tax rate of 26.3%. Both quarters were primarily impacted by non-deductible permanent differences. We continue to expect our tax rate for the full year 2025 within the range of 24% and 26%. Next, I'll transition to our financial condition. Our strong balance sheet and ample liquidity support the execution of our capital allocation strategy. As of September 30, 2025, we had $27.6 million of outstanding borrowings on our credit facility, leaving approximately $96 million in additional borrowing capacity on our credit line. For the third quarter, net cash provided by operating activities was $21 million. We had $22.7 million in the third quarter of 2024. The modest decline was primarily due to changes in working capital, partially offset by our increased profitability. Our capital expenditures for the third quarter were $7.8 million, compared to $6 million in the third quarter of 2024. For the full year 2025, we continue to expect CapEx in the range of $19 to $22 million, including approximately $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 generated positive third quarter free cash flow of $13.2 million compared to $16.7 million in the year ago quarter. For the full year 2025, we now anticipate free cash flow to range between $32 and $37 million, up from our prior outlook. System's strong 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. We remain committed to enhancing shareholder returns consistent with our capital allocation strategy, including repurchasing shares. In the third quarter, we repurchased 186,000 shares for an average price of $42.90 p er share. To close we are proud of our strong performance and sustained momentum this quarter, resulting in another period of record-setting results. We remain focused on driving long-term growth and positioning the company for sustained success through the remainder of 2025 and beyond. We want to thank our employees for their strong execution and for their commitment to safety, which remains the foundational value central to our culture. We also appreciate the continued confidence and support of our shareholders as we execute our long-term strategy. I'll now turn it over to the operator to begin the question and answer session. Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press * 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press * 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's *1 to ask a question at this time. One moment while we pull for our first question. The first question comes from Julio Romero with Sidoti & Company. Please proceed. Thanks. Hey, good morning, Scott and Aaron. Good morning, Julio. Good morning. Wanted to start on the Water Transmission Systems segment. You know, really impressive to see a two handle in front of the segment margin there. Obviously, strong execution in the quarter by you and your team. One item you called out was stronger than anticipated customer shipping requirements in the quarter. Was hoping you could dive into that a little bit and expand on that and how much of a driver that in particular was in the quarter. I think that was a really big driver of the quarter, Julio. The production levels were strong in the quarter, so we had good absorption levels in the quarter and we had increased fab work. The level of shipments that we saw throughout the quarter were pretty significant because just to give you an example, at our Adelanto, California plant, we shipped 421 loads in September alone. In Saginaw, our plant Saginaw, we shipped 272 loads alone. It was really interesting because when the numbers came out and it was actually over $100 million at first plus, you start to look at, oh man, maybe it's getting caught up in current assets. If you look at what's happened to our current assets really over the last, since last year at this time, our AR was up like almost $20 million versus where it was in the second quarter and about $19 million from where it was in the third quarter of '24. Which means stuff is being shipped and billed to the customer and I think even more importantly the contract assets, which is when we produce and recognize revenue on something before it shipped, those numbers versus the second quarter were down $6 million. Versus third quarter of '24, they were down $24 million. All that stuff moved in the right way, which shows production was good. Really the shipments outpaced what the production level was in the quarter, which was really a driver for it. It increased the revenue, it increased freight revenue that we got and the absorption numbers were fantastic. That's really the story of the quarter for water transmission. Very helpful there. You mentioned you expect backlog levels will remain above $300 million through year end. That implies pretty significant order acceleration here in the fourth quarter. Can you maybe talk about the drivers of that implied order acceleration? Secondly, what kind of margin profile is anticipated for those orders? Yeah, what I would tell you is right now, looking at the bidding schedule, we have somewhere in the area of about $200 million worth of work bidding in the fourth quarter. Just to give you a little bit of a perspective on that, we have in the schedule right now, and this is on a tonnage perspective, 60,000 tons worth of projects that are scheduled to bid in the next six weeks. Those are projects like Red River IPL, there's a reliner project in California, and there are projects from Oklahoma City that are scheduled to bid in the next six weeks. It's a very, very strong bidding quarter. What you'll really see, Julio, is those bids in those jobs, those are won and put into the backlog, which will keep the backlog above 300 and likely improve it as we go through the end of the quarter. Those projects will be done in 2026. What it's doing is setting us up for a very strong entry into 2026 with those things bidding. Yeah, that's fascinating. I mean, Red River is something you've talked about for a long time now, for several years, if I'm not mistaken. To see that bidding in the fourth, is that correct? Yeah, apparently in each one of the states, it's a little bit different, but there's some spending that has to happen. There are actually three large segments of Red River bidding in that time frame in the fourth quarter. I don't know if they're all within that six week period, but they're all bidding and scheduled to bid in the fourth quarter. There's also a segment of IPL that's scheduled to bid in the fourth quarter, which you heard us talk about 10 years ago, which is another extension of that program. The fourth quarter is going to be a pretty interesting bidding quarter for us. Like we said in the script, it should really work to enhance backlog as we travel through the quarter. Very exciting. I'll pass it on. Thanks very much. Yes, no problem. The next question comes from Ted Jackson with Northland Securities. Please proceed. All I can say is, wow, what an amazing quarter. Going back into Water Transmission or WTS, you know, I mean, you know, you've got tonnage up 14%. I mean, you just had a blowout quarter with it. Can you just talk a bit about, you know, kind of the utilization rates that you had across your. Yeah. You know, your facilities and kind of like what, you know, where are you with that, and is there, I mean, the fact that you could do something like this in the right environment? I mean, you repeat this, I'm just kind of curious, like, what are some of the metrics you had? Yeah, just before I talk about the metrics, I think that these kind of quarters are definitely more possible as we go forward. As Aaron said in his script, it's not a new level that we're getting to, but I think that when you look at a good water transmission quarterly revenue rate, you're looking at something that's between $80 million and $90 million. That's a good quarterly rate, probably more like $82 million - $85 million. These kind of things can happen. When you look at the utilization that we ran across our facilities in the third quarter, I would call it somewhere in the high 60s to about 70% utilization. We did have a couple cases in the quarter where there was enough shipment requirement demands from our customers that we actually had to do a little bit of second shift work. Normally our Water Transmission Systems plants are really run on one shift. I would call it high 60s to low 70s. When I looked at it over the last couple days, we have a lot more that we can do and if demand follows it, we can staff up and continue to produce more and more because we're really doing this on one shift at each one of the plants. With a 14% rise in tonnage, and clearly very robust bookings world, the businesses out there, the competitors that you have, you're not, you don't have to fight on price for volume. How much of that, is there an opportunity for you to see better than maybe let's take this quarter out, but better than historic margins given kind of the macro environment you're in right now, or how's the competition for the use of your facilities these days? I think it's pretty stable with the competitive landscape. I think when you look at backlogs across the industry, it appears that everybody's backlog is up a bit. That's always a recipe for better margins as you move forward. When you start looking at better than historical margins, we have a market right now that's a good market. I don't want to get too much into the IIJA stuff in front of this, but we have a good market right now. It's not a blowout market, but it's a good market right now. The competitive landscape fits the size of the market very well. Bids are competitive. You've got to continue to work on cost to drive your costs down in the plants, and we do that with lean manufacturing programs and things of that nature and setting metrics in each one of the plants. I think the landscape is good. It's still very competitive on some bids. We have some bids in the fourth quarter that we expect to be very competitive bids when you start getting up over, and we're right now still, Ted, in the demand level, that's probably about 140,000 - 145,000 tons. It might inch up a little bit above that with what's going on in the fourth quarter, and that's just a pretty good quarter. If you get a quarter that, excuse me, demand, that's for a year. If you get a year that's over 200,000 tons, I do think that's the point where you can start seeing those margins that are larger than what we've seen historically. I started talking about the IIJA a little bit before that, and you probably have other questions on that. The thought of the IIJA has originally been, hey, this is going to cause a substantial spike in the markets for the Water Transmission Systems business as we move forward during some period. I think that the funding is trickling out relatively soon. Of the $50 billion, EPA has about $43 or $44 billion. The Bureau of REC has probably about $8 billion. Only about $20 billion of it has been obligated by the EPA, and the Bureau of Rec has about $5 billion, $6 billion. Only about half of the funds have been obligated at this point. The other thing to note is that the funds that have been dispersed is only about $8 billion. It's not a high percentage of what's out there at this point. The feeling is instead of seeing a big spike in the Water Transmission Systems market, what you're going to see is that market, like we're seeing right now, maybe a little bit of inch up in the market, extend further out into the future. As we look at that, we think that's better for the business because normally when you have a big spike, you have a big fall and then the business falls off for a period of time. This level marketplace, as we look out to 2026, 2027, 2028, is a better scenario for the water transmission business over that period of time. I think it will allow for stable business, higher stabilized margins, and improved performance as we go forward. Related to cost reductions that we're doing in the plants. Okay, I got two more topics and I'll get out of line too. Just quickly over on to the, to the precast side of the equivalent of the house. I mean, you know, a nice revenue number. I was a little surprised on the margin given that, you know, my understanding has been that if the Park business is turning around, that that's typically been a better margined, you know, set of products for you all. I mean, maybe you could just unpack that a little bit for me. Is that just because, you know, you had some underutilization at the Geneva facility or is my memory on that incorrect? Just kind of curious as to, you know, on the market side. Yeah, no, I think that's right. I think the Geneva b usiness is still very strong. It's very strong. We're now up and fully running the Exact 2500, which is the RCP manhole machine. We've got increased depreciation that started associated with that and the building. That's had a little bit of an impact on the margin at the Geneva facility in the quarter. We expect as we get the Exact 2500 up to the production levels that we want, that we'll be adding a second shift to that, which we're working on, which will further enhance the margins. The old transmatic that we have at Geneva, we'll be able to shut that down and not have to be running that. That will reduce costs and enhance the margins. We expect the Geneva margins to start coming back up in the fourth quarter to a more normalized rate. On the Park plant side, what I would tell you is the Park margins now are up probably a few hundred basis points from where they were at the beginning of the year. That is definitely traveling in the right direction and really being driven by, I think, owners and developers taking into account that the interest rate is going to fall over a period of time. They're pushing projects into planning and design right now, which is going to continue to build that business over the next 12 to 18 months. We think we'll start to see the Park margins probably start to normalize in the next couple quarters. The Park margins have really come up by about 300 or maybe even a little bit more than 300 basis points since the beginning of the year. It's really the Geneva fall off with the increased depreciation, the double running of the equipment in the quarter until we get it shut down, and then getting the Exact 2500 up and getting it onto a second shift that impacted the third quarter for Geneva. We see that coming back in the fourth quarter and the margin starting to return to normal. It's just a timing thing. Okay. Then my last one is implicit in the guidance that Aaron put forth. That means that fourth quarter SG&A would be about $13 million. If you're going to hit your, would you say, $52 million for the year, how would we think about that expense? I mean, I know you're not talking $26 million, but we expect a similar run rate for $26 million, $52 million, $53 million. Just given kind of how those expenses have scaled up during the last fiscal year. Yeah, we tell you that we always think about it first maybe as kind of a normal sort of inflationary adjustment when we start to model our SG&A for our budgeting process. The other thing I would tell you is that w e internally are pretty d evoted to looking at our costs, especially at some of the support centers and the sales cost centers, to really try to drive in on the value creation that they're supporting, r ight. We're looking at places where potentially some zero basis budgeting where we can potentially look at things that we can scale away. I think we're going to be having some opportunities to kind of maybe cut modestly, you know, kind of from t hat leveled up, you know, for inflation. I think that's kind of where we will kind of go with things. Obviously, if you have things like any sort of M&A or anything like that, that kind of blows everything I just said out of the water. The other thing that we've really been impacted by in this year has been the bonus expense too. Since that's incentive compensation, that's really subjective to the level of profitability that the company can achieve. That's not a bad expense. That is what does have us elevated this quarter, particularly in what I expect to be something that elevates us in the fourth quarter as well. Just a little bit of an add on to that when you think about SG&A expense. You know, my view when we look at that is that our operating margin should be 10% or above and we're not quite there yet. We've got some pretty hard looks going. Like Aaron said on SG&A, we've implemented some zero based budgeting this year to really kind of hone in on that because the idea is to get those operating margins above 10% on an annual basis, not just for a quarterly basis, but to have that sustained 10% or better for the year. Okay. All right. I took too much of the time on the call, but again, what a fabulous quarter. Congratulations. The next question comes from John Belize with D.A. Davidson. Please proceed. Good morning, congrats on the quarter. Good morning. Good morning, John. Just looking at precast, can you talk about your ability to push pricing right now as some of the cost inputs begin to ease, and second part question. Oh, go ahead. No, let me answer the first one because John, I won't remember the second part by the time I get to the end of the first. Yeah, we've been successful in pushing pricing increases at both sides of the Precast business recently at the Park plant. That's really driven by, I think, the improvement that we're seeing in the non-residential side of the business. We're seeing that in our revenue at Park. We're also seeing it in the volumes that we're getting, and it's really supported by what we're seeing in the Dodge Momentum Index. That's moving in the right direction. On the Geneva facility side, that business still is standing strong. It had a record year last year. It's very likely heading toward another record year this year, and price increases are being pushed forward in that. We are successfully pushing them forward. As you mentioned, we are seeing the raw material costs, the cement, the small rock, the large rock, the aggregate piece, all those, the sand, all those kind of flattening out and stabilizing a little bit versus what we've seen over the last couple years. What was the second part? Sorry I interrupted you during the first part. No problem. Thanks for giving us that color. Yeah, just given what you said, I was wondering what volume, how does volume pose in your expectations versus pricing? Say that one more time. You cut out for a second. Yeah, no problem. I was just wondering about how does the volume play into the growth of both these businesses over the next 12 months? Does it make sense? Yeah, I think you'll see a growing volume in the Park side of the business, and that simply is related to the non-residential piece. I also think you'll see a volume in the Geneva business that is continuing to inch its way up, and we're starting to do a little bit more non-residential work at the Geneva plant site. That'll improve the volume over the next few quarters. Really, I think that by the time we start getting into mid next year, beyond that, the Geneva facility is probably going to be on close to $100 million annualized rate, and Park will be a little bit behind that, but running toward that probably maybe more toward the first quarter of 2027. Both of those businesses are expected to improve throughout 2026 based on the numbers that we're looking at preliminarily in the plan. Between volume and pricing, what has a better driver the next 12 months? I think probably the volume and the absorption. The higher levels of absorption and the volume will be a little bit more of an impact than what the pricing is. Just one last one for me in the water transmission. Can you talk a little bit more going into next year about your backlog specifically? Just trying to understand more about the sustainability or how should we think about what the high watermark is starting in Q1 and through the next year. For backlog specifically? Yeah. And then just probably add a little bit about the revenue cadence as well? Yeah. I think the backlog is based on the amount of bidding that we have going on in the fourth quarter. We have the expectation that, you know, there will be some wins in that bidding for us and that our backlog is going to continue to inch up through year end. That's what we anticipate at this point. We're going to end up pretty strong with backlog going into the first quarter of 2020. As far as revenue for the Water Transmission Systems business, when you look at revenue numbers for that business, good revenue numbers are somewhere between $80 million and $90 million at the beginning of the year. Generally you're ending up with revenue numbers because you're coming through some quarters in the first quarter that's also affected by weather. You're probably something closer to in the low $80 million in the first quarter. As you climb up to the second and third quarters, like we've seen over the last couple years, you end up something within that's more like $85 million up to close to $90 million. In the fourth quarter you're getting down to something that's probably more like mid-$80 million to low-$80 million. That's how you can think about the revenue on a normalized basis with the Water Transmission Systems business as it sits right now. I will say I think that there's potential now and again to get a quarter. When you look at the quarters over the last couple years, last third quarter, I believe, was what the record was. The record at that point before the second quarter of this year, which is what I think became the record quarter for and obviously driven by both Water Transmission Systems and Precast until the first quarter or the third quarter of this year, which became the record. The second and the third quarters are generally the big ones for both sides of the business. John. All right. I appreciate it. Thank you so much again. Thank you. Thanks. We have a follow-up from Julio Romero with Sidoti. Please proceed. Thanks. Hey guys, thanks for taking a couple of follow ups here. My first one is just on, you know, the state of Texas has Proposition 4 on the ballot next week, and that dedicates, I think, $20 billion towards water infrastructure over the next 20 years with dedicated state taxes. Would your company, would NWPX Infrastructure Inc. benefit from that, and if so, which parts of the portfolio would benefit? It's definitely on, you know, for water infrastructure. It's the water transmission system side. Right. The state of Texas. What I would say about the state of Texas is they're not waiting on IIJA funding. They create their own funding. They had the Texas SWIFT program going 10 or 12 years ago, which is the State Water Implementation Fund for Texas. Now they're driving this proposition forward. That will certainly have some funding for projects that are water transmission systems projects going forward. In fact, I think the legislation in Texas even before the vote on this, because this has to be voted on here in November by the citizens, I think the legislation has about $2.5 billion already teed up to go into the Texas water development funding to start funding some of these projects. We will definitely benefit on the water transmission side from these funding mechanisms in Texas, just like we have over the last probably 15 or 20 years from the SWIFT program. You have Lake Texoma, you had IPL and all these different projects. Quite frankly, which is why the state of Texas is always one of the biggest markets for water transmission systems. It's going to be a good thing. Very helpful there. Earlier you touched on the cash flow benefit from Water Transmission Systems in the quarter. Can you maybe just talk about the sustainability of those cash flow dynamics going into 2026 and beyond? Yeah, I think that it's kind of a new way of approaching the business. The guys on the water transmission, I mean everybody on the Precast side and the Water Transmission Systems side has done a great job at getting cash in. Obviously, the Water Transmission Systems business, years ago, tied up a lot of cash in current assets. What we've done is we put a focus by putting part of the senior level variable compensation based on cash flow. There's a big focus on that and getting progress payments for projects that we're doing, getting paid for steel up front and things of that nature. We think the sustainability of that is great. As we go forward in the future, we would like to have a target always that our cash flow is similar to what our EPS is, which I t hink is a good level to have that at. And we're always going to be doing that because really the Water Transmission Systems business has kind of turned into a cash flow machine at this point, and it's really helping drive the growth platform for the company. That's what's doing it. Material on hand payments, prepayments, progress payments, all those things are now happening on the Water Transmission Systems business, something that didn't happen five years ago. Julio, I would say that for your benefit. The water transmission cash cycle was something that we had seen kind of usually getting pretty elevated during our busy quarters. See something like Q2, Q3, those quarters we'd see a spike because we were basically working the jobs as opposed to thinking and being very thoughtful of the related working capital management. I would say over the last four quarters we've been excellent. We have not seen a spike at all. In fact, we've seen exactly the opposite. We started basically the middle of last year at what we thought was a very good level of working capital days for the WTS segment, just below 190 and since then we've seen it decrease down to about 165 days. On your sustainability part, I think it's something that is a mindset that Scott was mentioning earlier that has really changed, something that he's really pushed through the business and something we talk about. I think it's very sustainable and actually excited to say that because if you asked me two or three years ago, it was probably the bane of my existence, to be honest with you. Very exciting. Nice job again, guys. Thanks. Thanks, Julio. Thank you. At this time, I would like to turn the call back over to Mr. Scott Montross for closing comments. Yes, again I'd like to thank everybody for joining us today, and we're pretty pleased with the operational execution that we've had in what we consider to be a fairly dynamic environment in 2025. I think it really affirms the strategic choices we've made over the last several years and starts to highlight the strength and the resilience of our evolving business model. I think we just talked about a little bit with Julio. The execution continues to drive growth and free cash flow, particularly in the Water Transmission Systems business, which for many years tied up a bunch of cash. Like I just said, the Water Transmission Systems business has really become a cash flow generating machine as we look ahead. As we talked about, the bidding activity for water transmission is really strong. For the rest of 2026, we think we're going to have very strong backlog momentum building and positioning us to go into 2026 very strong in the Precast business. Non-residential site is continuing to gain traction, and the Geneva on the residential side remains strong. In closing, you know we're still committed to number one workforce safety. That's the number one thing that we do, margin expansion, and executing our strategic growth initiatives to create long-term value for our shareholders. I'd just like to thank everybody again for your time and continued support, and we look forward to speaking with you again on the fourth quarter call in the February timeframe. Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.