The company’s Water Transmission Systems segment led the growth, generating $113.2 million in net sales—a 33.8% jump compared to the second quarter of 2025. This segment also saw gross profit surge 60.9% to $24.2 million, bolstered by a 26% increase in production volume and favorable project pricing. As of June 30, the division held a backlog of $305 million, with confirmed orders pushing that figure to $423 million.

In contrast, the Precast Infrastructure and Engineered Systems segment faced early-quarter headwinds. Unusually heavy rainfall in Texas and project delays in Utah dampened activity during April and May, resulting in a 4.8% decline in segment net sales to $46.3 million. However, CEO Scott Montross noted that business conditions improved significantly in June, providing strong momentum heading into the second half of the year. The precast order book closed the quarter at $61 million.

Management remains optimistic about the remainder of 2026, citing elevated bidding activity and consistent demand across end markets. The company reported no outstanding revolving loan borrowings at the end of the quarter, with approximately $124 million in additional borrowing capacity available under its credit facility.