Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) Q2 2025 Earnings Conference Call June 5, 2025 5:00 PM ET Company Participants Bruce F. Young - President, CEO & Director Iain Humphries - CFO, Secretary & Director Conference Call Participants Benjamin Luke McFadden - William Blair & Company L.L.C., Research Division Jean Franco Veliz - D.A. Davidson & Co., Research Division Cody Slach - Gateway Group, Inc. Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss C ...

Concrete Pumping (BBCP) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.03. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -133.33%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced a loss of $0.04, delivering a surprise of -500%.Over the last four quarters, the company has surpassed ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $94 million, down from $107.1 million in the prior year quarter, primarily due to a decline in the U.S. Concrete Pumping segment [10][11] - Gross margin declined by 50 basis points to 38.5% compared to 39% in the same year ago quarter [12] - Net loss available to common shareholders was $400,000 or $0.01 per diluted share, compared to net income of $2.6 million or $0.05 per diluted share in the prior year quarter [13] - Consolidated adjusted EBITDA was $22.5 million, down from $27.5 million in the same year ago quarter, with an adjusted EBITDA margin of 23.9% compared to 25.7% in the prior year quarter [13][14] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping segment revenue was $62.1 million, down from $74.6 million in the prior year quarter, with adverse weather impacting revenue by approximately $3 million to $4 million [10][11] - U.K. operations revenue was $13.8 million, down from $15.5 million in the same year ago quarter, due to lower volumes from a slowdown in commercial construction [11] - U.S. Concrete Waste Management Services revenue increased by 7% to $18.1 million, driven by increased pan pickup volumes and improved pricing [12][14] Market Data and Key Metrics Changes - The commercial end market is experiencing construction softness, particularly in interest rate-sensitive areas, while residential markets in certain regions remain resilient [6][8] - Infrastructure end markets continue to grow, with strong performance in the U.K. and the U.S., supported by funding from the Infrastructure Investment and Jobs Act [9][10] Company Strategy and Development Direction - The company is focused on capital allocation, cost discipline, fleet optimization, and strategic pricing to navigate the challenging construction environment [4][5] - The company plans to continue investments in fleet and strategic acquisitions when the timing is right, while maintaining a strong balance sheet [20] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates and macroeconomic uncertainty are delaying commercial project starts, with expectations for a market recovery pushed to 2026 at the earliest [17][19] - The company remains optimistic about the infrastructure market, expecting continued growth due to strong project backlogs and funding availability [26][30] Other Important Information - The company repurchased approximately 1 million shares for $6 million during the second quarter, with an additional $15 million authorized for the share buyback plan [16] - The adjusted EBITDA guidance for fiscal year 2025 is expected to range between $95 million and $100 million, with revenue projected between $380 million and $390 million [17] Q&A Session Summary Question: Clarification on guidance regarding construction market recovery - Management confirmed that the expectation of no meaningful recovery pertains to both commercial and residential construction, with optimism for recovery in the commercial market once tariff discussions settle [22][24] Question: Visibility into the infrastructure market - Management indicated strong growth across nearly all segments of infrastructure, including roads, bridges, and airport construction, with expectations for continued strength in both the U.S. and U.K. [25][26] Question: Project delays and customer feedback - Management noted that project delays are primarily due to tariffs and uncertainty, but customers have strong backlogs for the next year, indicating optimism for future project starts [29][30]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $94 million, down from $107.1 million in the prior year quarter, primarily due to a decline in the U.S. Concrete Pumping segment [10][11] - Gross margin declined by 50 basis points to 38.5% compared to 39% in the same year ago quarter [12] - Net loss available to common shareholders was $400,000 or $0.01 per diluted share, compared to net income of $2.6 million or $0.05 per diluted share in the prior year quarter [13] - Consolidated adjusted EBITDA was $22.5 million, down from $27.5 million in the same year ago quarter, with an adjusted EBITDA margin of 23.9% compared to 25.7% in the prior year quarter [13][14] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping segment revenue was $62.1 million, down from $74.6 million in the prior year quarter, with adverse weather impacting revenue by approximately $3 million to $4 million [10][11] - U.K. operations revenue was $13.8 million, down from $15.5 million in the same year ago quarter, due to lower volumes from a slowdown in commercial construction [11] - U.S. Concrete Waste Management Services segment revenue increased by 7% to $18.1 million compared to $16.9 million in the prior year quarter, driven by increased pan pickup volumes and improved pricing [12] Market Data and Key Metrics Changes - The commercial end market is experiencing construction softness, particularly in interest rate-sensitive sectors like commercial and office buildings [6] - Residential end markets in the Mountain and Texas regions remain resilient, but signs of softness are emerging in other U.S. regions due to elevated interest rates [7][8] - Infrastructure end markets continue to grow, with expectations for robust performance in fiscal year 2025 due to favorable funding environments in both the U.K. and U.S. [8][9] Company Strategy and Development Direction - The company remains focused on capital allocation, cost discipline, fleet optimization, and strategic pricing despite macroeconomic headwinds [4][5] - The company is committed to a prudent capital allocation and flexible investment strategy, with expectations for continued investments in fleet and service offerings [18][19] - The company plans to pursue disciplined strategic acquisitions and return capital to shareholders through share buybacks and dividends [21] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates and macroeconomic uncertainty are delaying commercial project starts and impacting residential construction [5][18] - The company does not expect a meaningful market rebound in the current fiscal year, adjusting revenue guidance to between $380 million and $390 million [18] - Management expressed optimism about the recovery of the commercial market once tariff discussions settle and interest rates potentially decrease [25] Other Important Information - The company repurchased approximately 1 million shares for $6 million during the second quarter, with an additional $15 million authorized for the share buyback plan [16][17] - Total debt outstanding as of April 30, 2025, was $425 million, with a net debt to EBITDA leverage ratio of approximately 3.7 times [15] Q&A Session Summary Question: Confirmation on guidance regarding construction recovery - Management confirmed that the expectation of no meaningful recovery pertains to both commercial and residential construction, with optimism for the commercial market once tariff discussions settle and interest rates decrease [24][25] Question: Visibility into the infrastructure market - Management indicated growth across nearly all segments of infrastructure, with strong results expected in 2025, particularly in roads, bridges, and airport construction [26][27] Question: Project delays and customer feedback - Management noted that project delays are primarily due to tariffs and uncertainty, but customers have strong backlogs for next year, indicating optimism for future project starts [30][31]

Revenue Performance - Total revenue for the three months ended April 30, 2025, was $93.96 million, a decrease of 12.2% from $107.06 million for the same period in 2024[98]. - Revenue from the U.S. Concrete Pumping segment decreased by 16.8%, or $12.5 million, from $74.6 million in Q2 2024 to $62.1 million in Q2 2025, primarily due to a slowdown in commercial construction and adverse weather[99]. - Revenue for the U.S. Concrete Waste Management Services segment increased by 6.9%, or $1.2 million, from $16.9 million in Q2 2024 to $18.1 million in Q2 2025, driven by organic growth and pricing improvements[100]. - Total revenue for the six months ended April 30, 2025, was $180.4 million, down 11.9% from $204.8 million for the same period in 2024[109]. - Revenue from the U.S. Concrete Pumping segment for the six months ended April 30, 2025, decreased by 15.8%, or $22.3 million, from $141.3 million in 2024 to $119.0 million in 2025[110]. - Revenue for the U.K. Operations segment decreased by 14.0%, or $4.3 million, from $30.9 million in the six months ended April 30, 2024, to $26.6 million in 2025[112]. Profitability Metrics - Gross profit for the three months ended April 30, 2025, was $36.18 million, down 13.4% from $41.77 million in the same period in 2024[102]. - Gross profit for the six months ended April 30, 2025 was $67.4 million, a decrease of $7.7 million (10.2%) from $75.1 million in the same period of 2024[113]. - Gross margin improved to 37.4% for the six months ended April 30, 2025, compared to 36.7% for the same period in 2024, primarily due to lower fuel and commercial insurance costs[113]. - Adjusted EBITDA for the U.S. Concrete Pumping segment was $21.8 million for the six months ended April 30, 2025, down $7.3 million (25.0%) from $29.1 million in 2024[125]. - Total adjusted EBITDA for the company was $46.8 million for the six months ended April 30, 2025, a decrease of $7.3 million (15.6%) from $39.5 million in 2024[125]. - Adjusted EBITDA for the three months ended April 30, 2025, was $22,497,000, down 18.2% from $27,548,000 in the prior year[152]. Expenses and Financial Costs - General and administrative expenses for Q2 2025 were $27.9 million, a decrease of $1.8 million from $29.7 million in Q2 2024, with G&A as a percentage of revenue increasing to 29.7%[103]. - Interest expense for Q2 2025 was $8.3 million, an increase of $1.4 million from $6.9 million in Q2 2024, primarily due to refinancing of senior notes[105]. - General and administrative (G&A) expenses decreased by $5.9 million to $55.7 million for the six months ended April 30, 2025, representing 30.9% of revenue, up from 30.1% in 2024[114]. - Interest expense for the six months ended April 30, 2025 was $14.1 million, an increase of $0.8 million from $13.3 million in the same period of 2024, mainly due to refinancing of senior notes[116]. - Total interest expense and amortization of deferred financing costs for the six months ended April 30, 2025, was $14,096,000, an increase from $13,336,000 in the prior year[152]. Net Income and Loss - Consolidated net income for the three months ended April 30, 2025, was a loss of $4,000 compared to a net income of $3,046,000 for the same period in 2024[152]. - Net loss for the U.S. Concrete Pumping segment was $4.7 million for the six months ended April 30, 2025, compared to a net loss of $2.3 million in the same period of 2024[125]. - U.S. Concrete Waste Management Services segment reported net income of $1.4 million for the six months ended April 30, 2025, compared to a net loss of $0.2 million in 2024[126]. - U.K. Operations segment net income decreased to $0.6 million for the six months ended April 30, 2025, down from $1.5 million in 2024[127]. - U.S. Concrete Pumping segment reported a net loss of $1,601,000 for the three months ended April 30, 2025, compared to a net income of $937,000 in the same period of 2024[152]. - U.S. Concrete Waste Management Services achieved a net income of $1,202,000 for the three months ended April 30, 2025, up from $1,065,000 in the prior year[152]. Cash Flow and Liquidity - As of April 30, 2025, the company had $37.8 million in cash and cash equivalents and $314.7 million in available borrowing capacity under the ABL Facility, totaling $352.5 million in liquidity[129]. - Net cash provided by operating activities for the six months ended April 30, 2025 was $30.8 million, despite a net loss of $2.6 million[143]. - Gross capital expenditures for the six months ended April 30, 2025 were approximately $19.5 million, down from $28.8 million in the same period of 2024[133]. - The company used $16.3 million for investing activities during the six months ended April 30, 2025, primarily for property, plant, and equipment[145]. - Net cash used in financing activities was $19.9 million for the six months ended April 30, 2025, which included $425.0 million from the issuance of 2032 Notes and $375.0 million for the extinguishment of 2026 Notes[147]. - The company had a working capital surplus of $45.7 million as of April 30, 2025, and is in compliance with its debt covenants[132]. Strategic Initiatives - The company views strategic acquisitions as opportunities to enhance competitiveness and plans to allocate capital for opportunistic M&A using cash and revolving credit[90]. - The ABL Facility was amended to increase maximum borrowings from $225.0 million to $350.0 million and extend its maturity to September 6, 2029[138]. - The company had no outstanding balance under the ABL Facility as of April 30, 2025, and maintained $1.1 million in credit line reserves[139]. - The company’s future capital requirements may vary significantly based on revenue growth, potential acquisitions, and overall economic conditions[130]. Other Financial Adjustments - The company incurred a loss on debt extinguishment of $1,392,000 for the six months ended April 30, 2025[152]. - Other adjustments for the six months ended April 30, 2025, included a non-recurring charge related to sales tax litigation amounting to $3.5 million[152]. - The company did not make modifications to its critical accounting policies and estimates during the six months ended April 30, 2025[154].

NASDAQ: BBCP INVESTOR PRESENTATION | June 2025 Disclaimer Forward-Looking Statements This investor presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "fore ...

DENVER, CO – June 5, 2025 – Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the "Company" or "CPH"), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for the second quarter ended April 30, 2025. Second Quarter Fiscal Year 2025 Summary vs. Second Quarter of Fiscal Year 2024 (where applicable) Management Commentary Exhibit 99.1 Concrete Pumping Holdings Reports Second Quarter Fiscal Year 2025 Results - Announces $15 Million Increase to Share ...

Announces $15 Million Increase to Share Repurchase PlanDENVER, June 05, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the "Company" or "CPH"), a leading provider of concrete pumping and waste management services in the U.S. and U.K., reported financial results for the second quarter ended April 30, 2025. Second Quarter Fiscal Year 2025 Summary vs. Second Quarter of Fiscal Year 2024 (where applicable) Revenue of $94.0 million compared to $107.1 million.Gross profit of $36.2 million ...

DENVER, May 27, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (“CPH” or the “Company”), a leading provider of concrete pumping and waste management services in the U.S. and U.K., will hold a conference call on Thursday, June 5, 2025, at 5:00 p.m. Eastern Time to discuss its financial results for the second quarter ended April 30, 2025. The Company will report its financial results in a press release prior to the conference call. CPH’s CEO Bruce Young and CFO Iain Humphries will hos ...

Group 1 - Concrete Pumping Holdings (NASDAQ: BBCP) is highlighted as a bullish investment opportunity within the concrete pumping services industry [1] - The company operates in a sector that is essential for construction and infrastructure projects, indicating potential for growth [1] Group 2 - The focus on cash flow generation is emphasized, suggesting that companies in the oil and natural gas sector, including Concrete Pumping Holdings, may have strong value and growth prospects [1]