crete Pumping (BBCP) - 2025 Q2 - Quarterly Results

Second Quarter Fiscal Year 2025 Overview Concrete Pumping Holdings reported challenging Q2 FY2025 results with revenue and profit declines, a net loss, and an increased share repurchase plan, alongside management's strategic priorities Q2 FY2025 Highlights Concrete Pumping Holdings reported a challenging second quarter of fiscal year 2025, with declines in revenue, gross profit, and Adjusted EBITDA compared to the prior year, resulting in a net loss. The company also announced a $15 million increase to its share repurchase plan | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | Change (%) | | :-------------------------- | :-------- | :-------- | :----------- | :--------- | | Revenue | $94.0M | $107.1M | $(13.1M) | (12.2%) | | Gross Profit | $36.2M | $41.8M | $(5.6M) | (13.4%) | | Income from Operations | $8.3M | $12.1M | $(3.8M) | (31.4%) | | Net Loss (Income) | $(0.0M) | $3.0M | $(3.0M) | (100.0%) | | Net Loss Attributable to Common Shareholders | $(0.4M) | $2.6M | $(3.0M) | (115.4%) | | Diluted EPS | $(0.01) | $0.05 | $(0.06) | (120.0%) | | Adjusted EBITDA | $22.5M | $27.5M | $(5.0M) | (18.2%) | | Adjusted EBITDA Margin | 23.9% | 25.7% | (1.8 pp) | (7.0%) | | Net Debt (as of April 30, 2025) | $387.2M | $373.5M (April 30, 2024) | $13.7M | 3.7% | | Total Available Liquidity (as of April 30, 2025) | $352.5M | $216.9M (April 30, 2024) | $135.6M | 62.5% | | Leverage Ratio (as of April 30, 2025) | 3.7x | - | - | - | - The board of directors approved a $15.0 million increase to the Company's share repurchase program, bringing total authorizations to $50.0 million since June 2022[1][17] Management Commentary and Strategic Priorities Management navigated a challenging construction environment with cost discipline, noting strong growth in U.S. Concrete Waste Management and weakness in U.S. Concrete Pumping, while prioritizing free cash flow, deleveraging, and M&A - Navigated a challenging construction environment marked by persistent macroeconomic headwinds and regional weather disruptions, delivering solid results through cost discipline, fleet optimization, and strategic pricing[4] - U.S. Concrete Waste Management segment delivered strong growth, driven by unique offering and rising demand for sustainable jobsite solutions[4] - U.S. Concrete Pumping segment affected by weakness in commercial and residential construction, with infrastructure market resilience partially offsetting pressures[4] - Committed to generating strong free cash flow, deleverage the balance sheet, and pursuing disciplined, strategic M&A for long-term value creation[4] Financial Performance - Second Quarter Fiscal Year 2025 The company experienced significant declines in consolidated revenue and profitability in Q2 FY2025, leading to a net loss, while managing its liquidity and capital structure, and observing mixed segment performance Consolidated Financial Results The company experienced a significant decline in consolidated revenue, gross profit, and Adjusted EBITDA in Q2 FY2025, leading to a net loss. This was primarily attributed to a slowdown in commercial and residential construction, high interest rates, tax policy uncertainty, adverse weather, and tariff-related deferrals | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | Change (%) | | :-------------------------- | :-------- | :-------- | :----------- | :--------- | | Revenue | $94.0M | $107.1M | $(13.1M) | (12.2%) | | Gross Profit | $36.2M | $41.8M | $(5.6M) | (13.4%) | | Gross Margin | 38.5% | 39.0% | (0.5 pp) | (1.3%) | | General and Administrative Expenses | $27.9M | $29.7M | $(1.8M) | (6.1%) | | G&A as % of Revenue | 29.7% | 27.7% | 2.0 pp | 7.2% | | Net Loss (Income) | $(0.0M) | $3.0M | $(3.0M) | (100.0%) | | Net Loss Attributable to Common Shareholders | $(0.4M) | $2.6M | $(3.0M) | (115.4%) | | Diluted EPS | $(0.01) | $0.05 | $(0.06) | (120.0%) | | Adjusted EBITDA | $22.5M | $27.5M | $(5.0M) | (18.2%) | | Adjusted EBITDA Margin | 23.9% | 25.7% | (1.8 pp) | (7.0%) | - Revenue decrease primarily attributable to continued slowdown from deferrals in commercial construction work and emerging challenges in residential work, mostly due to high interest rates, uncertainty around extensions of U.S. tax policy, and adverse weather events[6] - G&A expenses declined 6% due to lower labor costs ($1.3 million) and non-cash decreases in amortization expense ($0.8 million), but increased as a percentage of revenue from 27.7% to 29.7%[8] Liquidity and Capital Structure As of April 30, 2025, the company reported $425.0 million in outstanding debt and $387.2 million in net debt, while significantly increasing its total available liquidity to $352.5 million | Metric | As of April 30, 2025 | | :---------------------- | :------------------- | | Debt Outstanding | $425.0M | | Net Debt | $387.2M | | Total Available Liquidity | $352.5M | Segment Performance Segment results showed a mixed performance, with U.S. Concrete Waste Management Services achieving growth in revenue, net income, and Adjusted EBITDA, while U.S. Concrete Pumping and U.K. Operations experienced declines across these metrics due to market slowdowns and other factors U.S. Concrete Pumping This segment experienced declines in revenue, net income, and Adjusted EBITDA due to a slowdown in commercial and residential construction, high interest rates, and adverse weather | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | Change (%) | | :---------------- | :-------- | :-------- | :----------- | :--------- | | Revenue | $62.1M | $74.6M | $(12.5M) | (16.8%) | | Net Loss (Income) | $(1.6M) | $0.9M | $(2.5M) | (281.1%) | | Adjusted EBITDA | $12.7M | $17.5M | $(4.8M) | (27.5%) | - Decline driven by continued slowdown in commercial construction and emerging challenges in residential work, primarily due to high interest rates, U.S. tax policy uncertainty, adverse weather, and tariff-related project deferrals[12] U.S. Concrete Waste Management Services This segment demonstrated growth in revenue, net income, and Adjusted EBITDA, driven by organic expansion, pricing improvements, and effective cost control | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | Change (%) | | :---------------- | :-------- | :-------- | :----------- | :--------- | | Revenue | $18.1M | $16.9M | $1.2M | 6.9% | | Net Income | $1.2M | $1.1M | $0.1M | 12.9% | | Adjusted EBITDA | $6.7M | $5.9M | $0.8M | 12.0% | - Increase driven by organic growth, pricing improvements, and disciplined cost control[13] U.K. Operations This segment reported declines in revenue, net income, and Adjusted EBITDA, primarily due to lower volumes from a general slowdown in commercial construction work | Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) | Change (%) | | :---------------- | :-------- | :-------- | :----------- | :--------- | | Revenue | $13.8M | $15.5M | $(1.7M) | (11.3%) | | Net Income | $0.4M | $1.0M | $(0.6M) | (62.2%) | | Adjusted EBITDA | $3.2M | $4.1M | $(1.0M) | (23.2%) | - Revenue was down 13% year-over-year (excluding foreign currency translation impact) due to lower volumes caused by a general slowdown in commercial construction work[14] Fiscal Year 2025 Outlook The company updated its FY2025 guidance, projecting lower revenue and Adjusted EBITDA, with expectations of no significant market recovery until FY2026 FY2025 Guidance The company updated its fiscal year 2025 guidance, anticipating lower revenue and Adjusted EBITDA ranges, and approximately $45.0 million in free cash flow. These projections assume no significant recovery in the construction market until fiscal year 2026 | Metric | FY2025 Outlook Range | | :-------------- | :------------------- | | Revenue | $380.0M to $390.0M | | Adjusted EBITDA | $95.0M to $100.0M | | Free Cash Flow | ~$45.0M | - Expectations assume the construction market will not start to meaningfully recover until fiscal year 2026[15] - The company plans to continue strengthening its organizational infrastructure and investing in its fleet to position the business for growth in fiscal 2026[15] Share Repurchase Program The board approved a $15.0 million increase to the share repurchase program, totaling $50.0 million authorized since June 2022, with $24.2 million remaining available Share Repurchase Program Details The board approved a $15.0 million increase to the share repurchase program, bringing the total authorized amount to $50.0 million since its inception in June 2022. The company repurchased $7.8 million worth of shares in the first six months of FY2025, with $24.2 million remaining available for repurchase - A $15.0 million increase to the share repurchase program was approved in June 2025, bringing total authorizations to $50.0 million since June 2022, with all authorizations expiring on December 31, 2026[17] - During the six months ended April 30, 2025, the Company repurchased 1,311,386 shares for a total of $7.8 million at an average price of $5.97 per share[18] - Including the new authorization, $24.2 million would have been available for purchase under the program as of April 30, 2025[18] Company Information This section provides an overview of Concrete Pumping Holdings' business, details on its Q2 FY2025 conference call, forward-looking statement disclaimers, and explanations of non-GAAP financial measures About Concrete Pumping Holdings Concrete Pumping Holdings is a leading provider of concrete pumping and waste management services in the U.S. and U.K., operating under established national brands like Brundage-Bone, Camfaud, and Eco-Pan. The company leverages a large fleet and trained operators to offer efficient and compliant solutions across a broad geographic footprint - Leading provider of concrete pumping and concrete waste management services in the fragmented U.S. and U.K. markets[22] - Operates under national brands: Brundage-Bone (U.S. concrete pumping), Camfaud (U.K. concrete pumping), and Eco-Pan (U.S. and U.K. waste management)[22] - Offers concrete placement solutions that facilitate labor cost savings, shorten placement times, enhance worksite safety, and improve construction quality, complemented by Eco-Pan's full-service concrete washout waste management[22] - As of April 30, 2025, the company had approximately 90 U.S. concrete pumping branch locations, 35 U.K. concrete pumping branch locations, and 21 U.S. and one shared U.K. operating locations for concrete waste management services[22] Conference Call Details The company hosted a conference call on June 5, 2025, to discuss its second quarter 2025 results, with dial-in and webcast details provided for participants and replay access - Conference call held on Thursday, June 5, 2025, at 5:00 p.m. Eastern time to discuss Q2 2025 results[19][20] - Webcast available live and for replay on the investor relations section of the Company's website[21] Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, cautioning investors that actual results may differ due to various risks and uncertainties. These factors include macroeconomic conditions, operational challenges, and market-specific risks - Includes 'forward-looking statements' subject to risks and uncertainties that could cause actual results to differ materially from expectations[23] - Factors include inflationary pressures, changes in foreign trade policies, restrictive monetary policies, global economic conditions, fuel costs, adverse weather, legal proceedings, ability to grow, M&A, regulatory changes, and competitive factors[24] - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made, and the Company does not undertake to update or revise them[24] Non-GAAP Financial Measures The report utilizes several non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, net debt, free cash flow, and leverage ratio, to provide supplemental information for management and investors. Definitions and explanations of their calculation and limitations are provided, along with a note on the difficulty of reconciling forward-looking guidance to GAAP measures - Presents Adjusted EBITDA, Adjusted EBITDA margin, net debt, free cash flow, and leverage ratio as important non-GAAP financial measures[25] - Provides detailed definitions and calculation methodologies for each non-GAAP measure, such as Adjusted EBITDA (EBITDA adjusted for loss on debt extinguishment, stock-based compensation, fair value changes, other expense, goodwill impairment, and other adjustments)[26][28][29][30] - These measures offer useful supplemental information for evaluating financial condition, operating results, and comparing with competitors, but have limitations and should not be considered in isolation from GAAP measures[27] - Forward-looking Adjusted EBITDA and free cash flow guidance are not reconciled to GAAP measures due to the lack of predictability of reconciling items[31] Financial Statements This section presents the company's condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, segment performance, and reconciliations of non-GAAP measures Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of the company's financial position as of April 30, 2025, and October 31, 2024, detailing assets, liabilities, and stockholders' equity | (in thousands) | As of April 30, 2025 | As of October 31, 2024 | | :----------------------------------- | :------------------- | :--------------------- | | Total Current Assets | $103,554 | $112,360 | | Total Assets | $878,790 | $897,990 | | Total Current Liabilities | $57,888 | $56,331 | | Long Term Debt, net | $417,346 | $373,260 | | Total Liabilities | $591,945 | $551,275 | | Total Stockholders' Equity | $261,845 | $321,715 | Condensed Consolidated Statements of Operations The condensed consolidated statements of operations present the company's revenues, expenses, and net income (loss) for the three and six months ended April 30, 2025, and 2024, reflecting the period's operational profitability | (in thousands, except per share amounts) | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $93,958 | $107,062 | $180,404 | $204,773 | | Gross profit | $36,182 | $41,767 | $67,417 | $75,081 | | Income from operations | $8,260 | $12,055 | $11,745 | $13,511 | | Net income (loss) | $(4) | $3,046 | $(2,643) | $(780) | | Loss available to common shareholders | $(430) | $2,616 | $(3,508) | $(1,650) | | Diluted Net income per common share | $(0.01) | $0.05 | $(0.07) | $(0.03) | Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows detail the cash generated and used by operating, investing, and financing activities for the six months ended April 30, 2025, and 2024, showing a net decrease in cash and cash equivalents for the current period | (in thousands) | For the Six Months Ended April 30, 2025 | For the Six Months Ended April 30, 2024 | | :--------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net cash provided by operating activities | $30,767 | $29,445 | | Net cash used in investing activities | $(16,259) | $(23,581) | | Net cash used in financing activities | $(19,949) | $(4,135) | | Net increase (decrease) in cash and cash equivalents | $(5,253) | $2,095 | | Cash and cash equivalents, End of period | $37,788 | $17,956 | Segment Revenue Segment revenue data for the three and six months ended April 30, 2025, and 2024, illustrates the performance of each business unit, with U.S. Concrete Waste Management Services showing growth while U.S. Concrete Pumping and U.K. Operations experienced declines | (in thousands) | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | U.S. Concrete Pumping | $62,109 | $74,617 | $119,022 | $141,300 | | U.S. Concrete Waste Management Services | $18,057 | $16,898 | $34,750 | $32,518 | | U.K. Operations | $13,792 | $15,547 | $26,632 | $30,955 | | Total revenue | $93,958 | $107,062 | $180,404 | $204,773 | Segment Adjusted EBITDA and Net Income (Loss) This section provides detailed segment-level Adjusted EBITDA and Net Income (Loss) for the three and six months ended April 30, 2025, and 2024, including reclassified prior period results due to an updated corporate cost allocation methodology - During the first quarter of fiscal year 2025, the Company updated its methodology for allocating corporate costs, leading to reclassification of segment results for prior periods to conform to the current presentation[39] | (in thousands) | Q2 FY2025 Net Income (Loss) | Q2 FY2024 Net Income (Loss) | Q2 FY2025 Adjusted EBITDA | Q2 FY2024 Adjusted EBITDA | | :--------------------------------------- | :-------------------------- | :-------------------------- | :------------------------ | :------------------------ | | U.S. Concrete Pumping | $(1,601) | $937 | $12,663 | $17,471 | | U.S. Concrete Waste Management Services | $1,202 | $1,065 | $6,655 | $5,940 | | U.K. Operations | $395 | $1,044 | $3,179 | $4,137 | | Total | $(4) | $3,046 | $22,497 | $27,548 | | (in thousands) | YTD FY2025 Net Income (Loss) | YTD FY2024 Net Income (Loss) | YTD FY2025 Adjusted EBITDA | YTD FY2024 Adjusted EBITDA | | :--------------------------------------- | :--------------------------- | :--------------------------- | :------------------------- | :------------------------- | | U.S. Concrete Pumping | $(4,681) | $(2,265) | $21,800 | $29,064 | | U.S. Concrete Waste Management Services | $1,426 | $(172) | $11,701 | $10,427 | | U.K. Operations | $612 | $1,527 | $6,007 | $7,339 | | Total | $(2,643) | $(780) | $39,508 | $46,830 | Quarterly Financial Performance This table provides a historical overview of key financial metrics on a quarterly basis from Q1 2024 to Q2 2025, including revenue, net income, Adjusted EBITDA, capital expenditures, and diluted EPS, along with details on growth investments | (dollars in millions) | Revenue | Net Income | Adjusted EBITDA | Capital Expenditures | Adjusted EBITDA less Capital Expenditures | Earnings (Loss) Per Diluted Share | | :-------------------- | :------ | :--------- | :-------------- | :------------------- | :---------------------------------------- | :-------------------------------- | | Q1 2024 | $98 | $(4) | $19 | $17 | $3 | $(0.08) | | Q2 2024 | $107 | $3 | $28 | $7 | $21 | $0.05 | | Q3 2024 | $110 | $8 | $32 | $6 | $26 | $0.13 | | Q4 2024 | $111 | $9 | $34 | $2 | $32 | $0.16 | | Q1 2025 | $86 | $(3) | $17 | $4 | $13 | $(0.06) | | Q2 2025 | $94 | $0 | $22 | $12 | $10 | $(0.01) | - Capital expenditures included growth investments of approximately $5 million in Q1 2024, $3 million in Q2 2024 (plus $1 million M&A), $4 million in Q3 2024, $3 million in Q4 2024, $2 million in Q1 2025, and $2 million in Q2 2025[43][44] Reconciliation of Non-GAAP Measures This section provides detailed reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Net Debt, to their most comparable GAAP measures, both consolidated and by segment, for various periods Reconciliation of Net Income to Reported EBITDA to Adjusted EBITDA This reconciliation details the adjustments from net income to reported EBITDA and then to Adjusted EBITDA for consolidated results across various periods | (dollars in thousands) | Q2 FY2025 Consolidated | Q2 FY2024 Consolidated | YTD FY2025 Consolidated | YTD FY2024 Consolidated | | :--------------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Net income (loss) | $(4) | $3,046 | $(2,643) | $(780) | | Interest expense and amortization of deferred financing costs, net of interest income | $8,294 | $6,873 | $14,096 | $13,336 | | Income tax expense (benefit) | $(2) | $2,180 | $(1,038) | $1,169 | | Depreciation and amortization | $13,584 | $14,239 | $26,784 | $28,337 | | EBITDA | $21,872 | $26,338 | $37,199 | $42,062 | | Loss on debt extinguishment | - | - | $1,392 | - | | Stock based compensation | $538 | $737 | $905 | $1,273 | | Change in fair value of warrant liabilities | - | - | - | $(130) | | Other expense (income), net | $(28) | $(44) | $(62) | $(84) | | Other adjustments | $115 | $517 | $74 | $3,709 | | Adjusted EBITDA | $22,497 | $27,548 | $39,508 | $46,830 | - Other adjustments for the six months ended April 30, 2024, include a $3.5 million non-recurring charge related to sales tax litigation[45] Reconciliation of Net Debt This reconciliation presents the calculation of net debt by subtracting cash from total debt outstanding across several quarterly periods | (in thousands) | April 30, 2024 | July 31, 2024 | October 31, 2024 | January 31, 2025 | April 30, 2025 | | :------------- | :------------- | :------------ | :--------------- | :--------------- | :------------- | | Senior Notes | $375,000 | $375,000 | $375,000 | $425,000 | $425,000 | | Revolving loan draws outstanding | $16,428 | - | $20 | - | - | | Less: Cash | $(17,956) | $(26,333) | $(43,041) | $(85,132) | $(37,788) | | Net debt | $373,472 | $348,667 | $331,979 | $339,868 | $387,212 | Reconciliation of Historical Adjusted EBITDA This reconciliation provides a historical view of net income, EBITDA, and Adjusted EBITDA on a quarterly basis from Q1 2024 to Q2 2025 | (dollars in thousands) | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :--------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Net income (loss) | $(3,826)| $3,046 | $7,560 | $9,427 | $(2,639)| $(4) | | EBITDA | $15,723 | $26,338 | $31,393 | $33,540 | $15,327 | $21,872 | | Adjusted EBITDA | $19,281 | $27,548 | $31,638 | $33,680 | $17,011 | $22,497 | - Other adjustments for Q1 FY2024 include a $3.5 million non-recurring charge related to sales tax litigation[48]