crete Pumping (US:BBCP)2026-01-13 22:06Revenue Performance - Total revenue for the twelve months ended October 31, 2025, was $392.9 million, a decrease of 7.7% from $425.9 million in 2024[152]. - Revenue from the U.S. Concrete Pumping segment decreased by 10.5%, or $30.6 million, from $291.0 million in 2024 to $260.5 million in 2025, primarily due to a slowdown in construction demand and disruptive weather events[153]. - Revenue for the U.S. Concrete Waste Management Services segment increased by 6.4%, or $4.5 million, from $70.9 million in 2024 to $75.4 million in 2025, driven by organic volume growth and pricing improvements[154]. - Revenue for the U.K. Operations segment decreased by 10.9%, or $7.0 million, from $64.0 million in 2024 to $57.0 million in 2025, with a 13.2% decline when excluding foreign currency translation impacts[155]. Profitability and Expenses - Gross profit for the year ended October 31, 2025, was $151.1 million, down 8.9% from $165.8 million in 2024, with a gross margin of 38.5% compared to 38.9% in the previous year[157]. - General and administrative expenses decreased by $6.9 million to $109.6 million in 2025, representing 27.9% of revenue, up from 27.4% in 2024[158]. - Interest expense for the year ended October 31, 2025, was $31.6 million, an increase of $5.7 million from $25.9 million in 2024, primarily due to refinancing of Senior Notes[160]. - The effective tax rate increased to 36.6% in 2025 from 33.3% in 2024, attributed to the impact of permanent differences on lower pretax income[162]. Segment Performance - U.S. Concrete Pumping segment reported a net loss of $1.9 million for the twelve months ended October 31, 2025, compared to a net income of $6.5 million for the same period in 2024, representing a decrease of $8.4 million[164]. - Adjusted EBITDA for U.S. Concrete Pumping decreased by 20.5% to $54.9 million in 2025 from $69.1 million in 2024, primarily due to revenue decline and increased interest expenses[164]. - U.S. Concrete Waste Management Services segment achieved a net income of $5.9 million in 2025, up 7.2% from $5.5 million in 2024, driven by improved revenue and disciplined cost control[165]. - U.K. Operations segment reported a net income of $2.4 million in 2025, down 41.0% from $4.2 million in 2024, with adjusted EBITDA decreasing by 16.7% to $14.0 million[166]. Cash Flow and Liquidity - Total liquidity as of October 31, 2025, was $359.5 million, consisting of $44.4 million in cash and cash equivalents and $315.1 million in available borrowing capacity under the ABL Facility[167]. - Net cash provided by operating activities was $64.3 million for the twelve months ended October 31, 2025, down from $86.9 million in 2024[182]. - Net cash used in investing activities was $37.3 million for the twelve months ended October 31, 2025, with $46.8 million spent on property, plant, and equipment, partially offset by $9.5 million from sales[184]. - Net cash used in financing activities was $25.8 million for the twelve months ended October 31, 2025, including $375.0 million for extinguishing the 2026 Notes and $53.1 million in dividends paid, offset by $425.0 million from issuing the 2032 Notes[186]. Capital Expenditures and Debt - Future capital expenditures for the company are estimated at $35.5 million for property and equipment purchases over the next twelve months[175]. - The company had gross capital expenditures of approximately $46.8 million in 2025, compared to $43.8 million in 2024[171]. - As of October 31, 2025, the company had total debt of $425.0 million related to senior notes due in 2032, with no outstanding balance under the ABL Facility[176]. - The company closed a private offering of $425.0 million in senior secured second lien notes due 2032 on January 31, 2025, to refinance existing debt[161]. Net Income and Adjusted Metrics - EBITDA for the twelve months ended October 31, 2025, was $94.0 million, down from $107.0 million in 2024, while Adjusted EBITDA decreased to $97.0 million from $112.1 million[192]. - The Company reported a net income of $6.4 million for the twelve months ended October 31, 2025, compared to $16.2 million in 2024, indicating a significant decline[192]. - The U.S. Concrete Pumping segment reported a net loss of $1.9 million for the twelve months ended October 31, 2025, compared to a net income of $6.5 million in 2024[192]. - The U.S. Concrete Waste Management Services segment achieved a net income of $5.9 million for the twelve months ended October 31, 2025, slightly up from $5.5 million in 2024[192]. - The U.K. Operations segment reported a net income of $2.4 million for the twelve months ended October 31, 2025, down from $4.2 million in 2024[192]. Goodwill and Impairment Analysis - The Company updated its methodology for allocating corporate costs to better align with resource allocation and performance measurement, resulting in reclassification of prior period segment results[189]. - The Company evaluates goodwill for impairment annually, with the last assessment conducted on August 31, indicating no impairment for the current period[196][203]. - The Company performed a step 1 impairment analysis as of August 31, 2025, for its U.S. Concrete Pumping, U.S. Concrete Waste Management Services, and U.K. Operations reporting units[204]. - The fair values of the U.S. Concrete Waste Management Services and U.K. Operations reporting units exceeded their carrying values by 155% and 31%, respectively[205]. - For the U.S. Concrete Pumping reporting unit, with goodwill of $147.5 million, the fair value was approximately 3% greater than its carrying value[206]. - A 50 basis point increase in the discount rate could have resulted in the U.S. Concrete Pumping reporting unit's carrying value exceeding its fair value[206]. - The most sensitive assumption affecting cash flows is the discount rate, which ranges from 9.0% to 12.5%[204]. - Terminal growth rates used in the projections were set at 3.0%[204]. Regulatory and Accounting Standards - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[208]. - Recent accounting standards and their impacts are detailed in Note 2 of the Company's audited financial statements[207].