Financial Data and Key Metrics Changes - Revenue for the third quarter was $103.7 million, down from $109.6 million in the prior year quarter, primarily due to a volume decline in the U.S. concrete pumping segment [7][8] - Net income available to common shareholders decreased to $3.3 million, or $0.07 per diluted share, compared to $7.1 million, or $0.13 per diluted share in the prior year quarter [9] - Consolidated adjusted EBITDA was $26.8 million, down from $31.6 million in the same year-ago quarter, with an adjusted EBITDA margin of 25.8% compared to 28.8% [10] Business Line Data and Key Metrics Changes - Revenue in the U.S. concrete pumping segment was $69.3 million, down from $75.2 million in the prior year quarter, impacted by adverse weather [7][8] - U.S. concrete waste management services revenue increased 4% to $19.3 million, driven by robust can pickup volumes and sustained pricing improvement [8] - U.K. operations revenue was $15.1 million, down from $15.9 million in the same year-ago quarter due to lower volumes from a slowdown in commercial construction [8] Market Data and Key Metrics Changes - The U.S. concrete pumping business faced construction softness, particularly in interest rate-sensitive light commercial projects, while larger commercial projects remained durable but slower [4][5] - The U.K. market experienced heavier impacts from interest rates and economic uncertainty, although infrastructure projects like HS2 construction remained resilient [6] - The residential end market in the U.S. remained resilient, accounting for 32% of total revenue, supported by a structural supply-demand imbalance in housing [5] Company Strategy and Development Direction - The company remains committed to generating healthy free cash flow and maintaining flexibility for capital deployment to position for stronger performance as market conditions improve [4][12] - The focus is on disciplined growth strategy, maintaining commercial leadership, and driving efficiencies through operational excellence [13] - The company plans to continue investing in its fleet to strengthen service offerings in anticipation of a market recovery in fiscal 2026 and beyond [12] Management Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic headwinds and localized weather disruptions but expressed confidence in the business model's resilience [4] - There is cautious optimism regarding bidding activity and infrastructure projects, with expectations for continued strength in the residential market [18][19] - The company does not anticipate meaningful near-term impacts from tariffs but noted heightened uncertainty affecting customer decision-making [14] Other Important Information - The company repurchased approximately 593,000 shares for $3.8 million during the third quarter, demonstrating commitment to enhancing shareholder value [11] - Full-year guidance remains unchanged, with expected revenue between $380 million and $390 million and adjusted EBITDA between $95 million and $100 million [12] Q&A Session Summary Question: Outlook for the fourth quarter and margin expectations - Management indicated that while revenues may be down, they expect margins to trend positively due to an extra day in the fourth quarter and improved volume [15][16] Question: Insights on recovery timing and backlog - Management noted increased bidding activity and resilience in residential markets, but emphasized uncertainty regarding the timing of recovery [17][18] Question: Pricing pressure in the U.S. business - Pricing pressure persists due to competitors targeting more complex projects, with expectations for this to continue for another six months [23] Question: Factors affecting U.S. pumping margins - Lower margins are attributed to volume changes and operating leverage, with expectations for recovery as volumes improve [24][25] Question: Weather-related impacts on revenue - Management clarified that the weather-related headwind for the current quarter was $2 million compared to a worse situation last year [31] Question: Geographic footprint and market exposure - The company feels confident about its current geographic footprint but is open to expanding into new areas for sizable projects [33]

Business Overview - Concrete Pumping Holdings (CPH) is a market leader in concrete pumping services in the US and UK, and a leading concrete waste management service provider in the US[8, 12] - CPH's business model is low risk, as it does not purchase, transport, or own concrete, and invoices daily for its services[17] - CPH's competitive advantages include a wide range of equipment, availability, technical expertise, and reliability[19] Financial Performance - TTM Q3'25 Revenue is $396 million[8] - TTM Q3'25 Adjusted EBITDA is $100 million, with a 253% margin[8] - TTM Q3'25 Free Cash Flow is $58 million[8] Growth Strategy - CPH aims to capture greater market share, optimize pricing and utilization, expand Eco-Pan services, pursue acquisitions, and explore greenfield opportunities[25] - The total US market opportunity for Eco-Pan is estimated at over $850 million, with FY24 revenue at $71 million, representing approximately 8% penetration[27] Financial Outlook and Valuation - FY 2025 Revenue outlook is $380-$390 million, and Adjusted EBITDA outlook is $95-$100 million[71] - FY 2025 Free Cash Flow outlook is approximately $45 million, implying a 12% yield to the current equity value of $380 million[71, 72] - The company's net debt is approximately $384 million, with a leverage ratio of 38x[81, 86]

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]

Core Viewpoint - Concrete Pumping Holdings, Inc. reported a decrease in revenue and net income for the second quarter of fiscal year 2025, primarily due to challenges in the commercial and residential construction sectors, while the U.S. Concrete Waste Management segment showed growth [4][11][13]. Financial Performance - Revenue for Q2 FY 2025 was $94.0 million, down from $107.1 million in Q2 FY 2024, representing a decrease of 12.2% [4][39]. - Gross profit decreased to $36.2 million from $41.8 million year-over-year, with a gross margin decline to 38.5% from 39.0% [5][39]. - The company reported a net loss of $0.4 million, 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 [7][39]. - Adjusted EBITDA was $22.5 million, down from $27.5 million, with an adjusted EBITDA margin of 23.9%, compared to 25.7% in the prior year [8][39]. Segment Performance - U.S. Concrete Pumping segment revenue fell to $62.1 million from $74.6 million, a decline of 16.8%, with a net loss of $1.6 million compared to net income of $0.9 million in the prior year [10][39]. - U.S. Concrete Waste Management Services saw a revenue increase of 7% to $18.1 million, with net income rising to $1.2 million from $1.1 million [11][39]. - U.K. Operations revenue decreased to $13.8 million from $15.5 million, with net income dropping to $0.4 million from $1.0 million [12][39]. Liquidity and Debt - As of April 30, 2025, the company had $425.0 million in debt, with net debt of $387.2 million and total available liquidity of $352.5 million, an increase from $216.9 million a year ago [9][39]. Share Repurchase Program - The board approved a $15 million increase to the share repurchase program, bringing total authorizations to $50 million since its inception in June 2022 [15][16][17]. Outlook - The company expects FY 2025 revenue to be between $380 million and $390 million, with adjusted EBITDA projected between $95 million and $100 million, and free cash flow around $45 million [13].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $86.4 million, down from $97.7 million in the same quarter last year, primarily due to declines in the U.S. Concrete Pumping segment [13][14] - Gross margin increased by 200 basis points to 36.1% compared to 34.1% in the prior year quarter, driven by cost control initiatives [16] - Net loss available to common shareholders was $3.1 million or $0.06 per diluted share, an improvement from a net loss of $4.3 million or $0.08 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was $17 million, down from $19.3 million in the same year-ago quarter, but the adjusted EBITDA margin remained unchanged at 19.7% [17][18] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping segment revenue decreased to $56.9 million from $66.7 million year-over-year, impacted by severe winter weather [14] - UK operations revenue was $12.8 million, down from $15.4 million, due to lower volumes from a slowdown in commercial construction [15] - U.S. Concrete Waste Management Services segment revenue increased by 7% to $16.7 million compared to $15.6 million in the prior year quarter, driven by increased volumes and improved pricing [15] Market Data and Key Metrics Changes - The commercial end market experienced construction softness, particularly in light commercial and warehouse sectors, while the residential end market remained resilient [9][10] - Infrastructure market revenue share grew slightly year-over-year, with expectations for continued growth in fiscal 2025 due to favorable funding environments [11] Company Strategy and Development Direction - The company is focused on disciplined fleet management and cost control strategies to enhance gross margins and sustain adjusted EBITDA margins [8] - A flexible capital investment strategy is in place to position the company well for market recovery in fiscal 2025 and beyond [8][27] - The company is exploring M&A opportunities as the market is expected to improve later this year and into next year [48] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates and extreme weather conditions negatively impacted revenue, estimating a $5 million revenue loss due to weather in Q1 [6][7] - The company expects fiscal year 2025 revenue to range between $400 million and $420 million, with adjusted EBITDA between $105 million and $115 million [25] - Management remains optimistic about a recovery in commercial market demand and is focused on long-term strategic growth [27][30] Other Important Information - The company successfully closed a private offering of $425 million in senior secured second lien notes, which were used to pay off existing debt and fund a special dividend of $1 per share [20][21] - The company repurchased approximately 296,000 shares for $1.9 million during the first quarter, demonstrating commitment to shareholder value [23] Q&A Session Summary Question: How much of the revenue guide reduction is due to the first quarter shortfall? - Management indicated that the guide was adjusted based on a comprehensive view of the entire year, with some impact from Q1 shortfall due to weather and market demand [36] Question: What is the expected revenue split between the first and second halves of the year? - Management expects a slight softness in Q2 but maintains a 45-55 split for the year [38] Question: Was there a weather impact on the Eco-Pan segment? - Yes, Eco-Pan faced similar weather challenges, but it benefits from a wider market due to concrete production [52] Question: What markets are experiencing excess equipment capacity? - There is still a surplus of equipment in the market, particularly affecting residential and light commercial sectors [55] Question: Will capital expenditures ramp up in the future? - Management does not expect significant changes in capital expenditures, as they have sufficient fleet capacity to meet current demand [58]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $86.4 million, down from $97.7 million in Q1 2024, primarily due to a decline in the U.S. Concrete Pumping segment and severe winter weather [13][14] - Gross margin increased by 200 basis points to 36.1% compared to 34.1% in the prior year quarter, driven by cost control initiatives [16] - Net loss available to common shareholders was $3.1 million or $0.06 per diluted share, an improvement from a net loss of $4.3 million or $0.08 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 2025 was $17 million, down from $19.3 million in the same year-ago quarter, but the adjusted EBITDA margin remained unchanged at 19.7% [18] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping segment revenue decreased to $56.9 million from $66.7 million due to a slowdown in commercial construction and weather impacts [14] - UK operations revenue was $12.8 million, down from $15.4 million, attributed to lower volumes from commercial construction [15] - U.S. Concrete Waste Management Services segment revenue increased by 7% to $16.7 million, driven by increased volumes and improved pricing [15] Market Data and Key Metrics Changes - The commercial end market experienced construction softness, particularly in light commercial and warehouse sectors, while larger projects remained durable but slower [9] - The residential end market showed resilience, with 33% of total revenue coming from residential concrete pumping work [10] - Infrastructure market revenue share grew slightly year-over-year, with expectations for continued growth in fiscal 2025 [11] Company Strategy and Development Direction - The company is focused on disciplined fleet management and cost control to enhance gross margins and sustain adjusted EBITDA margins [8] - A flexible capital investment strategy is in place to prepare for market recovery in fiscal 2025 and beyond [8] - The company is exploring M&A opportunities as the market improves, indicating a shift in capital allocation priorities [48] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates and extreme weather conditions negatively impacted revenue, estimating a $5 million revenue loss due to weather in Q1 [6][7] - The company expects a recovery in commercial market demand and is optimistic about the impact of improved weather patterns [29] - Full-year revenue guidance was adjusted to a range of $400 million to $420 million, with adjusted EBITDA expected between $105 million and $115 million [25] Other Important Information - Total debt outstanding was $425 million, with net debt of $340 million, reflecting a decrease of $33 million over the year [20] - The company successfully closed a private offering of $425 million in senior secured second lien notes, which were used for debt redemption and a special dividend of $1 per share [21][22] - Approximately 296,000 shares were repurchased for $1.9 million during the first quarter, with a total of $20 million repurchased since the buyback was initiated [23] Q&A Session Summary Question: Revenue guidance reduction - Management indicated that the revenue guidance was adjusted due to both the shortfall in Q1 and a broader assessment of the entire fiscal year [36] Question: Weather-related disruptions - Management confirmed that weather-related disruptions were more severe than in the previous year, impacting volume significantly [41] Question: Capital allocation priorities - Management emphasized a commitment to maintaining a disciplined approach to capital allocation, including debt reduction and potential M&A opportunities [47][48] Question: Eco-Pan segment performance - The Eco-Pan segment faced similar weather challenges but benefited from a broader market share [52] Question: Equipment capacity and pricing dynamics - Management acknowledged a surplus of equipment in the market, primarily affecting residential and light commercial sectors [55] Question: Future CapEx expectations - Management indicated that there would not be significant changes in capital expenditures, as current fleet capacity is sufficient for expected volumes [58] Question: Margin dynamics - Management explained that effective control over variable costs, including labor and fuel, helped maintain margins despite lower volumes [66] Question: Concrete Waste Management Services growth - Management noted that growth in the Eco-Pan segment was impacted by weather, and pricing improvements were modest [68]