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]
crete Pumping (BBCP) - 2025 Q2 - Earnings Call Transcript