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