Concrete Pumping Q2 2025 Earnings Report

Concrete Pumping EPS Results

• Actual EPS: -$0.01
• Consensus EPS: $0.03
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A

Concrete Pumping Revenue Results

• Actual Revenue: $93.96 million
• Expected Revenue: $99.02 million
• Beat/Miss: Missed by -$5.06 million
• YoY Revenue Growth: N/A

Concrete Pumping Announcement Details

• Quarter: Q2 2025
• Date: 6/5/2025
• Time: After Market Closes
• Conference Call Date: Thursday, June 5, 2025
• Conference Call Time: 5:00PM ET

Concrete Pumping (NASDAQ:BBCP) provides concrete pumping and waste management services in the United States and the United Kingdom. The company offers concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure, and residential sectors under the Brundage-Bone and Capital Pumping brands; and industrial cleanup and containment services primarily to customers in the construction industry under the Eco-Pan brand. It leases and rents concrete pumping equipment, pans, and containers. As of October 31, 2023, the company owned a fleet of approximately 930 boom pumps, 90 placing booms, 20 telebelts, 300 stationary pumps, and 115 waste management trucks. Concrete Pumping Holdings, Inc. was founded in 1983 and is headquartered in Thornton, Colorado.

Concrete Pumping Q2 2025 Earnings Call Transcript

Key Takeaways

• Concrete Pumping Holdings reported Q2 revenue of $94 M, down from $107.1 M year-over-year, driven by U.S. pumping volume declines and adverse weather disruptions.
• Adjusted EBITDA fell to $22.5 M (23.9% margin) from $27.5 M (25.7% margin) in the prior-year quarter, and Q2 net loss was $0.4 M versus net income of $2.6 M.
• Infrastructure end markets remain a bright spot, with sequential and year-over-year growth supported by U.S. IIJA funding and strong UK HS2 activity, and the segment is expected to stay robust in FY2025.
• Fiscal 2025 guidance was lowered, with revenue now expected at $380 M–$390 M and adjusted EBITDA at $95 M–$100 M, citing prolonged interest-rate uncertainty and tariff-related delays in project starts.
• The company maintains strong liquidity (net debt/EBITDA ~3.7×, $353 M available), added $15 M to its share buyback program, and emphasizes disciplined capital allocation and cost controls to position for FY2026 recovery.

Presentation

[Operator]

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Concrete Pumping Holdings financial results for the second quarter ended 04/30/2025. Joining us today are Concrete Pumping Holdings' CEO, Bruce Young CFO, Ian Humphries and the company's External Director of Investor Relations, Cody Slach. Before we go further, I would like to turn the call over to Mr. Slach to read the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements. Cody, please go ahead.

[Cody Slach, Senior Managing Director at Gateway Group]

Thank you. I'd like to remind everyone that in the course of this call to give you a better understanding of our operations, we will be making certain forward looking statements regarding our business and outlook. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Concrete Pumping Holdings annual report on Form 10 ks, quarterly report on Form 10 Q and other publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise.

[Cody Slach, Senior Managing Director at Gateway Group]

On today's call, we will also reference certain non GAAP financial measures, including adjusted EBITDA, net debt and free cash flow, which we believe provide useful information for investors. We provide further information about these non GAAP financial measures and reconciliations to the comparable GAAP measures in our press release issued today or the investor presentation posted on the company's website. I'd like to remind everyone that this call will be available for replay later this evening. A webcast replay will also be available via the link provided in today's press release as well as on the company's website. Additionally, we have posted an updated investor presentation to the company's website.

[Cody Slach, Senior Managing Director at Gateway Group]

Now I'd like to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Yellen. Bruce?

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Thank you, Cody, and good afternoon, everyone. In the second quarter, we continued to navigate a challenging construction environment marked by persistent macroeconomic headwinds and regional weather disruptions. Despite these market pressures and uncertainties, we remain focused on the elements we can control, including capital allocation, cost discipline, fleet optimization and strategic pricing across our business. Our second quarter was again impacted by volume driven declines in our U. S.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Pumping segment, offsetting continued growth in our concrete waste management business. Specifically, lingering higher interest rates and the broader macroeconomic uncertainty continue to delay the timing of commercial project starts and more recently, we've experienced challenges in residential construction starts. Additionally, higher than normal rainfall in our Central, Midwest and Southern regions as well as a severe storm system in April, which brought widespread flooding and tornadoes in our Southern region further impacted our revenue. In The UK, the impacts of the economic uncertainty on commercial project volume largely followed similar trends we experienced domestically, but our higher mix of work and infrastructure improved pricing held up reasonably well considering the market backdrop. Despite the top line decline, our disciplined fleet management and cost control strategies helped limit the impact on margins, leading to less pronounced declines in gross and adjusted EBITDA margins compared to the changes in revenue.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Turning to specific comments by end market. With our commercial end market, we continue to experience construction softness across a variety of commercial work, especially in more interest rate sensitive like commercial and office building work. Larger commercial projects, including data centers and warehouses remained mostly durable, but continued to move at slower pace given the economic uncertainty backdrop. The residential end markets in our Mountain And Texas regions remained largely resilient, but we have witnessed emerging signs of residential softness in our other U. S.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Regions due to the elevated interest rate environment. Despite this, our residential end market mix remained at 33% of total revenue on a trailing twelve month basis. We continue to see residential construction investments within our Mountain region and in Texas, which represents undersupplied regions where single family construction is prominent. We still expect the structural supply demand imbalance in housing will continue to support medium to long term homebuilding activity, especially as homebuilders entice customers with creative solutions that include rate buy downs and we believe the Federal Reserve's path to interest rate reductions should continue to support this end market's growth. Offsetting some of the commercial and residential market softness, revenue in our infrastructure end markets continue to grow sequentially and year over year.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

In The UK, infrastructure remains resilient, particularly with continued growth in HS2 construction, while in The U. S, our national footprint allows us to win more projects. We expect our infrastructure business to remain robust in fiscal year twenty twenty five due to the funding environment in The UK as well as opportunities domestically from the conversion of allocated budget funding into project starts within the Infrastructure Investment and Jobs Act. I will now let Ian address our financial results in more detail before I return to provide some concluding remarks. Ian?

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Thanks, Bruce, and good afternoon, everyone. Moving right into our results for the second quarter. Revenue was $94,000,000 compared to $107,100,000 in the prior year quarter. As Bruce mentioned, the decreased revenue was mostly attributable to a decline in our U. S.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Concrete Pumping segment due to the continued softness in U. S. Commercial construction volume, recent regional residential headwinds and adverse weather in several of our U. S. Regional markets.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Revenue in our U. S. Concrete Pumping segment mostly operating under the Branded's Bone brand was $62,100,000 compared to $74,600,000 in the prior year quarter. We estimate that the adverse weather impact on our second quarter revenue was approximately $3,000,000 to $4,000,000 For our UK operations, operating largely under the Camford brand, revenue was $13,800,000 compared to $15,500,000 in the same year ago quarter due to lower volumes caused by a general slowdown in commercial construction work, mostly due to the impact from higher interest rates. Foreign exchange translation was 180 basis point benefit to revenue in the quarter.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Revenue in our U. S. Concrete Waste Management Services segment operating under the Eco Pan brand increased 7% to GBP 18,100,000.0 when compared to GBP 16,900,000.0 in the prior year quarter. This organic increase was driven by increased pan pickup volumes and sustained improvement in pricing. Returning now to our consolidated results, gross margin in the second quarter declined by 50 basis points to 38.5% compared to 39% in the same year ago quarter.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Continued improvement in our cost control initiatives, including improved fuel and repair and maintenance efficiencies roughly offset lower revenue in the quarter. General and administrative expenses in the second quarter declined 6% to 27,900,000.0 compared to CAD 29,700,000.0 in the prior year quarter, primarily due to lower labor costs of approximately CAD 1,300,000.0 and non cash decreases and amortization expense of CAD 800,000. As a percentage of revenue, G and A costs were 29.7 percent in the second quarter compared to 27.7% in the prior year quarter. Net loss available to common shareholders in the second quarter was $400,000 or $01 per diluted share compared to net income of $2,600,000 or $05 per diluted share in the prior year quarter. Consolidated adjusted EBITDA in the second quarter was $22,500,000 compared to CAD27.5 million in the same year ago quarter and adjusted EBITDA margin was 23.9% compared to 25.7 in the prior year quarter.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

In our U. S. Concrete Pumping business, adjusted EBITDA declined to CAD12.7 million compared to CAD17.5 million in the same year ago quarter. In our UK business, EBITDA was CAD3.2 million compared to CAD4.1 million in the same year ago quarter. And for our U.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

S. Concrete Waste Management Services business, adjusted EBITDA increased 12% to $6,700,000 compared to $5,900,000 in the same year ago quarter. Turning now to liquidity. At 04/30/2025, we had total debt outstanding of $425,000,000 and net debt of $387,200,000 This equates to a net debt to EBITDA leverage ratio of approximately 3.7 times. We had approximately $353,000,000 of available liquidity at the April, which includes cash on the balance sheet and availability from our ABL facility.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Now moving on to our share buyback plan. During the second quarter we repurchased approximately 1,000,000 shares for $6,000,000 or an average price of $5.9 per share. Since the buyback was initiated in 2022, we have repurchased approximately $26,000,000 of our stock with $9,000,000 remaining in the authorized plan through December of twenty twenty six. However, as announced today, our Board has authorized an additional $15,000,000 to be added to the existing share buyback plan. We believe our share buyback plan demonstrates both our commitment to delivering enhanced value to shareholders and our confidence in our long term strategic growth plan.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Moving now to our 2025 full year guidance, while we had expected some market recovery and project commencements in the first half of fiscal twenty twenty five, higher for longer interest rates and now with uncertainty around the tariffs, this has weakened the near term demand environment, particularly in our U. S. Commercial and residential end markets. As such, we do not expect there will be a meaningful market rebound in the current fiscal year and thereby we are adjusting our financial outlook for fiscal twenty twenty five. We now expect fiscal year revenue to range between $380,000,000 and $390,000,000 and adjusted EBITDA to range between 95,000,000 and $100,000,000 We expect free cash flow, which we define as adjusted EBITDA less net replacement CapEx and less cash paid for interest to be approximately $45,000,000 Despite a challenging macro backdrop, we are committed to a prudent capital allocation and flexible investment strategy.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Combined with our consistent track record of strong unit economics, healthy liquidity and improving balance sheet strength, we believe we are well positioned for continued investments in our fleet to strengthen our service offering in anticipation of a market recovery in fiscal twenty twenty six and beyond. With that, I will now turn the call back to Bruce.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Thanks, Ian. In conclusion, although the market has not recovered as we had expected, our business remains well positioned for a future rebound. Over the past several quarters, we have strengthened our liquidity while consistently generating strong free cash flow. To address the anticipated discussion on tariffs, while there is no meaningful near term direct impact on our business, the added uncertainty has caused some turbulence and further delays in commercial construction commitments. We remain focused on the long term strategic aspects of our business that we can meaningfully influence, including the consistent and disciplined execution of our strategic growth plan, resolute adherence to our leading commercial strategy and prudent cost control through ongoing operational excellence.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Our financial flexibility allows us to pursue disciplined strategic acquisitions when the timing is right, invest in organic growth opportunities and return capital to shareholders demonstrated by our recent special dividend and ongoing share buyback program. The fundamental strength and underlying drivers of our resilient business model, proven strength, strategic plan, strong balance sheet with significant opportunities for growth and long history of successfully managing and investing through economic cycles provides us with great confidence in our ability to continue delivering robust financial and operational performance. In closing, we believe these priorities lay a strong foundation for long term value creation. With that, I would like to turn the call back over to the operator for Q and A. Joe?

[Operator]

Thank you, sir. You, sir. And our first question comes from the line of Tim Mulrooney with William Blair. Please proceed.

[Luke McFadden, Equity Research Associate at William Blair]

Hi, this is Luke McFadden on for Tim. Thanks for taking our questions here. Maybe one to start just on guidance. In your outlook commentary, you noted that you're not expecting any meaningful recovery in construction markets until 2026 at the earliest. I just wanted to confirm whether or not this comment pertains to expectations across both commercial and residential construction?

[Luke McFadden, Equity Research Associate at William Blair]

Or was it more end market specific? And maybe as a follow-up to that, what are the factors that could cause your expectations around construction recovery to be pushed out even further?

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Yes, so with we'll take it one segment at a time. So in the residential, the softness is minor, and we don't expect anything too turbulent with the residential market going forward. The commercial market, there's continued softening there. We expect that once the tariff conversation settles, I think that, that market will start improving. As you know, there's been several delays, and so that's delayed a lot of those projects.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

But we are optimistic that we'll find a recovery there. The tax plan will eventually get approved and with interest rates likely coming down at the end of the year, we expect the commercial market to come back after that.

[Luke McFadden, Equity Research Associate at William Blair]

Great. Thanks. Very helpful. And then maybe just one more from us. It sounds like the infrastructure market continues to be a bright spot for the business.

[Luke McFadden, Equity Research Associate at William Blair]

Can you talk about what sort of visibility you have just into that end market going forward here? It sounds like you're continuing to expect strong results in 2025. But yes, just any additional color there in terms of particular pockets of strength within infrastructure related to projects or otherwise would be helpful.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Yeah, so we're seeing growth in nearly all segment of infrastructure. Roads and bridges have been a big part of us. As you know, we don't do the paving, but we do the structures. And so a lot of wastewater and water treatment plants going on. Airport construction has been really strong.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

But really, it's across the board with infrastructure. It's in The US, it's gaining some momentum. In The UK, it's been strong for quite some time, we expect that to stay strong for the foreseeable future.

[Luke McFadden, Equity Research Associate at William Blair]

Thank you very much.

[Operator]

Thank you. And the next question comes from the line of Genevieve with D. A. Davidson. Please proceed.

[Jean Veliz, Senior Research Associate at D.A. Davidson Companies]

Hi, guys. Thank you for the time. Could you provide more color on the project delays? More specifically, have you guys seen more project delays since April? And as a follow-up, have customers given you a time horizon when those delayed projects maybe review it again?

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Yes, so a lot of the project delays have a lot to do with the tariffs and uncertainty there. Our customers are saying their backlogs are quite strong for next year. Still, there are some concerns when those projects might start. And so we're seeing that backlog is built by not only those jobs that are delayed, but new projects that would be coming on the books for them. So there is some optimism that once things settle out that the commercial market could come back very quickly.

[Jean Veliz, Senior Research Associate at D.A. Davidson Companies]

And on the commercial sorry, on the infrastructure, are the delays also tied to these types of uncertainties or are there other factors that came into play this quarter?

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Yeah, so I don't think we're seeing delays in infrastructure programs. I think the challenge was meeting the requirements of the bill and they seem to be doing a better job of getting that done. And so the infrastructure dollars are flowing more freely than what we'd seen in the previous years.

[Jean Veliz, Senior Research Associate at D.A. Davidson Companies]

All right. I appreciate the time. Thank you.

[Iain Humphries, CFO, Secretary & Director at Concrete Pumping]

Thank you.

[Operator]

Thank you. This concludes the question and answer session. And I'd like to hand the call back to Mr. Bruce Young for closing remarks.

[Bruce Young, Chief Executive Officer and Director at Concrete Pumping]

Thank you, Joe. We'd like to thank everyone for listening to today's call and we look forward to speaking with you when we report our third quarter fiscal twenty twenty five results in September. Thank you.

[Operator]

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Iain Humphries, CFO, Secretary & Director

Analysts

• Cody Slach, Senior Managing Director at Gateway Group
• Bruce Young, Chief Executive Officer and Director at Concrete Pumping
• Luke McFadden, Equity Research Associate at William Blair
• Jean Veliz, Senior Research Associate at D.A. Davidson Companies