Concrete Pumping (BBCP) Q2 2025 Earnings Call

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ETCALL PARTICIPANTSChief Executive Officer — Bruce YoungChief Financial Officer — Iain HumphriesManaging Director, Gateway Group — Cody SlachNeed a quote from one of our analysts. [ tected] RISKSManagement reported that "higher-for-longer interest rates and now with uncertainty around the tariffs" have weakened the near-term demand environment, particularly in U

Commercial and residential end

Adverse weather, including "higher than normal rainfall in our Central, Midwest, and Southern regions, as well as a severe storm system in April," negatively impacted revenue by an estimated $3 million to $4 million

The company reduced its full-year guidance for FY2025, stating, "we do not expect there will be a meaningful market rebound in the current fiscal year. " TAKEAWAYSRevenue— $94 million, down from $107. 1 million, primarily due to volume-driven declines in the U

Concrete Pumping segment and adverse weather impacts

End Market ary— Management reported that infrastructure revenue grew both sequentially and year over year, with strength in UK infrastructure, particularly from HS2, and U

Opportunities driven by Infrastructure Investment and Jobs Act allocations

SUMMARYConcrete Pumping Holdings, Inc. 58%) management indicated that ject delays in commercial construction continued and were exacerbated by tariff uncertainty, while customers are reporting strong backlogs for the next year but lack start dates

Residential market softness was described as minor and localized, with Mountain and Texas regions remaining resilient, but U

Commercial activity experienced sustained weakness due to macroeconomic pressures

No significant delays are occurring in infrastructure jects, with infrastructure dollars "flowing more freely" and multiple U

And UK infrastructure sectors—such as bridges, wastewater, and airports—showing persistent momentum

Management stated, "We are not expecting any meaningful recovery in construction until 2026 at the earliest," clarifying that commercial recovery is expected to lag residential, with imvement tied to tariff resolution and potential interest rate declines

Tariff-related uncertainty, while not directly impacting operations, has led to further commercial construction delays according to customer back during the quarter

The company attributed the resilience of gross margin and adjusted EBITDA margin (non-GAAP) to "disciplined fleet management and cost control strategies," which reduced margin contraction relative to revenue declines

Visibility in infrastructure remains high, as management described broad-based growth across segments and said, "the infrastructure dollars are flowing more freely than what we've seen in the previous years. "INDUSTRY GLOSSARYHS2: High Speed 2, a major UK rail infrastructure ject referenced as a driver for UK infrastructure revenue

Infrastructure Investment and Jobs Act: U

Federal legislation offering significant funding for infrastructure jects, impacting construction company pipelines

ABL Facility: Asset-based lending facility, a revolving line of credit secured by company assets, contributing to reported liquidity

Full Conference Call TranscriptCody Slach: we will be making certain forward-looking statements regarding our 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-K, quarterly report on Form 10-Q, and other publicly available filings with the SEC

The company disclaims any intention or obligation to or revise any forward-looking statements, whether as a result of new information, future events, or otherwise

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 vide useful information for investors

We vide further information 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 to remind everyone that this call will be available for replay later this evening

A webcast replay will also be available via the link vided in today's press release as well as on the company's website

Additionally, we have posted an d investor presentation to the company's website

Now I'd to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Young

Bruce Young: 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

Our second quarter was again impacted by volume-driven declines in our U

Pumping segment, offsetting continued growth in our Concrete Waste Management

Specifically, lingering higher interest rates and the broader macroeconomic uncertainty continue to delay the timing of commercial ject 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 ject volume largely ed similar trends we experienced domestically, but our higher mix of work in infrastructure and imved 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 nounced declines in gross and adjusted EBITDA margins compared to the changes in revenue

Turning to specific s 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 areas commercial and office building work

Larger commercial jects, including data centers and warehouses, remained mostly durable but continued to move at a slower pace given the economic uncertainty backdrop

The residential end in our Mountain and Texas regions remained largely resilient, but we have witnessed emerging signs of residential softness in our other U

Regions due to the elevated interest rate environment

We continue to see residential construction investments within our Mountain region and regions where single-family construction is minent

We still expect the structural supply-demand imbalance in housing will continue to support medium to long-term building activity, especially as builders 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 continue to grow sequentially and year over year

In the UK, infrastructure remains resilient, particularly with continued growth in HS2 construction, while in the U. , our national foot allows us to win more jects

I will now let Iain address our financial results in more detail before I return to vide some concluding remarks

Iain Humphries: Thanks, Bruce, and good afternoon, everyone

Moving right into our results for the second quarter

As Bruce mentioned, the decreased revenue was attributable to a decline in our U

Concrete Pumping segment, due to the continued softness in U

Commercial construction volume, recent regional residential headwinds, and adverse weather in several of our U

This organic increase was driven by increased pan pickup volumes and sustained imvement in pricing

Continued imvement in our cost control initiatives, including imved fuel and repair and maintenance efficiencies, roughly offset lower revenue in the quarter

Turning now to liquidity

This equates to a net debt to EBITDA leverage ratio of apximately 3

Now moving on to our buyback plan

However, as announced today, our board has authorized an additional $15 million to be added to the existing buyback plan

We believe our buyback plan demonstrates both our commitment to dering enhanced value to holders and our confidence in our long-term strategic growth plan

Commercial and residential end

Despite a challenging macro backdrop, we are committed to a prudent capital allocation and flexible investment strategy

With that, I will now turn the call back to Bruce

Bruce Young: Thanks, Iain

In conclusion, although the market has not recovered as we had expected, our 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 tari.