Concrete Pumping Holdings Inc (BBCP, Financial) released its 8-K filing on January 8, 2025, reporting its financial results for the fourth quarter and fiscal year ended October 31, 2024. The company, a leading provider of concrete pumping and waste management services in the U.S. and U.K., faced challenges in its U.S. Concrete Pumping segment but saw growth in its Concrete Waste Management Services.
Company Overview
Concrete Pumping Holdings Inc is a prominent provider of concrete pumping services and concrete waste management services in the fragmented markets of the United States and United Kingdom. The company operates through segments including U.S. Concrete Pumping, U.K. Operations, U.S. Concrete Waste Management Services, and Corporate, with the majority of its revenue generated from the U.S. Concrete Pumping segment.
Performance and Challenges
In the fourth quarter of fiscal year 2024, Concrete Pumping Holdings Inc reported revenue of $111.5 million, a decrease from $120.2 million in the same quarter of the previous year. This decline was primarily due to a slowdown in commercial construction volume in the U.S., influenced by high interest rates and increased commercial building vacancy rates. Despite these challenges, the company's Concrete Waste Management Services segment experienced robust growth.
Financial Achievements
The company's gross profit for the fourth quarter was $46.2 million, down from $48.9 million in the prior year, but the gross margin improved to 41.5% from 40.7%. This improvement was attributed to cost control initiatives that reduced labor and fuel costs. The adjusted EBITDA margin also increased to 30.2% from 29.8%, reflecting the company's disciplined fleet management strategy.
Key Financial Metrics
For the fiscal year 2024, revenue was $425.9 million, compared to $442.2 million in fiscal year 2023. Net income attributable to common shareholders was $14.5 million, a significant decrease from $30.0 million in the previous year. The diluted earnings per share for the fiscal year was $0.26, aligning with the annual estimate but down from $0.54 in fiscal year 2023.
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue | $111.5M | $120.2M | $425.9M | $442.2M |
| Gross Profit | $46.2M | $48.9M | $165.8M | $178.3M |
| Net Income | $9.4M | $9.4M | $14.5M | $30.0M |
| Diluted EPS | $0.16 | $0.16 | $0.26 | $0.54 |
| Adjusted EBITDA | $33.7M | $35.8M | $112.1M | $124.6M |
Analysis and Outlook
The company's performance highlights the impact of macroeconomic factors such as high interest rates and commercial building vacancies on its U.S. Concrete Pumping segment. However, the growth in the Concrete Waste Management Services segment and improved cost efficiencies demonstrate resilience and strategic management. The company's leverage ratio of 3.0x and increased liquidity to $378.0 million position it well for future opportunities.
In the fourth quarter, continued double-digit organic growth in our U.S. Concrete Waste Management business was offset by volume-driven declines in our U.S. Concrete Pumping segment," said Bruce Young, CEO of CPH. "Despite the challenges in the U.S. pumping market, our disciplined fleet management strategy enabled us to improve Adjusted EBITDA margins and generate robust free cash flow in the fourth quarter."
Concrete Pumping Holdings Inc anticipates fiscal year 2025 revenue to range between $425.0 million to $445.0 million, with Adjusted EBITDA expected to be between $115.0 million to $125.0 million, indicating a cautiously optimistic outlook amidst ongoing market challenges.
Explore the complete 8-K earnings release (here) from Concrete Pumping Holdings Inc for further details.
