Concrete Pumping Holdings (BBCP, Financial) reported its second quarter revenue at $93.96 million, falling short of the anticipated $99.02 million. The company's performance was impacted by a difficult construction environment, characterized by ongoing economic challenges and weather-related disruptions in various regions. Despite these hurdles, CEO Bruce Young highlighted the company's achievements, attributing their ability to deliver solid results to strong cost management, efficient fleet usage, and strategic pricing strategies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Concrete Pumping Holdings Inc (BBCP, Financial) is $7.75 with a high estimate of $9.00 and a low estimate of $6.50. The average target implies an upside of 9.31% from the current price of $7.09. More detailed estimate data can be found on the Concrete Pumping Holdings Inc (BBCP) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Concrete Pumping Holdings Inc's (BBCP, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Concrete Pumping Holdings Inc (BBCP, Financial) in one year is $7.62, suggesting a upside of 7.48% from the current price of $7.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Concrete Pumping Holdings Inc (BBCP) Summary page.
BBCP Key Business Developments
Release Date: March 11, 2025
- Revenue: $86.4 million, down from $97.7 million in the prior year quarter.
- US Concrete Pumping Revenue: $56.9 million, compared to $66.7 million in the prior year quarter.
- UK Operations Revenue: $12.8 million, compared to $15.4 million in the prior year quarter.
- US Concrete Waste Management Services Revenue: Increased 7% to $16.7 million from $15.6 million in the prior year quarter.
- Gross Margin: Increased 200 basis points to 36.1% from 34.1% in the prior year quarter.
- General and Administrative Expenses: Declined 13% to $27.8 million from $31.9 million in the prior year quarter.
- Net Loss: $3.1 million or $0.06 per diluted share, compared to a net loss of $4.3 million or $0.08 per diluted share in the prior year quarter.
- Adjusted EBITDA: $17 million, compared to $19.3 million in the prior year quarter; margin unchanged at 19.7%.
- Total Debt Outstanding: $425 million with net debt of $340 million.
- Liquidity: Approximately $410 million as of January 31, 2025.
- Share Buyback: Repurchased approximately 296,000 shares for $1.9 million at an average price of $6.53 per share.
- 2025 Full-Year Revenue Guidance: Expected to range between $400 million and $420 million.
- 2025 Full-Year Adjusted EBITDA Guidance: Expected to range between $105 million and $115 million.
- Free Cash Flow Guidance: Approximately $60 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Concrete Pumping Holdings Inc (BBCP, Financial) increased its gross margin by 200 basis points to 36.1% due to improved cost control initiatives.
- The company's US Concrete Waste Management Services segment saw a 7% revenue increase, driven by increased volumes and sustained pricing improvements.
- Concrete Pumping Holdings Inc (BBCP) successfully reduced net debt by $33 million over the year, showcasing strong free cash flow generation.
- The company has approximately $410 million in liquidity, providing flexibility for future investments and shareholder value initiatives.
- Concrete Pumping Holdings Inc (BBCP) paid a special dividend of $1 per share, highlighting its commitment to returning capital to shareholders.
Negative Points
- Revenue for the first quarter decreased to $86.4 million from $97.7 million in the same year-ago quarter, primarily due to a decline in the US Concrete Pumping segment.
- Severe weather conditions, including historic freezing temperatures and wet weather, reduced revenue by approximately $5 million in the quarter.
- The company experienced a slowdown in commercial construction volume, particularly in light commercial, warehouse, manufacturing, and office buildings.
- Revenue in the UK operations decreased to $12.8 million from $15.4 million due to lower volumes caused by higher interest rates.
- Concrete Pumping Holdings Inc (BBCP) adjusted its fiscal year 2025 revenue guidance downward to a range of $400 million to $420 million, reflecting broader market uncertainty and higher interest rates.
