Analyst Brent Thielman from DA Davidson has revised the price target for Concrete Pumping (BBCP, Financial), reducing it to $8 from a previous $9, while maintaining a Buy rating following the company's second-quarter earnings that fell short of expectations. The shortfall is attributed to sluggish commercial market conditions and project delays, according to the analyst's report. Despite these setbacks, the analyst remains optimistic about the stock, citing revised projections, strong cash flow, the company's focus on high-margin services, and potential benefits from an eventual market upturn. These factors contribute to a positive long-term outlook for BBCP.
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 $7.00 with a high estimate of $8.00 and a low estimate of $6.00. The average target implies an upside of 15.32% from the current price of $6.07. 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 $7.05, suggesting a upside of 16.14% from the current price of $6.07. 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: June 05, 2025
- Revenue: $94 million, down from $107.1 million in the prior year quarter.
- US Concrete Pumping Revenue: $62.1 million, compared to $74.6 million in the prior year quarter.
- UK Revenue: $13.8 million, down from $15.5 million in the prior year quarter.
- US Concrete Waste Management Services Revenue: Increased 7% to $18.1 million from $16.9 million in the prior year quarter.
- Gross Margin: Declined by 50 basis points to 38.5% from 39% in the prior year quarter.
- General and Administrative Expenses: Declined 6% to $27.9 million from $29.7 million in the prior year quarter.
- Net Loss: $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.
- Consolidated Adjusted EBITDA: $22.5 million, down from $27.5 million in the prior year quarter.
- Adjusted EBITDA Margin: 23.9%, compared to 25.7% in the prior year quarter.
- US Concrete Pumping Adjusted EBITDA: $12.7 million, down from $17.5 million in the prior year quarter.
- UK Adjusted EBITDA: $3.2 million, compared to $4.1 million in the prior year quarter.
- US Concrete Waste Management Services Adjusted EBITDA: Increased 12% to $6.7 million from $5.9 million in the prior year quarter.
- Total Debt: $425 million with net debt of $387.2 million.
- Net Debt-to-EBITDA Leverage Ratio: Approximately 3.7 times.
- Available Liquidity: Approximately $353 million.
- Share Buyback: Repurchased approximately 1 million shares for $6 million at an average price of $5.90 per share.
- 2025 Full Year Revenue Guidance: Expected to range between $380 million and $390 million.
- 2025 Full Year Adjusted EBITDA Guidance: Expected to range between $95 million and $100 million.
- Free Cash Flow Guidance: Approximately $45 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) demonstrated strong cost control initiatives, which helped limit the impact on margins despite revenue declines.
- The company's infrastructure end markets continue to grow, with robust performance expected in fiscal year 2025 due to favorable funding environments in both the US and UK.
- The US Concrete Waste Management Services segment saw a 7% increase in revenue, driven by increased Pan pickup volumes and sustained improvement in pricing.
- Concrete Pumping Holdings Inc (BBCP) has a strong liquidity position with approximately $353 million of available liquidity at the end of April 2025.
- The company has an ongoing share buyback program, with an additional $15 million authorized, demonstrating confidence in its long-term strategic growth plan.
Negative Points
- Revenue for the second quarter decreased to $94 million from $107.1 million in the prior year, primarily due to declines in the US Concrete Pumping segment.
- The company experienced volume-driven declines in its US Pumping segment, affected by macroeconomic headwinds and adverse weather conditions.
- Net loss available to common shareholders was $400,000, compared to net income of $2.6 million in the prior year quarter.
- Adjusted EBITDA for the second quarter declined to $22.5 million from $27.5 million in the same year-ago quarter.
- The company adjusted its financial outlook for fiscal 2025, not expecting a meaningful market rebound within the current fiscal year due to persistent high interest rates and tariff uncertainties.
