Concrete Pumping Holdings Reports Decline in Revenue and Profitability in Q3 2024

Concrete Pumping Holdings, Inc. reported its financial results for the third quarter and nine months ended July 31, 2024, revealing a decline in revenue and profitability compared to the same periods in 2023. Total revenue for the three months was $109.6 million, down 9.2% from $120.7 million in Q3 2023. For the nine months, revenue decreased by 2.4% to $314.4 million from $322.0 million in the prior year. The U.S. Concrete Pumping segment experienced a significant revenue drop of 13.9%, attributed to a slowdown in commercial construction, oversaturation of concrete pumps, and adverse weather conditions. Conversely, the U.S. Concrete Waste Management Services segment saw a 15.3% increase in revenue, driven by organic growth and pricing improvements.

Gross profit for the three months ended July 31, 2024, was $44.5 million, a decrease of 10.1% from $49.5 million in Q3 2023, resulting in a gross margin of 40.6%. For the nine months, gross profit fell to $119.6 million from $129.4 million, with a gross margin decline to 38.0% from 40.2%. The decline in profitability was influenced by lower revenues in the U.S. Concrete Pumping segment and increased labor inefficiencies.

Net income for the three months was $7.6 million, down from $10.3 million in Q3 2023, while for the nine months, net income dropped to $6.8 million from $22.4 million. The effective tax rate increased to 29.0% for Q3 2024, compared to 24.3% in the prior year, primarily due to a rise in the UK corporate income tax rate and other factors.

General and administrative expenses for the three months were $27.9 million, down from $29.9 million in Q3 2023, but as a percentage of revenue, they increased to 25.5%. For the nine months, G&A expenses rose to $89.5 million from $87.2 million, influenced by a non-recurring charge related to a court ruling on sales tax and increased labor costs.

As of July 31, 2024, the company reported cash and cash equivalents of $26.3 million, an increase from $15.9 million at the end of the previous fiscal year. The company had no outstanding balance under its ABL Facility and maintained compliance with all debt covenants. Capital expenditures for the nine months were approximately $37.5 million, down from $43.2 million in the same period in 2023.

The company continues to focus on strategic acquisitions to enhance its value proposition and competitiveness, with a share repurchase program totaling $25 million approved in March 2024.