Concrete Pumping Holdings Reports 11.5% Revenue Decline in Q1 Fiscal 2025

Concrete Pumping Holdings, Inc. reported a decline in financial performance for the first quarter of fiscal year 2025, ending January 31, with total revenue of $86.4 million, down 11.5% from $97.7 million in the same period last year. The decrease was primarily attributed to a 14.6% drop in revenue from the U.S. Concrete Pumping segment, which generated $56.9 million compared to $66.7 million in the prior year. This decline was influenced by adverse weather conditions and a slowdown in commercial construction activity. In contrast, the U.S. Concrete Waste Management Services segment saw a revenue increase of 6.9%, reaching $16.7 million, while the U.K. Operations segment experienced a 16.7% decrease, totaling $12.8 million.

The company's gross profit for the quarter was $31.2 million, a decrease of 6.2% from $33.3 million in the previous year, but the gross margin improved to 36.1% from 34.1%, reflecting better management of fuel and insurance costs. General and administrative expenses decreased to $27.8 million from $31.9 million, largely due to the absence of a non-recurring $3.5 million sales tax litigation charge that impacted the prior year. The net loss for the quarter was $2.6 million, an improvement from a loss of $3.8 million in the same quarter last year.

In terms of strategic developments, Concrete Pumping Holdings completed a private offering of $425 million in senior secured second lien notes due 2032, which were used to extinguish existing debt and fund a special cash dividend of $1.00 per share, totaling approximately $53.1 million. The company also reported a significant increase in cash and cash equivalents, which rose to $85.1 million from $43.0 million at the end of the previous fiscal year. This increase was bolstered by cash flows from financing activities, which provided $40.0 million during the quarter.

Operationally, the company maintained a strong presence with approximately 90 branch locations across 22 states in the U.S. and 35 locations in the U.K. The total assets of Concrete Pumping Holdings increased to $912.9 million from $898.0 million, while total liabilities rose to $627.2 million from $551.3 million. The company’s employee headcount remained stable, supporting its operational capabilities amid fluctuating market conditions.

Looking ahead, Concrete Pumping Holdings anticipates continued challenges due to economic conditions and seasonal weather impacts on construction activities. The company remains focused on strategic acquisitions and operational efficiencies to enhance its market position. Management believes that the existing cash reserves and available credit will be sufficient to meet working capital needs and support growth initiatives over the next 12 months.