Executive Summary

Q2 FY25 revenue and EPS missed S&P Global consensus; revenue was $93.96M vs $99.02M estimate* and diluted EPS was $(0.01) vs $0.04 estimate*, driven by continued commercial construction deferrals, emerging residential softness, and adverse weather ($3–$4M revenue impact) .
Adjusted EBITDA of $22.5M (23.9% margin) fell year over year (Q2 FY24: $27.5M, 25.7%) as U.S. Concrete Pumping volumes declined; Eco-Pan (U.S. Concrete Waste Management) grew revenue 7% and adj. EBITDA 12% .
FY25 guidance was cut: revenue to $380–$390M (from $400–$420M) and adjusted EBITDA to $95–$100M (from $105–$115M), with free cash flow now ~ $45M (from ~$60M), reflecting “higher-for-longer” rates and tariff uncertainty; management does not expect a meaningful recovery until FY26 .
Capital allocation remains active: Board approved an additional $15M for buybacks; 1.31M shares repurchased for $7.8M in H1 at $5.97 average; leverage 3.7x with $352.5M liquidity at quarter-end .

What Went Well and What Went Wrong

What Went Well
- Eco-Pan (U.S. Concrete Waste Management) delivered another solid quarter: revenue +7% y/y to $18.1M and adj. EBITDA +12% to $6.7M; management highlighted “rising demand for sustainable jobsite solutions” .
- Cost discipline helped cushion margins: gross margin compressed just 50 bps to 38.5% despite revenue down 12.2% y/y, aided by fuel, repair, and maintenance efficiencies; G&A fell 6% y/y to $27.9M .
- Infrastructure end market resilient with broad-based strength (roads/bridges, wastewater, airports); U.K. infrastructure steady as HS2 and other projects progress; management expects continued robustness .
What Went Wrong
- U.S. Concrete Pumping faced volume-driven declines (revenue $62.1M vs $74.6M y/y) and turned to a $(1.6)M segment loss; adj. EBITDA fell to $12.7M (from $17.5M) .
- Macro headwinds intensified: “higher-for-longer” rates, tariff uncertainty, and weather delayed project starts; CFO estimated a $3–$4M Q2 revenue hit from weather .
- Outlook cut materially with no meaningful recovery expected in FY25; FY25 revenue and EBITDA targets reduced, and free cash flow lowered to ~$45M .

Financial Results

Headline financials vs prior quarters

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$111.48	$86.45	$93.96
Gross Margin (%)	41.5%	36.1%	38.5%
Adjusted EBITDA ($M)	$33.7	$17.01	$22.50
Adjusted EBITDA Margin (%)	30.2%	19.7%	23.9%
Net Income ($M)	$9.4	$(2.639)	$(0.004)
Diluted EPS ($)	$0.16	$(0.06)	$(0.01)

Q2 2025 actual vs S&P Global consensus

Metric	Consensus*	Actual*	Surprise ($M or $) / (%)*
Revenue ($M)	99.016	93.958	(5.058) / (5.1%)
EBITDA ($M)	24.972	21.844	(3.128) / (12.5%)
Primary EPS ($)	0.04	~0.00	(0.04) / n/m

Values marked with * retrieved from S&P Global.

Segment performance (Q2 2025 vs Q2 2024)

Segment	Revenue Q2 2024 ($M)	Revenue Q2 2025 ($M)	Adj. EBITDA Q2 2024 ($M)	Adj. EBITDA Q2 2025 ($M)
U.S. Concrete Pumping	74.62	62.11	17.47	12.66
U.S. Concrete Waste Management	16.90	18.06	5.94	6.66
U.K. Operations	15.55	13.79	4.14	3.18

Balance sheet and liquidity KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Net Debt ($M)	$332.0	$339.9	$387.2
Total Liquidity ($M)	$378.0	$409.6	$352.5
Leverage Ratio (Net Debt/TTM Adj. EBITDA)	3.0x	3.1x	3.7x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	$400–$420M	$380–$390M	Lowered
Adjusted EBITDA	FY2025	$105–$115M	$95–$100M	Lowered
Free Cash Flow (company definition)	FY2025	~$60M	~$45M	Lowered

Management attributes the reset to “higher-for-longer” interest rates, tariff uncertainty, and weaker near-term demand across U.S. commercial and some residential end markets, with meaningful recovery pushed to FY26 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 / Q1 2025)	Current Period (Q2 2025)	Trend
Macro: interest rates, demand	High rates delaying commercial starts; oversupply of pumps; expecting back-half pickup in FY25	“Higher-for-longer” rates; no meaningful recovery expected in FY25	Worsened
Tariff uncertainty	Not emphasized previously	Cited as driver of additional project deferrals; waiting for clarity	New/Negative
Weather impacts	Historic freezing and heavy rain; ~$5M hit in Q1	~$3–$4M revenue impact in Q2	Persistent headwind
Infrastructure	Growth in Q4; robust pipeline in U.K. and U.S. IIJA	“Across the board” strength; expected to remain robust	Improving/Supportive
Residential	Resilient (33% mix TTM) esp. Mountain/Texas	Emerging softness in some regions; still resilient in Mountain/Texas	Slightly weaker
Cost control (fuel/R&M)	Helped expand margins despite lower volumes	Continued efficiencies offset some revenue pressure	Ongoing positive
Capital allocation	Upsized ABL; discussing refi; buybacks; special dividend	+$15M buyback authorization; ~$7.8M H1 repurchases	Active/Shareholder-friendly

Management Commentary

“Despite these market pressures…we remain focused on…cost discipline, fleet optimization, and strategic pricing across our business.” — CEO Bruce Young .
“We estimate that the adverse weather impact on our second quarter revenue was approximately $3–$4 million.” — CFO Iain Humphries .
“We now expect fiscal year revenue to range between $380 million and $390 million and adjusted EBITDA to range between $95 million and $100 million…free cash flow…approximately $45 million…we do not expect…a meaningful market rebound in the current fiscal year.” — CFO Iain Humphries .
“Infrastructure…is gaining momentum in the U.S. and remains strong in the U.K.…roads/bridges, wastewater, airports.” — CEO Bruce Young .
“Board has authorized an additional $15 million to be added to the existing share buyback plan.” — CFO Iain Humphries .

Q&A Highlights

Recovery timing: Management expects commercial softness to persist until tariff uncertainty resolves and interest rates decline; residential softness viewed as “minor”; meaningful recovery targeted for FY26 .
Infrastructure visibility: Broad strength with roads/bridges, water/wastewater, airports; U.S. pipeline improving as IIJA dollars convert to projects; U.K. resilient (including HS2) .
Project delays: Customers cite strong backlogs into next year, but award/start timing has slipped amid tariff uncertainty; potential for quick rebound once clarity arrives .
Weather headwinds: ~$3–$4M revenue impact in Q2 from heavy rainfall and severe storms in April (central/Midwest/South) .
Capital allocation: Buybacks continue (added $15M authorization) given free cash flow generation and long-term strategy confidence .

Estimates Context

Q2 FY25 results missed S&P Global consensus: revenue $93.96M vs $99.02M*, EBITDA $21.84M vs $24.97M*, and primary EPS ~$0.00 vs $0.04*; the EBITDA consensus refers to EBITDA (not Adjusted EBITDA, which the company reports at $22.5M) . Values retrieved from S&P Global.
Drivers of the miss: volume pressure in U.S. Concrete Pumping from commercial deferrals, emerging residential softness, and ~$3–$4M weather impact; tariff uncertainty further delayed projects .
Estimate revisions likely to move lower post-guide cut: FY25 revenue to $380–$390M and adjusted EBITDA to $95–$100M (from $400–$420M and $105–$115M) .

Key Takeaways for Investors

Near-term setup is tougher: guide reset, no meaningful rebound expected until FY26; trading likely to key off project award cadence, tariff clarity, and rate path .
Mix matters: Eco-Pan remains a bright spot with pricing and volume tailwinds, partially offsetting U.S. Pumping weakness; monitor Eco-Pan growth to support margins and cash generation .
Weather and macro are transitory but impactful: ~$3–$4M Q2 revenue hit and deferrals tied to uncertainty; any normalization or clarity could unlock pent-up demand .
Infrastructure provides downside support: diversified exposure (roads/bridges, water, airports) and IIJA flow-through offer resilience vs commercial cyclicality .
Balance sheet/liquidity are adequate, but leverage ticked up to 3.7x with lower EBITDA; free cash flow still targeted at ~$45M for FY25, supporting buybacks and optionality .
Watch for catalysts: tariff clarity, rate cuts, evidence of project starts ramping, and any M&A that expands capabilities/footprint at attractive multiples .

Appendix: Additional Details

Q2 2025 operational and financial detail

Consolidated: Revenue $94.0M; gross profit $36.2M (38.5% GM); income from operations $8.3M; net loss ~$0.0M; adj. EBITDA $22.5M (23.9% margin) .
Segments:
- U.S. Concrete Pumping: Revenue $62.1M (down from $74.6M); net loss $(1.6)M; adj. EBITDA $12.7M (down from $17.5M) .
- U.S. Concrete Waste Management: Revenue $18.1M (up from $16.9M); net income $1.2M; adj. EBITDA $6.7M (up from $5.9M) .
- U.K. Operations: Revenue $13.8M (down from $15.5M); net income $0.4M; adj. EBITDA $3.2M (down from $4.1M) .
Liquidity/Leverage: Debt $425.0M, net debt $387.2M, total liquidity $352.5M, leverage 3.7x .
Buybacks: +$15M authorization; 1,311,386 shares repurchased for $7.8M in H1 at $5.97 avg; $24.2M would have been available as of 4/30/25 (pro forma authorization) .