[Management View]
Concrete Pumping Holdings management attributed revenue and profit declines to commercial construction weakness and regional weather, with adverse conditions reducing U.S. pumping revenue by approximately $2 million in the fiscal third quarter ended July 31, 2025. Despite topline and margin contraction, the company maintained disciplined cost management, continued share repurchases, and held full-year guidance steady for the fiscal year ending October 31, 2025, citing stable residential markets and improving infrastructure opportunities as offsetting factors.

[Outlook]
Full-Year 2025 Guidance: Revenue expected at $380 million–$390 million and adjusted EBITDA (non-GAAP) at $95 million–$100 million for the fiscal year ending October 31, 2025, both unchanged. Free Cash Flow Guidance: Targeted at approximately $45 million in free cash flow (non-GAAP) for the fiscal year ending Oct. 31, 2025. Residential End Market Mix: Remained at 32% of trailing twelve-month revenue. Infrastructure Growth: U.S. and U.K. infrastructure projects remain ongoing sources of market share gain.

[Financial Performance]
Revenue: $103.7 million, down from $109.6 million primarily due to volume declines in U.S. Concrete Pumping for the fiscal third quarter ended July 31, 2025. U.S. Concrete Pumping Segment Revenue: $69.3 million versus $75.2 million in the prior year quarter, impacted by $2 million of adverse weather in the Central and Southeast regions. U.S. Concrete Waste Management Segment Revenue: $19.3 million, up 4% from $18.5 million, driven by increased volumes and improved pricing. UK Segment Revenue: $15.1 million, down from $15.9 million in the prior year quarter, with foreign exchange providing a 500 basis point boost but offset by weaker commercial volumes. Gross Margin: 39%, down from 40.6%, explained by lower revenue volumes and fleet utilization. General and Administrative Expenses: $27.5 million, slightly lower than $27.9 million in the prior year quarter, but representing a higher 26.5% of revenue compared to 25.5% in the prior year quarter. Adjusted EBITDA: $26.8 million, down from $31.6 million in the prior year quarter; margin at 25.8% compared to 28.8% in the prior year. Net Income Available to Common Shareholders: $3.3 million, or $0.07 per diluted share, versus $7.1 million, or $0.13 per share in the prior year (GAAP). Net Debt: Net debt was $384 million as of July 31, 2025, with a net debt to EBITDA leverage ratio of approximately 3.8x (non-GAAP). Share Buybacks: 593,000 shares repurchased for $3.8 million at an average price of $6.40, with $20 million remaining under the plan.

[Q&A Highlights]
Question 1: Greg, thanks for taking my questions this afternoon, guys. Yes, I would just want to ask a little bit more detail on the outlook here. I guess just maybe just in terms of the fourth quarter, just looking at the implied guidance, I understand you do not want to change the ranges because it was not so big change to do anything here. But it looks like you are kind of implying that margins might be up if I look at the midpoint. In the fourth quarter. Do not know if that is your math as well. And you know, given that revenues are gonna be down, that seems like it should be tougher. So just maybe thought you could address that one first, and then I want to talk about '26 and beyond.

Answer: Yeah. So on the guidance piece, I mean, you know, we tightened the range in the last quarter. So we still feel good with the range. And then as you know, quarters March are usually quite compatible. There is an extra day. In the fourth quarter compared to the third quarter. So we feel good about the range, and the margin profile is trending and the volume in the business. For the fourth quarter. Got it.

Question 2: Okay. Just and then I noticed this subtlety here. You're trying to it looks like in the commentary on the on the revenue guide, you're trying to just get every framed up here. As to how do we think about the recovery here eventually. I think last quarter, you're a little bit more optimistic it could happen a little bit earlier here. Seems like you pushed it out a little bit or at least a couple of quarters, Bruce. Maybe you could just talk about is it is this what you're seeing in the backlog? Is this what you're hearing from customers? Kinda what informs this new view of when the recovery positive revenue growth or at least positive volume growth It's what informs it this quarter versus prior quarters if anything's different.

Answer: Yeah, thanks Andy. So some of the things we are seeing that are a little bit more positive, the bidding activity that we have right now is up from what we've seen in previous months slightly. As you know, residential has been fairly resilient for us. We expect it to stay strong through next year. The infrastructure projects are starting to come a little more rapidly than what we had seen in the past in the US. And then, of course, in the UK with HS2, really kind of hitting its height now and some decent infrastructure projects coming behind that. That looks good as well. The larger commercial projects, data centers, we're seeing good activity there at shift plants, big warehousing. What we're not seeing a lot of is manufacturing that seems to be a little bit on hold until the tariff talks kind of settle out, but we're becoming more optimistic into next year, but it's really too early to tell just what that's going to look like.

Question 3: Thanks. Good afternoon, Bruce. Bruce, I was just wondering if you could speak to what you're seeing in the US business relative some of the pricing pressure you've alluded to in the past, whether you're seeing any stabilization in that does that still exist and still a factor here in the results?

Answer: Yeah. That still does exist. And I think the reason for that is with light commercial being off, a lot of the competitors that we have are trying to go after more complex projects that they wouldn't have gone after before putting some pricing pressure on those types of projects. And with the softness in some of the markets that we're in with residential, it's caused a little more pricing pressure there. We do expect that we'll see that continue for another six months or so. And then as markets start recovering, we think that will go away.

Question 4: And then on the US pumping margins, when we just is the I guess, the lower comparison is purely just the underutilization of assets? Are you still modeling some costs that you've gotta overcome is inflation a factor here, or is it you know, just getting you know, leverage back in the business. See the margins reverse?

Answer: Yes, Brent, thanks for the question. Yes, on the margin profile, management expects that the change in volume does put some pressure on that margin profile. I mean, as we mentioned in our prepared remarks, we've been very focused on the cost initiatives to help balance that. Unfortunately, it didn't quite offset the challenge on the margin piece. So there is a bit of operating leverage that we've seen right now. But, you know, we expect the other side of that as the volumes improve. The improved fleet utilization improves that operating leverage, and we would expect to see strong recovery on the benefit of that once the volume piece moves in this positive direction. But for right now, you're right. That's the current pressure on the margins, but that's also the benefit of the variable nature of our cost base. That we can weather that storm and then obviously expand the margin profile as utilization and volumes improve.

Question 5: Hi, Bruce and Iain. Thanks for taking our questions today. Maybe just tagging off of Andy's question related to the outlook from earlier. If the recovery were to begin in fiscal 2027 in terms of construction markets, should we be interpreting that to mean that growth might continue to be down in 2026? I know you're not in a position to be providing guidance for next year. But, you know, just as we kind of think about, the shape of the recovery here, as we move through the next, you know, twelve to eighteen months.

Answer: Yes, certainly we expect by 2027 things will get better. At this point in time, it's difficult to know when in 2026 that turns and so we're really not comfortable giving guidance out for '26 yet.

Question 6: Sure. Of course. Makes sense. And then, Iain, maybe just one clarification question related to weather. I think the comparable period from last year, weather had caused about a $6 million headwind to the quarter. With that $2 million headwind that you called out, for this quarter, are you saying in total, was an $8 million weather-related headwind for the 2025 here?

Answer: No. It was $2 million in comparison to the last year. I mean, last year was also quite bad, but in the months of May and June, this year, it was worse than it was in that prior year. So it's a two-year, like, year-over-year comparison. I mean, obviously, these weather events create some near-term noise that we sort through, so there's a bit of a disruption compared to last year in the months of May and June.

Question 7: Understood. Understood. And if I can sneak in just one more here at the end. You know, as we think about some of the heavy construction expected to be built domestically over the next few years, things like semiconductor fabs, data centers, and broader manufacturing. It looks like some of this construction probably gonna congregate in certain geographic markets. I'm just wondering how you currently feel about your geographic footprint and is there any areas you'd like to have more exposure to in light of some of these trends? Thanks so much.

Answer: Yeah, that's a really good question. So we currently feel pretty good about our footprint. However, we have expanded our footprint recently to take in projects that are quite sizable in areas we weren't in and we'll continue to do that into the future.

[Sentiment Analysis]
The tone of the management was cautiously optimistic, emphasizing resilience and adaptability despite ongoing market pressures. Analysts' questions reflected concerns about margin pressures, weather impacts, and the timing of market recovery, indicating a mix of cautious optimism and concern.

[Quarterly Comparison]
| Key Metrics | Q3 FY2025 | Q3 FY2024 |
|-------------|-----------|-----------|
| Revenue | $103.7 million | $109.6 million |
| U.S. Concrete Pumping Segment Revenue | $69.3 million | $75.2 million |
| U.S. Concrete Waste Management Segment Revenue | $19.3 million | $18.5 million |
| UK Segment Revenue | $15.1 million | $15.9 million |
| Gross Margin | 39% | 40.6% |
| General and Administrative Expenses | $27.5 million | $27.9 million |
| Adjusted EBITDA | $26.8 million | $31.6 million |
| Net Income Available to Common Shareholders | $3.3 million | $7.1 million |
| Net Debt | $384 million | N/A |
| Share Buybacks | 593,000 shares | N/A |

[Risks and Concerns]
Consolidated revenue declined to $103.7 million from $109.6 million in the prior year quarter, driven by continued softness in U.S. commercial construction and weather-related disruptions. Gross margin (GAAP) decreased 160 basis points to 39% due to lower volume and reduced fleet utilization. Pricing pressure persisted in U.S. residential and complex commercial projects, with management expecting it will "continue for another six months or so." Net income available to common shareholders fell to $3.3 million, or $0.07 per diluted share, from $7.1 million, or $0.13 per share, in the prior year quarter.

[Final Takeaway]
Concrete Pumping Holdings faced significant challenges in Q3 FY2025, including adverse weather conditions and ongoing softness in U.S. commercial construction. Despite these headwinds, the company maintained disciplined cost management and continued share repurchases, holding steady on full-year guidance. Management remains cautiously optimistic about future recovery, particularly in residential and infrastructure markets, while acknowledging ongoing pricing pressures and market uncertainties. Investors should monitor the company's ability to navigate these challenges and capitalize on emerging opportunities in the coming quarters.