Concrete Pumping Holdings, Inc.

Good afternoon, everyone. I thank you for participating in today's conference call to discuss Concrete Pumping Holdings financial results for the second quarter ended April 30th, 2025. Joining us today are Concrete Pumping Holdings CEO, Bruce Young, CFO, Ian Humphreys, and the company's external director of investor relations, Cody Sloth. Before we go further, I would like to turn the call over to Mr. Sloth to read the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Thank you. I'd like to remind everyone that in the course of this call, to give you a better understanding of our operations, we will be making certain forward-looking statements regarding our business and outlook. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Concrete Pumping Holdings annual report on Form 10-K, quarterly report on Form 10-Q, and other publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. On today's call, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, net debt, and free cash flow. which we believe provide useful information for investors. We provide further information about these non-GAAP financial measures and reconciliations to the comparable GAAP measures in our press release issued today or the investor presentation posted on the company's website. I'd like to remind everyone that this call will be available for replay later this evening. A webcast replay will also be available via the link provided in today's press release as well as on the company's website. Additionally, we have posted an updated investor presentation to the company's website. Now I'd like to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Yellen. Bruce?

Thank you, Cody, and good afternoon, everyone. In the second quarter, we continue to navigate a challenging construction environment marked by persistent macroeconomic headwinds and regional weather disruptions. Despite these market pressures and uncertainties, we remain focused on the elements we can control, including capital allocation, cost discipline, fleet optimization, and strategic pricing across our business. Our second quarter was again impacted by volume-driven declines in our U.S. pumping segment, offsetting continued growth in our concrete waste management business. Specifically, lingering higher interest rates and the broader macroeconomic uncertainty continue to delay the timing of commercial project starts, and more recently, we've experienced challenges in residential construction starts. Additionally, higher-than-normal rainfall in our central, Midwest, and southern regions as well as a severe storm system in April which brought widespread flooding and tornadoes in our southern region further impacted our revenue. In the UK, the impacts of the economic uncertainty on commercial project volume largely followed similar trends we experienced domestically, but our higher mix of work and infrastructure and improved pricing held up reasonably well considering the market backdrop. Despite the top line decline, our disciplined fleet management and cost control strategies help limit the impact on margins, leading to less pronounced declines in gross and adjusted EBITDA margins compared to the changes in revenue. Turning to specific comments by end market, with our commercial end market, we continue to experience construction softness across a variety of commercial work, especially in more interest rate sensitive like commercial and office building work. Larger commercial projects, including data centers and warehouses, remained mostly durable but continued to move at a slower pace given the economic uncertainty backdrop. The residential end markets in our mountain and Texas regions remained largely resilient, but we have witnessed emerging signs of residential softness in our other U.S. regions due to the elevated interest rate environment. Despite this, our residential and market mix remained at 33% of total revenue on a trailing 12-month basis. We continue to see residential construction investments within our mountain region and in Texas, which represent undersupplied regions where single-family construction is prominent. We still expect the structural supply demand imbalance in housing will continue to support medium- to long-term homebuilding activity especially as home builders entice customers with creative solutions that include rate buy downs, and we believe the Federal Reserve's path to interest rate reductions should continue to support this end market's growth. Offsetting some of the commercial and residential market softness, revenue in our infrastructure and markets continue to grow sequentially and year over year. In the UK, infrastructure remains resilient, particularly with continued growth in HS2 While in the US, our national footprint allows us to win more projects. We expect our infrastructure business to remain robust in fiscal year 2025 due to the funding environment in the UK, as well as opportunities domestically from the conversion of allocated budget funding into project starts within the Infrastructure Investment and Jobs Act. I will now let Ian address our financial results in more detail before I return to provide some concluding remarks. Ian?