Q2 2025 Concrete Pumping Holdings Inc Earnings Call

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Operator: 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 30, 2025. Joining us today are Concrete Pumping Holdings CEO Bruce Young, CFO Iain Humphries, and the company's External Director of Investor Relations Cody Slach.

Good afternoon, everyone and thank you for participating in today's conference call to discuss concrete pumping Holdings' financial results for the second quarter ended April 32025.

Speaker Change: Joining us today are concrete pumping holdings' CEO, Bruce young CFO in Humphries and the company's external director of Investor Relations 40 swap.

Cody Slach: Before we go further, I would like to turn the call over to Mr. Slach 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.

Speaker Change: Before we go further I would like to turn the call over to Mr. Slots 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.

Cody Slach: 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... These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements.

Speaker Change: 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.

Speaker Change: These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements.

Cody Slach: 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.

Speaker Change: 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.

Cody Slach: 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.

Speaker Change: 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 for.

Speaker Change: 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.

Cody Slach: and our press release issued today, or the investor presentation posted on the company's web.

Cody Slach: 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.

Speaker Change: Well as on the company's website. Additionally, we have posted an updated investor presentation to the company's website.

Cody Slach: Additionally, we have posted an updated investor presentation to the company's website.

Bruce Young: Now, I'd like to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Young. 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.

Speaker Change: Now I'd like to turn the call over to the CEO of concrete pumping holdings Bruce Young Bruce.

Bruce Young: Thank you Cody and good afternoon, everyone.

Speaker Change: The second quarter, we continued to navigate a challenging construction environment marked by persistent macroeconomic headwinds and regional weather disruptions. Despite these market pressures and uncertainties. We remain focus on the elements, we can control, including capital allocation cost discipline and fleet optimization and strategic pricing across our business.

Speaker Change: Our second quarter was again impacted by volume driven declines in our U S pumping segment.

Speaker Change: <unk> continued growth in our country waste management business, specifically lingering higher interest rates and the broader macroeconomic uncertainty continued to delay the timing of commercial project starts and Marshall more recently, we've experienced challenges in residential construction starts Additionally, higher than normal rainfall in our central Midwest.

Bruce Young: 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 U.K., 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 improved pricing held up reasonably well, considering the market backdrop. Despite the top-line decline, our disciplined fleet management and cost control strategies helped limit the impact on margins, leading to less pronounced declines in gross and adjusted EBITDA margins compared to the changes in revenue.

Speaker Change: And southern regions as well as a severe storm system in April which brought widespread flooding and tornadoes and our reach southern region further impacted our revenue.

Speaker Change: In the U K the impacts of the economic uncertainty on commercial project volume largely followed similar trends that we experienced domestically, but a higher mix of work and infrastructure improved pricing held up reasonably well considering the market backdrop. Despite.

Speaker Change: 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.

Bruce Young: 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 light 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 end market mix remained at 33 percent of total revenue on a trailing 12-month basis.

Speaker Change: 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 light commercial and office building work.

Speaker Change: Larger commercial projects, including data centers and warehouses remain mostly durables, but to continue to move at a slower pace given the economic uncertainty backdrop.

Speaker Change: The residential end markets in our mountain and Texas regions remained largely resilient, but we have witnessed.

Speaker Change: Emerging signs of residential softness in our other U S regions due to the elevated interest rate environment. Despite this our residential end 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 represents.

Bruce Young: 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 home building 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 U.K., infrastructure remains resilient, particularly with continued growth in HS2 construction, while in the U.S., our national footprint allows us to win more projects.

Speaker Change: And their supply regions, where single family construction as prominent we still expect the structural supply demand imbalance in housing and will continue to support medium to long term homebuilding activity, especially as homebuilders entice customers with creative solutions that include rate buy downs and we believe the federal reserve reserve's path to interest rate.

Speaker Change: <unk> should continue to support this end markets growth.

Speaker Change: Setting some of the commercial and residential market softness revenue in our infrastructure end markets continue to grow sequentially and year over here in the U K infrastructure remains resilient, particularly with continued growth in Hs to construction well in the U S. Our national footprint allows us to win more projects, we expect our infrastructure.

Bruce Young: We expect our infrastructure business to remain robust in fiscal year 2025 due to the funding environment in the U.K., as well as opportunities domestically from the conversion of allocated budget funding into project starts within the Infrastructure Investment and Jobs Act.

Speaker Change: And it should remain robust in fiscal year 2025, due to the funding environment in the U K as well as opportunities domestically from the conversion of the allocated budget funding into project starts within the infrastructure investment and jobs Act.

Iain Humphries: I will now let Ian address our financial results in more detail before I return to provide some concluding remarks. Thanks Bruce and good afternoon everyone. Moving right into our results for the second quarter. Revenue was $94 million compared to $107.1 million in the prior year quarter. As Bruce mentioned, the decreased revenue was mostly attributable to a decline in our U.S. concrete pumping segment due to the continued softness in U.S. commercial construction volume, recent regional residential headwinds, and adverse weather in several of our U.S. regional markets. Revenue in our U.S. concrete pumping segment, mostly operating under the Burmese Bone brand, was $62.1 million compared to $74.6 million in the prior year quarter.

Speaker Change: I will now address our financial results in more detail before I return to provide some concluding remarks.

Speaker Change: Thanks, Bruce and good afternoon, everyone moving right into our results for the second quarter revenue was 94 million compared to $107 1 million in the prior year quarter.

Speaker Change: As Bruce mentioned the decrease revenue was mostly attributable to a decline in our U S. Concrete pumping segment due to the continued softness in U S. Commercial construction volume recent regional residential headwinds and adverse weather in several of our U S regional markets.

Speaker Change: Revenue in our U S concrete pumping segment, mostly operated under the Brundage bone brand was $62 1 million compared to $74 6 million.

Speaker Change: Higher year quarter.

Iain Humphries: We estimate that the adverse weather impact on our second quarter revenue was approximately three to four million dollars. For our UK operations, operating largely under the Camford brand, revenue was £13.8 million compared to £15.5 million in the same Euro quarter due to lower volumes caused by a general slowdown in commercial construction work, mostly due to the impact from higher interest rates. Foreign Exchange Translation was a 180 basis point benefit to revenue in the quarter. Revenue in our U.S. Concrete Waste Management Services segment operating under the Ecopump brand increased 7% to $18.1 million when compared to $16.9 million in the prior year quarter.

Speaker Change: We estimate that the adverse weather impact on our second quarter revenue was approximately $3 million to $4 million.

Speaker Change: But our U K operations operating largely under the comfort brands revenue was $13 8 million compared to $15 5 million in the same quarter due to lower volumes caused by a general slowdown in commercial construction work, mostly due to the impact from higher interest rates.

Speaker Change: Foreign exchange translation was a 180 basis point benefit to revenue in the quarter.

Speaker Change: Revenue in our U S concrete waste management services segment operating under the Eco Pan brand increased 7% to $18 1 million when compared to $16 9 million in the prior year quarter.

Iain Humphries: This organic increase was driven by increased pan pick-up volumes and sustained improvement in price.

Speaker Change: Organic increase was driven by increased ton pick up volumes and sustained improvement in pricing.

Iain Humphries: Turning now to our consolidated results, gross margin in the second quarter declined by 50 basis points to 38.5%, compared to 39% in the same year-ago quarter. Continued improvement in our cost control initiatives, including improved fuel and repair and maintenance efficiencies, roughly offset lower revenue in the quarter. General and administrative expenses in the second quarter declined 6% to $27.9 million compared to $29.7 million in the prior year quarter, primarily due to lower labour costs of approximately $1.3 million and non-cash decreases and amortization expense of $800,000. As a percentage of revenue, G&A costs were 29.7% in the second quarter, compared to 27.7% in the prior year quarter.

Speaker Change: Turning now to our consolidated results in gross margin in the second quarter declined by 50 basis points to 38, 5% compared to 39% in the same year ago quarter.

Speaker Change: Improvement in our cost control initiatives, including them through fuel and repair and maintenance efficiencies roughly offset lower revenue in the quarter.

Speaker Change: General and administrative expenses in the second quarter declined 6% to $27 9 million compared to $29 7 million in the prior year quarter, primarily due to lower legal costs of approximately 1.3 million and noncash decreases in amortization expense of 800000.

Speaker Change: As a percentage of revenue G&A costs were 29, 7% in the second quarter compared to 27, 7% in the prior year quarter.

Iain Humphries: Net loss available to common shareholders in the second quarter was $400,000 or $0.01 per dilute share compared to net income of $2.6 million or $0.05 per dilute share in the prior year quarter. Consolidated adjusted EBITDA in the second quarter was $22.5 million compared to $27.5 million in the same year-to-year quarter. And adjusted EBITDA margin was 23.9% compared to 25.7% in the prior year quarter. In our U.S. concrete pumping business, just a wee bit, it declined to 12.7 million compared to 17.5 million in the same year ago quarter. In our UK business, adjusted EBITDA was $3.2 million compared to $4.1 million in the same year-to-go quarter, and for our US Concrete Waste Management Services business, adjusted EBITDA increased 12% to $6.7 million compared to $5.9 million in the same year-to-go quarter.

Speaker Change: Net loss available to common shareholders in the second quarter was 400000 or one cents per diluted share compared to net income of $2 6 million or five cents per diluted share in the prior year quarter.

Speaker Change: Consolidated adjusted EBITDA in the second quarter was $22 5 million compared to $27 5 million in the same quarter and adjusted EBITDA margin was 26, 9% compared to 25, 7% in the prior year quarter.

Speaker Change: And our U S concrete pumping business adjusted EBITDA declined to $12 7 million compared to $17 5 million and this isn't going to go quarter.

Speaker Change: In our UK business adjusted EBITDA was $3 2 million compared to $4 1 million in the same year ago quarter and for our U S concrete waste management services business adjusted EBITDA increased 12% to $6 7 million compared to $5 9 million in the same critical corner.

Iain Humphries: Turning now to liquidity, on April 30th, 2025, we had a total debt outstanding of $425 million and net debt of $387.2 million. This equates to a net debt to EBITDA leverage ratio of approximately 3.7 times. We had approximately $353 million of available liquidity at the end of April, which includes cash on the balance sheet and availability from our ABL facility.

Speaker Change: Turning now to liquidity at April 32025, we had total debt outstanding of $425 million and net debt of $387 2 million.

Speaker Change: This equates to a net debt to EBITDA leverage ratio of approximately three seven times, we had approximately 356 million of available liquidity at the end of April which includes cash on the balance sheet and availability from our ABL facility.

Iain Humphries: Now moving on to our share buyback plan. During the second quarter, we repurchased approximately 1 million shares for $6 million, or an average price of $5.90 per share. Since the buyback was initiated in 2022, we have repurchased approximately $26 million of our stock, with $9 million remaining in the authorised plan through December of 2026. However, as announced today, our board has authorized an additional $15 million to be added to the existing shared buyback plan. We believe our shared buyback plan demonstrates both our commitment to delivering enhanced value to shareholders and our confidence in a long-term strategic growth plan.

Speaker Change: Now moving on to our share buyback plan during the second quarter, we repurchased approximately 1 million shares for $6 million or an average price of $5 90 per share.

Speaker Change: Since the buyback was initiated in 2022, we have repurchased approximately $26 million of our stock with $9 million remaining in the authorized plan through December of 2026.

Speaker Change: However, as announced today, our board has authorized an additional $15 million to be added to the existing share buyback plans.

Speaker Change: We believe our share buyback plan demonstrates both our commitment to delivering enhanced value to shareholders and our confidence in our long term strategic growth plan.

Iain Humphries: Moving now to our 2025 full year guidance, while we had expected some market recovery in project commencements in the first half of fiscal 2025, higher for longer interest rates and now with uncertainty around the tariffs, this has weakened the near-term demand environment, particularly in our US commercial and residential end markets. As such, we do not expect there will be a meaningful market rebound in the current fiscal year and thereby we are adjusting our financial outlook for fiscal 2025. 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.

Speaker Change: Moving now to our 2025 full year guidance, while we had expected some market recovery in Prague, Czech Commencements in the first half of fiscal 2025 higher for longer interest rates and no. We haven't found it yet on the tightest this weekend to near term demand environment, particularly in our U S commercial and residential.

Speaker Change: Markets.

Speaker Change: Such we do not expect there will be a meaningful market rebound in the current fiscal year and thereby we are adjusting our financial outlook for fiscal 2025.

Speaker Change: We now expect fiscal year revenue to range between 380, and $390 million and adjusted EBITDA to range between 95 and $100 million, we expect free cash flow, which we define as adjusted EBITDA less net replacement capex and less cash paid for interest to be approximately 45.

Iain Humphries: We expect free cash flow, which we define as adjusted EBITDA, less net replacement CAPEX and less cash paid for interest, to be approximately $45 million.

Speaker Change: Yeah.

Iain Humphries: Despite a challenging macro backdrop, we are committed to a prudent capital allocation and flexible investment strategy. Combined with our consistent track record of strong unit economics, healthy liquidity and improving balance sheet strength, we believe we are well positioned for continued investments in our fleet to strengthen our service offering in anticipation of a market recovery in fiscal 2026 and beyond.

Speaker Change: Despite a challenging macro backdrop, we are committed to a prudent capital allocation and flexible investment strategy.

Speaker Change: Combined with our consistent track record of strong unit economics healthy liquidity and improving balance sheet strength. We believe we are well positioned for continued investments in our fleet to strengthen our service I'll put it offering in anticipation of a market recovery in fiscal 2026 and beyond with that I will now turn the call back to Bruce.

Bruce Young: With that, I will now turn the call back to Ben. Thanks, Iain. In conclusion, although the market has not recovered as we had expected, our business remains well-positioned for a future rebound. Over the past several quarters, we have strengthened our liquidity while consistently generating strong free cash flow. To address the anticipated discussion on tariffs, while there is no meaningful near-term direct impact on our business, the added uncertainty has caused some turbulence and further delays in commercial construction commitments. We remain focused on the long-term strategic aspects of our business that we can meaningfully influence, including the consistent and disciplined execution of our strategic growth plan, resolute adherence to our leading commercial strategy, and prudent cost control through ongoing operational excellence.

Speaker Change: Thanks, Ian in conclusion, although the market has not recovered as we had expected our business remains well positioned for a future rebound over the past several quarters, we have strengthened our liquidity, while consistently generating strong free cash flow to address the anticipated discussion on tariffs, while there's no meaningful near term direct impact.

Speaker Change: On our business. He added uncertainty has caused some turbulence in further delays in commercial construction commitments.

Speaker Change: We remain focused on our long term strategic aspects of our business that we can meaningfully influence, including the consistent and disciplined execution of our strategic growth plan resolute adherents to our leading commercial strategy and prudent cost control through ongoing operational excellence.

Bruce Young: Our financial flexibility allows us to pursue disciplined, strategic acquisitions when the timing is right, invest in organic growth opportunities, and return capital to shareholders, demonstrated by our recent special dividend and ongoing share buyback program. The fundamental strength and underlying drivers of our resilient business model, proven strength, strategic plan, strong balance sheet with significant opportunities for growth and long history of successfully managing and investing through economic cycles, provides us with great confidence in our ability to continue delivering robust financial and operational performance.

Speaker Change: Our financial flexibility allows us to pursue disciplined strategic acquisitions. When the time is right invest in organic growth opportunities and return capital to shareholders demonstrated by our recent special dividend and ongoing share buyback program.

Speaker Change: Fundamental strength and underlying drivers of our resilient business model proven strength strategic plan strong balance sheet with significant opportunities for growth and long history of successfully managing and investing through economic cycles provides us with great confidence in our ability to continue delivering robust financial and operational performance.

Bruce Young: In closing, we believe these priorities lay a strong foundation for long-term value creation.

Speaker Change: In closing we believe these priorities lay a strong foundation for long term value creation with that I would like to turn the call back over to the operator for Q&A Joe.

Operator: With that, I would like to turn the call back over to the operator for Q&A. Thank you, sir.

Speaker Change: Thank you Sir.

Operator: Ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from. for participants using speaker equipment.

Speaker Change: Ladies and gentlemen, if people like it.

Speaker Change: We saw some small one on your telephone keypad.

Operator: A confirmation tone will indicate your line is in the question queue.

Operator: You May press star two if he would like to remove your question from the queue.

Speaker Change: All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: It may be necessary to pick up your handset before pressing the start.

Tim Mulrooney: And our first question comes from the line of Tim Mulrooney with William Blair. Please proceed.

Speaker Change: And our first question comes from a line of Tim Mulrooney with William Blair. Please proceed.

Speaker Change: Yes.

Bruce Young: Hi, this is Luke McFadden on for Tim. Thanks for taking our questions here. Maybe one to start just on guiding. In your Outlook commentary, you noted that you're not expecting any meaningful recovery in construction markets until 2026 at the earliest. I just wanted to confirm whether or not this comment pertains to expectations across both commercial and residential construction, or was it more end market specific? And maybe as a follow up to that, what are the factors that could cause your expectations around construction recovery to be pushed out even further?

Speaker Change: Hi, This is Lou can found on for Tim Thanks for taking our questions here, maybe wanted to start just on guidance.

Speaker Change: In your outlook commentary, you noted that you're not expecting any meaningful recovery in construction markets until 2026 at the earliest I just wanted to confirm whether or not this comment pertains to expectations across both commercial and residential construction or was it more end market specific and maybe as a follow up to that what are the factors that could cause.

Speaker Change: Your expectations around construction recover to be pushed out even further.

Bruce Young: Yeah, so we'll take it one segment at a time. So in the residential, the softness is minor and we don't expect anything too turbulent with the residential market going forward. The commercial market, there's continued softening there. We expect that once the tariff conversation settles, I think that that market will start improving. As you know, there's been several delays and so that's delayed a lot of those projects. But we are optimistic that we'll find a recovery there.

Speaker Change: Yeah, So what I will take it one segment at a time, so and in the residential the softness is minor and we don't expect anything to turbulent with the residential market going forward.

Speaker Change: The commercial market are Theres continued to softening there we expect that once the the tariff conversation settles out I think that that market will start improving.

Speaker Change: As you know theres been several delays and so that's the laid a lot of those projects are but we are optimistic that we'll find a recovery. There are the tax plan will eventually.

Bruce Young: The tax plan will eventually get approved and with interest rates likely coming down at the end of the year, we expect the commercial market to come back after that.

Speaker Change: Get approved and end with interest rates likely coming down at the end of the year, we expect the commercial market to come back after that.

Operator: Great, thanks. Very helpful.

Speaker Change: Great. Thanks, very helpful. And then maybe just one more from US you know it sounds like the infrastructure market continues to be a bright spot.

Bruce Young: And then maybe just one more from us. You know, it sounds like the infrastructure market continues to be a bright spot for the business. Can you talk about what sort of visibility you have just into that end market going forward here? It sounds like you're continuing to expect strong results in 2025. But yeah, just any any additional color there in terms of particular pockets of strength within infrastructure related to projects or otherwise would be helpful. Thanks so much. Yeah, so we're seeing growth in nearly all segment of infrastructure. Roads and bridges have been a big part of us.

Speaker Change: So the business can you talk about what sort of visibility you have just into that end market going forward here. It sounds like you continue to expect strong results in 2025, but.

Speaker Change: Just any additional color there in terms of.

Speaker Change: Particular pockets of strength within infrastructure related projects or otherwise it would be helpful. Thanks, So much.

Speaker Change: Yeah. So we're we're seeing a growth in nearly all segment of infrastructure, our roads and bridges have been a big part of US you know as you know.

Bruce Young: As you know, we don't do the paving, but we do the structures, and so a lot of wastewater and water treatment plants going on, airport construction has been really strong. But really, it's across the board with infrastructure. In the U.S., it's gaining some momentum. In the U.K., it's been strong for quite some time, and we expect that to stay strong for the foreseeable future.

Speaker Change: No we don't do the paving but we'd do the structures and so a lot of wastewater and water treatment plants going on airport construction has been a really strong but really it's across the board with infrastructure is set in the U S. Its gaining some momentum in the U K, it's been strong for quite some time and we expect that to stay strong for the foreseeable future.

Speaker Change: Sure.

Operator: Thank you very much.

Speaker Change: Thank you very much.

Speaker Change: Okay.

Speaker Change: Thank you, ladies and gentlemen, again that people like to ask a question. Please press star one on your telephone keypad.

Operator: Ladies and gentlemen, again, if you would like to ask a question, please press star 1 on your telephone keypad.

Jean Valise: And the next question comes from the line of Jean Valise with D.A. Davidson, please proceed. All right, guys. Thank you for the time. Could you provide more color on the project delay? More specifically, have you guys seen more project delays since April? And as a follow up. have customers giving you a time horizon when those delayed projects maybe review it again? Yes, a lot of the project delays have a lot to do with the tariffs and uncertainty there. Our customers are saying their backlogs are quite strong for next year. Still, there are some concerns when those projects might start.

Speaker Change: And the next question comes from the line of Jeans, a lease with D. A Davidson. Please proceed.

Speaker Change: Hey, guys. Thanks for the time.

Speaker Change: Could you provide more color on the project delays.

Speaker Change: More specifically, we have you guys seen more project delays since April and as a follow up.

Speaker Change: Customers, giving you a time horizon when those delayed projects maybe review it again.

Speaker Change: Yeah. So on the project delay I'm, sorry, a lot of the project delays have a lot to do with the tariffs and uncertainty there our customers are saying their backlogs are quite strong for next year I'm still there are some concerns when the when those projects might start and so we're seeing that backlog is built by not only those jobs that are.

Bruce Young: And so we're seeing that backlog is built by not only those jobs that are delayed, but new projects that would be coming on the books for them. So there is some optimism that once things settle out that the commercial market could come back very quickly.

Speaker Change: Delayed, but new projects that would be coming on the books for them. So there is some optimism that once things settle out at a commercial market could come back very quickly.

Bruce Young: and on the commercial, sorry, on the infrastructure Are the delays also tied to these types of uncertainties or other factors that came into play this quarter? Yeah, so I don't think we're seeing delays in infrastructure programs. I think the challenge was meeting the requirements of the bill, and they seem to be doing a better job of getting that done, and so the infrastructure dollars are flowing more freely than what we'd seen in the previous years. Alright, I appreciate the time.

Speaker Change: And on the commercial I'm, sorry on the infrastructure.

Speaker Change: Hi.

Speaker Change: Also tied to it.

Speaker Change: These types of uncertainties or other factors that.

Speaker Change: That come into that came into play this quarter.

Speaker Change: Yeah. So I don't think we're seeing delays in infrastructure program. So I think the challenge was meeting the requirements of the bill and they seem to be doing a better job of getting that done and so the infrastructure dollars are flowing more freely than what we'd seen in previous years.

Speaker Change: Alright I appreciate the time thank you.

Speaker Change: Yes.

Speaker Change: Thank you this.

Bruce Young: This concludes the question and answer session, and I'd like to hand the call back to Mr. Bruce Young for closing remarks. Thank you, Joe. We'd like to thank everyone for listening to today's call and we look forward to speaking with you and report our third quarter fiscal 2025 results in September. Thank you.

Speaker Change: This concludes the question and answer session and I'd like to hand, the call back from the previous young for closing remarks.

Speaker Change: Thank you, Joe and we'd like to thank everyone for listening to today's call and we look forward to speaking with you. When we report our third quarter fiscal 2025 results in September. Thank you.

Speaker Change: Yeah.

Operator: This concludes today's conference. You may disconnect your lines at this Thank you for your attention.

Speaker Change: This concludes today's conference you may disconnect your lines at this time.

Speaker Change: Thank you for your participation.

Speaker Change: Hum.

Speaker Change: Hum.

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