What Happened?
Shares of concrete and waste management company Concrete Pumping (NASDAQ:BBCP) fell 17.4% in the morning session after the company reported weak fourth-quarter 2024 (fiscal Q1 2025) results: Its full-year EBITDA guidance missed significantly and its sales, adjusted EBITDA, and EPS fell short of Wall Street's estimates.
What jumped at us was the 11.5% year-on-year sales decline, primarily due to a slowdown in commercial construction and severe weather disruptions in key U.S. regions. The U.S. concrete pumping segment was hit hardest, with revenue falling 14.6%, while the U.K. segment also struggled, posting a 16.7% decline. Overall, this was a challenging quarter.
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What The Market Is Telling Us
Concrete Pumping’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Concrete Pumping and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 12% on the news that the company reported weak second-quarter (2024) earnings results. Revenue and EPS both missed. Its full-year revenue guidance was lowered and also missed expectations. Sales growth was negatively affected by unfavorable weather, high interest rates affecting commercial construction, and an oversupply of concrete pumps. Overall, this was a weaker quarter.
Concrete Pumping is down 20.1% since the beginning of the year, and at $5.30 per share, it is trading 41.4% below its 52-week high of $9.04 from January 2025. Investors who bought $1,000 worth of Concrete Pumping’s shares 5 years ago would now be looking at an investment worth $1,573.
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