Quarterly report [Sections 13 or 15(d)]

Note 17 - Segment Reporting

v3.26.1
Note 17 - Segment Reporting
 9 Months Ended
Jul. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 17. Segment Reporting

 

The Company conducts business through three reportable segments based on geography and the nature of services sold, U.S. Concrete Pumping, U.S. Concrete Waste Management Services and U.K. Operations. Any differences between segment reporting and consolidated results are reflected in Other/Eliminations below or noted as intersegment amounts. All other non-segmented assets primarily include cash and cash equivalents and intercompany eliminations. The accounting policies of the segment reporting are the same as those described in Note 2 of our Annual Report.

 

The Company’s chief operating decision maker ("CODM"), who is the CEO of the Company, makes decisions and evaluates the performance of each segment based on segment adjusted EBITDA. This measure is reviewed in monthly performance reports and is used to assess operating results, compare profitability across segments, and support resource allocation decisions such as budgeting and long-term planning. Results are compared to both budgeted amounts and prior year amounts to provide context and evaluate performance trends. Segment adjusted EBITDA includes direct operating expenses that are attributable to each segment and are regularly reviewed by the CODM. These direct operating expenses include employee cost of operations expenses, repairs and maintenance, fuel, and employee general and administrative ("G&A") expenses. Prior to the fourth quarter of 2025, the CODM evaluated segment performance using segment EBITDA, which included results after allocated corporate expenses, loss on extinguishment of debt, stock-based compensation, other expense (income), net, and other adjustments. Beginning in the fourth quarter of 2025, the CODM transitioned to using segment adjusted EBITDA as the measure of profit and loss. Segment adjusted EBITDA excludes the above allocations and adjustments, consistent with how the CODM now evaluates performance and allocates resources.

 

The following items are excluded from our segment adjusted EBITDA results as they are managed centrally, not regularly provided to our CODM by segment and are not used in evaluating segment performance or resource allocation decisions:

 

 

●

Depreciation and amortization
 

●

Interest expense and amortization of deferred financing costs, net of interest income
 

●

Unallocated corporate expenses – These are central shared costs managed separately and included in "unallocated corporate expenses" in the tables below.
 

●

Loss on debt extinguishment
 

●

Stock-based compensation
 

●

Other expense (income), net
 

●

Other adjustments

 

 

 

The following tables summarize the Company’s segment results, provide a reconciliation of total segment adjusted EBITDA to loss before income taxes and discloses other segmented balances or expenditures for the three and nine months ending July 31, 2026 and 2025:

 

   

Three Months Ended July 31, 2026

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 76,157     $ 21,946     $ 18,663             $ 116,766  
                                         

Segment expenses:

                                        

Segment employee cost of operation expenses (2)(3)

     25,330       3,748       6,007               35,085  

Repairs & maintenance (2)

     6,119       1,169       1,327               8,615  

Fuel (2)

     5,396       1,153       1,905               8,454  

Segment employee G&A expenses (2)(4)

     7,683       2,626       1,505               11,814  

Other segment items (5)

     8,691       2,459       3,120               14,270  

Total segment adjusted EBITDA

   $ 22,938     $ 10,791     $ 4,799             $ 38,528  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 13,196  

Interest expense and amortization of deferred financing costs, net of interest income

                                     8,213  

Unallocated corporate expenses

                                     8,115  

Stock-based compensation

                                     1,282  

Other income, net

                                     (17 )

Other adjustments

                                     847  

Income before taxes

                                   $ 6,892  
                                         

Other segment disclosures:

                                        

Capital expenditures

   $ 12,435     $ 5,284     $ 2,632     $ -     $ 20,351  

 

 

(1)

For the three months ended July 31, 2026, intersegment revenue of $0.1 million is excluded from US Concrete Waste Management Services.
 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.
 

(4)

Employee G&A expenses include salaries, benefits and bonuses.
 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

   

Three Months Ended July 31, 2025

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 69,271     $ 19,337     $ 15,068             $ 103,676  
                                         

Segment expenses:

                                        

Segment employee cost of operation expenses (2)(3)

     23,114       3,484       4,919               31,517  

Repairs & maintenance (2)

     5,900       980       950               7,830  

Fuel (2)

     3,647       789       1,213               5,649  

Segment employee G&A expenses (2)(4)

     7,597       2,487       1,490               11,574  

Other segment items (5)

     8,206       2,286       1,856               12,348  

Total segment adjusted EBITDA

   $ 20,807     $ 9,311     $ 4,640             $ 34,758  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 13,638  

Interest expense and amortization of deferred financing costs, net of interest income

                                     8,126  

Unallocated corporate expenses

                                     7,915  

Stock-based compensation

                                     526  

Other income, net

                                     (228 )

Other adjustments

                                     (251 )

Income before taxes

                                   $ 5,032  
                                         

Other segment disclosures:

                                        

Capital expenditures

   $ 8,246     $ 4,277     $ 2,200     $ 16     $ 14,739  

 

 

(1)

For the three months ended July 31, 2025, intersegment revenue of $0.2 million is excluded from US Concrete Waste Management Services.
 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.
 

(4)

Employee G&A expenses include salaries, benefits and bonuses.
 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

 

   

Nine Months Ended July 31, 2026

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 207,628     $ 60,362     $ 46,133             $ 314,123  
                                         

Segment expenses:

                                        

Segment employee cost of operation expenses (2)(3)

     69,770       10,584       15,368               95,722  

Repairs & maintenance (2)

     17,604       3,083       3,212               23,899  

Fuel (2)

     12,909       2,853       4,471               20,233  

Segment employee G&A expenses (2)(4)

     22,751       7,676       4,410               34,837  

Other segment items (5)

     25,802       7,185       6,965               39,952  

Total segment adjusted EBITDA

   $ 58,792     $ 28,981     $ 11,707             $ 99,480  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 39,004  

Interest expense and amortization of deferred financing costs, net of interest income

                                     24,504  

Unallocated corporate expenses

                                     24,638  

Stock-based compensation

                                     2,922  

Other income, net

                                     (86 )

Other adjustments

                                     1,265  

Income before taxes

                                   $ 7,233  
                                         

Other segment disclosures:

                                        

Total assets (at period end)

   $ 719,737     $ 207,826     $ 143,675     $ (162,981 )   $ 908,257  

Capital expenditures

   $ 22,952     $ 9,984     $ 18,174     $ -     $ 51,110  

 

 

(1)

For the nine months ended July 31, 2026, intersegment revenue of $0.2 million is excluded from US Concrete Waste Management Services.
 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.
 

(4)

Employee G&A expenses include salaries, benefits and bonuses.
 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

 

   

Nine Months Ended July 31, 2025

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 188,293     $ 54,087     $ 41,700             $ 284,080  
                                         

Segment expenses:

                                        

Segment employee cost of operation expenses (2)(3)

     64,513       9,872       13,226               87,611  

Repairs & maintenance (2)

     14,437       2,808       2,566               19,811  

Fuel (2)

     9,990       2,177       3,648               15,815  

Segment employee G&A expenses (2)(4)

     22,699       7,297       4,374               34,370  

Other segment items (5)

     22,740       6,676       5,551               34,967  

Total segment adjusted EBITDA

   $ 53,914     $ 25,257     $ 12,335             $ 91,506  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 40,422  

Interest expense and amortization of deferred financing costs, net of interest income

                                     22,222  

Unallocated corporate expenses

                                     25,155  

Loss on debt extinguishment

                                     1,392  

Stock-based compensation

                                     1,431  

Other income, net

                                     (290 )

Other adjustments

                                     (177 )

Income before taxes

                                   $ 1,351  
                                         

Other segment disclosures:

                                        

Total assets (at period end)

   $ 712,359     $ 207,580     $ 122,266     $ (156,174 )   $ 886,031  

Capital expenditures

   $ 14,958     $ 10,506     $ 8,705     $ 61     $ 34,230  

 

 

(1)

For the nine months ended July 31, 2025, intersegment revenue of $0.4 million is excluded from US Concrete Waste Management Services.
 

(2)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
 

(3)

Employee cost of operations expenses include salaries, benefits and bonuses.
 

(4)

Employee G&A expenses include salaries, benefits and bonuses.
 

(5)

Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
 

(6)

Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.