In This Article:
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Revenue Increase: 41.7% increase over Q1 2024, driven by acquisitions of Timber Technologies and Alliance Drilling Tools.
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Gross Margin: Improved to 24.3% from 17.3% in Q1 2024.
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Building Solutions Revenue: Increased by 32.9% compared to Q1 2024.
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Building Solutions Backlog: Record $27.9 million at quarter end, up from $14.8 million in Q1 2024.
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Gross Profit: $3.1 million, up 99.2% versus Q1 2024.
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SG&A Expenses: Increased by $1.2 million or 28.5% versus Q1 2024.
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SG&A as Percentage of Revenue: Decreased to 40.7% from 44.9% in Q1 2024.
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Net Loss from Continuing Operations: $1.2 million in Q1 2025, compared to $2.2 million in Q1 2024.
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Non-GAAP Adjusted Net Loss: $1.7 million or $0.52 per share, compared to $1.4 million or $0.44 per share in Q1 2024.
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Non-GAAP Adjusted EBITDA: Loss of $0.8 million, compared to a loss of $1.1 million in Q1 2024.
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Cash Flow from Operations: Inflow of $0.6 million, compared to an outflow of $2.4 million in Q1 2024.
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Unrestricted Cash Balance: $1.9 million at the end of Q1 2025, down from $4.0 million at the end of 2024.
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Public Equity Securities Holdings: $3.1 million at the end of Q1 2025, compared to $3.4 million at year-end 2024.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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First quarter revenue increased by 41.7% compared to the first quarter of 2024, driven by acquisitions.
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Gross margin improved significantly to 24.3% from 17.3% in the same quarter last year.
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Building Solutions division backlog reached a record $27.9 million, indicating strong future demand.
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The establishment of the Energy Services division through the acquisition of Alliance Drilling Tools is progressing smoothly.
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Consolidated cash flow from operations turned positive, with an inflow of $0.6 million compared to an outflow of $2.4 million in the previous year.
Negative Points
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Net loss from continuing operations was $1.2 million, although improved from a $2.2 million loss in the previous year.
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Non-GAAP adjusted net loss from continuing operations increased to $1.7 million from $1.4 million in the previous year.
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SG&A expenses increased by $1.2 million or 28.5% due to acquisitions and M&A activity.
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Unrestricted cash balance decreased to $1.9 million from $4.0 million at the end of 2024, primarily due to acquisition costs.
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Some commercial projects were delayed into the second quarter, affecting Building Solutions segment revenues.
Q & A Highlights
Q: Can you explain the dynamics between Edge Builder and Building Solutions regarding project delays, especially in light of the tariff situation? A: Jeffrey Eberwein, Executive Chairman of the Board, explained that the delays at Edge Builder were company-specific, involving a large project that paused for two months in Q1 but resumed in Q2. Severe winter weather also contributed to delays. However, these were temporary shifts, not cancellations.