Concrete Pumping Holdings, Inc. Goodwill & Intangibles Disclosure

Note 5. Goodwill and Intangible Assets

 

The Company has recognized goodwill and certain intangible assets in connection with prior business combinations. The Company, with the assistance of a third-party valuation specialist, performed a step 1 impairment test on its intangible assets and goodwill as of  August 31, 2025, in which there were no impairment indicators present. The Company performed a quantitative impairment analysis as of August 31, 2024. Based on the results of this analysis the fair values of the Company's reporting units were in excess of their carrying values and as such, no impairments were identified.

 

The valuation methodology used to value the trade names during the quantitative impairment analysis as of August 31, 2025, was based on the relief-from-royalty method which is an income-based measure that derives the value from total revenue growth projected and what percentage is attributable to the trade names. As a result of the analysis, the Company identified that the fair value of its Brundage-Bone Concrete Pumping, Eco-Pan and Capital Pumping trade names exceeded their carrying values by approximately 74%, 126% and 66%, respectively, and their remaining values are $37.3 million, $7.7 million and $5.5 million as of October 31, 2025, respectively.

 

The goodwill impairment test performed as of August 31, 2025, was performed on the Company’s U.S. Concrete Pumping, U.S. Concrete Waste Management Services, and U.K. Operations reporting units. The valuation methodologies used to value the reporting units included the discounted cash flow method (income approach) and the guideline public company method (market approach). As a result of the goodwill impairment analysis, the Company identified that the fair values of its U.S. Concrete Pumping, U.S. Concrete Waste Management Services and U.K. Operations reporting units were approximately 3%, 155% and 31% greater than their carrying values, respectively. As such, no impairment charge was recorded. If the planned business performance expectations are not met or if specific valuation factors out of our control, such as the discount rate, change significantly, then the estimated fair values of the reporting unit might decline and lead to a goodwill impairment in the future.

 

The following table summarizes the composition of intangible assets as of October 31, 2025 and 2024:

 

		As of October 31,
		2025
		Weighted Average				Gross												Foreign Currency				Net
		Remaining Life				Carrying				Accumulated				Accumulated				Translation				Carrying
(in thousands)		(in Years)				Value				Impairment				Amortization				Adjustment				Amount
Intangibles subject to amortization:
Customer relationship			8.1			$	195,126			$	-			$	(155,113	)		$	1,302			$	41,315
Trade name			3.1				5,097				-				(3,731	)			343				1,709
Assembled workforce			0.3				1,650				-				(1,628	)			-				22
Noncompete agreements			2.0				1,200				-				(813	)			-				387
Indefinite-lived intangible assets:
Trade names (indefinite life)			-				55,500				(5,000	)			-				-				50,500
Total intangibles						$	258,573			$	(5,000	)		$	(161,285	)		$	1,645			$	93,933

 

 

 

		As of October 31,
		2024
		Weighted Average				Gross												Foreign Currency				Net
		Remaining Life				Carrying				Accumulated				Accumulated				Translation				Carrying
(in thousands)		(in Years)				Value				Impairment				Amortization				Adjustment				Amount
Intangibles subject to amortization:
Customer relationship			9.1			$	195,126			$	-			$	(144,132	)		$	1,191			$	52,185
Trade name			4.1				5,097				-				(3,181	)			296				2,212
Assembled workforce			1.1				1,650				-				(1,522	)			-				128
Noncompete agreements			2.9				1,200				-				(613	)			-				587
Indefinite-lived intangible assets:
Trade names (indefinite life)			-				55,500				(5,000	)			-				-				50,500
Total intangibles						$	258,573			$	(5,000	)		$	(149,448	)		$	1,487			$	105,612

 

Amortization expense for the year ended  October 31, 2025 and 2024 was $11.8 million and $15.1 million, respectively. Based on intangible asset values and currency exchange rates as of  October 31, 2025, total intangible asset amortization expense is expected to be $9.6 million, $7.8 million, $6.5 million, $5.1 million, and $4.4 million for years ending October 31, 2026 through 2030, respectively, and approximately $10.0 million combined for all years thereafter.

  

The changes in the carrying value of goodwill by reportable segment for the years ended October 31, 2025 and 2024 are as follows:

 

(in thousands)		U.S. Concrete Pumping				U.K. Operations				U.S. Concrete Waste Management Services				Total
Balance as of October 31, 2023		$	147,482			$	24,902			$	49,133			$	221,517
Foreign currency translation			-				1,479				-				1,479
Balance as of October 31, 2024		$	147,482			$	26,381			$	49,133			$	222,996
Foreign currency translation			-				585				-				585
Balance as of October 31, 2025		$	147,482			$	26,966			$	49,133			$	223,581

 

Goodwill in the above table is presented net of accumulated impairment losses of $52.9 million as of October 31, 2025 and 2024. The U.S. Concrete Pumping and U.K. Operations reportable segments recorded $38.5 million and $14.4 million, respectively, in accumulated impairment losses.