EPS of $0.19 missed estimates of $0.989 and revenues of $305.59M missed estimates of $310.83M. Sales declined 6.3% from the prior year, and gross profit margins fell to 13.7% from 20.0% in the prior year. Its gross profit decline mostly led to its wide loss on earnings, and the decline was primarily driven by lower contributions from the Heavy Equipment - Canada segment. This segment was impacted by an $8.9M customer claim extinguishment as part of a four-year $500M contract extension from December 2024. Its outlook for 2025 is decent, and we feel this is why the stock is holding up fairly well today.
It trades at an attractive valuation of 6X forward earnings, forward growth estimates are strong, and margins are mostly holding up well. We think it looks OK here, but we would like to see its price begin trending higher before considering initiating a position here.