Mobile Infrastructure signals full year 2025 revenue to track low end of $37M–$40M range amid construction disruptions

Earnings Call Insights: Mobile Infrastructure Corporation (BEEP) Q2 2025

MANAGEMENT VIEW

* CEO Stephanie L. Hogue reported that "several of our key markets continue to face temporary defined headwinds that, over time, should shift to tailwinds, enhancing the long-term value of our assets." She noted disruptions from construction, adverse weather, and fewer marquee events affecting near-term performance, but emphasized that renovations and development projects are expected to be positive catalysts for future demand.
* Hogue highlighted that "monthly contracts increased 2.5% during the quarter and are up over 6.5% year-to-date, with particularly strong growth in residential monthly contracts, which are up 44% since year-end." She stated this has been "a major focus for the team, and we are optimistic that both the volume and the quality of business being secured are green shoots of the opportunities ahead as residential development gains momentum around many of our assets."
* Executive Chairman Manuel Chavez provided an update on the asset optimization strategy, sharing that the company is "in active negotiations for approximately $20 million in asset sales" and reaffirmed the company's goal to unlock $100 million from noncore assets over three years. Chavez said, "Bifurcating the portfolio into core and noncore segments has given us a valuable perspective to closely evaluate our noncore assets, assessing both their future demand drivers and the intrinsic value of the underlying land."
* CFO Paul M. Gohr stated, "Revenue of $9.0 million in the second quarter was down modestly compared to the $9.3 million in the second quarter of 2024, but generally in line with our expectations." Gohr added, "Net operating income, or NOI, was $5.4 million, down 3.5% from last year's second quarter."

OUTLOOK

* Hogue indicated that "we expect full year results to track towards the low end of our full year guidance range," specifying full year 2025 guidance of $37 million to $40 million of revenue and $23.5 million to $25 million of net operating income. She maintained, "a shift right of new monthly contracts and a return of transient traffic by market in no way changes our fundamental view of the company's value."
* Management expects second half 2025 business trends to be similar to those of the first half with potential upside from seasonal tailwinds, increased event attendance, and hotel occupancy in key markets. The company remains focused on disciplined management of the balance sheet and growing recurring cash flow.

FINANCIAL RESULTS

* Gohr reported, "Revenue per available stall, or RevPAS, a key metric we use to manage our portfolio, was down 2% from $217 in the second quarter of 2024 to $212 in the second quarter of 2025."
* Property taxes and property operating expenses were both flat at $1.8 million compared to the prior year. General and administrative expenses were $1.2 million, down modestly from $1.3 million in the prior year quarter. Adjusted EBITDA was $3.8 million, down about 6% from $4.1 million in the prior year, and adjusted EBITDA margin was 42.8%.
* The company ended the quarter with total debt outstanding of $214 million and $15.9 million of cash and restricted cash on hand. Gohr noted, "Our published NAV is $7.25 per share, and this does not credit our assets for their meaningful replacement value."
* The company repurchased over 530,000 shares at an average price of $3.21 per share, and preferred outstanding is now $17.4 million, down from $39.5 million at the start of last year.

Q&A

* John James Massocca, B. Riley Securities, asked about the $20 million in potential dispositions and pricing. Chavez replied, "it's going to be similar to the asset sales we did last year in 2024, which are significant multiples of their parking income."
* Massocca questioned use of proceeds and line of credit extension. Hogue answered, "we put that in place really to prevent shareholder dilution. We've moved very quickly on it and continue to work with a very supportive lender and shareholder on that."
* On guidance trends and EBITDA, Massocca asked about the flow-through to EBITDA given NOI and revenue tracking low end. Hogue explained, "we have a significant amount of operating leverage... If trends in transient are like they were in the second quarter, there's potential upside."
* Massocca inquired about transient performance in Q3 and July trends. Hogue said, "we don't have that data today."
* Kevin Mark Steinke, Barrington Research, asked about contract parking trends and volume. Hogue clarified, "delivery was a little bit slower for residential coming online. And lease-ups tend to be in the third quarter and the fourth quarter."
* Steinke followed up on the impact of construction on corporate contract demand, with Hogue referencing Detroit's Renaissance Center redevelopment as a key factor.
* On potential upside in transient demand, Hogue stated, "sporting attendance in the second quarter was down for sure. Fewer events were impactful... That trend is sort of out of our control in the near term."
* Steinke also asked about demand for asset sales, and Chavez responded, "The demand for parking assets is significant in the market. We've got a wide array of different buyers... Being at $20 million approximately at this point in the year, we feel as though we're ahead of schedule."

SENTIMENT ANALYSIS

* Analysts focused on headwinds, guidance tracking to the low end, and asset sales, with a generally neutral tone and some skepticism about the timing of improvements.
* Management maintained a confident tone during prepared remarks and Q&A, emphasizing long-term optimism and operational leverage. Hogue described the construction delays as "uncomfortable in the short term" but repeatedly stressed that "the timing delta has no bearing on the value of Mobile's portfolio."
* Compared to the previous quarter, management's tone remains confident but is more explicit about near-term headwinds. Analysts' tone is consistent, focusing on timing, operational execution, and balance sheet management.

QUARTER-OVER-QUARTER COMPARISON

* Guidance for 2025 revenue and NOI remains unchanged at $37 million to $40 million and $23.5 million to $25 million, but management now expects results near the low end of those ranges, reflecting a more cautious outlook than in Q1 when management expressed confidence in tracking to plan.
* Strategic focus on asset rotation and redeployment of capital continues, with $20 million in active negotiations for asset sales, showing progress compared to earlier stages of the strategy in Q1.
* Both quarters noted construction, weather, and event-related headwinds, but Q2 featured more detail on the timing and anticipated resolution of these disruptions.
* Analyst questions in both quarters revolved around transient and contract parking trends, asset sales, and balance sheet strategy, with continued emphasis on the impact and timing of redevelopment projects.
* Management's confidence in the long-term value proposition and asset base is unwavering; however, the timing of expected improvements is more uncertain than previously suggested.

RISKS AND CONCERNS

* Headwinds from construction delays, adverse weather, and fewer marquee events were cited as reasons for softer-than-expected transient and contract parking revenue.
* Management acknowledged that "the pace is slower than we originally forecasted" for monthly contract growth and project completions. There is recognition that "transient revenue is light" and that timing of new contracts is a key variable.
* The Renaissance Center redevelopment in Detroit and construction in Cincinnati and Denver are expected to continue impacting results until late 2025 or beyond.
* Management reiterated mitigation by focusing on contract growth, asset optimization, disciplined cost controls, and redeployment of proceeds from asset sales.

FINAL TAKEAWAY

Mobile Infrastructure Corporation’s Q2 2025 results reflect continued short-term challenges tied to construction, weather, and event timing, leading management to forecast full-year performance at the low end of guidance. The company remains focused on executing its asset optimization strategy, growing monthly contract volumes, and maintaining cost discipline, while expressing strong confidence in the long-term value accretion from portfolio redevelopment and secular urban trends. Active negotiations on asset sales and ongoing balance sheet management are central to the company’s forward-looking strategy, with management emphasizing that these timing issues do not change their conviction in Mobile’s intrinsic value.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/beep/earnings/transcripts]

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