Company Involvement - Quanta Services, Inc. has been announced as an Official Supporter of the Houston World Cup 26 Host City, indicating its commitment to the event and the local community [1][2] - The company aims to contribute to the World Cup 2026 by promoting safety, workforce development, culture, community well-being, and sustainability [1][3] Leadership and Vision - Quanta's President and CEO, Duke Austin, emphasized the company's mission of creating connections and its dedication to building resilient communities through this partnership [2] - The collaboration aligns with the FIFA World Cup 26 Houston Host Committee's vision of delivering an extraordinary tournament while ensuring a positive legacy for the city [3] Event Overview - The FIFA World Cup 26 will be the largest sporting event ever, featuring three host countries, 16 host cities, 48 teams, and 104 matches, set to take place in June and July 2026 [4] - This tournament is designed to be the most inclusive, engaging millions of fans across various stadiums and reaching billions worldwide [4] Economic and Community Impact - The Harris County – Houston Sports Authority plays a crucial role in managing sports facilities and attracting major events, enhancing Houston's economic development and quality of life for residents [5]

Group 1 - The Carillon Scout Mid Cap Fund's second quarter 2025 investor letter indicates that the Russell Midcap Index experienced positive returns despite an initial sell-off in April due to tariff announcements [1] - The delay in collecting additional tariffs has allowed trading partners more time to negotiate better terms, which may positively impact market conditions [1] - Quanta Services, Inc. (NYSE:PWR) is highlighted as a key stock, with a one-month return of -4.62% and a 52-week gain of 49.37%, closing at $373.47 per share with a market capitalization of $55.649 billion [2] Group 2 - Quanta Services, Inc. provides infrastructure solutions for various sectors, including electric and gas utilities, renewable energy, and communications, and is winning new business related to AI power infrastructure and renewable energy projects [3] - The company reported strong financial results for the second quarter of 2025, with revenues of $6.8 billion, net income of $229 million, adjusted diluted earnings per share of $2.48, and adjusted EBITDA of $669 million [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and less downside risk compared to Quanta Services, Inc. [4]

Financial Data and Key Metrics Changes - Total revenue for FY 2025 was just under $2.5 billion, slightly ahead of FY 2024, driven by a decline in the new car market but mitigated by strong performance in used cars, finance and insurance, and service [3][19] - EBITDA was just over $110 million, with underlying profit before tax of $22.3 million, in line with guidance [3][19] - Net debt decreased to $46.7 million, down $14 million from the previous year, with a net debt to property ratio of 20% [4][27] Business Line Data and Key Metrics Changes - Used vehicle sales increased by 14% to 9,702 units, offsetting declines in new car sales [20] - Service and parts revenue grew to $422 million, up 4% from the previous year [20] - New car margins decreased by 0.8 percentage points from 16.9% to 16.1%, but margins in other service lines remained favorable [22][25] Market Data and Key Metrics Changes - The new car market remains highly competitive with an influx of new brands, leading to margin pressures [9][29] - Chinese brands now represent around 20% of the company's brand portfolio, with significant consumer acceptance noted [6][70] Company Strategy and Development Direction - The company aims to be Australia's most valued automotive group, focusing on innovation, customer centricity, organic growth, and acquisitions [12][13] - Emphasis on improving efficiencies through technology, including automation and AI, to enhance customer service and operational performance [15][18] - The strategy includes a balanced approach to managing used cars, service, parts, and finance to mitigate risks associated with new car market fluctuations [10][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive industry is undergoing significant transformation, with a focus on adapting to new vehicle emission standards and increasing competition [8][9] - The outlook for FY 2026 includes expectations for continued growth in higher-margin service lines and a stable new car market [29][30] - Management expressed confidence in the company's ability to grow earnings and maintain a strong performance culture [30][33] Other Important Information - The company successfully reduced new vehicle inventory from $382 million to $351 million, reflecting disciplined inventory management [5] - A fully frank final dividend of $0.04 per share was declared, bringing the total dividend for the year to $0.56 per share [27][28] Q&A Session Summary Question: What drove the stronger used car sales performance? - Management highlighted the focus on acquiring the right level of stock and maximizing opportunities in used car sales [37][38] Question: How much of the OpEx improvement came from lower commissions? - A significant portion of the OpEx reduction was attributed to lower commissions, with expectations for continued cost savings in FY 2026 [40][42] Question: What is the business performance outlook for the first seven weeks of FY 2026? - Management indicated that gross margins have remained stable at 16.1%, with a slight increase in overall market activity [43][44] Question: Have gross margins found a sustainable base? - Management confirmed that margins have stabilized and are expected to remain consistent into FY 2026 [48][49] Question: What is the outlook for new vehicle sales and OEM responses? - Management noted that several OEMs are releasing new models, which should positively impact sales, with stable order rates observed [56][60] Question: Can you provide details on the new Chinese brands onboarded? - The company currently represents brands such as LDV, MG, and GWM, with positive market reception noted [67][70]

Financial Performance - Revenue reached $2482.6 million in FY25, comparable to $2475.1 million in FY24[43] - Underlying Profit Before Tax (PBT) was $22.3 million, compared to $56.8 million in FY24[5] - EBITDA was $110.1 million in FY25, down from $135.0 million in FY24[5] - Net tangible assets (NTA) stood at $1.42 per share[5] Operational Highlights - New car and demo inventory reduced to $343.1 million at FY25, excluding acquisitions since FY24[7,8] - Reduction in new car and demo inventory resulted in $32 million (-8%) decrease[7] - The company has 14+ Chinese brand dealerships[7] - Headcount reduced from 2300 to 1900, leading to lower costs[7] Sales Performance - New vehicle units sold were 31,242 in FY25, compared to 32,429 in FY24[20] - Used vehicle units sold increased to 9,702 in FY25, up from 8,520 in FY24[20] - Service & Parts Revenue increased to $422 million in FY25, compared to $405 million in FY24[20]

Core Insights - FGI Group, Inc. sold Dynamic Systems to Quanta Services, Inc. for an upfront price of $1.35 billion, with a potential earnout of up to $216 million [1][2] - Dynamic Systems is a leading mechanical solutions provider with a diverse customer base in technology, semiconductor, healthcare, and other growing markets [2] - Quanta Services is a major provider of infrastructure solutions across various industries, including electric and gas utilities, renewable energy, and communications [2] Company Overview - Dynamic Systems, founded in 1988 and headquartered in Austin, Texas, specializes in turnkey mechanical, plumbing, and process infrastructure solutions [2] - Quanta Services operates in the United States, Canada, Australia, and select international markets, focusing on comprehensive infrastructure solutions [2] Legal Advisory - Elder Bray & Bankler provided legal counsel to FGI Group during the transaction, covering deal structuring, negotiation, and regulatory guidance [3][4] - The legal team was led by Scott Bankler and Jake McCloy, supported by other key members [3]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: U.S. Machinery and Electricals - **Focus**: Impact of recent policy changes by the Trump Administration on various sub-sectors including electricals, construction, agriculture, and trucks [1][11] Core Insights and Arguments 1. Policy Impact on Renewables - The Trump Administration's policies are de-prioritizing renewables, negatively impacting companies like Quanta (PWR) which derives 30% of sales from this sector [2][49] - The OBBBA cuts tax credits for renewables, shortening the eligibility timeframe from 2032 to 2027, leading to a projected slowdown in construction activity post-2025 [16][54] - Construction costs are rising due to stricter domestic content requirements and tariffs, which could drive renewables to ex-growth from 2025-2030 [2][18] 2. Construction Sector Stimulus - The reinstatement of 100% bonus depreciation for qualified property under the OBBBA is expected to stimulate construction activity, unlocking nearly $90 billion in additional non-residential construction spending, a 7% increase compared to 2024 levels [3][67] - This change is anticipated to benefit construction OEMs such as OSK, URI, ETN, CAT, TRMB, HUBB, DE, and J [3][12] 3. Agriculture Equipment Demand - Changes in biofuels policy, including a 75% increase in biomass-based diesel production mandated by the EPA, could lead to a 10% increase in agricultural equipment demand [4][84] - The extension of clean fuel tax credits from 2027 to 2029 and increased subsidies for biofuels are expected to positively impact companies like Deere, AGCO, and CNH [4][101] 4. Truck OEM Competitive Landscape - The Section 232 investigation into commercial vehicle manufacturing is likely to favor U.S.-based manufacturers like PACCAR (PCAR) by reversing the current tariff structure that disadvantages U.S. manufacturers [5][104] - Current tariffs create a cost disadvantage for U.S. truck manufacturers, as they face higher costs due to imported components [107][110] Additional Important Insights - The overall economic reorientation towards investment rather than consumption is expected to benefit the machinery and electrical sectors [13] - The anticipated slowdown in renewable energy construction does not imply a complete decline, as electricity demand continues to grow at a CAGR of 1.5-2% [28][40] - Historical context indicates that previous cuts to renewable tax credits led to significant underperformance in the sector, suggesting potential risks ahead [46] - The bonus depreciation changes are expected to lead to mid-single-digit earnings growth for companies like Oshkosh, Eaton, and United Rentals [79][82] Company Ratings and Price Targets - **Outperform Ratings**: Trimble (TP $99), Jacobs (TP $163), PACCAR (TP $118), Eaton (TP $410), Hubbell (TP $511) [7][8] - **Market-Perform Ratings**: AGCO (TP $118), Caterpillar (TP $447), Deere (TP $548), Cummins (TP $385), United Rentals (TP $885), Titan America (TP $15), Oshkosh (TP $132), Quanta (TP $410) [7][8] This summary encapsulates the key points discussed in the conference call, highlighting the implications of policy changes on various sectors and companies within the U.S. Machinery and Electricals industry.

Core Insights - Quanta Services, Inc. (PWR) demonstrated strong second-quarter 2025 performance with double-digit revenue growth, margin expansion, and strategic capital deployment, driven by demand for utility-scale infrastructure and energy transition projects [1][4] Financial Performance - Quanta's adjusted EPS reached $2.48, reflecting a 30.5% year-over-year increase and surpassing the Zacks Consensus Estimate of $2.43, attributed to revenue scale, operating leverage, and acquisitions [3][9] - The company reported revenues of $6.77 billion, a 21.1% increase year-over-year, exceeding the Zacks Consensus Estimate of $6.55 billion, marking a new second-quarter revenue record [4][9] - Gross margin improved to 14.9% from 14.5%, with adjusted EBITDA growing 27.8% year-over-year to $668.8 million, resulting in an adjusted EBITDA margin of 9.9% [5][6] Strategic Acquisitions - Quanta completed a $1.35 billion acquisition of Dynamic Systems in July, enhancing its mechanical and process infrastructure capabilities, along with two smaller acquisitions totaling $226.8 million [2] Backlog and Project Wins - The company ended the second quarter with a record backlog of $35.84 billion, up from $31.31 billion a year ago, indicating strong demand visibility [7] - Quanta was selected for a significant high-voltage transmission line project for Idaho Power, further solidifying its project pipeline [7] Segment Performance - Electric Infrastructure Solutions, accounting for 80.6% of total revenue, generated $5.46 billion, up 21.7% year-over-year, with an operating margin of 10.1% [8] - Underground and Infrastructure Solutions contributed $1.31 billion in revenues, an 18.7% increase year-over-year, with a segment margin of 6.9% [10] Balance Sheet and Liquidity - As of June 30, 2025, Quanta held $509 million in cash and cash equivalents, with total liquidity of approximately $1.3 billion, and long-term debt increased to $4.65 billion [11] Outlook - Quanta raised its full-year 2025 revenue guidance to between $27.4 billion and $27.9 billion, and adjusted EPS expectations to a range of $10.28 to $10.88, reflecting confidence in continued growth [12]

Core Insights - Quanta Services reported revenue of $6.77 billion for the quarter ended June 2025, marking a year-over-year increase of 21.1% and an EPS of $2.48 compared to $1.90 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - The reported revenue of $6.77 billion surpassed the Zacks Consensus Estimate of $6.55 billion by 3.34%, while the EPS of $2.48 exceeded the consensus estimate of $2.43 by 2.06% [1] - Quanta Services' stock has returned +10.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change, and currently holds a Zacks Rank 3 (Hold) [3] Backlog and Revenue Breakdown - Total backlog stands at $35.84 billion, slightly below the two-analyst average estimate of $36.11 billion [4] - Backlog for Underground Utility and Infrastructure Solutions is $5.56 billion, exceeding the $5.42 billion average estimate [4] - Backlog for Electric Power Infrastructure Solutions is $30.28 billion, below the $30.69 billion estimated by two analysts [4] - Revenues from Underground Utility and Infrastructure Solutions reached $1.31 billion, slightly above the six-analyst average estimate of $1.3 billion, reflecting an 18.7% year-over-year change [4] - Revenues from Electric Power Infrastructure Solutions were $5.46 billion, surpassing the $5.25 billion estimate and showing a significant year-over-year increase of 122.6% [4] Operating Income Analysis - Operating income for Electric Power Infrastructure Solutions was reported at $552.62 million, exceeding the $528.34 million average estimate [4] - Operating income for Underground Utility and Infrastructure Solutions was $90.7 million, slightly below the $95.1 million average estimate [4] - Corporate and non-allocated costs reported an operating loss of $273.04 million, worse than the five-analyst average estimate of $-227.74 million [4]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Quanta Services' unaudited condensed consolidated financial statements and related notes for the period ended June 30, 2025 [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets increased to **$19.89 billion** by June 30, 2025, with Q2 2025 revenues reaching **$6.77 billion** and net income **$229.3 million**, while operating cash flow decreased to **$538.9 million** for the first six months Financial Position (in billions) | Financial Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $8.18B | $7.85B | | Total Assets | $19.89B | $18.68B | | Total Current Liabilities | $5.98B | $6.03B | | Total Liabilities | $12.02B | $11.35B | | Total Equity | $7.87B | $7.33B | Consolidated Results of Operations (in millions/billions, except per share) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6.77B | $5.59B | $13.01B | $10.63B | | Gross Profit | $1.01B | $811.33M | $1.84B | $1.43B | | Operating Income | $370.28M | $307.23M | $609.36M | $462.58M | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $373.51M | $306.52M | | Diluted EPS | $1.52 | $1.26 | $2.47 | $2.05 | Consolidated Cash Flows (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $538.91M | $629.27M | | Net Cash Used in Investing Activities | ($980.55M) | ($589.26M) | | Net Cash Provided by (Used in) Financing Activities | $186.75M | ($806.30M) | | Net Decrease in Cash | ($233.26M) | ($773.29M) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Quanta's accounting policies, including revenue recognition, segment reporting changes, significant acquisitions, debt obligations, equity transactions, and legal contingencies like the Silverado Wildfire matter - Beginning in Q1 2025, Quanta changed its reportable segments to **Electric Infrastructure Solutions** and **Underground Utility and Infrastructure Solutions**, with prior period amounts recast to conform to this new structure[54](index=54&type=chunk) - During the first six months of 2025, Quanta acquired four businesses for approximately **$599.3 million** in cash and **515,822 shares** of common stock valued at **$161.6 million**[65](index=65&type=chunk) - Quanta is involved in litigation related to the 2020 Silverado Fire, with subsidiaries asked for defense and indemnification by Southern California Edison, but no accrual has been recorded as insurance coverage is believed to be adequate[120](index=120&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, highlighting increased demand in Electric and Underground & Infrastructure segments, consolidated and segment results, non-GAAP measures, and liquidity, driven by grid modernization and acquisitions [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q2 2025 consolidated revenues increased **21.1%** to **$6.77 billion**, with gross profit up **24.2%** to **$1.01 billion** and operating income growing **20.5%** to **$370.3 million**, reflecting strong performance across segments Consolidated Results for Q2 (in millions/billions) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6.77B | $5.59B | $1.18B | 21.1% | | Gross Profit | $1.01B | $811.33M | $196.24M | 24.2% | | Operating Income | $370.28M | $307.23M | $63.05M | 20.5% | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $41.09M | 21.8% | Consolidated Results for H1 (in millions/billions) | Metric | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $13.01B | $10.63B | $2.38B | 22.4% | | Gross Profit | $1.84B | $1.43B | $406.79M | 28.4% | | Operating Income | $609.36M | $462.58M | $146.78M | 31.7% | | Net Income Attributable to Common Stock | $373.51M | $306.52M | $66.99M | 21.9% | [Segment Results](index=39&type=section&id=Segment%20Results) Q2 2025 saw the Electric segment's revenue grow **21.6%** to **$5.46 billion** and operating income rise **29.5%** to **$552.6 million**, while the Underground and Infrastructure segment's revenue increased **18.7%** to **$1.31 billion** Segment Performance (Q2 2025 vs Q2 2024) | Segment | Revenue | Operating Income | | :--- | :--- | :--- | | **Electric** | $5.46B (+21.6%) | $552.6M (+29.5%) | | **Underground and Infrastructure** | $1.31B (+18.7%) | $90.7M (+11.2%) | - The Electric segment's revenue growth was primarily due to approximately **$750 million** from acquired businesses and increased service demand[173](index=173&type=chunk) - The Underground and Infrastructure segment's revenue growth was driven by about **$105 million** from acquisitions and higher service demand[175](index=175&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q2 2025 Adjusted EBITDA at **$668.8 million**, up from **$523.2 million** in Q2 2024, and total backlog increased to **$35.84 billion** by June 30, 2025, reflecting strong project awards and acquisitions Non-GAAP Performance Metrics (in millions/billions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stock | $229.25M | $188.16M | $373.51M | $306.52M | | EBITDA | $589.39M | $475.21M | $1.04B | $817.12M | | Adjusted EBITDA | $668.76M | $523.23M | $1.17B | $910.48M | Backlog (in billions) | Backlog | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Remaining Performance Obligations | $19.16B | $16.76B | | Total Backlog | $35.84B | $34.54B | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Quanta's total liquidity was **$2.64 billion**, with key cash uses in H1 2025 including **$586.1 million** for acquisitions and **$273.1 million** for capital expenditures, while operating cash flow decreased to **$538.9 million** Total Liquidity (in millions/billions) | Liquidity Component | June 30, 2025 | | :--- | :--- | | Available commitments for revolving loans, etc. | $2.13B | | Cash and cash equivalents | $509.46M | | **Total Liquidity** | **$2.64B** | - Key uses of cash in H1 2025 included **$586.1 million** for acquisitions, **$273.1 million** for capital expenditures, and **$134.6 million** for common stock repurchases[206](index=206&type=chunk)[209](index=209&type=chunk) - Days Sales Outstanding (DSO) improved to **62 days** as of June 30, 2025, from 68 days a year prior, indicating faster conversion of revenues to cash[205](index=205&type=chunk) - Subsequent to quarter end, in July 2025, Quanta used **$700.0 million** from its commercial paper program and revolving credit facility to finance the cash portion of the Dynamic Systems acquisition[194](index=194&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes occurred in market risk disclosures during H1 2025, with primary exposures remaining in interest rates and foreign currency exchange rates - There were no material changes to the company's market risk profile, with primary exposures remaining in **interest rates** and **currency exchange rates**[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with ongoing integration of four acquired businesses into internal control over financial reporting - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[217](index=217&type=chunk) - The company is in the process of integrating **four businesses** acquired in H1 2025 into its overall internal control over financial reporting[218](index=218&type=chunk) [PART II. OTHER INFORMATION](index=48&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with detailed information available in Note 13 of the financial statements - The company is subject to various lawsuits and claims in the ordinary course of business; for specific details, refer to **Note 13** of the Notes to Condensed Consolidated Financial Statements[223](index=223&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have occurred as of the filing date - As of the filing date, there have been **no material changes** to the risk factors described in the 2024 Annual Report[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, Quanta issued **257,357 unregistered shares** valued at **$86.0 million** for acquisitions and repurchased **67,172 shares** for **$16.0 million**, with **$365.1 million** remaining for future repurchases - In Q2 2025, the company issued **257,357 unregistered shares** of common stock valued at **$86.0 million** as part of acquisition and contingent consideration settlements[227](index=227&type=chunk) Stock Repurchase Program Activity | Period | Shares Repurchased | Average Price Paid | Program Availability (in millions) | | :--- | :--- | :--- | :--- | | April 1 - 30, 2025 | 67,172 | $238.00 | $365.10M | | May 1 - 31, 2025 | 0 | N/A | $365.10M | | June 1 - 30, 2025 | 0 | N/A | $365.10M | [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - During the three months ended June 30, 2025, no director or officer of Quanta adopted or terminated an insider trading arrangement under **Rule 10b5-1**[235](index=235&type=chunk)

Financial Data and Key Metrics Changes - The company reported strong double-digit growth in revenue, adjusted EBITDA, and adjusted earnings per share for Q2 2025, with revenues of $6.8 billion, net income of $229 million, adjusted diluted EPS of $2.48, and adjusted EBITDA of $669 million [7][12]. - The company generated cash flow from operations of $296 million and free cash flow of $170 million in the second quarter [12]. - The full-year 2025 financial expectations for revenue have been increased to a range of $27.4 billion to $27.9 billion, adjusted EBITDA to between $2.76 billion and $2.89 billion, and adjusted EPS to between $10.28 and $10.88 [13][14]. Business Line Data and Key Metrics Changes - The acquisition of Dynamic Systems is expected to enhance the company's craft skill capabilities and expand its addressable market across several strategic verticals [7][8]. - The company made a strategic investment in Bell Lumber and Pole Company, which is anticipated to enhance its utility infrastructure equipment portfolio [8]. Market Data and Key Metrics Changes - Utilities in the U.S. are experiencing significant increases in power demand driven by new technologies, including data centers and AI, which is expected to lead to historic investments in high voltage transmission infrastructure [11]. - The company noted that demand for its differentiated portfolio of self-performed craft labor solutions remains strong despite regulatory variability [13]. Company Strategy and Development Direction - The company's core strategy focuses on craft skilled labor, execution certainty, investment discipline, and strategic rationale, aiming to reinforce its differentiated platform and drive long-term sustainable value creation [9][10]. - The company differentiates itself through a solution-based approach that integrates craft labor with engineering, technology, and program management expertise [10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on expanding opportunities in the energy and infrastructure landscape, which is undergoing a fundamental transformation [10][11]. - The management team emphasized the importance of long-term relationships with customers and the ability to adapt to evolving industry dynamics [10][11]. Other Important Information - The company is evaluating refinancing alternatives to increase its post-transaction liquidity profile, ensuring continued support for operations and opportunistic capital investments [12]. - The company intends to maintain a leverage ratio profile of 1.5 to 2 times, aiming to remain investment grade [102][105]. Q&A Session Summary Question: Can you provide insights on backlog growth and the impact of recent legislation? - Management indicated confidence in sequential backlog growth driven by incremental transmission bookings, despite external noise from legislation [18][20]. Question: How has the bidding process changed with increased backlog? - Management noted that the ability to provide solutions and self-perform capabilities allows for more favorable bidding terms and increased selectivity on projects [29][30]. Question: What prompted the acquisition of Dynamic Systems? - The acquisition was driven by customer demand for more comprehensive solutions and the cultural fit of Dynamic Systems with the company [37][38]. Question: How is the company preparing for potential short-term slowdowns in renewables? - Management stated that the company has historically been able to move labor across segments and is not overly concerned about short-term fluctuations [62][64]. Question: What is the outlook for free cash flow given the higher adjusted EBITDA? - Management explained that while adjusted EBITDA is higher, the free cash flow outlook remains unchanged due to timing uncertainties related to large receivables [96][97].