Financial Data and Key Metrics Changes - Sales for the quarter reached $8.2 billion, representing a 5% increase year-over-year, driven by organic growth of 4% and acquisition growth of 1% [5][10] - Gross margin improved to 30.7%, an increase of 60 basis points compared to the previous year [6][11] - Operating profit grew by 14% to $808 million, with an operating margin of 9.9%, reflecting an 80 basis points expansion [6][11] - Diluted earnings per share rose nearly 16% to $2.84 [6][11] - The company maintained a strong balance sheet with a net debt to EBITDA ratio of 1.1 times [6][11] Performance by Business Lines - Residential end markets, which account for about half of U.S. revenue, faced challenges with a 1% decline in revenue [7] - Non-residential end markets performed better, with revenue increasing by 12% due to strength in large capital projects [7] - Waterworks revenues grew by 14%, driven by large capital projects and public works [8] - Ferguson Home experienced a 1% growth, while residential trade plumbing and HVAC declined by 4% and 6% respectively [9] Market Data and Key Metrics Changes - U.S. net sales increased by 5.3%, with organic growth of 4.4% and a 0.9% contribution from acquisitions [11] - Canadian net sales were up 2.2%, with organic growth of 0.7% and a 4.6% contribution from acquisitions, but faced a 1.6% adverse impact from foreign exchange [12] Company Strategy and Development Direction - The company is focused on leveraging multi-year tailwinds in both residential and non-residential markets, particularly in waterworks and HVAC sectors [6][17] - Ferguson aims to consolidate fragmented markets through acquisitions, with the recent acquisition of Moore Supply Company enhancing its HVAC presence [13][17] - The company is committed to returning surplus capital to shareholders while maintaining flexibility for strategic opportunities [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium-term market performance despite current challenges, particularly in residential housing starts and HVAC markets [6][17] - The company anticipates approximately 5% revenue growth for the year and an operating margin range of 9.4% to 9.6% [15][17] - Management noted that the early part of 2026 is expected to see similar market conditions as the end of 2025, with growth rates around 3% [25][26] Other Important Information - The company declared a 7% increase in its quarterly dividend to $0.89 per share [6][13] - Capital expenditures for the quarter were $118 million, contributing to a free cash flow of $325 million [13] Q&A Session Summary Question: On data center and large capital projects - Management estimates that large capital projects account for mid- to high-single-digits percentage of total revenue, with data centers making up over 50% of that [20] Question: Outlook for November and early 2026 - Management indicated that Q4 growth rates are expected to be around 3%, consistent with prior expectations [25][26] Question: HVAC market conditions - The HVAC market is currently under pressure, with challenges expected to persist, but management remains optimistic about long-term growth [43] Question: SG&A investments and impacts - The company continues to invest in trainees and HVAC counter expansions, with positive impacts on performance despite a challenging market [46][50]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $251 million, a slight decrease from $257 million in the same quarter of fiscal 2025, primarily due to the completion of significant projects [7][18] - Gross profit for the third quarter was approximately $46.9 million, with a gross margin of 18.7%, up from 17.2% in the prior year [18][19] - Net income for the quarter was $30.7 million, or $2.17 per diluted share, compared to $28 million, or $2 per diluted share, for the same period last year [21] - EBITDA increased to $40.3 million, with an EBITDA margin of 16%, compared to 14.6% in the prior year [21][22] - The company maintained a strong balance sheet with $727 million in cash and investments, net liquidity of $377 million, and no debt [9][24] Business Line Data and Key Metrics Changes - Power Industry Services segment revenues decreased by 8% to $196 million, representing 78% of total revenues [10] - Industrial Construction Services segment revenues increased by 19% to $49 million, contributing 20% of consolidated revenues [10] - Telecommunications Infrastructure Services segment revenues grew by 76% to $6.3 million, accounting for 2% of total revenues [11] Market Data and Key Metrics Changes - The company has a record backlog of approximately $3 billion, which includes over 6 gigawatts of new thermal and renewable power plants [4][14] - The backlog consists of approximately 79% natural gas projects and 16% renewable projects, indicating a strong demand for new natural gas facilities [13][14] Company Strategy and Development Direction - The company aims to leverage its core competencies to capitalize on existing and emerging market opportunities, focusing on disciplined risk management and project management effectiveness [29][30] - There is a commitment to maintaining a presence in the renewable space while expecting gas-fired and other thermal power facilities to represent a substantial portion of the backlog in the near and midterm [13][14] - The company is dedicated to driving long-term value creation for shareholders through disciplined capital allocation and potential M&A opportunities [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, driven by the electrification of everything and the aging of existing power facilities [5][12] - The company expects to continue adding projects to its backlog in the high-demand environment over the coming years [30] - Management highlighted the importance of reliable energy supply for AI data centers and complex manufacturing operations, positioning the company as a key player in energy infrastructure [12][27] Other Important Information - The company raised its quarterly dividend to $0.50, marking the third consecutive increase in the past three years [9][25] - The company has returned approximately $109.6 million to shareholders since initiating its share buyback program in November 2021 [26] Q&A Session Summary Question: Insights on margins moving forward - Management has not disclosed specific pricing on gas projects but maintains a flexible pricing model based on market conditions and project specifics [33][34] Question: Sustainable gross margin targets - Management remains conservative with margin guidance but has exceeded previous benchmarks, indicating excitement about future opportunities [35][36] Question: Manpower challenges with multiple projects - Labor remains a challenge, but the company is focused on growing its headcount to meet project demands [37][38] Question: Pipeline cadence and future job additions - Management expects to add a handful of jobs over the next 12 to 24 months but cannot predict exact timing due to project start date variability [42][44] Question: Changes in the competitive environment - The competitive landscape has shifted, with fewer companies able to handle large, complex projects, but there is enough work for all players in the market [45][46] Question: Project selection criteria - The company remains flexible in contract terms and is focused on building relationships with both repeat and new customers [53][56] Question: Opportunities from private players or hyperscalers - Management is open to participating in behind-the-meter projects and evaluates each opportunity based on fit and contract terms [62][63] Question: Geographic opportunities for gas generation - The company sees opportunities in various regions, including Texas and the PJM area, and is familiar with the competitive landscape there [70][71]

Financial Data and Key Metrics Changes - Net sales for the quarter were $247 million, up 3% sequentially, but down 16% year-over-year from $292.6 million in fiscal 2025 [4][11] - Adjusted EBITDA rose 12% sequentially to $18 million, but decreased by $9.1 million compared to the same period last year [4][11] - Adjusted net loss for the second quarter was $6.7 million, a $11.9 million change from fiscal 2025, with a sequential reduction of $1.1 million [11] - Free cash flow improved by $47 million year-over-year, with a usage of $11.6 million in the second quarter compared to $58.4 million in the same quarter last year [5][13] Business Line Data and Key Metrics Changes - The power solutions segment is aligned with key megatrends, including data centers and vehicle electrification, with expectations for long-term growth [6][8] - Data center activity generated over $80 million in annual sales last year, with continued growth anticipated [7][8] - The company expects power sales in fiscal 2026 to be in line with fiscal 2025, with a sales acceleration expected in the future [8] Market Data and Key Metrics Changes - Automotive sales represent 44% of total sales, with EVs accounting for 41% of that, but North American EV sales were less than $12 million year-to-date [19][20] - The company has faced headwinds in the EV market primarily due to delays in launches, particularly in North America [19][20] - The data center segment is expected to grow, with the transition to vendor-managed inventory providing opportunities for market share [21] Company Strategy and Development Direction - The company is undergoing a transformation to improve operational performance, with significant management attention on facilities in Egypt and Mexico [5][6] - A strategic relocation of the corporate headquarters to Southfield, Michigan, aims to enhance operational efficiency and customer proximity [7] - The company is focused on leveraging synergies and improving execution to build credibility with customers and shareholders [10][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of fiscal 2026 being stronger, reaffirming full-year sales guidance of $900 million to $1 billion and Adjusted EBITDA of $70 million to $80 million [5][14] - The company is navigating a dynamic operating environment with external volatility impacting revenue predictability [34][66] - There is confidence in the company's ability to return to profitability through cost-cutting and revenue growth initiatives [41][42] Other Important Information - The fiscal 2026 is a 52-week year, while fiscal 2025 was a 53-week year, affecting year-over-year comparisons [11] - The company ended the quarter with $118.5 million in cash, up $21.5 million year-over-year, and net debt decreased by $29.6 million [12][13] Q&A Session Summary Question: Trends in the power business regarding EV and data center growth - Management noted that EV headwinds have already been accounted for, with optimism about data center growth and the impact of vendor-managed inventory [19][21] Question: Guidance comfort level for the second half of the year - Management indicated that external volatility prevents narrowing guidance, but performance has improved compared to previous periods [34] Question: Improvement in industrial operating profit - The improvement is attributed to better plant performance rather than solely data center growth [36] Question: Roadmap to returning to profitability - The focus will be on cost-cutting and ramping up new programs, with expectations for revenue growth as market conditions improve [41][42] Question: Cash outflow in the quarter and receivables - The cash outflow was seasonal, with some receivables collected after the quarter ended [62][64] Question: Tariff impacts and updates - There are no new updates on tariffs, and the company continues to work with customers to mitigate impacts [65] Question: Outlook for calendar year 2026 in problematic end markets - Management expects slight improvements in the automotive sector and commercial vehicles in the latter half of fiscal 2026 [68]

Core Viewpoint - Constellation Energy is well-positioned to benefit from a significant increase in electricity demand driven by factors such as artificial intelligence, data centers, and electric vehicles, particularly in the nuclear power sector [1][3][4]. Group 1: Demand Growth - Electricity demand increased by only 9% from 2000 to 2020, but projections for 2020 to 2040 have been revised significantly, with expected growth rising from 21% in 2021 to 38% in 2024, and further to 55% in 2025 [2]. - The shift towards clean energy sources, particularly nuclear power, is expected to be a major beneficiary of this demand increase as the world moves away from coal [3]. Group 2: Company Positioning - Constellation Energy is the largest provider of nuclear power in the United States and operates as an independent power producer, selling electricity on the open market under long-term contracts [4]. - The company has secured a deal with Microsoft to supply power from the Three Mile Island site, indicating strong demand for nuclear energy and the potential for reopening previously shuttered plants [6][7]. Group 3: Valuation Concerns - Constellation Energy's price-to-book (P/B) ratio is 7.8 and its price-to-earnings (P/E) ratio is over 41, significantly higher than the average utility sector P/B ratio of 2.4 and P/E ratio of approximately 20.5 [9]. - The stock has experienced a pullback of around 10% from its all-time high, but the valuation remains high, suggesting that investors may be overly optimistic about the company's future prospects [11]. Group 4: Investment Sentiment - Investors need a strong conviction in the nuclear power narrative to justify the premium on Constellation Energy's stock, and conservative investors may prefer to remain cautious [12]. - The stock is viewed as an expensive option for gaining exposure to nuclear power, especially considering the potential for significant price volatility [13].

Your state has been looking to attract a lot of investment. Some very big numbers are being thrown around, including a trillion dollars, you mentioned. How do you plan to do it.Today, the economy of India has matured. And funds are available on our door. We need people to transform.I have seen IT. To promote IT I sorted hi-tech city. That is late nineties story.Today you are seeing AI, datacenter and quantum computers. Leap frog. And also, Government of India wanted to go in a big way.Technology breakthroug ...

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [10] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [10][4] - Selling, general, and administrative costs decreased by $2.9 million to $14.6 million compared to the same period in 2024 [11] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [13] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, an increase from $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [14] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [15] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [15] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [6] - The company expects to burn approximately 39% of the backlog over the next 12 months [16] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, which is expected to de-risk the earnings profile [6] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with a strong emphasis on data center opportunities [7][8] - The company is well-positioned to benefit from the Infrastructure Investment and Jobs Act (IIJA) and recent state-level funding initiatives, such as Texas's Proposition 4 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for infrastructure projects and the potential for strong cash flow from operations in 2026 [32] - The company anticipates that legacy projects will have less impact on overall results in 2026 as they continue to wind down these projects [16] - Management maintains confidence in the long-term outlook and future direction of the business, expecting to improve profitability as they focus on core work [41] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [16] - A one-time non-cash tax expense of $57.3 million was recorded due to a valuation allowance on net deferred tax assets [12] Q&A Session Summary Question: Inquiry about data centers and private projects - Management indicated that they are looking at data center opportunities that align with their core market, with a mix of private and public projects [21] Question: Progress on legacy claims - Management expressed optimism about settling more legacy claims in the next 12 months, noting progress on smaller disputes [22][23] Question: Free cash flow outlook for Q4 - Management expects to see positive cash flow overall from operations in 2026, despite potential decreases in Q4 and Q1 of 2026 [32] Question: Size and runway of quick-turn projects in the Civil segment - Management highlighted strong civil margins and the positive impact of Texas's Proposition 4 on future projects [34] Question: Competitive advantage with tunnel boring machines - Management noted that they have a significant advantage with their fleet of tunnel boring machines, which positions them well for upcoming opportunities [35] Question: Expectations for core business margins in 2027 - Management anticipates improved profitability in 2027 as they focus on core work and complete legacy projects [41]

Energy Demand and Environmental Impact - Energy demand is expected to double by 2030, posing a steep cost to the planet [1][4] - Unbridled appetite for energy may be killing human societies, with AI potentially doubling energy needs by 2050 [4] - Data centers currently consume 1 in 3% of global electricity, projected to double by 2030, equaling Japan's total electricity consumption [12] - Shipping accounts for 2% of global CO2 emissions, highlighting the need for sustainable alternatives [89] Renewable Energy Solutions - Renewable energy sources like tidal power offer predictable and continuous energy [45][60] - Orkney generates over 100% of its electricity demand from renewables, showcasing a successful transition [62] - Tidal turbines can generate 2 megawatts, equivalent to powering 2,000 UK homes [51] - E-methanol, produced from renewable energy, can replace fossil fuels in heavy transport, aviation, and the chemical sector [69][73] Social and Economic Considerations - Rising energy demands exacerbate the climate crisis, disproportionately affecting vulnerable communities [20][41] - Low-cost cooling solutions can significantly reduce indoor temperatures in informal settlements, improving living conditions [31] - Fair conditioning has developed over 50 low-cost cooling methods, shared open-source without profit motive [38] Data Centers and AI - AI's energy demands are often hidden, requiring a behind-the-scenes look at data center power consumption [6] - Data centers require significant power, with one campus needing 45 megawatts, comparable to a city [10] - New GPUs for AI can consume 10 to 20 times more energy than traditional CPUs [11] - Recovering heat from data centers can be valuable for heating adjacent buildings or homes [14]

Company Strategy & Performance - PG&E employs a "simple affordable model" involving infrastructure investment offset by operating cost reductions, load growth, and improved credit metrics to lower rates [2][3] - The company has lowered rates three times in the last 15 months and plans to lower them again in 2026 while growing earnings at over 9% per year [4] - PG&E has buried 1,000 miles of power lines, reducing costs by $1 million per mile compared to initial projects [5] - Ignitions were down 35% year-over-year due to layers of protection and technology [6] Data Center & Load Growth - PG&E's service area is experiencing load growth due to increased compute demand from AI, which is being priced appropriately so residential customers are not subsidizing large loads [8][10] - The company has a site in Woodland prepared for up to 1 gigawatt of data center load, but most applications are for 100 megawatts, described as "Goldilocks load" [13] - Compute data centers are distributed throughout PG&E's service area, supporting companies like PayPal, Zoom, and Netflix [11] Nuclear Energy & Diablo Canyon - Diablo Canyon nuclear plant provides approximately one-ninth (11%) of California's daily power production [14] - PG&E has a 5-year extension from the state for Diablo Canyon and has received a 20-year operating permission from the Nuclear Regulatory Commission, conditional upon final state permits [15] - Legislative action will be necessary to extend the operation of Diablo Canyon beyond the initial 5-year extension [16][17]

Haha exactly 😂Yun-Ta Tsai (@YunTaTsai1):Designing an inference chip for robots is actually very difficult.In data centers each chip is bathed in jacuzzi and babysat by nannies. If they died it would be hot swapped by one of their clones.The fault rate of GPUs in datacenter is actually quite high. Industrial average ...

[Music] Hey, Morgan. Open AAI is asking the Trump administration to help lower the cost of AI infrastructure according to a letter obtained by Bloomberg. The startup wants the White House to expand a Key Chips Act tax credit to cover AI data centers and related components like transformers.Now, this comes just one day after OpenAI faced blowback over a comment made by its CFO implying that it would look for a government backs stop for its $1.4% trillion in comput deals. They have since been walking that bac ...