Germany has given the green light for drilling as much as 13 billion cubic meters of natural gas at a protected marine site https://t.co/nYa2U3bwEd ...

Well, Israel uh has uh struck Iranian oil storage facilities and parts of Iran's biggest natural gas field as well this weekend, but that's not having an impact on the price of oil. Uh perhaps something of a surprise. Let's get to Brian Sullivan, of course, who covers all of these markets and so much more for us.Brian, what's your take in terms of the moves here we've seen uh in the commodity itself given all the news. the the take guys is that and by the way let's hope that what Megan was talking about som ...

Financial Data and Key Metrics Changes - Revenue increased by 7% sequentially to $712 million, with growth in each end market sector led by gas utilities [11][27] - Adjusted gross profit margins were strong at 21.5%, above the target of 21% [12][30] - Adjusted EBITDA was $36 million, or 5.1% of sales, an improvement over the previous quarter [13][31] - Operating cash flow from continuing operations was $21 million, reflecting strong working capital management [13][32] - Net income from continuing operations was $8 million, or $0.09 per diluted share, compared to a net loss in the previous quarter [31] Business Line Data and Key Metrics Changes - Gas utilities revenue was $273 million, an 8% increase driven by normalized buying patterns and increased capital budgets [28] - Diet sector revenue was $220 million, a 6% increase due to chemical project deliveries and mining activity [28] - PTI sector revenue was $219 million, an 8% increase driven by midstream customer projects [28] Market Data and Key Metrics Changes - U.S. revenue was $591 million, a 9% increase, with all end market sectors improving [29] - International revenue was $121 million, down 1% due to timing of project deliveries [29] Company Strategy and Development Direction - The company is optimistic about growth in the gas utilities sector, which is experiencing a resurgence [10][15] - A $125 million share repurchase program has been initiated, reflecting confidence in financial strength [10][11] - The capital allocation strategy focuses on maintaining a healthy balance sheet, targeting a net debt leverage ratio of 1.5 times or lower [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential revenue improvement in the second quarter, supported by a growing backlog [10][25] - The gas utilities sector is expected to be resilient amid macroeconomic uncertainties, with a 26% increase in backlog year-to-date [15][35] - Management acknowledged potential risks in the second half of 2025 due to tariffs and lower oil prices but maintained the annual guidance [26][33] Other Important Information - The company is focused on navigating tariff impacts and supply chain challenges, with over 60% of U.S. product sales sourced domestically [17][18] - The mining sector is expected to grow at a compound annual rate of approximately 10% over the next three to five years [24] Q&A Session Summary Question: How is inflation tracking in the business today? - Management noted that tariff impacts are primarily seen in steel products and emphasized efforts to mitigate costs for customers [46][47] Question: Did inventory step up in the first quarter? - Management confirmed a strategic increase in inventory to prepare for tariffs and the upcoming construction season [51][52] Question: Any updates on opportunities in gas utilities? - Management highlighted growth opportunities in gas utilities, including market share expansion and new services through the MTech Services joint venture [53][55] Question: What is the outlook for the diet sector? - Management indicated that the backlog increase is primarily in refining and chemical spaces, with growth driven by turnaround activities [71][72] Question: How is the international PTI business performing? - Management projected growth in the international PTI space, particularly in the North Sea and Europe, driven by project-related revenues [91][92]