Financial Data and Key Metrics Changes - Third quarter revenue was $866 million, up 29% year-over-year, with organic revenue growth of 12% excluding acquisitions [12][14] - Adjusted EBITDA increased by 19% year-over-year to $151 million, driven by strong performance in commercial operations [12][14] - Adjusted earnings per share rose by 20% to $1, supported by robust operating performance [12] - Free cash flow for the quarter was $95 million, with an anticipated full-year free cash flow of approximately $285 million [13][16] Business Line Data and Key Metrics Changes - Government operations revenue increased by 10%, with adjusted EBITDA up 1%, driven by naval propulsion and special materials [14] - Commercial operations revenue grew by 122%, with organic revenue growth of 38%, primarily due to the Kinectrics acquisition and strong performance in commercial nuclear power and medical isotopes [14][15] - Adjusted EBITDA in commercial operations was $36 million, up 163%, resulting in an adjusted EBITDA margin of 14.2% [15] Market Data and Key Metrics Changes - The total backlog reached $7.4 billion, up 23% from the previous quarter and 119% year-over-year, driven by large multi-year national security contracts [3][4] - The company is experiencing unprecedented demand in nuclear solutions across government and commercial sectors, particularly in defense fuels and medical isotopes [3][19] Company Strategy and Development Direction - The company is focused on operational excellence and leveraging artificial intelligence and advanced manufacturing to improve productivity and margins [4][20] - Strategic investments are being made in special materials and advanced nuclear technologies, with significant contracts awarded for uranium enrichment and high purity depleted uranium [8][9] - The company aims to exceed medium-term financial targets and anticipates record financial results in 2026 [4][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of financial strength, with a robust backlog and good visibility into future demand [4][18] - The company highlighted the importance of decarbonization and electrification trends as tailwinds for growth in nuclear solutions [19] - Management acknowledged potential risks, including government shutdowns and timing of commercial nuclear opportunities, but remains optimistic about future growth [66] Other Important Information - The company is transitioning to manage the Strategic Petroleum Reserve contract and is in the preferred bidder period for Canadian Nuclear Laboratories [5] - The Kinectrics acquisition is performing well, with significant growth opportunities identified in transmission and distribution, offshore wind cable testing, and nuclear utility support [32][33] Q&A Session Summary Question: Did the company book any revenue on the two new contracts in the quarter? - The contribution from the new contracts was very modest, with seasonality affecting the fourth quarter revenue expectations [24] Question: What is the approach for the Janus program? - The company intends to compete for the Janus program, typically not owning and operating reactors but finding the right partners [27] Question: What are the key takeaways from the Kinectrics acquisition? - Kinectrics is outperforming expectations, particularly in transmission and distribution, and is well-suited for life extension programs [32][33] Question: What are the main risks to achieving the 2026 outlook? - Risks include potential delays in commercial nuclear opportunities and the impact of an extended government shutdown [66]