Financial Data and Key Metrics Changes - In Q3 2025, net revenue grew by 26% year-over-year, driven by a 20% organic growth rate, marking the fourth consecutive year of double-digit organic growth [4][11] - Gross profit increased by 30% to $67.1 million, up from $51.6 million last year, due to revenue growth and solid project execution [12] - Pre-tax income rose by 91% to a record $14.3 million, while net income increased by 87% to $13.7 million [13] - Adjusted EBITDA reached a new record of $23.1 million, representing a 53% increase from the previous year [13] - For the nine months of 2025, contract revenue was up 20% year-over-year to $508 million, with net revenue increasing by 27% to $275 million [14] Business Line Data and Key Metrics Changes - The energy segment constitutes about 85% of revenue, while engineering and consulting work accounts for approximately 15% [5] - Utility business, making up 41% of revenue, continues to perform well with a solid foundation of recurring revenue from long-term contracts [5] - Work for state and local governments, which represents 44% of revenue, is growing organically at a double-digit pace [6] Market Data and Key Metrics Changes - Demand for electricity is increasing, driven by factors such as data centers, electric vehicles, and the electrification of building systems [9][10] - The U.S. electricity load growth is forecasted to be between 0.7 and 1.2 terawatt hours over the next decade, indicating a dynamic long-term growth market [9] Company Strategy and Development Direction - The company is raising its full-year financial targets for 2025, expecting net revenue between $360 million and $365 million and adjusted EBITDA in the range of $77 million to $78 million [17] - The company is focused on cross-selling capabilities, particularly with recent acquisitions, to enhance growth opportunities [22][25] - The company is well-positioned to help utilities and communities navigate significant infrastructure investment cycles driven by aging infrastructure modernization [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing improved performance in cross-selling and a strong pipeline of opportunities [22][24] - The company does not foresee workforce sourcing as an impediment to growth, reporting a stable employee count and zero turnover in senior management [26][27] - Management remains optimistic about securing large contracts in New York, which are expected to drive growth in 2026 [41] Other Important Information - The company ended the quarter with only $16 million in net debt, providing financial flexibility for targeted acquisitions [15] - Free cash flow for the first nine months was $34 million, consistent with the previous year, indicating strong cash generation [15] Q&A Session Summary Question: What is driving the increased customer demand and how does the company plan to manage capacity? - Management noted that rising electricity prices and increased demand are key factors, along with improved cross-selling capabilities leading to new revenue streams [22][23] Question: Can you discuss the collaboration between APG and other areas of the company? - Management highlighted effective collaboration across service lines, with upfront consulting work feeding into project planning and execution [25] Question: How is the company managing workforce flexibility and potential growth impediments? - Management stated that they do not see workforce sourcing as a growth impediment, with effective hiring practices and a stable senior management team [26][27] Question: What is the status of the potential $100 million contract with New York? - Management remains optimistic about securing several large contracts in New York, which are expected to contribute to growth in 2026 [41]

Financial Data and Key Metrics Changes - In Q3 2025, net revenue grew by 26% year-over-year, driven by a 20% organic growth rate, marking the fourth consecutive year of double-digit organic growth [4][11] - Gross profit increased by 30% to $67.1 million, up from $51.6 million last year, due to revenue growth and solid project execution [11][12] - Pre-tax income rose by 91% to a record $14.3 million, while net income increased by 87% to $13.7 million [13][14] - Adjusted EBITDA reached a new quarterly record of $23.1 million, representing a 53% increase from the previous year [13] - For the nine months of 2025, contract revenue was up 20% year-over-year to $508 million, with net revenue increasing by 27% to $275 million [14] Business Line Data and Key Metrics Changes - The energy segment constitutes about 85% of revenue, while engineering and consulting work accounts for approximately 15% [5] - Utility business, making up 41% of revenue, continues to perform well with long-term contracts providing a strong foundation of recurring revenue [5][6] - Work for state and local governments, which represents 44% of revenue, is growing organically at a double-digit pace [6] Market Data and Key Metrics Changes - Demand for electricity is increasing, driven by data centers, electrification, and new industrial demand [9][10] - The U.S. electricity load growth is forecasted to be between 0.7 TWh and 1.2 TWh over the next decade, indicating a dynamic long-term growth market [9] Company Strategy and Development Direction - The company is raising its full-year financial targets for 2025, expecting net revenue between $360 million and $365 million and adjusted EBITDA in the range of $77 million to $78 million [17][18] - The company is focused on cross-selling capabilities, particularly with recent acquisitions, to enhance growth and operational efficiency [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market, noting that electricity prices are rising and demand is increasing, which supports continued growth [22] - The company is well-positioned to navigate the transformation in electricity markets and capitalize on infrastructure investment cycles [10] Other Important Information - The company ended the quarter with only $16 million in net debt, providing financial flexibility for future acquisitions [15][16] - Free cash flow for the first nine months was $34 million, consistent with the previous year, indicating strong cash generation [15] Q&A Session Summary Question: What is driving the increased customer demand and how does the company plan to manage capacity? - Management noted that the market is strong, with rising electricity prices and increased demand, and emphasized improved cross-selling capabilities leading to new revenue [22][23] Question: Can you discuss the collaboration between APG and other areas of the company? - Management highlighted effective collaboration across service lines, with upfront consulting work feeding into project planning and execution [25] Question: How is the company managing workforce flexibility and potential hiring challenges? - Management stated that they do not see workforce sourcing as an impediment to growth, reporting zero turnover in senior management and a growing employee count [26][27] Question: Are there any updates on the potential $100 million contract with the state of New York? - Management remains optimistic about several large contracts in New York and expects them to drive growth in 2026 [41]

Financial Data and Key Metrics Changes - In Q3 2025, net revenue grew by 26% year-over-year, driven by a 20% organic growth rate, marking the fourth consecutive year of double-digit organic growth [4][12] - Gross profit increased by 30% to $67.1 million, up from $51.6 million in the previous year, contributing to a 91% increase in pre-tax income to a record $14.3 million [12][13] - Net income rose to $13.7 million, an 87% increase from $7.3 million in Q3 2024, with adjusted EBITDA reaching a new record of $23.1 million, up 53% year-over-year [13][14] - For the nine months of 2025, contract revenue was up 20% year-over-year to $508 million, while net revenue increased 27% to $275 million [14] Business Line Data and Key Metrics Changes - The energy segment constitutes about 85% of revenue, with the utility business making up 41% and government work accounting for 44% of revenue, both showing strong organic growth [5][6] - The engineering and consulting segment, which comprises 15% of revenue, also saw significant demand, particularly in electricity usage at data centers [5] - The recent acquisition of APG is expected to drive over 50% growth in 2026, contributing to the overall performance of the engineering segment [7] Market Data and Key Metrics Changes - Demand for electricity is increasing, driven by data centers, electric vehicles, and the electrification of building systems, with forecasts indicating 0.7 to 1.2 terawatt hours of U.S. electricity load growth over the next decade [10][11] - The company is well-positioned in a dynamic market, with utilities investing in infrastructure modernization to enhance reliability and flexibility [11] Company Strategy and Development Direction - The company is raising its full-year financial targets for 2025, expecting net revenue between $360 million and $365 million and adjusted EBITDA in the range of $77 million to $78 million [17][18] - The focus on cross-selling capabilities, particularly with new acquisitions, is expected to drive future growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's strength, citing rising electricity prices and increased demand as key factors for growth [21] - The company does not foresee workforce sourcing as an impediment to growth, reporting zero turnover in senior management and a growing employee count [25] Other Important Information - The company ended the quarter with $16 million in net debt and $183 million in total available liquidity, providing financial flexibility for future acquisitions [15][16] - The company has a strong pipeline of opportunities, converting several significant contracts since the last conference call [9] Q&A Session Summary Question: What is driving the increased customer demand and how does the company plan to manage capacity? - Management noted that the market is strong with rising electricity prices and improved performance in cross-selling, leading to significant new revenue [21][22] Question: How is APG's work impacting the company's overall execution capacity? - APG's collaboration with other divisions is enhancing resource utilization and improving project execution [24] Question: Is workforce sourcing a challenge for the company? - Management stated that workforce sourcing is not a challenge, highlighting effective hiring and retention practices [25] Question: What is the status of the potential $100 million contract with New York? - Management remains optimistic about securing several large contracts in New York, which are expected to drive growth in 2026 [43]

Core Viewpoint - The article highlights the significant increase in electricity demand across various regions in China due to high temperatures and economic growth, with a record peak load reached on July 4th, 2023 [1] Group 1: Electricity Demand - The national peak electricity load reached 1.465 billion kilowatts on July 4, 2023, an increase of approximately 200 million kilowatts compared to the end of June [1] - This peak load is the highest in history, surpassing the previous record of 1.451 billion kilowatts set in 2024, and shows a year-on-year increase of nearly 150 million kilowatts [1] - The eastern region of China, including six provinces (Inner Mongolia, Jiangsu, Anhui, Shandong, Henan, and Hubei), has also set historical highs for electricity load [1] Group 2: Weather Impact - The China Meteorological Administration forecasts sustained high temperatures from July 4 to July 10, particularly in the Huanghuai, Jianghan, and Jiangnan regions, with some areas expected to reach or exceed historical temperature extremes [1] - The ongoing high temperatures are anticipated to further drive up electricity demand in the East and Central China regions [1] Group 3: Supply Management - The National Energy Administration is closely monitoring weather changes and the electricity supply-demand situation [1] - Guidance will be provided to localities and power companies to ensure stable and full operation of power generation units, as well as to facilitate inter-provincial and inter-regional electricity exchanges to address any emerging issues [1] - The focus is on ensuring that the public's electricity needs for a cool summer are met while supporting high-quality economic and social development [1]