Financial Data and Key Metrics Changes - In Q2 2025, net revenue grew by 31% year over year, driven by a 23% organic growth rate and 8% from acquisitions [4][19] - Adjusted EBITDA reached $21.9 million, representing 23% of net revenue, up 71% from a year ago [21] - Net income rose to $15.4 million, up 236% from $4.6 million reported in 2024 [20] - Gross profit grew by 40%, with gross margin improving to 39.4%, up from 34.6% last year [20] Business Line Data and Key Metrics Changes - The energy segment, which constitutes about 85% of revenue, saw a 25% increase, driven by utility program funding and planning [19] - The engineering and consulting segment revenues increased by 16%, reflecting ongoing municipal demand and new contract wins [19] Market Data and Key Metrics Changes - Demand for services is expanding across end markets, particularly due to electrification and AI-driven data centers [13] - Electricity demand in the US is projected to grow by 50% between now and 2050, creating a favorable environment for the company [14] Company Strategy and Development Direction - The company is raising its full-year financial targets based on strong performance and a robust pipeline of opportunities [24][25] - The strategy includes leveraging recent acquisitions to enhance service offerings and cross-selling capabilities [32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's positioning to navigate potential economic slowdowns due to strong funding sources from utilities and public agencies [15] - The company is proactive in managing tariff risks and is working closely with clients to mitigate potential pricing pressures [14] Other Important Information - The company ended the quarter with $28 million in net debt and a net debt to adjusted EBITDA ratio of 0.4 times, indicating strong financial health [23] - Free cash flow for 2025 was consistent with the previous year at $24 million, reflecting effective cash management [24] Q&A Session Summary Question: Can you unpack the potential of Willdan to deliver on robust organic growth as we look into '26 and '27? - Management highlighted that organic growth has been increasing due to intercompany collaboration and cross-selling opportunities from recent acquisitions [31][32] Question: How does Willdan position itself for growth on the grid side? - The company emphasized its strong reputation and relationships with utility commissions, which facilitate trust and collaboration on grid planning and energy efficiency programs [35] Question: Can you provide insight into the character of your fixed-price work? - Management noted that fixed-price contracts offer good cash flows and are relatively low risk compared to traditional EPC contracts, as much of the pricing risk is managed through subcontracting [39][40] Question: Are there any specific large projects in the pipeline? - Management indicated that there are significant opportunities being pursued, including a large contract in New York and several opportunities in California expected to be awarded soon [43][44] Question: What is the impact of the elimination of the tax credit on future tax rates? - Management projected that the effective tax rate could increase by about five points if the tax credit is eliminated, but they are currently in a good position to manage this risk [61][82]

Core Viewpoint - NuScale Power is set to report its second-quarter 2025 results, with expectations of significant revenue growth and a widening loss per share compared to the previous year [1][3]. Financial Performance - The Zacks Consensus Estimate for second-quarter revenues is $9.07 million, reflecting an 834.54% increase from the same quarter last year [1]. - The estimated loss for the second quarter is 12 cents per share, which has widened by a penny over the past month, indicating a year-over-year increase of 61.29% [1]. Market Position and Demand - NuScale Power's performance is likely to benefit from strong electricity demand driven by AI-powered data centers and the global shift towards clean energy solutions [3]. - The company is focusing on strategic initiatives to align resources for commercialization and securing revenue-generating contracts [3]. Technological Advancements - Significant progress has been made in the manufacturing and commercialization of Small Modular Reactor (SMR) technology, with key partnerships established with Doosan Interability and ENTRA1 Energy [4]. - The collaboration with ENTRA1 Energy is designed to mitigate risks and align with customer requirements, which are crucial for the success of SMR deployment [5]. Stock Performance - NuScale Power shares have increased by 142% year-to-date, outperforming the Zacks Computer & Technology sector's return of 9.2% and the Zacks Electronics-Power Generation industry's rise of 140.1% [6]. - The company's shares have also outperformed its closest peer, BWX Technologies, which has returned 28.8% in the same period [6]. Industry Trends - The demand for energy is expected to rise significantly, particularly from data centers, which are projected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028 [15]. - Major technology companies like Meta Platforms, Microsoft, Alphabet, and Oracle are increasingly committing to nuclear energy, including SMR technology, to meet sustainability goals [16][17]. Competitive Landscape - Despite advancements, NuScale Power faces stiff competition from companies like Oklo and BWX Technologies in the SMR sector [18]. - Oklo has recently signed a memorandum of understanding with Korea Hydro & Nuclear Power to advance its nuclear technology, with its shares surging 260% year-to-date [19]. Conclusion - NuScale Power's advancements in SMR technology and partnerships position it as a key player in sustainable energy, but challenges remain in a competitive market and concerns over valuation persist [20][21].