Financial Data and Key Metrics Changes - The company reported record revenue of $262.1 million for the fourth quarter and $944.6 million for fiscal 2026, representing an increase of 13% and 8.1% respectively compared to the previous year [4][19][20] - Gross margin for the fourth quarter was 25%, up from 20.5% in the same quarter last year, while the full-year gross margin increased to 20.5% from 16.1% [4][20] - Net income for the fourth quarter was $49.2 million or $3.47 per diluted share, compared to $31.4 million or $2.22 per diluted share in the prior year [5][19] - EBITDA for the fourth quarter was $56 million with an EBITDA margin of 21.4%, compared to $39.3 million and 16.9% in the same period last year [5][19] Business Line Data and Key Metrics Changes - The Power segment generated revenues of $204 million in the fourth quarter, up from $197 million in the same quarter of fiscal 2025, contributing 78% of consolidated revenues [9] - The Industrial segment's revenue increased to $53 million from $33 million in the fourth quarter of 2025, contributing 20% of consolidated revenues [9] - The Telecommunications Infrastructure Services segment reported revenues of $5 million, up from $3 million in the fourth quarter of fiscal 2025, contributing 2% of consolidated revenue [10] Market Data and Key Metrics Changes - The company added $2.5 billion in new contract value during fiscal 2026, increasing the consolidated project backlog to over $2.9 billion [5][12] - The backlog composition includes approximately 77% natural gas projects, 14% renewable projects, and 9% industrial projects [13] Company Strategy and Development Direction - The company is focused on capitalizing on the increasing demand for reliable power generation capacity driven by the electrification of everything and the need to replace aging power facilities [6][11] - The company aims to maintain a disciplined approach in selecting projects that align with its capabilities and enhance long-term growth and profitability [11][24] - The company is open to M&A opportunities that could complement its current capabilities or enhance its geographic footprint [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for their expertise and capabilities, particularly in constructing large, complex gas-fired power facilities [8][25] - The company remains committed to executing projects effectively while managing risks and minimizing costly overruns [25][26] - Management highlighted the importance of operational excellence and the strength of their balance sheet as competitive advantages [21][24] Other Important Information - The company has $895 million in cash and investments, net liquidity of $421 million, and no debt as of January 31, 2026 [6][21] - The quarterly dividend was raised to $0.50 per share, marking the third consecutive increase in three years [6][22] Q&A Session Summary Question: What regions are seeing demand or interest in the pipeline? - Management noted opportunities across the country, particularly in Texas and the PJM region, without being constrained to specific areas [28] Question: What are the pricing dynamics for projects and margins? - Management emphasized a disciplined approach to pricing, taking into account market inflation and risks, while maintaining long-standing customer relationships [29][30] Question: What is the expected gross margin for 2027? - Management indicated that gross margins have trended higher but are influenced by various factors, making it difficult to provide specific guidance for 2027 [36] Question: How many new large natural gas projects can be closed in 2026? - Management stated they expect to add a handful of jobs over the next 12-20 months, with current capacity for 10-12 jobs simultaneously [39][40] Question: What is the status of labor and supply chain components? - Management expressed confidence in their backlog and noted improving conditions in the supply chain, which is catching up with increased demand [50][51] Question: Can you discuss behind-the-meter solutions and their impact? - Management acknowledged robust opportunities in behind-the-meter projects but emphasized the importance of selecting the right jobs that fit their portfolio [56]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.33, a 32% increase year-over-year [5] - Revenues increased by 9.6%, from $435.3 million to $477 million, driven primarily by rate increases [14][15] - The company expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 due to non-recurring benefits [6][21] Business Line Data and Key Metrics Changes - Both water and natural gas businesses performed well, contributing to the overall growth [5] - Water business revenue increased by approximately $27.9 million, while natural gas revenue increased by $6.3 million [15] - The natural gas division has successfully installed over 60,000 Intellis gas meters, exceeding its 2025 goal [9] Market Data and Key Metrics Changes - The combined entity from the merger with American Water will serve over 5 million connections across 17 states [3] - The company is well-positioned in a fragmented water industry, with 85% being municipal [4] - The company is actively pursuing opportunities in states like Pennsylvania, Ohio, Indiana, and Virginia, which are attractive for data center development [12] Company Strategy and Development Direction - The merger with American Water is seen as a transformational opportunity to create a leading water and wastewater utility [3] - The company aims to achieve a compounded annual growth rate of 8% for its combined utility rate base, with water expected to grow at 6% and natural gas at 11% [21][22] - The company is committed to infrastructure investments, targeting approximately $1.4 billion for 2025 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent growth despite economic fluctuations [21] - The company is focused on addressing infrastructure investment needs, particularly in aging water and wastewater systems [4] - Management highlighted the importance of sustainability and responsible business practices as foundational to the company's operations [8] Other Important Information - The company has made a $26 million investment in a data center project in Greene County, Pennsylvania, which includes plans for an 18 million-gallon-per-day water treatment plant [10][11] - The company is in discussions with data center developers representing over 5 gigawatts of power demand [12] - The company has adjusted its expectation for 2025 equity raises from $315 million to $350 million, largely due to the data center project [22] Summary of Q&A Session - No questions were taken during this earnings call, and the company will return to its normal Q&A process for the year-end call in February 2026 [24]