Financial Data and Key Metrics Changes - Gross revenues for Q1 2025 increased by 10% to $234 million compared to $212.6 million in Q1 2024, marking record first-quarter results for the company [12] - Gross profit rose to $123.2 million, a 10% increase from $111.7 million in the prior year [12] - Net income was $428,000, up from $77,000 in the same quarter last year, with GAAP diluted earnings per share at $0.10 compared to $0.00 previously [13] - Adjusted EBITDA increased by 8% to $29.7 million from $27.6 million year-over-year [13] - Strong cash flows from operations reached $38.4 million, representing a 96% increase over the first quarter of last year [13] Business Line Data and Key Metrics Changes - Infrastructure segment grew by 12% in Q1 2025 compared to the same period last year, driven by strong investments in utilities and transportation [21] - Buildings and Technology segment reported a 17% revenue growth in Q1 2025 versus Q1 2024, with data centers now comprising 15% of buildings revenues [26] - Geospatial segment growth was slowed due to delays in federal contract awards, but is expected to accelerate as the year progresses [9][32] Market Data and Key Metrics Changes - The company noted robust investments in infrastructure across the Northeast and Southeast regions of the U.S., with funding for projects secured before commencement [22] - The Geospatial segment is seeing high growth in utilities, transportation, and forestry, with a focus on asset management applications [31] Company Strategy and Development Direction - The company aims for organic growth of 5% to 9% in 2025, with margin expansion of 150 basis points and free cash flow conversion of 60% of adjusted EBITDA [10][46] - Strategic acquisitions are being pursued to enhance the service platform and accelerate organic growth, with three acquisitions completed in Q1 2025 [11][38] - The company is focusing on integrating geospatial capabilities with engineering expertise to create scalable and efficient solutions [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to economic uncertainties, emphasizing the non-discretionary nature of their services [6][49] - The outlook for the remainder of 2025 remains positive, with reaffirmed guidance of $1.026 billion to $1.045 billion in gross revenues [46][110] - Management highlighted strong cash flow conversion and a reduced net leverage ratio, indicating a solid financial position for future growth [14][109] Other Important Information - The company has implemented margin improvement initiatives, including reductions in indirect labor and office consolidations, expected to yield benefits in the second half of the year [40][80] - The Geospatial software segment has shown double-digit growth and improved profitability, attributed to significant development investments made in 2024 [32][44] Q&A Session Summary Question: What is the outlook for the Geospatial segment in Q2 and beyond? - Management indicated that the Geospatial segment faced internal integration challenges but expects improvements in efficiency and profitability as the year progresses [54][56] Question: How does the federal work split in the Geospatial segment look? - Approximately 48% of Geospatial revenues come from federal contracts, with expectations for growth in the commercial space as well [57][58] Question: What are the profit margin expectations for the year? - The company is targeting a 150 basis points margin expansion, with gradual improvements expected as efficiency measures take effect [75][80] Question: How will tariffs impact client projects? - The company has limited exposure to tariffs, and no significant disruptions have been reported in project timelines due to tariff-related issues [94][100] Question: What is the status of fire hardening services following recent disasters? - While it is still early for contracts to be finalized, there is increased activity in fire hardening services, particularly in municipalities affected by fires [101][102]