Financial Data and Key Metrics Changes - The company achieved a gross profit dollar growth of 16% and revenue growth of 8% in Q4 FY2025 compared to the same quarter last year, generating $61 million in operating cash flow [4][15] - The quarterly gross profit margin reached a record of 31.4%, which is 215 basis points higher than the prior year [4][18] - For the full year FY2025, revenues increased by 9% to $1.1 billion, with net income rising to $180.7 million, or $14.86 per diluted share, compared to $149.8 million, or $12.29 per diluted share in FY2024 [22][23] Business Line Data and Key Metrics Changes - The electric utility sector saw a doubling of revenue compared to the same period last year, while the light rail traction sector increased by 85% [17] - The commercial and other industrial sector experienced a 9% decline due to project timing, while revenues from petrochemical and oil and gas sectors decreased by 25% and 10%, respectively [17][19] - The company booked $271 million in new orders in Q4 FY2025, a 1% increase year-over-year, with a total of $1.2 billion in new orders for the full year, marking a 9% increase from FY2024 [7][21] Market Data and Key Metrics Changes - The company reported that electric utility and oil and gas sectors each now make up one-third of the total backlog, which increased to $1.4 billion, up $41 million from the end of FY2024 [16][19] - International revenues increased by 38% to $68 million, while domestic revenues rose by 2% to $239 million [17] Company Strategy and Development Direction - The company is focusing on diversifying its business, with non-industrial markets, including electric utility and commercial sectors, accounting for 41% of revenue in FY2025 [5][6] - A $12.4 million investment to expand capacity at the Jacintoport facility is aimed at supporting oil and gas customers, particularly for anticipated LNG project developments [9][10] - The acquisition of REMSDAC is expected to enhance the company's electrical automation strategy and expand its product offerings in various markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial environment for all end markets, expecting continued momentum into FY2026, particularly in the oil and gas and electric utility sectors [12][13] - The company noted a divergence in market performance, with some softness in traditional oil and gas markets being offset by strength in electric utility and data center opportunities [8][12] - Management highlighted the importance of maintaining a stable pricing environment and disciplined project execution to support future performance [24] Other Important Information - The company holds zero debt and reported cash, cash equivalents, and short-term investments of $476 million, reflecting a strong liquidity position [23] - Research and development spending increased by 17% to $11 million in FY2025, focusing on new product design and development [22] Q&A Session Summary Question: Changes in competitive landscape or pricing environment - Management noted that the oil and gas market remains healthy, but some regions are more price-sensitive, while the electric utility market is more demand-driven [29][30] Question: Seasonality and first-quarter outlook - The first quarter is expected to be seasonally softer due to holidays, but overall optimism for the year remains high [31] Question: SG&A expenses and one-time M&A costs - SG&A expenses increased by $5 million, with $3 million attributed to compensation and nearly $2 million to acquisition-related costs [32][33] Question: Trends in commercial and industrial (C&I) sector - Management indicated that the decline in the C&I sector was largely due to timing, with growing opportunities in data centers [40] Question: Sustainability of growth in the electric utility sector - Management expressed confidence in the sustainability of growth in the electric utility sector, highlighting equal weighting in backlog with oil and gas [41] Question: LNG project timelines and fundamentals - Management acknowledged delays in LNG project final investment decisions (FID) but remains optimistic about the sector's fundamentals [50][51] Question: R&D spending and commercialization timeline - R&D spending is expected to continue at current levels, with some products anticipated to hit the market in FY2026 [65][66] Question: CapEx budget for 2026 - The CapEx budget for FY2026 is expected to include $12.4 million for the Jacintoport expansion and $5-$7 million for maintenance and productivity projects [68] Question: Backlog deliverability in the coming year - Approximately 60% of the backlog is convertible in FY2026 [69] Question: Data center revenue as a percentage of total revenue - Data center revenue is approximately 7.5% of total revenue, which is an increase from the previous year [71]

Core Viewpoint - Energy Transfer LP has delayed its final investment decision for the Lake Charles liquefied natural gas export project to Q1 2026 due to rising costs and the need for more time to finalize contracts [1][2]. Company Summary - Energy Transfer LP has been planning to expand the existing LNG import terminal at Lake Charles into an export facility for several years [2]. - The company is reportedly nearing an agreement to sell LNG from Lake Charles to MidOcean Energy, a subsidiary of EIG Global Energy Partners [4]. - Long-term deals for LNG purchases from Lake Charles have been signed with companies such as Chevron Corp., ENN Energy Holdings Ltd., and SK Gas Trading LLC [4]. Industry Summary - US LNG developers are racing to secure financing and commence construction on projects before a potential supply glut emerges by 2027, as predicted by BloombergNEF [3]. - Qatar is advancing its own LNG buildout, while Gazprom PJSC is expected to begin a significant pipeline expansion to supply more Russian gas to China by 2031 [3]. - The Lake Charles project is expected to have a total capacity of 16.5 million metric tons per year [4].