Financial Data and Key Metrics Changes - The company reported quarterly revenue exceeding $2 billion for the first time, with earnings per share of $6.53, a 75% increase year-over-year [6][14] - Same store revenue growth was 19% for the quarter, with a 20% increase in total revenue for 2025 compared to the previous year [10][14] - EBITDA reached over $300 million for the first time, marking a 50% increase from the same quarter last year [10][14] - Free cash flow for the quarter was over $220 million, with a net cash position exceeding $250 million [15][17] Business Line Data and Key Metrics Changes - The electrical segment revenue grew by 49%, while the mechanical segment revenue increased by 13% [10] - Service revenue increased by 10%, contributing to 15% of total revenue, with strong profitability in this segment [21] - The gross profit margin improved to 23.5% from 20.1% year-over-year, with the mechanical segment margin at 22.9% and electrical segment margin at 25.3% [11][12] Market Data and Key Metrics Changes - Industrial customers accounted for 63% of total revenue, with technology representing 40% of revenue, up from 31% the previous year [19] - Institutional markets, including education and healthcare, contributed 24% of revenue, while the commercial sector provided about 13% [20] - The backlog at the end of the quarter reached a record $8.1 billion, a 41% increase year-over-year [18] Company Strategy and Development Direction - The company plans to continue incremental capacity expansion in its modular business while focusing on productivity and automation [24] - The acquisition of Rightway Plumbing is expected to generate $60 million to $70 million in annual revenue [7] - The company remains optimistic about strong demand for large and complex projects despite economic uncertainties [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing strong results for 2025 and into 2026, supported by robust demand and a healthy project pipeline [9][34] - The company anticipates maintaining gross profit margins in strong ranges, with a focus on project selection and operational efficiency [12][38] - Management noted that the recent tax reform legislation is not expected to significantly impact operating results or cash flows [14] Other Important Information - The company increased its quarterly dividend by 5 cents to 50 cents per share and actively repurchased shares during the first half of 2025 [8][17] - The company has over 2.7 million square feet of building capacity dedicated to its modular business, with plans to expand to around 3 million square feet by early next year [21] Q&A Session Summary Question: Modular capabilities expansion and potential third location - Management indicated a focus on measured incremental capacity expansion and improving productivity rather than prioritizing a third location at this time [24][26] Question: Impact of bonus depreciation on customer conversations - Management acknowledged that while bonus depreciation helps customers, it is not a significant driver of demand given the current strong market conditions [27] Question: Growth confidence for the remainder of 2025 - Management expressed optimism about robust future pipelines and continued growth, with service revenue showing consistent growth [33][36] Question: Modular revenue proportion in backlog - Management indicated that modular is expected to grow but emphasized that it is part of a broader strategy to meet demand across various sectors [49][90] Question: Competitive landscape in modular - Management noted that customers are encouraging competitive capacity development, but the focus remains on delivering superior service and quality [82] Question: Healthcare market opportunities - Management highlighted ongoing strength in the healthcare sector, particularly in new hospital builds and expansions [84] Question: Pricing dynamics and supplier cost pressures - Management acknowledged that while suppliers may seek to pass on costs, the company is well-positioned to negotiate and maintain margins [94][98]