Financial Data and Key Metrics Changes - In Q2 2025, adjusted EBITDA was $277 million, a decrease of $3 million from the previous quarter [12] - The pipeline segment results were $3 million lower than Q1 2025 due to a planned rate step down on the Guardian pipeline and seasonally lower EBITDA from interstate and joint venture pipelines [12] - Total gathering volume for the Haynesville averaged 1.74 Bcf per day, a record throughput for a quarter and a 16% increase over Q2 2024 [12] Business Line Data and Key Metrics Changes - The gathering segment results were in line with Q1 2025, reflecting higher volumes on the Haynesville system, offset by lower volumes in the Northeast [12] - In the Northeast, volumes averaged 1.17 Bcf per day, a decrease from Q1 due to maintenance and timing of producer activity [12] Market Data and Key Metrics Changes - The PGM auction cleared at over $329 per megawatt day, a 22% increase from last year's auction, indicating significant power demand growth [9] - The company forecasts a 16 Bcf per day increase in LNG free gas demand through 2035 from facilities accessing the Haynesville system [8] Company Strategy and Development Direction - The company reaffirmed its 2025 adjusted EBITDA guidance and early outlook for 2026, indicating confidence in growth opportunities [4] - The company is focused on executing a $2.3 billion organic project backlog, with $1.1 billion already reaching FID [17] - The current federal administration is creating a favorable environment for energy infrastructure projects, streamlining approval processes [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in the Haynesville region, with private producers becoming more active in response to LNG demand [7] - The company is optimistic about power demand growth driven by electrification, onshoring of manufacturing, and demand for AI computing [8] - Management expressed confidence in achieving the total investment target of $2.3 billion, with a significant portion already committed [14] Other Important Information - The company was upgraded to investment grade by Moody's and S&P, joining Fitch, solidifying its status as a full investment-grade entity [15] - The Board of Directors approved a second-quarter dividend of $0.82 per share, unchanged from the prior quarter, with a commitment to grow the dividend by 5% to 7% per year [16] Q&A Session Summary Question: Insights on New York's power generation and Millennium expansion - Management noted strong power demand in New York, with both plants served by Millennium operating at high load factors, indicating a need for additional generation [22] - Positive regulatory changes are being observed, with a recognition of the need for additional infrastructure in the state [23] Question: Haynesville activity and producer responses - Private producers are ramping up activity in the Haynesville, with expectations that public producers will respond to price signals in 2026 and 2027 [25][26] Question: Data center lateral investments - Strong power demand growth is being observed in PJM and MISO, with ongoing utility-scale expansions driven by this demand [30] Question: CapEx for 2025 - Management expects to land within the guidance range for CapEx, with a ramp expected in the second half of the year [38] Question: FID of Guardian and gas sourcing - The customer will procure gas at the Joliet hub, with existing pipelines capable of feeding the hub [41] Question: LNG market dynamics and competitive landscape - The company is expanding delivery point connectivity into the LNG header system, positioning itself for continued demand growth [46] Question: Bolt-on acquisition strategy - The company remains open to bolt-on opportunities that align with its core strategy of growing its pipeline segment [52] Question: Impact of the new federal administration on project permits - The administration is working to reduce friction in large-scale infrastructure investments, which is seen as a positive development for the company [58] Question: 2026 EBITDA guidance and project FID movement - Management reaffirmed confidence in the 2026 early outlook, indicating that project movements are on track [62] Question: Expansion capacity on Nexus and Midwest utilities - Nexus has significant expansion potential, and the company is exploring opportunities to increase egress capacity from Appalachia [78][88]

Financial Data and Key Metrics Changes - Adjusted EBITDA reached a record high, marking a significant increase from 2023, with 19 of the 20 highest volume days recorded on Transco occurring this past winter [23] - The company returned over $2.3 billion in dividends to shareholders, maintaining a tradition of paying dividends every quarter for over fifty years [23] - The company achieved a 5% compound annual growth rate on dividends and an annualized total shareholder return compound annual growth rate of nearly 30% over the last five years [24] Business Line Data and Key Metrics Changes - The company placed six projects into service during the year and announced an additional six new projects, including expansions designed to support the conversion of electric power plants from coal to gas [25] - Twelve high-return transmission projects are currently in execution, which will add more than 3.25 billion cubic feet per day to the transmission systems [26] Market Data and Key Metrics Changes - There was an unprecedented surge in demand for long-term capacity on pipeline systems, driven by increasing natural gas demand from domestic power generation, LNG exports, and industrial reshoring [22] - The company operates more than 33,000 miles of pipeline, handling approximately one-third of the U.S. produced natural gas [20] Company Strategy and Development Direction - The company remains focused on natural gas infrastructure, which is seen as a critical component for supporting power grid reliability as more intermittent renewables are developed [22] - The company is modernizing facilities with high-efficiency compression and utilizing technology to enhance transparency in emissions profiles [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial strength of the business, driven by a large portfolio of fully contracted, high-return growth projects over the next five years [21] - The company is committed to operating sustainably and has been recognized for its efforts in corporate sustainability [29] Other Important Information - The company has been named to the Dow Jones Sustainability North American Index for five consecutive years and holds the top score in the 2024 Corporate Sustainability Assessment in the North American oil and gas storage and transportation industry [29] Q&A Session Summary - No questions were submitted by shareholders during the meeting [33]

Core Insights - CECO Environmental Corp. reported record orders of $228 million in Q1 2025, leading to a backlog exceeding $600 million for the first time in company history, indicating strong demand and growth potential [4][6][8] - The company achieved an operating income of $61.9 million, significantly up from $7.7 million in Q1 2024, while net income rose to $36.0 million from $1.5 million in the same period [4][6][20] - CECO maintains a full-year revenue guidance of $700 to $750 million, representing a 30% increase at the midpoint, alongside a backlog growth of 55% [6][8] Financial Performance - First quarter revenue was $176.7 million, up 40% from $126.3 million in Q1 2024, with gross profit margin at 35.2% [6][16] - Non-GAAP operating income for Q1 was $8.6 million, down 16% from $10.2 million in Q1 2024, while adjusted EBITDA increased by 6% to $14.0 million [4][20] - Free cash flow for the quarter was $(15.1) million, a decline of $13.2 million compared to $(1.9) million in Q1 2024 [4][6][20] Strategic Actions - The company implemented strategic price actions to mitigate tariff impacts and proactively managed its backlog by adjusting inventory purchases and hiring key personnel [5][8] - CECO plans to take cost actions in Q2 2025 to eliminate redundant roles and enhance productivity, expecting these measures to support operating margin expansion [5][8] - The company is monitoring economic conditions and supply chain dynamics to manage potential cost increases effectively [8][29] Market Position and Outlook - CECO's portfolio is aligned with long-term growth themes such as industrial manufacturing reshoring, electrification, and energy transition, positioning the company favorably for future growth [4][8] - The order pursuit pipeline exceeds $5 billion, reflecting strong confidence in continued growth [4][6] - The company recognizes the dynamic economic environment but believes its operational model mitigates direct exposure to tariff-related imports [8][29]