Financial Data and Key Metrics Changes - The company reported a record adjusted EBITDA of $24.1 million, up nearly 9% year over year, reflecting improved operating leverage and strategic execution [5][19][23] - Revenue for the second quarter was $185.4 million, consistent with the prior year after adjusting for exited operations, indicating a modest decline not related to market share loss [22][28] - Gross profit increased by $2.6 million, representing a 200 basis point expansion year over year to 29.1% [22][23] Business Line Data and Key Metrics Changes - The International segment demonstrated organic growth of over 14%, primarily driven by European operations [6] - The PCMS service offering within the Data Solutions business grew over 30% [6][19] - Aerospace and defense revenue grew by 7.4%, while industrials saw a 7.2% increase [6] Market Data and Key Metrics Changes - The oil and gas market experienced softness due to macroeconomic volatility, but a stronger second half is anticipated due to a robust backlog of turnaround work [6][19] - The power generation and transmission end market showed quarterly revenue growth of over 30% [14] Company Strategy and Development Direction - The company is focused on diversifying its business and enhancing profitability through strategic initiatives and customer engagement [10][20] - A five-year strategic roadmap, Vision 2030, is being developed to capitalize on growth opportunities across the organization [30] - The company aims to become a market leader in asset integrity and testing by leveraging integrated offerings and advanced technologies [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy market and the company's role in supporting energy transitions and infrastructure demands [7][20] - The company is committed to profitability and improving return on invested capital as a key measure of success [32] - Management acknowledged challenges in the midstream oil and gas sector but sees potential for recovery and growth [45][46] Other Important Information - The company has made structural improvements, including closing underperforming offices, which resulted in a revenue loss of approximately $3 million in Q2 [17] - The effective income tax rate for 2025 is anticipated to be around 25% [25] Q&A Session Summary Question: Guidance on revenue expectations - Management indicated that while EBITDA is expected to exceed last year's results, revenue guidance remains uncertain due to market volatility and exited operations [37][39] Question: Challenges in the midstream market - Management acknowledged increased competition and pricing pressures in the midstream sector but expressed confidence in future opportunities [45][46] Question: Customer engagement and relationship changes - The company is shifting from transactional relationships to strategic partnerships, focusing on aligning with customer needs and enhancing service offerings [48][51] Question: Gross profit margin sustainability - Management expects gross profit margins to sustain at current levels due to diversification and operational efficiencies [89][92] Question: New ERP system impact - The new ERP system is expected to improve efficiency and cash flow generation in the second half of the year as the company overcomes initial implementation challenges [93][96] Question: Future reorganization costs - Management anticipates moderate reorganization costs moving forward, with a focus on maintaining an agile and efficient organizational structure [102][104]