Financial Data and Key Metrics Changes - Dycom Industries reported record revenue of $1.45 billion for Q3 FY 2026, a 14.1% increase compared to Q3 FY 2025 [4][20] - Adjusted EBITDA reached $219 million, marking a 28.5% increase year-over-year, with an adjusted EBITDA margin of 15.1%, up 169 basis points from the previous year [4][21] - The company’s backlog hit an all-time high of $8.2 billion, with $4.99 billion expected to be completed in the next 12 months [5][21] Business Line Data and Key Metrics Changes - Organic revenue growth was reported at 7.2%, driven by fiber-to-the-home programs, wireless activity, and maintenance services [20] - The service and maintenance business continues to grow, with additional agreements totaling over $500 million executed after the quarter [9][22] Market Data and Key Metrics Changes - The demand for fiber infrastructure to support data center growth is increasing significantly, with a projected $20 billion addressable market for outside plant data center network construction over the next five years [6][7] - The NTIA has approved final BEAD deployment plans for 15 states, with $29.5 billion in total spending expected, of which $26 billion will be used for fiber or HFC infrastructure [8][9] Company Strategy and Development Direction - The acquisition of Power Solutions is expected to enhance Dycom's capabilities in the digital infrastructure market, providing comprehensive services from core networks to data centers [12][13] - The company aims to capitalize on the growing demand for digital infrastructure driven by hyperscalers and technology companies, with a focus on long-term shareholder value [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for telecommunications services and the ongoing growth of fiber-to-home builds, projecting continued acceleration in the coming years [5][6] - The company anticipates that the construction of new outside plant data center networks will ramp up significantly in 2026, leading to substantial growth [6][17] Other Important Information - The total purchase price for Power Solutions is $1.95 billion, expected to be immediately accretive to Dycom's adjusted EBITDA margin and diluted EPS [13][24] - The acquisition is anticipated to provide a clear path to deleveraging to two times net leverage within 12 to 18 months [26][28] Q&A Session Summary Question: Improvement in DSOs and future expansion of Power Solutions - Management noted that the 14-day improvement in DSOs reflects strong cash management efforts and expressed optimism about maintaining this improvement going forward [31] - Regarding Power Solutions, the focus will be on leveraging skilled workforce capabilities to meet the growing demands of hyperscalers [32] Question: Customer relationships and growth opportunities with Power Solutions - Power Solutions primarily works with general contractors, but there is significant overlap with hyperscaler end users, providing opportunities for customer diversification [35][36] Question: Fourth quarter guidance and backlog context - The wider revenue range for Q4 is attributed to seasonal factors and the ongoing growth in fiber-to-the-home programs [45] - Power Solutions has a backlog of over $1 billion, with contracts typically spanning 6 to 12 months [47] Question: Future market expansion and M&A opportunities - Management emphasized a strategic approach to growth, focusing on the proven DMV market while also considering future M&A opportunities in other regions [51][52] Question: Data center market concentration and future M&A - The data center contracting space remains fragmented, presenting opportunities for future acquisitions, while Dycom aims to leverage its scale in both telecommunications and data center services [63]

Financial Highlights - Total contract revenues increased by 14.1% year-over-year, from $1.272 billion in Q3 2025 to $1.4518 billion in Q3 2026[6] - Organic revenue growth was 7.2%[6] - Adjusted EBITDA increased by 28.5% year-over-year, from $170.7 million in Q3 2025 to $219.4 million in Q3 2026[6] - Adjusted EBITDA margin improved by 169 basis points, from 13.4% in Q3 2025 to 15.1% in Q3 2026[6] - Adjusted diluted EPS increased by 35.4% year-over-year, from $2.68 in Q3 2025 to $3.63 in Q3 2026[6] Backlog and Debt - Total backlog increased by 4.7% year-over-year[16] - Next 12 Months Backlog increased 11.8% year-over-year[16] - The company executed additional service and maintenance agreements totaling over $500 million subsequent to the quarter[16] - Total notional amount of debt was $945 million in Q3 2026, compared to $1.035 billion in Q2 2026[17] Power Solutions Acquisition - Dycom is set to acquire Power Solutions for a total purchase price of $1.95 billion[36] - Power Solutions' annual revenue is expected to be approximately $1.0 billion for CY2025, with a 4-year revenue CAGR of approximately 15%[36] - Power Solutions has consistently delivered Adjusted EBITDA margins in the mid-to-high teens, which is expected to be sustained in CY2026[36] Fiscal 2026 Outlook - The company is increasing the midpoint of its revenue guidance and now expects total contract revenues for fiscal 2026 to range from $5.350 billion to $5.425 billion, representing a range of 13.8% to 15.4% total growth over the prior year[22]

Core Insights - Alaris Equity Partners has completed three investments totaling US$52.7 million, contributing an incremental US$6.6 million or 4.3% growth to its run rate partner distributions [1][2] - The Board of Trustees has approved a 9% increase in the distribution, raising the quarterly distribution to $0.37 per trust unit and the annual distribution to $1.48 [2] - Alaris has a strong track record, having invested over $2.9 billion in 43 portfolio companies since its founding in 2004, generating a 16% IRR from exited investments [3][4] Investment Details - The investments include a US$27.0 million initial investment in McCoy Roofing Holdings LLC, along with follow-on investments in Cresa LLC and Carey Electric Contracting Inc [1][10][11] - Alaris' investment in McCoy consists of US$19.0 million in preferred equity and US$8 million in common equity, with an initial annualized distribution of $2.7 million, yielding 14% [7] - If McCoy meets its growth targets, Alaris may fund an additional US$32.0 million in preferred equity [8] Partner Updates - Cresa received an additional US$20.5 million investment, increasing its annualized distribution by 69% to US$7.1 million [10] - Carey received an additional US$5.2 million investment, increasing its annualized distribution by 16% to US$2.2 million [11] - Ohana Growth Partners acquired a Planet Fitness franchisee, enhancing its competitive position and cash flow [12] Market Position and Future Outlook - Alaris is well-positioned in the $3 trillion North American private equity market, with a diversified portfolio and a strong pipeline of investment opportunities [3][14] - The company aims to continue its growth track record while returning excess cash to unitholders through potential future distribution increases and buybacks [5]

Company Overview - IES Holdings, Inc. is a 28-year-old company with a strong foundation in electrical contracting [1] - The company operates as a diversified infrastructure services provider across various markets in the US, with operations in over 130 locations [1] Market Focus - IES Holdings primarily serves sectors such as housing, data centers, power, and industrial markets [1]

Core Insights - Golden Triangle Ventures, Inc. has signed a Letter of Intent to acquire a Texas-based electrical contracting firm with over $6 million in annual revenue and consistent profit margins [1] - The acquisition aligns with the company's strategy of disciplined growth by acquiring profitable and operationally strong companies [4] - The contractor has a solid client base, including major organizations, and operates cash-flow positive with no debt, enhancing GoldenEra Development's competitive position [2] Company Overview - GoldenEra Development is the wholly owned construction subsidiary of Golden Triangle Ventures, focusing on residential, commercial, and industrial projects [5] - The company aims to become a leading multi-trade construction firm in the United States through acquisitions and vertical integration [5] - Golden Triangle Ventures operates in multiple industries, including construction, health & beverage, and manufacturing & distribution, with a focus on sustainable shareholder value [6] Acquisition Details - The leadership team and workforce of the acquired firm will remain in place, supported by a five-year milestone-based compensation plan to ensure alignment and performance [3] - The acquisition is expected to position GoldenEra Development as a vertically integrated construction platform capable of executing complex projects efficiently [4]

Financial Performance - Shimmick Corporation reported revenue of $128 million, a 42% year-over-year increase, with $113 million from Shimmick Projects[8] - The company reported a gross margin of $8 million, a 126% year-over-year improvement compared to a gross margin of $(31) million in Q2 2024[8] - Shimmick Projects contributed a gross margin of $15 million, while Non-Core Projects had a gross margin of $(7) million[8] - The company recognized a net loss of $8 million and an Adjusted EBITDA of $(0.2) million, primarily due to Non-Core Projects[8] Backlog and Future Growth - The company's backlog is approximately $652 million as of July 4, 2025, with over 88% being Shimmick Projects[8] - $70 million in New Awards were added to Backlog in July 2025, and the company was selected as the preferred bidder on $164 million for a Transit Center & River Pump Station[8, 12] - Shimmick Projects revenue is expected to be in the range of $405 million to $415 million for the full fiscal year ending January 2, 2026, with an overall gross margin between 9% and 12%[31] - Non-Core Projects revenue is expected to be in the range of $80 million to $90 million, with an overall gross margin between (15%) and (5%)[31] Strategic Initiatives - The company launched Axia Electric, a dedicated electrical subsidiary, targeting growth segments including industrial, data center, and advanced manufacturing[8] - The addressable market for electrical contracting services is $100 billion per year[15]

Core Insights - White Mountains Partners has acquired a majority interest in Enterprise Electric, LLC, a leading provider of specialty electrical contracting services, founded in 2003 and headquartered in Nashville, Tennessee [1][2] - Enterprise Solutions specializes in designing, engineering, prefabricating, and installing electrical infrastructure for various commercial and institutional markets, including healthcare, manufacturing, education, and data centers [1][3] - The acquisition is seen as a strategic move for White Mountains Partners to extend its long-term, value-oriented approach into attractive sectors beyond insurance [2][4] Company Overview - Enterprise Solutions is characterized as an electrical engineering and construction merit shop, providing a comprehensive range of services from electrical design and construction to fabrication and sustainability [3] - The company has built a strong reputation for innovative solutions and efficient execution of technically complex projects [2] Strategic Intent - The partnership aims to accelerate Enterprise Solutions' growth strategy by entering new geographies, expanding into adjacent markets, and executing bolt-on acquisitions [2] - White Mountains Partners is focused on providing institutional capital to family, founder, and entrepreneur-owned businesses in essential services, light industrial, and specialty consumer sectors [4]