Financial Data and Key Metrics Changes - Third quarter revenue reached $473.9 million, showing substantial year-over-year growth, primarily due to two months of NV5's contribution following the acquisition [14] - On a combined basis, year-to-date growth was approximately 4.7%, with a 2.4% growth rate if the acquisition had occurred on January 1, 2024 [14] - Adjusted EBITDA for the third quarter was $77.3 million, representing an adjusted EBITDA margin of 16.3%, compared to $51.3 million with a margin of 16.9% in the prior year [17] Business Line Data and Key Metrics Changes - The inspection and mitigation segment generated approximately $293 million in revenue, down about 3% year-over-year, while the consulting engineering segment contributed approximately $122 million during the two-month period post-acquisition [15] - The geospatial segment contributed about $62 million during the same period, with a potential full quarter revenue of approximately $90 million, reflecting a 4% increase year-over-year [16] Market Data and Key Metrics Changes - The data center work for hyperscaler clients more than doubled over the trailing 12 months, driven by accelerating demand from AI and cloud infrastructure buildouts [8] - Infrastructure investments supporting grid modernization and energy transition are creating new opportunities across all three segments [9] Company Strategy and Development Direction - The company aims to expand the markets served and services provided within the TIC and engineering space, focusing on a unified platform dedicated to reliability, innovation, and service excellence [5][7] - The integration of Acuren and NV5 is expected to create meaningful synergies and enhance capabilities across critical asset lifecycle management [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers, including aging infrastructure and increasing regulatory complexity, which are expected to support demand for services [25] - The company reaffirmed its full-year 2025 guidance, expecting revenue in the range of $1.530 billion to $1.565 billion and adjusted EBITDA between $240 million and $250 million [20] Other Important Information - The company completed a $250 million private placement to strengthen its balance sheet and provide flexibility for growth opportunities [18] - The integration program is progressing well, with an increased cost synergy target from $20 million to $25 million expected to be realized by mid-2027 [21][22] Q&A Session Summary Question: What is the reasonable range for annual free cash flow after integration? - Management indicated that the business is a high-free cash flow business with low CapEx and high margins, but specific guidance on free cash flow has not been provided [30] Question: Is the $400 million revenue target for data centers still in place? - Management confirmed that the data center business has seen over 100% growth year-to-date and is a significant focus area, with potential for accelerated growth due to the combination with Acuren [32][33] Question: What is the status of exiting lower-margin customer contracts? - Management noted that the softness in the third quarter was primarily timing-related and that they are actively managing relationships to improve margins [35] Question: How has the government shutdown impacted the geospatial segment? - Management reported limited impact from the government shutdown, with optimism for a quick return to normal operations [40] Question: What are the expectations for the inspection and mitigation segment's turnaround activity? - Management indicated that turnaround activity has not materially changed and is primarily affected by the timing of LNG projects [44] Question: Can you elaborate on the drivers for the increased synergy target? - Management clarified that the increased target is purely cost synergies, focusing on back-office support and organizational efficiency [48]