Financial Data and Key Metrics Changes - Reported revenues for Q3 2025 were $2.1 billion, a 14.2% increase from $1.83 billion in the prior year period, with organic growth of approximately 10% [13] - Adjusted gross margin for Q3 2025 was 31.5%, a 50 basis point increase compared to the prior year, driven by disciplined customer and project selection [13] - Adjusted EBITDA increased by 14.7% for Q3 2025, with an adjusted EBITDA margin of 13.5%, representing a 10 basis point increase year-over-year [13][14] - Adjusted diluted earnings per share for Q3 was $0.41, a 20.6% increase compared to the prior year [14] Business Line Data and Key Metrics Changes - Safety Services segment reported revenues of $1.4 billion, a 15.4% increase compared to $1.2 billion in the prior year, with organic growth of 8.7% [14][15] - Specialty Services segment reported organic revenues of $683 million, an increase of 11.6% compared to $612 million in the prior year [15][16] - Adjusted gross margin for Safety Services was 37.3%, an 80 basis point increase, while Specialty Services saw a gross margin of 19.3%, a 60 basis point decrease [15][16] Market Data and Key Metrics Changes - The company experienced double-digit inspection revenue growth in North America for the 21st consecutive quarter [9] - The backlog remains at record highs across both segments, indicating strong future revenue potential [12][71] Company Strategy and Development Direction - The company aims to grow into a $10 billion entity by 2028, with targets of mid-single-digit organic growth and 16%+ adjusted EBITDA margin [6][8] - Investments in technology, including AI and market-leading systems, are intended to empower field leaders and improve operational efficiency [6][8] - The company is focused on disciplined customer and project selection, pricing, and selective business pruning to achieve its financial targets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the strategy and deliver on 2025 targets, citing strong momentum in inspection, service, and monitoring business [12][21] - The company anticipates continued strong performance in the project environment, with expectations for mid to upper single-digit organic growth in the long term [51][72] Other Important Information - The company completed four bolt-on acquisitions in the quarter, bringing the total for the year to 11, with a target of approximately $250 million in M&A activity [11][12] - Free cash flow for Q3 was $248 million, representing an adjusted free cash flow conversion of 88% [16][17] Q&A Session Summary Question: Can you provide more detail on the organic growth in Safety Services? - Management noted robust activity in the data center space, with expectations for data centers to account for 9%-10% of total revenue, alongside strong growth in semiconductor and healthcare sectors [26] Question: How is the M&A pipeline progressing? - Management indicated they are on track with M&A plans, with a focus on North America in fire and security, and noted ongoing activity in the international business [29][30] Question: What is the current status of the elevator and escalator segment? - The elevator segment is experiencing high single-digit organic growth, with positive cross-selling opportunities developing [67] Question: How do you balance growth priorities with M&A? - Management stated they are able to pursue both growth in inspection services and consolidation in the elevator segment simultaneously, leveraging their geographic footprint [36] Question: What are the expectations for incremental margins going forward? - Management indicated that while project work impacts margins, they expect margins to improve as projects progress towards completion [90]