Q2 2025 Financial Highlights - Revenue grew by 6.3%, with organic revenue growth of 5.5%[9] - Adjusted Net Income increased by 17.0%[9] - Adjusted EBITDA increased by 13.9%, leading to a 170 bps increase in Adjusted EBITDA margin[9] - Free Cash Flow generated was $364 million for the last twelve months ended June 30, 2025[9] Q2 2025 Revenue Breakdown - Industrial revenue increased by 7.6% (7.0% organic), reaching $338 million[21, 22] - Consumer revenue increased by 5.6% (4.7% organic), reaching $340 million[24, 25] - Software and Advisory revenue increased by 4.3% (3.2% organic), reaching $98 million[27, 28] Q2 2025 Profitability - Industrial Adjusted EBITDA increased by $20 million, with Adjusted EBITDA margin increasing by 370 bps to 34.6%[22, 21] - Consumer Adjusted EBITDA increased by $4 million, with Adjusted EBITDA margin increasing by 20 bps to 19.1%[25, 24] - Software and Advisory Adjusted EBITDA remained flat, with Adjusted EBITDA margin decreasing by 70 bps to 15.3%[28, 27] Full-Year 2025 Outlook - The company affirms its 2025 outlook, expecting mid-single-digit constant currency organic revenue growth[34, 36] - Adjusted EBITDA margin organic improvement is expected to be approximately 24%[36] - Capital expenditures are expected to be 7% to 8% of revenue[36]

Financial Data and Key Metrics Changes - Gross revenues for Q1 2025 increased by 10% to $234 million compared to $212.6 million in Q1 2024, marking record first-quarter results for the company [14] - Gross profit rose to $123.2 million, a 10% increase from $111.7 million in the prior year [14] - Net income was $428,000 in Q1 2025, up from $77,000 in Q1 2024, with GAAP diluted earnings per share at $0.10 compared to $0.00 in the prior year [15] - Adjusted EBITDA increased by 8% to $29.7 million from $27.6 million in the previous year [15] - Strong cash flows from operations reached $38.4 million, representing a 96% increase over the first quarter of last year [15] Business Line Data and Key Metrics Changes - Infrastructure segment grew by 12% in Q1 2025 compared to the same period last year, driven by strong performance in utilities and transportation [23] - Buildings and Technology segment reported a 17% revenue growth in Q1 2025 versus Q1 2024, with data centers now comprising 15% of buildings revenues [28] - Geospatial segment growth was slowed due to delays in federal contract awards, but is expected to accelerate as the year progresses [11][33] Market Data and Key Metrics Changes - The infrastructure sector is seeing robust investments, particularly in the Northeast and Southeast, with funding secured before project initiation [24] - The Geospatial segment is experiencing high growth in utilities, transportation, and forestry, with a focus on asset management [34] Company Strategy and Development Direction - The company aims for organic growth of 5% to 9% in 2025, with margin expansion of 150 basis points and free cash flow conversion of 60% of adjusted EBITDA [12][48] - Strategic acquisitions are being pursued to densify the platform and accelerate organic growth, with three acquisitions completed in Q1 2025 [13][39] - The company is focusing on cross-selling initiatives with a target of $40 million in revenues over the next twelve months [12][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to economic conditions, emphasizing the non-discretionary nature of their services [8][51] - The outlook for the remainder of the year remains positive, with reaffirmed guidance of $1.026 billion to $1.045 billion in gross revenues [48][112] - Management noted that the impact of federal spending changes has been minimal, with opportunities arising from increased defense spending [36][64] Other Important Information - The company has a strong balance sheet with net leverage reduced to 1.3 times and over $53 million in cash on hand [16][110] - Significant investments in technology and software are expected to drive growth and profitability in 2025 and beyond [45] Q&A Session Summary Question: What is the outlook for the Geospatial segment in Q2 and beyond? - Management indicated that the slow start in Q1 was primarily due to internal integration issues rather than market conditions, with expectations for improvement in Q2 [57][59] Question: What is the typical size of commissioning service contracts in the data center business? - Typical contracts range from $1 million to $2 million, often done in phases as data centers grow [68] Question: How are funding sources for infrastructure projects distributed? - Funding varies by state, with significant reliance on gas taxes in some areas, while other projects may be funded through federal sources [75] Question: What are the profit margin expectations for the year? - Management reaffirmed the goal of 150 basis points margin expansion, with gradual improvements expected in the second half of the year [78][82] Question: Is stock buyback considered in the capital allocation strategy? - The company announced a $20 million buyback plan and intends to utilize cash for acquisitions while maintaining flexibility in capital allocation [90][92]