Financial Data and Key Metrics Changes - For the year ended December 31, 2025, the company achieved record annual revenues of $3.7 billion, with a net income of $118 million and EBITDA of $233 million [6][12] - Fourth quarter 2025 revenues were $974 million, representing an increase of $144 million, or 17%, compared to the same period last year [6][12] - Fourth quarter 2025 net income was a record $37 million, compared to $16 million for the same period last year, with net income per diluted share of $2.33, compared to $0.99 for the same period last year [12][13] - Fourth quarter 2025 EBITDA was a record $64 million, compared to $45 million for the same period last year [12][13] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues for the fourth quarter were $531 million, an increase of 18% compared to the same period last year, with $330 million from transmission and $201 million from distribution [7][8] - Commercial and Industrial (C&I) revenues reached $443 million, a record high for the segment, and an increase of 17% compared to the same period last year, primarily due to fixed-price contracts [8] - The gross margin for the fourth quarter was 11.4%, up from 10.4% for the same period last year, driven by better productivity and favorable job closeouts [9][10] Market Data and Key Metrics Changes - The total backlog as of December 31, 2025, was $2.8 billion, a 9.6% increase from the prior year, with $1.0 billion for the T&D segment and $1.8 billion for the C&I segment [13] - The company noted a healthy bidding environment and strong activity across its business segments, with ongoing investments in infrastructure to meet electrification needs in the U.S. and Canada [5][18] Company Strategy and Development Direction - The company aims to maintain and expand long-term customer relationships while strategically pursuing new opportunities in a growing market [22][23] - The focus remains on safely executing projects and supporting customers in an evolving energy environment, with a commitment to operational excellence [22][23] - The company is well-positioned to benefit from expanding backlogs and long-duration project pipelines, particularly in the T&D segment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the large transmission market and anticipated capturing work that will start to materialize in 2027 [26] - The company expects continued growth in core markets, driven by investments in electrical infrastructure, with a forecast of 10% growth in both segments for the upcoming year [39][100] - Management highlighted that weather remains a significant factor affecting operations, but they do not foresee a slowdown in market activity [77] Other Important Information - The company reported a strong liquidity position with approximately $265 million in working capital and a funded debt to EBITDA leverage ratio of 0.25x as of December 31, 2025 [15] - The company is focused on organic growth and acquisitions, with a strategic approach to capital allocation [57][94] Q&A Session Summary Question: Thoughts on the large transmission market and potential bookings - Management confirmed optimism regarding late 2026 potential bookings for 2027 revenue, indicating ongoing conversations with clients [26] Question: Cash flow strength and its drivers - Management attributed strong cash flow to lower Days Sales Outstanding (DSOs) and a strong net overbuild position, particularly in fixed-price contracts [27] Question: Strength in T&D backlog and specific projects - Management noted that the backlog increase was not significantly impacted by new projects like the Kentucky MSA agreement, as much of the work will start later [34] Question: Impact of large transmission projects on margin profile - Management indicated that large transmission projects could lead to marginal margin increases through better equipment utilization and efficiency [62] Question: Capital allocation strategy for 2026 - Management emphasized prioritizing organic growth and acquisitions while opportunistically considering share repurchases [57] Question: Weather impacts on first quarter productivity - Management stated that while weather can affect operations, it has not uniformly impacted business across the country [48]