Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $779.3 million, an increase of 51% compared to the same quarter last year, with 5% from organic growth and 46% from acquisitions [11][12] - Adjusted EBITDA was $131.7 million, an increase of 80% year-over-year, with an adjusted EBITDA margin of 16.9%, up 280 basis points from the previous year [12][14] - Net income for the quarter was $44 million, with adjusted net income at $45.2 million, or $0.81 per diluted share [12][14] - Cash provided by operating activities was $83 million, compared to $35 million in the same quarter last year [14] Business Line Data and Key Metrics Changes - The company reported a project backlog of $2.94 billion, covering approximately 80% to 85% of the next twelve months' revenue [13] - General and administrative (G&A) expenses as a percentage of total revenue decreased to 6.6% from 7.3% in the same quarter last year [11][12] Market Data and Key Metrics Changes - Strong public contract bidding was observed across eight states and over 100 local markets, supported by healthy state infrastructure budgets and federal program funds [8][9] - The company expects public spending on roads and bridges to grow substantially in fiscal year 2026, driven by state and local government initiatives [8][9] Company Strategy and Development Direction - The company continues to focus on organic growth and strategic acquisitions in growing markets, with a goal to maintain a leverage ratio of approximately 2.5 times by late fiscal 2026 [14][15] - The acquisition of Durwood Green Construction is expected to enhance operational excellence and provide vertical integration opportunities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining fiscal year 2025 guidance, citing strong public funding, a growing private economy, and a robust backlog [10][15] - The company anticipates continued economic growth in its current markets, particularly due to migration to Sunbelt states and new investments in American manufacturing [9][10] Other Important Information - The company amended its credit agreement to increase the total facility size to $1.1 billion, extending the maturity date to June 2030 [13] - Capital expenditures for the quarter were $36.7 million, with expectations for total capital expenditures in fiscal year 2025 to be between $130 million and $140 million [14] Q&A Session Summary Question: How did the company navigate weather challenges this quarter? - Management noted that despite weather-related delays, the business performed well due to effective margin levers and operational excellence [18][19] Question: Will full utilization hinder organic growth next year? - Management clarified that full utilization does not indicate capacity constraints and that the CapEx program supports expected organic growth [20][21] Question: What is the expected M&A contribution for fiscal year 2025? - The Q4 acquisition revenue impact is projected to be between $270 million and $280 million, with a rollover benefit of $240 million to $250 million into fiscal year 2026 [22][23] Question: How is public spending for maintenance and lane expansion expected to trend? - Management indicated that contract awards for public funding are expected to increase by about 14% in fiscal year 2026, based on current budgets and programs [34] Question: What is the outlook for labor availability? - Labor shortages from COVID have dissipated, but there is a long-term concern about workforce aging, prompting proactive measures to attract and retain labor [90][92]