Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [21][22] Business Segment Data and Key Metrics Changes - Urban Solutions segment reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [14][15] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a reserve of $28 million related to a long-standing claim [17] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The infrastructure segment secured a $682 million construction contract for highway widening in Texas [13] - The company is tracking opportunities in pharmaceuticals, advanced manufacturing, and green steel production [11][12] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [26] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [19] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [19][36] - The company maintains confidence in its backlog and the ability to convert projects into revenue, despite potential delays [60][65] Other Important Information - The company plans to repurchase up to $600 million in shares for 2025, with $150 million expected in Q2 [26] - Cash and marketable securities at the end of Q1 were $2.5 billion, a decrease of over $400 million from year-end [23] - Operating cash flow for Q1 was an outflow of $286 million, compared to an outflow of $111 million a year ago [24] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that while some clients are more price-sensitive, many projects, especially in urban solutions, are moving forward as planned [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the strong Q1 EBITDA performance may not be indicative of the full year, but they remain confident in achieving their guidance [44][46] Question: Impact of project delays on second-half performance - Management does not expect significant underutilization despite some project delays, as the quality of the backlog remains strong [58][60] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with more confidence in Canadian projects compared to those in Mexico [95]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4 billion, with consolidated new awards of $5.8 billion, leading to a book to burn ratio of 1.5 [7][8] - Total backlog increased to $28.7 billion, with 79% being reimbursable [8] - Adjusted EBITDA for Q1 was $155 million, compared to $88 million a year ago, and adjusted EPS was $0.73 compared to $0.47 in the previous year [22][23] Business Segment Data and Key Metrics Changes - Urban Solutions reported a profit of $70 million, with new awards of $5.3 billion, up from $4.9 billion a year ago [8][9] - Energy Solutions segment profit decreased to $47 million from $68 million a year ago, with new awards totaling $315 million [15][16] - Mission Solutions reported a profit of $5 million, down from $22 million a year ago, impacted by a $28 million reserve related to a long-standing claim [18] Market Data and Key Metrics Changes - Significant new awards in Urban Solutions were driven by life sciences and infrastructure projects [8] - The company is seeing strong demand in pharmaceuticals, advanced manufacturing, and semiconductor sectors [12][13] - Infrastructure projects include a $682 million construction contract for highway widening in Texas [14] Company Strategy and Development Direction - The company is transitioning from a "fix and build" strategy to a "grow and execute" strategy for 2025 to 2028, focusing on generating cash and earnings [5][6] - There is an emphasis on maintaining strong client relationships and pursuing bolt-on acquisitions to enhance technical capabilities [6][7] - The company aims to leverage its financial foundation for capital allocation opportunities, including share repurchases and reinvestment [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are looking for clarity in the market before making final investment decisions, particularly in energy and copper projects [20][36] - Despite some clients being sensitive to costs, many projects are proceeding as planned, especially in the ATLS and mission solutions areas [20][36] - The company maintains a positive outlook for new awards, expecting a book to burn ratio above one and revenue growth of approximately 15% [29] Other Important Information - The company repurchased 3.6 million shares for $142 million in Q1, with plans for up to $600 million in repurchases for 2025 [27] - The effective tax rate for Q1 was approximately 20%, expected to rise to around 30% for the full year [30] Q&A Session Summary Question: Client sentiment changes since the last call - Management indicated that projects in urban solutions are moving forward, while energy and copper projects require more certainty [36][37] Question: EBITDA guidance and revenue growth - Management acknowledged that the first quarter's EBITDA was strong but emphasized the need for continued revenue growth to meet annual guidance [44][46] Question: Impact of project delays on second half performance - Management expressed confidence in the quality of the backlog and the ability to convert projects, despite some delays [55][56] Question: Clarification on Urban Solutions segment benefits - The $84 million benefit recognized was not included in segment profit results and was related to equity income [67][69] Question: Cash collection potential from joint ventures - Management expects cash collection from joint ventures to be lower than the previous year, with a focus on recouping profits from Canada [92]