Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 16.4% to $142.2 million compared to $122.2 million in Q2 2024 [26] - ODR revenue grew by 31.7% to a record $108.9 million, while GCR revenue declined by 15.7% [26] - Gross profit rose by 18.9% from $33.5 million to $39.8 million, with total gross margin improving to 28% from 27.4% [27] - Adjusted EBITDA increased by 30% to $17.9 million, with an adjusted EBITDA margin of 12.6% compared to 11.3% in the previous year [29] - Net income for the quarter grew by 30.2% to $7.8 million, and earnings per diluted share increased by 28% to $0.64 [29] Business Line Data and Key Metrics Changes - ODR revenue accounted for 76.6% of total revenue in Q2 2025, up from 67.7% in Q2 2024 [27] - ODR gross profit reached a quarterly record of $31.6 million, comprising 79.3% of total gross profit [27] - GCR gross profit increased by 1.1% to $1.1 million, driven by higher margins despite lower revenue [27] Market Data and Key Metrics Changes - The company operates across six distinct verticals, which helps mitigate volatility and reduces reliance on any single industry [8] - In healthcare, deferred maintenance is driving emergency repair work, while proactive discussions are being initiated to avoid emergencies [10] - Industrial manufacturing customers continue to invest in facility upgrades and labor for planned shutdowns [10] Company Strategy and Development Direction - The company’s growth strategy focuses on scaling the ODR business, enhancing product offerings, and making strategic acquisitions [6] - The recent acquisition of Pioneer Power is expected to enhance market presence and align with the company’s disciplined acquisition criteria [18][19] - The company aims to transition from a reactive support model to a proactive partnership approach, helping customers plan capital expenditures [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic uncertainty but emphasizes strong momentum and commitment to long-term value creation [24] - The company anticipates generating between $650 million and $680 million in revenue for the full year 2025, with adjusted EBITDA projected between $80 million and $86 million [23] - Management is focused on driving top-line revenue growth, expanding relationships, and executing the integration of Pioneer [24] Other Important Information - The company has expanded its sales organization by adding 40 new salespeople to support the ODR business [11] - A new Senior Vice President of Sales has been hired to enhance the sales strategy and customer engagement [12] - The company expects a heavier revenue contribution in Q4 compared to Q3 due to the timing of projects [23] Q&A Session Summary Question: What is the outlook for gross margins, particularly in GCR? - Management indicated that gross margins will fluctuate, with a long-term guidance of 20% to 29% for 2025 [35] Question: Will Pioneer’s contribution dilute overall gross margins in the short term? - Yes, Pioneer’s integration may lead to short-term dilution of gross margins, but the goal is to enhance margins over time [36] Question: How is the demand environment trending? - The company is focused on proactive sales, particularly in healthcare, where customers must make repairs and consider capital programs [45][46] Question: Is the GCR business expected to continue declining? - The company aims for 70% to 80% ODR revenue, indicating a continued push towards higher-margin owner-direct business [49] Question: What drove the change in guidance? - The change primarily reflects the contribution from the Pioneer acquisition, with a conservative outlook for initial projections [53] Question: What is the status of the ODR backlog? - The decline in backlog is attributed to timing rather than a change in demand, with ongoing efforts to convert OpEx into CapEx [56] Question: How are the new sales hires performing? - New hires are performing as expected, but there is a typical ramp-up time before they contribute fully to revenue [61]