Core Insights - The company is focusing on enhancing commercial execution, organic growth, and margin expansion through cost management and service mix [1][5][19] Leadership Transition - A planned leadership transition will see Ben Heraud become CEO effective March 31, 2026, succeeding Tal Pizzey, who will remain on the board as an advisor [3][7][4] - The transition is part of broader succession planning and aims to strengthen the combined entity following the merger with NV5, which created a company with approximately $2 billion in revenue [3][6][7] Financial Performance - For full-year 2025, combined revenue was approximately $2.1 billion, with adjusted EBITDA around $312 million, reflecting a 14.8% adjusted EBITDA margin [6][13] - The company guided for 2026 revenue between $2.15 billion and $2.25 billion, with adjusted EBITDA projected at $330 million to $355 million, indicating about 4% revenue growth over the 2025 baseline [19][22] Operational Priorities - Key operational priorities include cross-selling, pricing consistency, and utilization improvements to expand margins [1][5] - Data center revenue rose to nearly $70 million in 2025, with expectations to reach nearly $100 million in 2026, supported by backlog and client engagements [9][10] Integration and Synergies - The company is on track to deliver $25 million in cost synergies from the NV5 integration, with half expected to be realized in 2026 and full run-rate by mid-2027 [18][19] - The integration phase began near the end of Q4 2025, focusing on headcount-related and non-headcount savings [18] Segment Performance - In 2025, Inspection & Mitigation revenue was about $1.1 billion, roughly flat year-over-year, while Consulting Engineering revenue grew approximately 8% to $714 million [20] - Geospatial revenue increased by roughly 6% to $298 million, with adjusted gross margins of 51.5% [20] Capital Allocation - The board authorized a $200 million share repurchase program, emphasizing a capital allocation framework that prioritizes deleveraging and organic reinvestment [23][24] - The company completed three small tuck-in acquisitions during the quarter and a total of 12 for the year across all segments [24]

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of approximately 4% to $2.1 billion, marking the highest combined full-year revenue [9] - Adjusted EBITDA for the full year was approximately $312 million, with an adjusted EBITDA margin of 14.8% [9][24] - For Q4 2025, total revenue was $508 million, reflecting a flat year-over-year performance, with adjusted gross profit increasing by 8% to $197 million [22][24] Business Line Data and Key Metrics Changes - In the Inspection and Mitigation (I&M) segment, revenue was approximately $1.1 billion for 2025, remaining roughly flat year-over-year, with an adjusted gross margin of 27.8% [19][20] - The Consulting Engineering (CE) segment saw revenue of $714 million, up roughly 8% against 2024, with an adjusted gross margin of 47.0% [20][21] - Geospatial (Geo) revenue was $298 million, up roughly 6% against 2024, with an adjusted gross margin of 51.5% [21] Market Data and Key Metrics Changes - The backlog within CE and Geo was $1.07 billion, up about 10% from approximately $970 million last year [15] - Data center revenue increased significantly, reaching nearly $70 million in 2025, more than doubling from the prior year [12] - The federal funding lapse affected timing of work in Geo but did not lead to material cancellations [14] Company Strategy and Development Direction - The company plans to accelerate organic growth with a focus on cross-selling and deeper client engagement across segments [10] - There is a strong emphasis on strengthening organizational alignment and cultural cohesion while driving margin expansion through cost management [10][16] - The company aims to leverage its combined capabilities to expand share of wallet with key clients in infrastructure, industrial, utilities, and government sectors [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leadership transition and the strategic direction of the company, highlighting the importance of maintaining operational stability during the transition [7][31] - The company anticipates continued growth driven by infrastructure reinvestment and regulatory compliance, with a focus on execution and delivering on targets [34] - For 2026, the company expects revenue in the range of $2.15 billion to $2.25 billion, with adjusted EBITDA between $330 million and $355 million [27] Other Important Information - The company completed a $250 million private placement to strengthen its balance sheet and provide flexibility for growth opportunities [25] - An integration program is underway, with a commitment to deliver $25 million in cost synergies, with half expected to be realized in 2026 [26] - A $200 million share repurchase program has been authorized to provide flexibility based on market conditions [32] Q&A Session Summary Question: Can you talk more about the integration process and specific milestones for 2026? - Management expressed confidence in the integration process, focusing on communication, culture, and achieving cost savings [39] Question: What are the biggest potential synergies and go-to-market strategies? - Management highlighted exciting developments in cross-selling opportunities, particularly in the data center space [40][41] Question: What are the expectations for the energy and oil end markets? - Management indicated good visibility on planned outages and run-and-maintain contracts, suggesting stability in the energy sector [51] Question: Can you elaborate on the EBITDA margins in the latest 2026 guidance? - Management acknowledged adjustments due to stock compensation changes but emphasized growth and margin expansion from improved execution [59] Question: How does the current situation in the Middle East impact the business? - Management noted that the Middle East represents a small portion of the business, with minimal current impact from rising oil prices [65] Question: What is the outlook for capital allocation? - Management confirmed a robust tuck-in acquisition pipeline while maintaining flexibility for share buybacks based on market conditions [78][79]

Financial Data and Key Metrics Changes - For the full year 2025, combined revenue grew approximately 4% to $2.1 billion, marking the highest full-year revenue for the company [9] - Adjusted EBITDA for the full year was approximately $312 million, with an adjusted EBITDA margin of 14.8% [24] - Full-year combined adjusted gross profit was $794 million, with an adjusted gross margin of 37.6%, up 14 basis points [19] Business Line Data and Key Metrics Changes - In the Inspection and Mitigation (I&M) segment, revenue was approximately $1.1 billion for 2025, roughly flat year-over-year, with adjusted gross margin at 27.8% compared to 28.5% in the prior year [19][20] - Consulting Engineering (CE) revenue was $714 million, up roughly 8% against 2024, with an adjusted gross margin of 47.0%, up 150 basis points [20][21] - Geospatial (Geo) revenue was $298 million, up roughly 6% against 2024, with an adjusted gross margin of 51.5%, down from 53.6% in the prior year [21] Market Data and Key Metrics Changes - Year-end backlog within CE and Geo was $1.07 billion, up about 10% from approximately $970 million last year [15] - Data center revenue increased significantly year-over-year, reaching nearly $70 million in 2025, more than doubling versus the prior year [12] - The federal funding lapse affected timing of work in Geo but did not result in material cancellations [14] Company Strategy and Development Direction - The company aims to accelerate organic growth with a focus on cross-selling and deeper client engagement across segments [10] - Plans to strengthen organizational alignment and cultural cohesion while driving margin expansion through cost management and service mix improvement [10][16] - A $200 million share repurchase program has been authorized to enhance capital allocation flexibility [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on growth targets, citing structural tailwinds in infrastructure reinvestment and regulatory compliance [34] - The company expects revenue for 2026 in the range of $2.15 billion to $2.25 billion, with adjusted EBITDA between $330 million and $355 million [27] - Anticipated growth in CE and Geo is expected to outpace growth in I&M for the full year [27] Other Important Information - A planned leadership transition was announced, with Ben Heraud set to become CEO effective March 31, 2026, succeeding Tal Pizzey [2][7] - The integration program is on track to deliver $25 million in cost synergies, with half expected to be realized during 2026 [26] Q&A Session Summary Question: Can you talk a little bit more about the integration process in a little more detail? - Management expressed high confidence in the integration process, focusing on communications and culture, with specific milestones being tracked [39] Question: Can you discuss the biggest potential synergies and go-to-market strategies? - Management highlighted exciting developments in cross-selling opportunities, particularly in the data center space, and emphasized the importance of servicing clients throughout the asset lifecycle [40][41] Question: What are your expectations on the inspection side for the energy and oil end markets? - Management indicated good visibility on planned outages and run and maintain contracts, suggesting stability in the energy sector [48] Question: Could you elaborate on the timing and rationale for the CEO transition? - The transition was planned as part of succession planning, allowing for a unified culture and strategic continuity [56] Question: How could the current situation in the Middle East and rising oil prices impact your business? - The Middle East represents a small portion of the business, and current impacts from rising oil prices are minimal, with potential for increased work around pipelines [60] Question: Can you talk about the primary variables that could affect revenue guidance? - Management expressed high confidence in revenue guidance, citing strong tailwinds across all end markets [62]

Financial Data and Key Metrics Changes - For the full year 2025, combined revenue grew approximately 4% to $2.1 billion, marking the highest full-year revenue for the company [10][20] - Adjusted EBITDA for the full year was approximately $312 million, with an adjusted EBITDA margin of 14.8% [10][25] - In the fourth quarter, total revenue was $508 million, reflecting a flat year-over-year performance, with adjusted gross profit increasing to $197 million, up 8% from the previous year [21][22] Business Line Data and Key Metrics Changes - In the Inspection and Mitigation (I&M) segment, revenue was approximately $1.1 billion for 2025, remaining roughly flat year-over-year, with adjusted gross margin at 27.8% [20] - Consulting Engineering (CE) revenue was $714 million, up roughly 8% against 2024, with an adjusted gross margin of 47.0% [20] - Geospatial (Geo) revenue was $298 million, up roughly 6% against 2024, with an adjusted gross margin of 51.5% [21] Market Data and Key Metrics Changes - Data center revenue increased significantly, reaching nearly $70 million in 2025, more than doubling from the prior year, with expectations to approach $100 million supported by contracted backlog [13][48] - Year-end backlog within CE and Geo was $1.07 billion, up about 10% from approximately $970 million last year [16] Company Strategy and Development Direction - The company aims to accelerate organic growth, focusing on cross-selling and deeper client engagement across segments [11][36] - A planned leadership transition was announced, with Ben Heraud set to become CEO on March 31, 2026, to ensure continuity and strategic execution [2][6] - The company is focused on margin expansion through prudent cost management and service mix improvement [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural tailwinds in markets, including infrastructure reinvestment and increasing regulatory complexity [36] - The company expects revenue for 2026 in the range of $2.15 billion to $2.25 billion, with adjusted EBITDA between $330 million and $355 million, indicating a growth outlook [28][29] Other Important Information - The company completed a $250 million private placement to strengthen its balance sheet and provide flexibility for growth opportunities [26] - An integration program is underway, targeting $25 million in cost synergies, with expectations to realize half of these savings in 2026 [27] Q&A Session Summary Question: Can you talk more about the integration process and specific milestones for 2026? - Management highlighted strong momentum in the integration process, focusing on communication and culture, with weekly meetings on milestones [41] Question: What are the biggest potential synergies and go-to-market strategies? - Management noted exciting developments in cross-selling opportunities, particularly in the data center space, and emphasized the ability to service clients throughout the asset lifecycle [42][43] Question: What are the expectations for the energy and oil end markets? - Management indicated good visibility on planned outages and run-and-maintain contracts, suggesting stability in the energy sector [55] Question: Can you elaborate on the EBITDA margins in the latest 2026 guidance? - Management acknowledged a lower EBITDA margin outlook due to a shift in compensation structure but emphasized growth and margin expansion from improved execution [62] Question: How does the current situation in the Middle East impact the business? - Management stated that the Middle East represents a small portion of the business, with minimal current impacts from rising oil prices [67] Question: What is the capital allocation strategy moving forward? - Management confirmed a robust tuck-in acquisition pipeline while maintaining flexibility for share buybacks based on market conditions [83][85]