Financial Data and Key Metrics Changes - The company reported a 19% year-over-year revenue growth to $1,250,000,000 for the first quarter of 2025, with operating income up 34% to $65,000,000 and earnings per share increasing 77% to $0.53 [5][18][22] - The backlog grew 94% to a record $19,400,000,000, driven by strong project execution and new awards [5][25] Business Line Data and Key Metrics Changes - Civil segment revenue increased 29% to $610,000,000, while building segment revenue rose 12% to $460,000,000, and specialty contractors segment revenue grew 7% to $177,000,000 [18][19] - Civil segment income from construction operations was $80,000,000, up from $71,000,000, while building segment income decreased to $10,000,000 from $16,000,000 [19][20] Market Data and Key Metrics Changes - The company secured $2,000,000,000 in new awards and contract adjustments during the first quarter, contributing to the record backlog [6][7] - The Indo Pacific region is highlighted as a major area for project opportunities, particularly due to U.S. military initiatives [8][9] Company Strategy and Development Direction - The company is focusing on selective bidding for projects with favorable contractual terms and higher margins, leveraging its record backlog [8][25] - The management anticipates strong sustained backlog growth and is actively pursuing major projects, including a multibillion-dollar Midtown bus terminal replacement project [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, increasing the 2025 EPS guidance to a range of $1.6 to $1.95, up from the previous guidance [13][25] - The company does not foresee significant impacts from U.S. trade policy or federal spending programs on its major projects [15][16] Other Important Information - The company achieved a solid operating cash flow of $23,000,000 for the first quarter, marking the third-best first quarter result in its history [5][23] - Total debt was reduced by 24% to $406,000,000, contributing to a healthier balance sheet [24] Q&A Session Summary Question: Confirmation of a clean quarter without significant closeouts or contract settlements - Management confirmed that the quarter was clean from significant dispute resolution impacts, with cash collections expected in the second quarter [30][32] Question: What is needed to move projects from preconstruction to construction phase? - Management indicated that the passage of time and ongoing preconstruction activities are key, with several projects expected to transition soon [37] Question: Insights on EPS guidance for 2025 and beyond - Management explained that the guidance is based on the ramp-up of new projects with better margins and contractual terms, expecting significant earnings growth in 2026 and 2027 [47][51] Question: Impact of tariffs and regulatory changes on project planning - Management noted no significant speed-up in project planning due to regulatory changes, but some smaller projects have seen expedited timelines [60][62] Question: Opportunities in the Indo Pacific region - Management highlighted tremendous opportunities in Guam and surrounding areas, with significant government-funded projects being monitored [70][72]

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year revenue growth to $1,250,000,000 for Q1 2025, with operating income up 34% to $65,000,000 and earnings per share increasing 77% to $0.53 [5][18] - The backlog grew 94% to a record $19,400,000,000, with operating cash flow at $23,000,000, marking the third-best first quarter result in the company's history [5][22] Business Line Data and Key Metrics Changes - Civil segment revenue increased 29% to $610,000,000, while building segment revenue rose 12% to $460,000,000, and specialty contractors segment revenue grew 7% to $177,000,000 [18][19] - Civil segment income from construction operations was $80,000,000, up from $71,000,000, while building segment income decreased to $10,000,000 from $16,000,000 [19][20] - The specialty contractors segment posted a loss of $7,000,000, an improvement from a loss of $18,000,000 the previous year [20] Market Data and Key Metrics Changes - The company secured $2,000,000,000 in new awards and contract adjustments during the first quarter, contributing to the record backlog [6][7] - The Indo-Pacific region is highlighted as a significant area for project opportunities, particularly due to U.S. military initiatives [8][9] Company Strategy and Development Direction - The company plans to be selective in bidding for projects with favorable contractual terms and higher margins, leveraging its record backlog [8][9] - The company is increasing its 2025 EPS guidance to a range of $1.6 to $1.95, reflecting confidence in future performance despite potential risks [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating that earnings in 2026 and 2027 will more than double the increased EPS guidance for 2025 [13][14] - There are no anticipated significant impacts from U.S. trade policy or federal spending programs on major projects [14][15] Other Important Information - The company has reduced total debt by 24% to $406,000,000, enhancing its balance sheet [22][23] - The company is considering returning capital to shareholders through dividends or share buybacks as cash accumulates [50][51] Q&A Session Summary Question: Was the quarter clean without significant closeouts or contract settlements? - Management confirmed that the quarter was clean from significant dispute resolution impacts, with cash collections expected in the second quarter [27][28] Question: What is needed to move projects from preconstruction to construction phase? - Management indicated that the passage of time and ongoing preconstruction activities are key, with several projects expected to move into backlog soon [33][35] Question: What are the expectations for EPS guidance in 2025, 2026, and 2027? - Management stated that the guidance is based on the ramp-up of new projects with better margins, expecting to double the EPS in the following years [44][46] Question: How is the company addressing potential tariff impacts? - Management noted that while costs are rising, they have favorable contract terms that protect against tariff impacts, and no significant negative effects have been felt on existing work [37][38] Question: What is the outlook for backlog growth? - Management believes that the backlog could grow from the current $19,400,000,000, depending on the success of upcoming bids [67][68] Question: When is peak revenue expected? - Management anticipates that peak revenues will occur in 2027, with significant increases expected in 2026 as major projects ramp up [69][70]