Financial Data and Key Metrics Changes - In Q2 2025, the company reported diluted earnings per share of $6.72, a 28% increase from $5.25 in the prior year [26] - Revenues reached a record $4.3 billion, representing a 17.4% increase year-over-year [6][14] - Operating cash flow was $194 million, with a total of $302.2 million generated year-to-date [27][28] - Remaining performance obligations (RPOs) increased to a record $11.9 billion, up 32% year-over-year [10][11] Business Line Data and Key Metrics Changes - US Electrical Construction revenues were a record $1.34 billion, increasing 67.5% due to strong organic growth and the acquisition of Miller Electric [14][15] - US Mechanical Construction revenues reached $1.76 billion, up 6%, primarily driven by network and communications projects [15][21] - US Building Services revenues increased by 1.6% to $793.2 million, with mechanical services showing robust growth [17][22] - Industrial Services revenues decreased by 13.3% to $281.1 million, impacted by lower field service volumes [18][22] Market Data and Key Metrics Changes - RPOs in the network and communications sector totaled $3.8 billion, driven by data center projects [11] - Healthcare RPOs reached $1.4 billion, bolstered by the acquisition of Miller Electric [11] - Manufacturing and industrial RPOs totaled $1 billion, benefiting from onshoring initiatives and food processing projects [12] - UK Building Services revenues increased by 26.3% to $134.6 million, primarily due to increased service revenues [19] Company Strategy and Development Direction - The company plans to raise its 2025 revenue and earnings guidance, expecting diluted earnings per share between $24.5 and $25.75 [29] - The focus remains on disciplined capital allocation, supported by a strong balance sheet and a healthy pipeline of acquisitions [30] - The company aims to leverage long-term trends in key markets such as data centers, healthcare, and high-tech manufacturing [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength in the markets served, particularly in manufacturing and healthcare [40] - There is an acknowledgment of macroeconomic uncertainties, particularly around tariffs and trade, but the guidance reflects potential impacts [30] - The company expects improvements in the Industrial Services segment as the year progresses [10][45] Other Important Information - The company spent over $430 million on share repurchases and $887 million on acquisitions in the first half of 2025 [7][28] - Operating income for the quarter was $415.2 million, a 25% increase year-over-year, with an operating margin of 9.6% [19][20] Q&A Session Summary Question: Expectations for bookings in the second half of the year - Management indicated that they will continue to win their fair share of business and expect to see strength in various markets, including manufacturing and healthcare [38][40] Question: Activity in the industrial business post-administration change - Management noted that while the focus remains downstream, they expect strengthening activity, particularly in midstream and energy build-out projects [45] Question: Strength in the UK market and sustainability - The growth in the UK is attributed to increased project activity and service revenues, with management expressing confidence in its sustainability [48][49] Question: M&A environment and pipeline of potential targets - Management confirmed that they are actively looking for acquisition opportunities that align with their values and long-term growth strategy [53][56] Question: Mechanical margins and operating leverage - Management explained that the expansion in mechanical margins is driven by productivity improvements and effective project execution [57][60] Question: Pipeline perspective on pharma manufacturing - Management reported increased activity in pharma manufacturing, particularly related to onshoring initiatives [67][70] Question: Phase II award for semiconductor projects - The Phase II award is significant, valued at over $100 million, and reflects ongoing work at existing sites [71] Question: Guidance raise implications - The guidance raise reflects both strong Q2 performance and expectations for continued margin strength in the second half of the year [76][79] Question: Capacity for prefabrication and growth - Management confirmed ongoing efforts to expand prefabrication capabilities to enhance efficiency and support growth [99][100]