Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [10] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [10][4] - Selling, general, and administrative costs decreased by $2.9 million to $14.6 million compared to the same period in 2024 [11] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [13] - EBITDA was negative $3.5 million, an improvement from negative $58.7 million for the same period in 2024 [13] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, up from $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [14] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [15] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [15] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [6] - The company expects to burn approximately 39% of the backlog over the next 12 months [16] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [6] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with a strong emphasis on data center opportunities [7][8] - The company is positioned to benefit from significant public market opportunities driven by the Infrastructure Investment and Jobs Act (IIJA) [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resolution of legacy disputes and expects significant cash collections from these disputes [5][22] - The outlook for the market remains positive, with robust demand for infrastructure expected to continue for years [6] - The company anticipates improving profitability as it transitions fully into its core business by 2027 [41] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [16] - A one-time non-cash tax expense of $57.3 million was recorded due to a valuation allowance on net deferred tax assets [12] Q&A Session Summary Question: Inquiry about data centers and private projects - Management indicated that they are looking at data centers that align with their core market, with opportunities ranging from $15 million to $75 million [40] Question: Free cash flow outlook for Q4 - Management noted that while positive cash flow from operations was generated, a decrease may be expected in Q4 and Q1 of 2026, but overall positive cash flow is anticipated in 2026 [32] Question: Impact of Texas's Proposition Four on civil projects - Management expressed confidence in civil margins and highlighted the potential benefits from the $20 billion allocated for water projects in Texas [34] Question: Competitive advantage with tunnel boring machines - Management stated that they have a significant advantage with their own tunnel boring machines and a large fleet, positioning them well for upcoming tunnel opportunities [35] Question: Expectations for core business margins in 2027 - Management expects to improve profitability in 2027 as they focus on core work, following a reset year in 2025 [41]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $213 million, an increase of $40 million from the same period in 2024 [5][13] - Gross profit was $3.3 million, up $54.4 million from the same period in 2024, with a gross profit margin of 1.5%, compared to negative 29.5% in the prior year [6][13] - Selling, general, and administrative costs decreased to $14.6 million, down $2.9 million compared to the same period in 2024 [14] - The company reported a net loss of $75.2 million or $1.39 per share, compared to a net loss of $54.7 million or $1.14 per share in the same period last year [15] Business Line Data and Key Metrics Changes - The Civil segment had revenue of $99.5 million, compared to $55.8 million in the same period in 2024, with a gross profit of $10.4 million and a gross margin of 10.5% [16][17] - The Transportation segment reported revenue of $113.9 million, a decrease of $3.6 million from the same period in 2024, with a gross loss of $7.2 million [18] - The Materials and Paving business line contributed $22.9 million to revenue, with a gross loss of $3 million [18] Market Data and Key Metrics Changes - The company added approximately $151 million in new awards and contract adjustments during the quarter, bringing the total backlog to approximately $2.26 billion [7][19] - The company expects to burn approximately 39% of the backlog over the next 12 months [19] Company Strategy and Development Direction - The company is focusing on finalizing remaining legacy projects and transitioning to high-quality new core backlog, expecting to de-risk its earnings profile [7][11] - The strategy includes targeting short-duration, high-margin projects in both public and private markets, with strong demand for large-scale data centers [9][10] - The company is positioned to benefit from significant opportunities under the Infrastructure Investment and Jobs Act (IIJA) and recent funding commitments in Texas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for infrastructure projects and the potential for strong cash flow in 2026 [8][38] - The company anticipates that legacy projects will have less impact on overall results in 2026 as they continue to wind down these projects [19] - Management maintains confidence in the long-term outlook and future direction of the business, expecting to improve profitability in the coming years [12][47] Other Important Information - The company is exploring debt solutions to provide additional capacity and flexibility in accelerating work on the legacy backlog [20] Q&A Session Summary Question: Inquiry about data centers and private market opportunities - Management indicated that they are looking at data centers that align with their core market, with strong opportunities in both public and private sectors [26][27] Question: Clarification on legacy claims and their resolution - Management expressed optimism about settling more legacy claims in the next 12 months, noting progress on smaller disputes [28][29] Question: Expectations for project delays and Q4 performance - Management expects Q4 to be similar to Q3, with a slight uptick anticipated [30][31] Question: Free cash flow outlook for Q4 - Management indicated positive cash flow from operations year-to-date, with expectations for some decrease in Q4 but overall positive cash flow in 2026 [37][38] Question: Size and runway of quick-turn projects in the Civil segment - Management highlighted strong civil margins and the positive impact of Texas's Proposition 4 on future projects [40] Question: Competitive advantage with tunnel boring machines - Management noted a significant advantage in having a large fleet of tunnel boring machines, positioning them well for upcoming opportunities [41] Question: Typical project sizes for data centers - Management indicated they are looking at data center projects ranging from $15-$20 million to $50-$75 million [46] Question: Future margin expectations post-legacy work - Management expects to improve profitability as they transition fully into core markets by 2027 [47]