Financial Data and Key Metrics Changes - The company reported record earnings with a quarterly EPS of $9.37, up 129% from the previous year, and an annual EPS of $28.88, compared to $14.60 in 2024 [5][12] - Fourth quarter revenue increased by 42% year-over-year to $2.6 billion, while full year revenue exceeded $9 billion, marking a 30% increase compared to 2024 [8][12] - Gross profit for Q4 was $675 million, a $241 million increase from the previous year, with a gross profit margin of 25.5%, up from 23.2% [9][12] - Operating income for Q4 rose by 89% to $427 million, with an operating income percentage of 16.1% [11] - Full year EBITDA increased by 78% to $1.45 billion, with an EBITDA margin of 16% [12] Business Line Data and Key Metrics Changes - The Mechanical segment revenue increased by 21%, while the Electrical segment revenue surged by 62% [8][9] - Same-store revenue growth for the quarter was 35%, with overall same-store revenue increasing by 26% [5][8] - Service revenue grew by 12%, contributing to a record $1.2 billion in total service revenue for 2025 [16] Market Data and Key Metrics Changes - The technology sector accounted for 45% of total revenue, up from 33% the previous year, driven by data center work [15][16] - The industrial sector, including technology, represented 67% of total volume in 2025 [15] - Institutional markets, such as education and healthcare, contributed 21% of revenue [16] Company Strategy and Development Direction - The company plans to increase its modular capacity from 3 million sq ft to approximately 4 million sq ft by the end of 2026, with investments in technology and workforce training [6][15] - The company has acquired two electrical companies to enhance its service offerings and expand its market presence [7] - The focus remains on maintaining strong relationships with technology customers and expanding in the modular construction space [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued strong performance in 2026, supported by unprecedented backlog and strong project pipelines [17] - The company anticipates same-store revenue growth in the mid-teens to high-teens percentage for 2026, with a heavier contribution expected in the first half of the year [10][12] - Management acknowledged challenges in the labor market but emphasized their ability to attract and retain talent through various initiatives [24] Other Important Information - The company increased its quarterly dividend by $0.10 to $0.70 per share and returned over $200 million to shareholders through share repurchases [8][13] - The backlog reached an all-time high of $12 billion, with significant growth in technology-related bookings [5][14] Q&A Session Summary Question: Clarification on backlog growth - Management clarified that backlog reflects binding commitments from projects planned 1-2 years prior, indicating they are late-cycle players in the construction process [20][21] Question: Labor shortage situation - Management confirmed they have added over 7,000 employees in the last 24 months and are employing various strategies to meet labor demands [23][24] Question: Bookings in Q4 - Management noted that over half of the $2.6 billion in bookings were new modular bookings, with significant activity in data centers and other sectors [32][33] Question: Modular expansion timeline - The company plans a gradual addition of modular capacity throughout 2026, with some productivity expected to begin shortly after procurement [35] Question: Impact of cooling requirements on business - Management stated that changes in cooling requirements for next-generation chips would not significantly impact their business, as demand for electricians and pipe fitters remains strong [77][78] Question: M&A pipeline and cash deployment - Management indicated a strong M&A pipeline but emphasized the need for conviction in acquisitions, balancing cash generation with strategic investments [81][82]

Financial Data and Key Metrics Changes - The company reported record earnings with a quarterly EPS of $9.37, up 129% from the previous year, and an annual EPS of $28.88, compared to $14.60 in 2024 [5][12] - Revenue for Q4 2025 increased by 42% year-over-year to $2.6 billion, while full-year revenue exceeded $9 billion, marking a 30% increase compared to 2024 [7][12] - Gross profit for Q4 was $675 million, a $241 million increase from the previous year, with a gross profit margin of 25.5%, up from 23.2% [8][9] - Operating income for Q4 increased by 89% to $427 million, with an operating income percentage of 16.1%, up from 12.1% [11] - Full-year EBITDA was $1.45 billion, with an EBITDA margin of 16% [12] Business Line Data and Key Metrics Changes - The mechanical segment revenue increased by 21%, while the electrical segment revenue surged by 62% [7] - Same-store revenue growth for Q4 was 35%, with an overall same-store revenue increase of 26% for the year [5][7] - Service revenue grew by 12%, contributing to a record $1.2 billion in total service revenue for 2025 [16] Market Data and Key Metrics Changes - The backlog reached an all-time high of $12 billion, with a 93% increase year-over-year on a same-store basis [5][14] - The industrial sector, including technology, accounted for 67% of total revenue, with technology alone representing 45% of revenue, up from 33% the previous year [15][16] - Institutional markets, including education and healthcare, contributed 21% of revenue [15] Company Strategy and Development Direction - The company plans to increase modular capacity from 3 million sq ft to approximately 4 million sq ft by the end of 2026, with investments in technology and workforce training [6][14] - Recent acquisitions of two electrical companies are expected to enhance operational capabilities [6] - The company is focused on maintaining strong relationships with customers and investing in its workforce to meet growing demand [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued strong performance in 2026, supported by unprecedented backlog and project pipelines [17] - The company anticipates same-store revenue growth in the mid-teens to high-teens percentage for 2026, with a focus on maintaining profitability and productivity [11][41] - Management acknowledged challenges such as labor shortages but emphasized their commitment to attracting and retaining talent [24] Other Important Information - The company increased its quarterly dividend by $0.10 to $0.70 per share, demonstrating a commitment to shareholder returns [7] - Full-year free cash flow reached a record $1 billion, indicating strong cash generation capabilities [12] Q&A Session Summary Question: Clarification on backlog growth - Management clarified that backlog reflects binding commitments from projects planned 1-2 years prior, indicating they are late-cycle players in the construction process [20][22] Question: Labor shortage situation - Management confirmed they have added over 7,000 employees in the last 24 months and are employing various strategies to attract and retain talent [24] Question: Bookings in Q4 - Management noted that over half of the $2.6 billion in bookings were new modular bookings, with significant activity in data centers and other sectors [32][33] Question: Modular expansion timeline - The company plans a gradual addition of modular capacity throughout 2026, with some space becoming productive earlier in the year [36] Question: Impact of weather on operations - Management acknowledged that weather events, such as ice storms, can impact operations but are considered seasonal and manageable [72][74] Question: M&A pipeline and cash deployment - Management indicated a strong M&A pipeline but emphasized the need for conviction in acquisitions, balancing cash generation with strategic investments [82][86]

Financial Data and Key Metrics Changes - The company reported earnings of $8.25 per share for Q3 2025, doubling the earnings from the same quarter last year [5] - Revenue for Q3 2025 was $2.5 billion, an increase of $639 million or 35% compared to the previous year [7] - EBITDA for the quarter reached $414 million, a 74% increase from $238 million in Q3 2024 [10] - Free cash flow for Q3 2025 was $519 million, with year-to-date free cash flow at $632 million [10] - Net income for Q3 2025 was $292 million, compared to $146 million in Q3 2024 [10] Business Line Data and Key Metrics Changes - The electrical segment revenue grew by 71%, while mechanical revenue increased by 26% [7] - Gross profit for Q3 2025 was $608 million, up $226 million from the previous year, with a gross profit percentage of 24.8% [8] - Service revenue increased by 11%, now accounting for 14% of total revenue [14] Market Data and Key Metrics Changes - Industrial customers represented 65% of total revenue in the first nine months of 2025, with technology making up 42% of revenue, up from 32% the previous year [12][13] - The backlog at the end of Q3 2025 was a record $9.4 billion, a 65% increase year-over-year [12] Company Strategy and Development Direction - The company announced the acquisition of two companies, FZ Electrical and Meisner Electric, expected to provide over $200 million in incremental annual revenue [6][11] - The company plans to continue investing in its modular business, aiming for 3 million square feet of space by early 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continuing growth and strong results in 2025 and 2026, driven by solid bookings and demand [7] - The company expects same-store revenue growth in the high-teens range for Q4 2025 and low to mid-teens for full-year 2026 [8] Other Important Information - The company increased its quarterly dividend by 20% to $0.60 per share [6] - The company has a net cash position of $725 million as of the end of September [11] Q&A Session Summary Question: Does the bidding activity match the bookings and revenue growth seen in Q3? - Management confirmed that the pipeline remains robust, with more opportunities than can be handled [19] Question: How is the company thinking about capital allocation with strong free cash flow? - Management indicated a preference for deploying cash into acquisitions and share buybacks, while also considering accumulating cash if necessary [20][21] Question: Can you provide insights on the backlog growth and its timing? - Management noted that most of the backlog consists of jobs that have already started, with new bookings expected to begin within the next year [68] Question: What is driving the strength in service revenue growth? - The service business is seeing broad strength due to effective execution and investment in Salesforce collaboration [70] Question: How sustainable is the pace of hiring to support growth? - Management indicated that while hiring has been strong, they do not expect to maintain the same growth rate indefinitely, but are focused on training and apprenticeship programs [75]