Core Insights - The current market is characterized by a multidecade infrastructure transformation driven by the convergence of utility, power generation, and large load industries [1] - The company is focusing on self-perform capabilities and has grown its workforce to approximately 69,500 employees to position itself as a total solutions provider rather than a traditional contractor [1] Investment Strategy - A vertical supply chain strategy has been initiated with an investment of $500 million to $700 million in power transformer manufacturing to mitigate lead-time risks and ensure execution certainty [2] - The company is shifting from bidding on short-term projects to negotiating five-to-ten-year programmatic spend arrangements, enhancing long-term visibility and return on invested capital [2] Growth and Performance - The craft skill platform has been expanded through eight strategic acquisitions in 2025, targeting load-center facilities and turnkey mechanical infrastructure for technology and semiconductor markets [3] - Record results in 2025 are attributed to a diversified solution-based model that adapts to evolving load growth demands and utility modernization requirements [3] - The 2026 guidance assumes continued double-digit growth in revenue and adjusted EBITDA, supported by a record $44 billion backlog across broad-based end markets [3] - Data center-related work is expected to represent approximately 10% of the business moving forward, identified as the fastest-growing component of the current backlog [3] - Significant 765-kilovolt high-voltage transmission awards are anticipated to stack in the latter half of 2027 and beyond, which are not yet reflected in the 2026 backlog [3] - Projected free cash flow for 2026 is approximately $1.8 billion, accounting for the collection of remaining balances from a large Canadian renewable project [3] - Organic growth of approximately 6,000 employees is assumed for 2026, which may temporarily pressure margins due to onboarding and training cycles [3]

Financial Data and Key Metrics Changes - For the full year 2025, revenues reached $28.5 billion, a 20% increase compared to 2024. Adjusted EBITDA was a record $2.9 billion, and adjusted diluted earnings per share grew 20% year over year to $10.75. Record cash flow from operations was $2.2 billion, and record free cash flow was $1.7 billion [10][12] - In Q4 2025, revenues were $7.8 billion, with adjusted EBITDA of $845 million and adjusted diluted EPS of $3.16, all records for the company. Cash flow from operations in the quarter was $1.1 billion, and free cash flow was $946 million, both fourth quarter records [10][11] Business Line Data and Key Metrics Changes - The company completed three acquisitions in Q4 2025: Tri-City Group, Wilson Construction Company, and Billings Flying Service, for a total consideration of approximately $1.7 billion, enhancing power delivery capabilities for large load center facilities and utility capital programs [11] - The acquisitions and organic growth added approximately 11,100 employees, bringing the total workforce to approximately 69,500 at year-end, reinforcing self-perform capabilities [7] Market Data and Key Metrics Changes - The total backlog at year-end was $44 billion, indicating substantial momentum across end markets driven by ongoing investment in grid reliability and resilience, and growing demand for power generation [7][12] - The company is positioned to benefit from multi-year structural demand drivers in the utility and power generation sectors, with significant visibility heading into 2026 and beyond [12] Company Strategy and Development Direction - The company aims to enhance vertical supply chain solutions through a planned investment of approximately $500 million to $700 million over the next several years in power transformer manufacturing facilities [8] - The strategy remains focused on craft labor excellence, execution certainty, and disciplined investment, positioning the company at the center of a multi-decade infrastructure transformation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record backlog and another year of double-digit earnings per share growth in 2026, supported by a strong backlog and ongoing investments in infrastructure [9][12] - The company is optimistic about the growth opportunities in the data center market, which is expected to be a significant contributor to future revenues [17] Other Important Information - The company has established itself as a compounder of profitable growth, achieving record results in revenues, adjusted EBITDA, and adjusted diluted earnings per share for eight consecutive years [4] - Management emphasized the importance of maintaining a disciplined approach to acquisitions and investments, ensuring alignment with the company's strategic goals [87] Q&A Session Summary Question: Insights on earnings growth and data center contracts - Management indicated that data center contracts currently represent about 10% of the business and are the fastest-growing segment of the backlog, with significant opportunities expected in the coming years [17] Question: Electric margins and initiatives - Management noted that while electric margins have remained steady, there are opportunities for improvement through vertical integration and resource sharing, although no major large projects are anticipated in 2026 [20][22] Question: Gas power generation projects - Management confirmed ongoing interest in gas power generation projects and indicated that there is a strong pipeline of opportunities, with plans to expand beyond current joint ventures [37] Question: Pricing dynamics and supply chain - Management highlighted a collaborative approach to pricing, focusing on long-term programmatic spending rather than short-term bids, which enhances return on invested capital [35] Question: AI initiatives and operational efficiency - Management acknowledged the potential of AI to improve operational efficiency and reduce operating expenses, emphasizing a focus on integrating AI into engineering and field operations [91]