Financial Data and Key Metrics Changes - Reported revenues increased by 15% year-over-year, reaching $131.7 million for the quarter [16] - Adjusted EBITDA rose by 29% to $30.6 million, with adjusted EBITDA margins at 23.2%, up from 20.8% last year [17][18] - Gross profit increased by 20% to $61 million, resulting in a gross margin of 46%, up from 44% [17] - GAAP earnings per share increased by 61% to $0.45, while adjusted earnings per share rose by 45% to $0.55 [18] Business Line Data and Key Metrics Changes - Large project revenue was $24.7 million, a 41% increase year-over-year, driven by several CapEx projects moving to execution [17] - OPEX revenues were $107 million, up 10% year-over-year, representing 81% of total revenues [16][17] - Organic revenue growth, excluding FOTI, was 9% year-over-year [16] Market Data and Key Metrics Changes - U.S. land sales increased by 8%, while Canada saw a 10% increase in revenue [19] - EMEA revenue doubled, driven by strong performance in organic business and contributions from FOTI [19] - APAC experienced a 4% decline, primarily due to uncertainties surrounding global trade policies with China [19] Company Strategy and Development Direction - The company is focused on a 3D strategy of decarbonization, digitization, and diversification to drive organic growth [9][25] - The establishment of a global engineering center in Mexico aims to handle increased project workloads [8] - The company is actively pursuing opportunities in the data center market, particularly with liquid-cooled data centers and medium voltage heaters [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong second-half results and raised full-year 2026 financial guidance [23][24] - The company is well-positioned to benefit from favorable secular demand trends, including reshoring, electrification, and decarbonization [7][25] - Management noted that the current tariff structures are expected to remain stable, which is crucial for maintaining customer sentiment [24] Other Important Information - The company ended the quarter with total liquidity of $129 million and a net leverage ratio of 1.0 times [8][22] - The backlog increased by 17% year-over-year, with a 4% organic increase due to positive book-to-bill ratios [18][19] Q&A Session Summary Question: Expectations for large CapEx projects, particularly in LNG - Management indicated robust activity in the LNG market, with a 140% year-over-year increase in the LNG pipeline [29] Question: Details on digitization efforts and their impact - Management highlighted that digitization differentiates the company from competitors and enhances customer engagement, leading to recurring revenues [30][31] Question: Dynamics of gross margin in relation to large projects - Management acknowledged that large projects typically have lower margins but noted that increased volumes and productivity gains helped maintain solid margins [34][35] Question: Timing for other large projects to move to execution - Management confirmed that a broader range of projects across various sectors is moving to execution, not just LNG [38] Question: Impact of data center and medium voltage heater opportunities on results - Management stated that there was no impact in the second quarter, but they are beginning to book orders and see high-probability opportunities [39] Question: Balance between organic and inorganic growth investments - Management emphasized a priority on organic growth initiatives while also tracking potential inorganic opportunities [45]