Financial Data and Key Metrics Changes - The company reported record annual revenues of $3.7 billion for the year ended December 31, 2025, with a net income of $118 million and EBITDA of $233 million [8] - Fourth quarter revenues were $974 million, representing an increase of $144 million, or 17%, compared to the same period last year [8] - The gross margin for the fourth quarter was 11.4%, up from 10.4% in the same period last year, primarily due to improved productivity and favorable job closeouts [10] - Fourth quarter net income reached a record $37 million, compared to $16 million for the same period last year, with net income per diluted share of $2.33, up from $0.99 [12] Business Line Data and Key Metrics Changes - Transmission and Distribution (T&D) revenues for the fourth quarter were $531 million, an increase of 18% year-over-year, with $330 million from transmission and $201 million from distribution projects [9] - Commercial and Industrial (C&I) revenues reached a record high of $443 million for the fourth quarter, a 17% increase compared to the same period last year, driven by fixed-price contracts [9] - T&D operating income margin improved to 7.4% from 6.7% year-over-year, while C&I operating income margin increased to 6.6% from 3.9% [10][11] Market Data and Key Metrics Changes - The total backlog as of December 31, 2025, was $2.8 billion, a 9.6% increase from the prior year, with $1.0 billion for T&D and $1.8 billion for C&I [13] - The company noted strong bidding activity across its business segments, reflecting a healthy bidding environment and ongoing investment in infrastructure [7] Company Strategy and Development Direction - The company aims to strategically pursue and execute projects with operational excellence, focusing on long-term client relationships and safety in project execution [7] - The management highlighted the ongoing need for grid modernization and increased capacity to accommodate load growth, positioning the company to benefit from expanding backlogs and long-duration project pipelines [18] - The company is committed to organic growth and acquisitions, with a focus on maintaining a strong balance sheet and leveraging cash flow for future opportunities [16][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the large transmission market, indicating strong conversations with clients and potential bookings for 2027 revenue [25] - The company anticipates continued growth in core markets, driven by investments in electrical infrastructure, with a forecast of 10% growth in both T&D and C&I segments [39][100] - Management acknowledged weather as a significant factor impacting operations, but does not foresee a slowdown in market activity [79] Other Important Information - The company reported a significant increase in operating cash flow to $115 million for the fourth quarter, compared to $21 million for the same period last year, attributed to improved billing and payment timing [15] - The effective tax rate for the fourth quarter was 21.2%, a decrease from 40.9% in the same period last year, due to changes in state tax rates [12] Q&A Session Summary Question: Thoughts on the large transmission market and potential bookings - Management confirmed optimism regarding the large transmission market and ongoing conversations with clients, expecting to capture work starting in 2027 [25] Question: Cash flow strength and its drivers - Management attributed strong cash flow to lower Days Sales Outstanding (DSOs) and a strong net overbuild position, particularly in fixed-price contracts [26] Question: Strength in T&D backlog and specific projects - Management noted that the backlog includes limited contributions from new projects like the Kentucky MSA, with a focus on long-term client relationships [33] Question: Positioning in Texas and capital plans - Management highlighted Texas as a strong market with ongoing opportunities, particularly in high-voltage projects [36] Question: C&I margins and future guidance - Management indicated expectations of operating within the mid-range of margin targets, with good opportunities for margin improvement [39] Question: Backlog components and project duration - Management explained that larger projects, such as data centers, typically have longer durations, impacting backlog composition [44] Question: Weather impacts on operations - Management stated that while weather can affect operations, it has not uniformly impacted business across the country [47] Question: Capital allocation strategy for 2026 - Management emphasized a focus on organic growth and acquisitions, with a strategic approach to capital allocation [58] Question: Risks and opportunities for 2026 - Management identified weather and project timing as key risks, but expressed confidence in market activity and project execution [79]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue increased by 32% to $826.6 million compared to the same period last year, driven by a 47% increase in Electrical and Mechanical (E and M) revenue, partially offset by a 2% decline in Transmission and Distribution (T and D) revenue [20][21] - Total EBITDA for Q1 2025 was $61.8 million, also reflecting a 32% increase year-over-year, with an EBITDA margin of 7.5%, consistent with the prior year [20][21] - The total backlog at the end of Q1 2025 was $3.1 billion, up 10% from the end of 2024 and up 41% from the same period last year [21][24] Business Line Data and Key Metrics Changes - E and M segment revenue rose to $648.2 million, a 47% increase from $441 million in the prior year, with EBITDA for this segment increasing by 51% to $49.5 million [22][23] - T and D segment revenue was $185 million, down from $188.5 million last year, but T and D EBITDA increased by 5.8% to $20.1 million, resulting in an EBITDA margin of 10.9%, up 80 basis points from last year [23][24] Market Data and Key Metrics Changes - The company reported strong demand trends in key markets, particularly in data centers, hospitality, and high-tech reshoring, with E and M backlog increasing by 46% year-over-year [10][11][12] - The T and D segment is expected to benefit from increased workloads, particularly in undergrounding projects, despite some weather-related delays impacting revenue [35][48] Company Strategy and Development Direction - The company is focused on its "forever strategy," which emphasizes attracting and retaining talent, delivering high-quality execution, and maintaining customer relationships [14][16] - A significant portion of the increased capital expenditure in Q1 was allocated to purchasing a new prefabrication facility in Kansas City, which is critical for supporting organic growth [17][25] - The company aims for organic revenue growth of 5% to 7% and EBITDA growth of 7% to 9% on a compound annual basis [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the importance of maintaining strong customer relationships and project execution [9][11] - The company remains optimistic about backlog growth and demand trends in key markets, despite acknowledging potential fluctuations in project timing [10][14] Other Important Information - The company has appointed Tim Steves as vice president of corporate development and strategy to enhance its M&A capabilities [18] - The company affirmed its 2025 guidance, projecting revenues between $3 billion and $3.1 billion and EBITDA between $210 million and $225 million [26] Q&A Session Summary Question: Outlook on larger mix of longer lead time projects - Management indicated that while backlog may be bumpy, their expertise in winning large complex projects allows them to add value early in the project lifecycle [30][32] Question: T and D segment outlook and weather-related impacts - Management noted strong demand for T and D services and emphasized their long-standing customer relationships, which position them well for future work [35][48] Question: Status of high-tech manufacturing market - Management confirmed ongoing strong relationships with semiconductor manufacturers and expressed confidence in continuing to support these customers despite some cyclicality in capital allocation [38] Question: Non-backlog business outlook - Management highlighted the importance of non-backlog work and resource allocation, indicating a healthy backlog and good project visibility [41][44] Question: Hospitality market status - Management reported an increase in backlog in Las Vegas and strong relationships with customers, positioning them well for future opportunities [47] Question: Impact of tariffs on business - Management discussed proactive measures to mitigate tariff impacts, including securing pricing and availability with suppliers [59][60] Question: Corporate costs and future run rate - Management indicated that corporate costs may increase slightly as they stand up departments, but overall guidance remains unchanged [62]

Financial Data and Key Metrics Changes - The company's first quarter revenue increased by 32% year-over-year, reaching $826.6 million, driven primarily by a 47% increase in the Electrical and Mechanical (E and M) segment [18][7] - Total EBITDA for the first quarter was $61.8 million, also reflecting a 32% increase from the previous year, with an EBITDA margin of 7.5%, consistent with the prior year [18][19] - The total backlog at the end of the first quarter was $3.1 billion, up 10% from the end of the previous year and up 41% from the same period last year [19][9] Business Line Data and Key Metrics Changes - E and M revenue increased to $648.2 million, a 47% rise compared to $441 million in the prior year, with E and M EBITDA growing by 51% to $49.5 million [20][18] - Transmission and Distribution (T and D) revenue slightly declined by 2% to $185 million due to weather-related delays, but T and D EBITDA increased by 5.8% to $20.1 million [21][18] Market Data and Key Metrics Changes - The E and M backlog increased by 46% year-over-year, driven by growth in key submarkets such as data centers, manufacturing, government, and hospitality [9][19] - T and D backlog grew by 8% year-over-year, indicating solid demand despite the revenue decline [19] Company Strategy and Development Direction - The company is focused on its "forever strategy," which emphasizes attracting and retaining talent, delivering high-quality execution, and maintaining customer relationships [13][14] - A significant portion of the capital expenditure in the first quarter was allocated to purchasing a new prefabrication facility in Kansas City, expanding the total footprint by approximately 128,000 square feet [15][23] - The company aims for organic revenue growth of 5% to 7% and EBITDA growth of 7% to 9% on a compound annual basis [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted strong demand trends in key markets, particularly in data centers and high-tech reshoring [10][11] - The company is optimistic about its ability to grow backlog based on favorable demand trends and strong customer relationships [13][12] Other Important Information - The company is actively monitoring tariff impacts and has implemented strategies to mitigate risks associated with price increases [58] - The first quarter's capital expenditures were $18.5 million, up from $9.2 million in the same period last year, reflecting a commitment to support organic growth [23][18] Q&A Session Summary Question: Outlook on larger projects and revenue timing - Management indicated that the backlog could be bumpy due to the nature of large projects, which often have longer lead times [30] Question: Transmission and Distribution segment outlook - Management noted strong demand for T and D services and highlighted expertise in undergrounding as a growth opportunity [33] Question: Status of high-tech manufacturing market - Management confirmed ongoing strong relationships with semiconductor manufacturers and expressed confidence in continued support for these customers [37] Question: Non-backlog business outlook - Management emphasized the importance of non-backlog work and resource allocation to ensure effective project execution [40][42] Question: Hospitality market status - Management reported an increase in backlog in Las Vegas and expressed confidence in capturing future opportunities in the hospitality sector [46] Question: Pharmaceutical manufacturing opportunities - Management acknowledged the potential for growth in the pharmaceutical manufacturing market and indicated plans for geographic expansion [50] Question: Impact of tariffs on business - Management discussed proactive measures to mitigate tariff risks and secure pricing with suppliers [58] Question: Corporate costs and future expectations - Management indicated that corporate costs may increase slightly as the company stands up departments, but overall costs remain in line with expectations [61]