Financial Data and Key Metrics Changes - Consolidated revenue for 2025 was $493 million, a 3% increase from $480 million in 2024 [19] - Gross margin improved to 7% of revenue in 2025, up from a negative 12% in 2024, reflecting a $90 million increase in total gross margin [19] - Adjusted EBITDA for 2025 was $5 million, a significant improvement from a negative $61 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Shimmick projects was $395 million in 2025, a 12% increase year-over-year, representing 75% of total revenue [2] - Gross margin for Shimmick projects increased to 10%, a 400 basis point improvement over the previous year [3] - Non-core project revenue decreased to $96 million in 2025 from $125 million in 2024, reflecting the focus on winding down these projects [19] Market Data and Key Metrics Changes - The backlog grew to $793 million at the end of 2025, with a book-to-burn ratio of 1.4 times [18] - The company expects a robust pipeline supporting $600 million to $1 billion in bidding volumes per month [7] - The market environment remains healthy, with consistent investment in core markets [4] Company Strategy and Development Direction - The company is focused on three strategic pillars: growing the top line, winding down low-margin non-core projects, and driving operational improvements [2] - The strategy includes diversifying the customer base and focusing on growth markets geographically [4] - The company aims to position itself as a top infrastructure provider by winning strategic, risk-balanced work [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting revenue growth between 12% and 22% [22] - The company anticipates improved gross margins driven by a favorable project mix and efficient SG&A management [31] - Management noted that the market remains healthy, with a strong backlog and pipeline dynamics moving in the right direction [12] Other Important Information - The company ended 2025 with total liquidity of $44 million, consisting of $20 million in cash and $24 million available under credit agreements [18] - The company has been awarded contracts worth $128 million in early 2026, with an additional $234 million pending [21] Q&A Session Summary Question: How does the mix of projects impact margins going into 2026? - Management expects gross margins to increase, influenced by the mix of projects, with some projects yielding higher margins than others [31] Question: What is the visibility on overall spending and macro environment across territories? - Management indicated strong activity in California and Texas, with no shortage of opportunities in the next 12-24 months [34] Question: What is the guidance for 2026, especially regarding EBITDA and non-core revenue? - Management simplified guidance, expecting to burn through most non-core work, which currently represents about 11% of the backlog [43] Question: Can you provide more details on the electrical infrastructure projects? - The electrical business is seeing strong bidding activity, with project sizes ranging from $5 million to $200 million, particularly in Texas and California [46] Question: How is the company managing the wrap-up of legacy non-core projects? - Management reported that only two non-core projects remain active, with expectations to complete them this year [50]

Financial Data and Key Metrics Changes - Consolidated revenue for 2025 was $493 million, a 3% increase from $480 million in 2024 [19] - Gross margin improved to 7% of revenue, up from a negative 12% in 2024, reflecting a $90 million increase in total gross margin [19][16] - Adjusted EBITDA for 2025 was $5 million, a significant improvement from a negative $61 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Shimmick projects was $395 million, a 12% increase year-over-year, representing 75% of total revenue [2] - Non-core project revenue decreased to $96 million from $125 million in 2024, indicating a focus on winding down low-margin projects [19][3] - Gross margin for Shimmick projects was 10%, a 400 basis point improvement over the previous year [3] Market Data and Key Metrics Changes - Backlog grew to $793 million, with a book-to-burn ratio of 1.4 times, indicating strong demand and project wins [18][5] - The company expects a robust pipeline with $600 million to $1 billion in bidding volumes per month [6][4] - New awards booked during Q4 2025 were $135 million, a sequential increase from Q3 2025 [18] Company Strategy and Development Direction - The company is focused on three strategic pillars: growing the top line, winding down legacy low-margin projects, and driving operational improvements [2][23] - Emphasis on collaborative delivery methods, such as progressive design-build and construction manager/general contractor, to enhance project execution and margins [8][9] - The company aims to position itself as a top infrastructure provider by aligning project selection with core strengths and market opportunities [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, projecting revenue growth between 12% and 22%, with adjusted EBITDA expected to increase significantly [22] - The market remains healthy, with strong demand in core sectors such as water and electrical construction, particularly in California and Texas [34][4] - Management highlighted improvements in operational efficiency and talent retention as key factors for future success [11][12] Other Important Information - The company ended 2025 with total liquidity of $44 million, consisting of $20 million in cash and $24 million available under credit agreements [18] - The company is actively pursuing opportunities in the data center market, which is expected to contribute significantly to future revenue [9] Q&A Session Summary Question: How will gross margins be impacted by new project awards? - Management expects gross margins to increase, influenced by the mix of projects, with a focus on maintaining efficient SG&A expenses [30][31] Question: What is the outlook for backlog and overall spending in key markets? - Management indicated strong visibility in California and Texas, with no shortage of opportunities expected in the next 12-24 months [34][35] Question: What is the guidance for 2026, particularly regarding non-core revenue? - Management anticipates burning through most non-core work, which currently represents about 11% of the backlog, with minimal impact on overall margins [43][44] Question: Can you provide more details on the electrical infrastructure projects? - The electrical business is seeing strong bidding activity, with projects ranging from $5 million to $200 million, particularly in Texas and California [46][47] Question: How is the company managing the completion of legacy non-core projects? - Management reported that only two non-core projects remain active, with a focus on wrapping them up efficiently this year [48][49]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $142 million, a decrease of 15% compared to $166 million in Q3 2024, primarily due to a one-time favorable claim settlement contributing $31 million in the prior year [16][17] - Adjusted EBITDA for Q3 2025 was $4 million, down from $30 million in Q3 2024, influenced by the one-time GGB project settlement [20] - The company reported a net loss of $4 million for Q3 2025, compared to a net loss of $2 million in Q3 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Shimmick projects was $107 million, a 5% increase year-over-year, while non-core project revenue was $35 million, a decrease of 46% [17][19] - Gross margin for Shimmick projects was $10 million, up 61% compared to $6 million in Q3 2024, while gross margin for non-core projects was $1 million, down from $6 million [18][19] Market Data and Key Metrics Changes - The company achieved $1 billion in bidding volumes in September and October, indicating a robust pipeline [8] - The backlog grew by over $100 million, or 15% sequentially, reaching $754 million as of October 3, 2025 [12][21] Company Strategy and Development Direction - The company's strategy focuses on growing the top line through strategic new business, completing non-core projects, and implementing operational improvements [4][5] - The company aims to increase the percentage of negotiated work in its backlog to 50% by 2027, balancing risk and revenue generation [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, citing strong market conditions and backlog growth as key drivers for future performance [14] - The company anticipates that the completion of non-core projects will positively impact cash flow and overall financial health by 2026 [30] Other Important Information - The company maintained a strong liquidity position with total liquidity of $48 million at the end of Q3 2025 [21] - The company reaffirmed its full-year 2025 guidance, expecting Shimmick project revenue in the range of $405 to $415 million [23] Q&A Session Summary Question: Can you discuss the growth of Axia and its representation in the backlog? - Management indicated that Axia currently represents about 15-16% of the backlog, with growth expected in electrification-related work and industrial electrical projects [27][28] Question: What is the status of data center projects and their market activity? - Management noted active bidding in Texas and other regions, with a significant demand for data center projects [29] Question: Can you elaborate on cash flow dynamics and future trends? - Management acknowledged the negative impact from non-core legacy projects but expects improved cash flow as backlog increases and translates into revenue [30][31] Question: What gives confidence for a strong fourth quarter? - Management attributed confidence to new higher-margin work starting to kick in, offsetting lower-margin non-core projects [34][35] Question: How is the transition to more negotiated work progressing? - Management reported that negotiated work is becoming a larger portion of bidding activity, with a goal of achieving a 50% mix in the future [36][38]