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]