Financial Data and Key Metrics Changes - Revenue grew by 32% year-over-year, driven by a 58% increase in the e Infrastructure Solutions segment and a 10% increase in the Transportation segment [7][12] - Adjusted earnings per share increased by 58% to $3.48, while adjusted EBITDA rose by 47% to $156 million [8][17] - Gross profit margins expanded by 280 basis points to 24.7%, and operating cash flow was strong at $84 million [8][15] - Backlog at the end of the quarter totaled $2.6 billion, a 64% year-over-year increase [8][14] Business Line Data and Key Metrics Changes - **e Infrastructure Solutions**: Revenue grew by 58% year-over-year, with a 42% organic growth rate. The data center market was a primary growth driver, with revenue from this market increasing by over 125% year-over-year [10][19] - **Transportation Solutions**: Revenue increased by 10%, and adjusted operating profit grew by 40%, driven by strong market demand and a shift towards higher-margin services [12][23] - **Building Solutions**: Revenue declined by 1%, with adjusted operating income down by 10%. The legacy residential business saw a 17% decline due to affordability challenges in the housing market [13][24] Market Data and Key Metrics Changes - The e Infrastructure segment backlog reached $1.8 billion, up 97% year-over-year, with a 45% increase excluding contributions from recent acquisitions [9][14] - Transportation Solutions backlog was $733 million, a 23% year-over-year increase, while Building Solutions faced headwinds from a soft housing market [12][13] Company Strategy and Development Direction - The company remains committed to its guiding principle, "The Sterling Way," focusing on taking care of people, the environment, investors, and communities while building America's infrastructure [9] - The company anticipates continued strong demand in the e Infrastructure segment, particularly in data centers and manufacturing, with expectations for significant growth in 2026 and beyond [19][20] - The company is actively seeking small to mid-sized acquisitions to enhance service offerings and geographic footprint, with a focus on infrastructure-related opportunities [25][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the multiyear opportunities across markets, with strong backlog and customer discussions contributing to this outlook [19][20] - The company expects e Infrastructure revenue growth of 30% or higher on an organic basis for 2025, with adjusted operating profit margins approximating 25% [22][23] - In Transportation Solutions, revenue growth is anticipated in the low teens, with adjusted operating profit margins expected to improve significantly [23][24] - Building Solutions is projected to face a mid to high single-digit decline in revenue for the full year, with adjusted operating margins in the low double digits [24] Other Important Information - The company ended the quarter with a strong liquidity position, including $306.4 million in cash and $294.6 million in debt [16] - The company has a combined backlog of $3.44 billion, an 88% increase year-over-year, indicating strong future revenue visibility [15] Q&A Session Summary Question: What is driving the momentum in CEC's signed and unsigned work? - Management noted strong bookings primarily around data center projects, with excitement about customer reception and future projects [27][28] Question: What drives margin expansion opportunities? - Management highlighted the increasing size of projects and productivity gains from combining electrical and site development services as key drivers for margin expansion [31][32] Question: What is the mix of end markets driving the growth of the forward pipeline? - The majority of the $4 billion forward pipeline is in e Infrastructure, with data centers making up 75-80% of that segment [42][47] Question: Has there been any impact from the government shutdown on transportation funding? - Management confirmed no impact from the government shutdown, as funding for current jobs has already been allocated [68][69] Question: Are there any signs of improvement in Building Solutions for 2026? - Management indicated no expected improvement until at least 2026, with current market conditions remaining flat [87]