Financial Data and Key Metrics Changes - The company reported a revenue of $2.812 billion for fiscal 2025, representing a 54% increase year-over-year, with 8.4% from organic growth and 45.6% from acquisitions [16][17] - Adjusted EBITDA for fiscal 2025 was $423.7 million, a 92% increase compared to the previous year, with an adjusted EBITDA margin of 15% [17][19] - Net income reached $101.8 million, up 48% from last year, while adjusted net income increased by 73% to $122 million [17][19] - The company ended fiscal 2025 with a record project backlog of $3 billion [5][21] Business Line Data and Key Metrics Changes - The fourth quarter revenue was $900 million, a 67% increase year-over-year, with 10.4% attributed to organic growth [16] - General and administrative expenses as a percentage of total revenue decreased to 7.1% from 8.1% in the previous year [17] Market Data and Key Metrics Changes - The company noted strong public contract bidding across its eight states, expecting contract awards in FY 2026 to increase approximately 15% over FY 2025 [12][14] - The company highlighted the ongoing migration to the Sunbelt, which is driving demand for private construction projects [11][12] Company Strategy and Development Direction - The company has initiated a five-year strategic plan called Road 2030, aiming to double revenue to over $6 billion by 2030 and expand EBITDA margins to 17% [10] - The strategy includes focusing on acquisitions in the right markets with the right partners, particularly in the fragmented local market [26][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth driven by macro trends such as migration to the Sunbelt, reshoring of manufacturing, and increased infrastructure funding [11][12] - The company anticipates a strong construction season in the second half of FY 2026, contributing 58%-60% of annual revenue [21] Other Important Information - The company expects to convert 75%-85% of EBITDA to cash flow from operations in FY 2026 [19] - Capital expenditures for FY 2026 are projected to be in the range of $165 million-$185 million, with a focus on high-return growth initiatives [19] Q&A Session Summary Question: Integration of recent acquisitions - Management discussed the smooth integration of acquisitions, emphasizing the importance of cultural fit and involving employees in the process [26][28] Question: Impact of government shutdown - Management confirmed that the government shutdown did not significantly impact revenue or bidding due to the funding structure through the Highway Trust Fund [32] Question: Confidence in reauthorization bill - Management indicated that there is momentum for the reauthorization bill, with expectations for a vote by spring [40][42] Question: M&A strategy for 2026 - Management clarified that 2026 will focus on bolt-on acquisitions while also aiming to reduce leverage to approximately 2.5x by late 2026 [58] Question: Pricing and cost inflation - Management noted that inflation in 2025 was benign, with stable construction material costs and labor costs increasing at a typical rate of 3%-4% [61][63] Question: Private construction demand - Management reported consistent demand in private construction, particularly in the Sunbelt region, with a healthy backlog split between public and private projects [72]

Financial Data and Key Metrics Changes - Fiscal 2025 was marked by strong earnings growth, with the company exceeding initial earnings guidance for the fifth consecutive year [5][14] - The company achieved a net financial earnings per share (NFEPS) guidance range of $3.03-$3.18 for fiscal 2026, consistent with a long-term growth rate of 7%-9% [6][16] - Total capital expenditures (CapEx) for fiscal 2025 were $850 million, with a projected five-year CapEx outlook of $4.8 billion-$5.2 billion, representing a 40% increase compared to the previous five years [15][16] Business Line Data and Key Metrics Changes - New Jersey Natural Gas is expected to achieve high single-digit rate-based growth through 2030, supported by responsible investments in safety and reliability [7][8] - Storage and Transportation (S&T) is projected to more than double net financial earnings by 2027, driven by favorable recontracting of both Adelphia and Leaf River [6][8] - Clean Energy Ventures (CEV) anticipates expanding capacity by over 50% over the next two years, with a robust pipeline of Safe Harbor projects [10][12] Market Data and Key Metrics Changes - The company noted a significant increase in contract rates at Leaf River, with average contract rates rising from approximately $0.09 to nearly $0.20 per decatherm [24] - The market demand for energy infrastructure is expected to grow, with the company positioned to capitalize on this trend through its investments [18][44] Company Strategy and Development Direction - The company plans to invest approximately $5 billion over the next five years, with about 60% allocated to New Jersey Natural Gas [6][16] - A disciplined capital investment strategy is in place to ensure sustainable growth, with minimal dilution to shareholders [7][10] - The company aims to maintain a healthy balance sheet with strong cash flows and ample liquidity, requiring no block equity issuance to execute its capital plan [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the need for energy infrastructure investments in the U.S. [44] - The company is prepared to work with the new administration in New Jersey to address affordability issues and promote clean energy solutions [19][39] - Management highlighted the importance of energy efficiency programs, such as Save Green, in reducing costs for customers [8][39] Other Important Information - The company celebrated 30 consecutive years of dividend increases, reflecting confidence in its long-term strategy [14] - The company achieved record investments in its Save Green program and added significant new capacity in Clean Energy Ventures [12][14] Q&A Session Summary Question: Can you discuss the contract renegotiations and the extent of original contracts at Leaf River? - Management indicated a bias towards longer-term contracts, with current market rates significantly higher than previous contracts, driving earnings growth [24][25] Question: What is the construction status for Clean Energy Ventures and the expected growth? - Management confirmed that many projects are shovel-ready, with significant investments already made, positioning the company well for future growth [27][28] Question: How should investors model the earnings cadence for upcoming projects? - Management advised that the capital plan provides the most accurate picture of achievable investments, with potential for acceleration based on policy changes [31] Question: What are the affordability efforts in New Jersey? - Management reiterated that natural gas remains the most affordable heating option and emphasized ongoing energy efficiency programs to help customers reduce costs [39] Question: Are there any headwinds to the growth outlook? - Management expressed confidence in the overall growth strategy, highlighting the need for energy and the company's ability to execute its capital program [44][46] Question: How much of the earnings increase is attributed to the Adelphia rate case versus recontracting? - Management noted that the majority of earnings growth is driven by recontracting at Leaf River, with existing contracts already signed [52][54]

Financial Data and Key Metrics Changes - For the nine months of 2025, the company generated $577 million in gross revenues and an operating income of $171 million, which included $12.5 million of capital gains from the sale of four older vessels [23][28] - The net income for the first nine months of 2025 was $103 million, translating to $2.75 in earnings per share [28] - The adjusted EBITDA for the nine months was approximately $290 million, with cash at hand at the end of September 2025 standing at $264 million [28] Business Line Data and Key Metrics Changes - The fleet utilization increased from 92.2% to 96.2% during the nine months of 2025 [24] - The fleet time charter equivalent rate for the first nine months of 2025 settled at $30,703 [24] - In the third quarter of 2025, the fleet generated $186 million of gross revenues and $60.5 million in operating income, including $9 million of capital gains from the sale of three older vessels [29] Market Data and Key Metrics Changes - The company reported a significant increase in demand for vessels, with a 20% increase in profit-sharing arrangements compared to previous periods [37] - The tanker market has remained healthy, with energy majors approaching the company for time charter business [12] Company Strategy and Development Direction - The company is focusing on a record 20 vessel new building program with deliveries starting in Q1 2026 until Q4 2028, which includes three VLCCs [6][7] - The strategy includes selling older tonnage to maintain a young and modern fleet, having sold 17 vessels with an average age of 17.3 years [19] - The company aims to transition its fleet to greener and dual-fuel vessels, being one of the largest owners of dual-fuel LNG powered Aframax tankers [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the market has improved significantly, with spot market rates being over 50% higher than in September [9] - The geopolitical environment has created nervousness in the market, which the company is positioned to take advantage of through its chartering strategy [35] - The company anticipates continued strong performance in the upcoming quarters due to high demand for its vessels [10] Other Important Information - The company declared an additional $1 per share dividend, to be paid in two tranches, reflecting a total dividend of $1.60 per share for the year, representing an attractive yield of over 4% [7] - The fair market value of the operating fleet is approximately $4 billion against $1.9 billion in debt, with a net debt to capital ratio around 47% [19] Q&A Session Summary Question: Clarification on the employment terms for the 12 VLCCs - Management indicated a significant increase in profit-sharing arrangements and a strong appetite for vessels in the market [37][38] Question: Plans for the Maria Energy vessel - The vessel is fixed back to a long-term contract with no downtime expected between contracts [39] Question: Expectations for MR new builds delivering in early 2026 - Management is contemplating long-term contracts for the new builds, with significant interest from major oil companies [40][41] Question: Asset sales and fleet renewal strategy - The company is negotiating the sale of five first-generation vessels, expecting to release close to $250 million of net cash for the new building program [47]

Financial Data and Key Metrics Changes - Fiscal 2025 was marked by strong earnings growth, with the company exceeding initial earnings guidance for the fifth consecutive year [5][14] - The company achieved a net financial earnings per share (NFEPS) guidance range of $3.03-$3.18 for fiscal 2026, consistent with a long-term growth rate of 7%-9% [5][17] - Total capital expenditures (CapEx) for fiscal 2025 were $850 million, with a projected five-year CapEx outlook of $4.8 billion-$5.2 billion, representing a 40% increase compared to the previous five years [15][16] Business Line Data and Key Metrics Changes - New Jersey Natural Gas is expected to achieve high single-digit rate-based growth through 2030, supported by responsible investments in safety and reliability [6][7] - Storage and Transportation (S&T) is projected to more than double net financial earnings by 2027, driven by favorable recontracting of both Adelphia and Leaf River [6][8] - Clean Energy Ventures (CEV) anticipates expanding capacity by over 50% over the next two years, with a robust pipeline of Safe Harbor projects [10][11] Market Data and Key Metrics Changes - The company noted a significant increase in contract rates at Leaf River, with average contract rates rising from approximately $0.09 to nearly $0.20 per decatherm [24] - The market demand for energy infrastructure is expected to grow, with the company positioned to capitalize on this trend through its investments [18][44] Company Strategy and Development Direction - The company plans to invest approximately $5 billion over the next five years, with about 60% allocated to New Jersey Natural Gas [5][6] - A disciplined capital investment strategy is in place to ensure sustainable growth, with minimal dilution to shareholders [7][10] - The company aims to maintain a healthy balance sheet with strong cash flows and ample liquidity, requiring no block equity issuance to execute its capital plan [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the need for energy infrastructure and the company's ability to meet this demand [18][44] - The company is prepared to work with the new administration in New Jersey to address affordability issues and deploy clean energy solutions [19][39] Other Important Information - The company celebrated 30 consecutive years of dividend increases, reflecting confidence in its long-term strategy [14] - The company achieved record investments in its Save Green energy efficiency program, which helps customers reduce energy usage and costs [12][14] Q&A Session Summary Question: Can you discuss the contract renegotiations and the timing for FIDing expansion projects at Leaf River? - Management indicated that there is a bias towards longer-term contracts, with significant upgrades in contract rates driving earnings growth [24][25] Question: What is the current status of construction for Clean Energy Ventures projects? - Management confirmed that many projects are shovel-ready and positioned to meet the state's capacity needs, with a strong project pipeline [27][28] Question: How should investors model the earnings cadence for the upcoming projects? - Management advised that the capital plan provides the most accurate picture of achievable investments, with potential for acceleration based on policy support [31] Question: What are the affordability efforts in New Jersey? - Management highlighted that natural gas remains the cheapest heating option and emphasized ongoing energy efficiency programs to help customers reduce costs [39] Question: Are there any headwinds to the EPS growth outlook? - Management expressed confidence in the overall growth strategy, noting that investments in energy infrastructure are expected to drive earnings growth [44][46]

Financial Data and Key Metrics Changes - The company reported significant challenges in the Chinese market, leading to the closure of 77 stores while opening 30 new ones, indicating a strategic shift in retail operations [9][12] - The impact of tariffs between the US and China has negatively affected sales and margins, particularly in the American market [10][11] Business Line Data and Key Metrics Changes - The company is actively restructuring its operations, focusing on optimizing costs and enhancing retail business flexibility [23] - The gross margin for the last quarter was reported at 34%, with expectations for improvement post-restructuring [28][30] Market Data and Key Metrics Changes - The company has faced a crisis in the Chinese market, which was previously a strong contributor to sales, necessitating a reevaluation of its retail strategy [9][12] - Despite challenges, the company has continued to invest in new product development and marketing initiatives to stimulate growth [20] Company Strategy and Development Direction - The company is implementing a multi-year restructuring plan aimed at optimizing its cost structure and enhancing operational efficiency [23] - There is a strong focus on expanding commercial initiatives, particularly in emerging markets, with several new projects in the pipeline [19][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing ongoing investments and strategic initiatives as key to overcoming current challenges [20] - The CEO emphasized the importance of adapting to market conditions and improving profitability through operational efficiencies [30][33] Other Important Information - The company has engaged in various trade fairs and congresses to promote its brand and products, indicating a commitment to maintaining market presence despite challenges [16][18] - A credit line of $15 million has been extended by the majority shareholder to support short-term needs and ensure financial stability during the restructuring process [22][24] Q&A Session Summary Question: What are the terms of the $15 million credit line? - The credit line is a zero-interest loan aimed at supporting the restructuring plan and ensuring financial stability [26][24] Question: Can you quantify the value of non-core assets? - The total net asset value is around $70 million, with the tannery valued at approximately $5 million [29] Question: What are the expectations for gross margins post-restructuring? - The goal is to improve gross margins by addressing operational efficiencies and increasing sales [30][33] Question: What is the internal goal for annual run rate in commercial revenue? - The company is in a startup phase for commercial revenue, with expectations for growth as more projects are developed [36] Question: Any updates on the permanent CEO search? - The search is ongoing, with candidates being evaluated for their experience in managing high-end brands and retail operations [40][41] Question: How are current order levels compared to the last quarter? - Management indicated that the situation remains challenging, and stakeholders are encouraged to review the press release for detailed insights [42]

Financial Data and Key Metrics Changes - The company reported a 28% year-over-year increase in Q4 adjusted EPS, driven by a 6% net revenue growth and a record adjusted EBITDA margin of over 14.4% [5][10] - For the full fiscal year 2025, adjusted EPS grew by 16%, supported by mid-single-digit net revenue growth and strong margin expansion [5][11] - The consolidated backlog increased by 6% year-over-year to a record $23.1 billion, with a trailing 12-month book-to-bill ratio of 1.1x [11][12] Business Line Data and Key Metrics Changes - In Q4, gross revenue increased by 7% year-over-year, while adjusted net revenue grew by 6% [10] - The Infrastructure and Advanced Facilities segment saw a 16% increase in operating profit year-over-year in Q4, with a 13% increase for the full fiscal year [16] - PA Consulting's revenue increased by 10% year-over-year in Q4, contributing to a 17% increase in operating profit [16] Market Data and Key Metrics Changes - Net revenue growth across the three end markets was consistent, with water and environmental and life sciences and advanced manufacturing growing just over 4%, and critical infrastructure at about 6% for fiscal year 2025 [12] - In Q4, net revenue in critical infrastructure increased by more than 9% year-on-year, driven by key programs in the transportation sector [13] - The water and environmental end market saw flat year-on-year revenue in Q4, with mixed demand trends [15] Company Strategy and Development Direction - The company aims to redefine the asset life cycle and expand its addressable market with core clients, particularly in the water sector, which remains a high-growth area [6][8] - The strategy includes leveraging AI and digital capabilities to enhance service delivery and operational efficiency [42][43] - The company is focused on maintaining a disciplined capital returns policy while investing in growth opportunities [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering FY 2026 with strong momentum, backed by a record backlog and expanding margins [21][19] - The company anticipates continued tailwinds in the transportation and energy sectors, with expectations for water to remain a key growth driver [14][15] - Management highlighted the importance of regulatory stability in the environmental sector for future growth [31] Other Important Information - Free cash flow generation for fiscal year 2025 was $607 million, with a return of approximately 150% of free cash flow to shareholders [17] - The company approved a $0.32 per share dividend, representing a 10% year-over-year growth [18] Q&A Session Summary Question: Impact of federal government shutdown on fiscal 2026 bookings - Management indicated that there was no impact from the federal government shutdown on fiscal 2025 bookings, as awards occurred before the shutdown [24] Question: Update on PA Consulting negotiations - Management confirmed that negotiations are progressing and a decision is expected before March 2026 [25] Question: Softness in environmental business - Management noted that regulatory volatility and a pause in spending from private sector clients contributed to the softness in the environmental sector [30][31] Question: Free cash flow guidance and unusual items - Management explained that the guidance includes a one-time tax event and cash expenses related to the PA Consulting combination [34] Question: Margin performance in infrastructure and advanced facilities - Management expects a sequential slowdown in Q1 margins but anticipates a linear progression throughout FY 2026 [40] Question: AI leverage and margin opportunities - Management highlighted ongoing AI initiatives and partnerships that are expected to contribute to margin expansion [42][43] Question: Regional performance across end markets - Management reported strong growth across all regions, with double-digit growth in the Middle East and recovery in Europe [49] Question: Pipeline outlook and conversion expectations - Management indicated that the fastest-growing pipelines are in data centers, semiconductors, and life sciences, with strong conversion expected in FY 2026 [67]

Financial Data and Key Metrics Changes - For the nine months of 2025, the company generated $577 million in gross revenues and an operating income of $171 million, which included $12.5 million of capital gains from the sale of four older vessels [23][28] - The net income for the third quarter of 2025 was $38.3 million, translating to $1.05 in earnings per share, with adjusted EBITDA at about $96 million [32] - The fleet time charter equivalent rate for the first nine months of 2025 was $30,703, while the third quarter rate was $30,601 [24][30] Business Line Data and Key Metrics Changes - The fleet utilization increased from 92.2% to 96.2% during the nine months of 2025, and from 92.8% to 94.8% in the third quarter [24][28] - The number of vessels on fixed time charters and time charters with profit sharing increased by 12%, while spot market exposure declined by 32% [22][23] - Operating expenses per ship per day averaged $9,797 for the nine months and $9,904 for the third quarter, reflecting efficient management [25][31] Market Data and Key Metrics Changes - The tanker market has shown strong fundamentals, with a significant increase in demand for vessels, particularly in the VLCC segment [10][20] - The company has a backlog of approximately $4 billion in minimum fleet contracted revenue, indicating strong market positioning [12][19] Company Strategy and Development Direction - The company is focused on a record 20 vessel new building program, with deliveries starting in Q1 2026, aimed at maintaining a young and modern fleet [6][19] - The strategy includes selling older vessels to finance new builds and enhance fleet efficiency, with plans to divest from first-generation conventional tankers [19][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market, noting a 50% increase in spot market rates since September and a strong demand for vessels [9][10] - The geopolitical landscape and supply chain disruptions have created opportunities for the company to capitalize on its chartering strategy [35] Other Important Information - The company declared an additional $1 per share dividend, following a $0.60 interim dividend, reflecting a total annual dividend yield of over 4% [7][8] - The fair market value of the operating fleet is approximately $4 billion against $1.9 billion in debt, with a net debt to capital ratio of around 47% [19][27] Q&A Session Summary Question: Clarification on the employment terms for the DS1 and Ulysses vessels - Management noted a significant increase in profit sharing arrangements and a strong appetite for vessels, with further details to be provided later [38] Question: Plans for the Maria Energy vessel after its current contract - The vessel is fixed back to a long-term employment with no downtime expected between contracts [39] Question: Expectations for MR new builds delivering in early 2026 - Management indicated a strong appetite for these vessels, with ongoing negotiations for long-term contracts [40][41] Question: Future asset sales and fleet renewal plans - The company is negotiating the sale of five first-generation vessels, anticipating significant cash release to support the new building program [46]

Financial Data and Key Metrics Changes - The company reported a revenue of $900 million for Q4 2025, representing a 67% increase compared to the same quarter last year, with 10.4% attributed to organic growth [16] - For the fiscal year 2025, total revenue reached $2.812 billion, a 54% increase year-over-year, with 8.4% organic growth and 45.6% acquisitive growth [16][17] - Adjusted EBITDA for Q4 was $154 million, doubling from Q4 last year, with an adjusted EBITDA margin of 17.1% [16] - Adjusted net income for fiscal 2025 was $122 million, a 73% increase compared to fiscal 2024 [17] - The company ended fiscal 2025 with a record project backlog of $3 billion [20] Business Line Data and Key Metrics Changes - The company achieved a gross profit of $439.1 million for fiscal 2025, a 70% increase compared to the previous year, with a gross profit margin of 15.6% [16][17] - General and administrative expenses as a percentage of total revenue decreased to 7.1% from 8.1% in the previous year [17] Market Data and Key Metrics Changes - The company noted strong public contract bidding across its eight states, expecting contract awards in FY2026 to increase approximately 15% over FY2025 [12][14] - The company highlighted the ongoing migration to the Sunbelt, which is driving demand for private construction projects [11] Company Strategy and Development Direction - The company has initiated a five-year strategic plan called Road 2030, aiming to double revenue to over $6 billion by 2030 and expand EBITDA margins to 17% [10] - The company plans to focus on operational excellence and strategic growth initiatives while pursuing bolt-on acquisitions [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth driven by macro trends such as migration to the Sunbelt, reshoring of manufacturing, and increased infrastructure funding [11][12] - The company anticipates a stable inflation environment for construction material costs, with no significant spikes expected [60][62] Other Important Information - The company expects to convert 75%-85% of EBITDA to cash flow from operations in fiscal year 2026 [19] - Capital expenditures for fiscal 2026 are projected to be in the range of $165 million-$185 million [19] Q&A Session Summary Question: Integration of recent acquisitions - Management discussed the smooth integration of recent acquisitions, emphasizing the importance of cultural fit and involving employees in the integration process [25][27] Question: Impact of government shutdown - Management confirmed that the government shutdown did not significantly impact the business due to funding mechanisms through the Highway Trust Fund [31] Question: Confidence in reauthorization bill - Management indicated that there is momentum for the reauthorization bill, with expectations for a vote by spring [41] Question: M&A strategy for 2026 - Management clarified that 2026 will focus on bolt-on acquisitions while also aiming to reduce leverage to approximately 2.5 times by late 2026 [57] Question: Pricing and cost inflation - Management noted that inflation in 2025 was benign, with stable construction material costs and labor costs increasing at a typical rate [60][62] Question: Demand for private construction - Management reported consistent demand for private construction, particularly in the Sunbelt region, with a healthy backlog [71] Question: Data center construction opportunities - Management confirmed participation in data center projects, highlighting the infrastructure work required for such developments [73]

Financial Data and Key Metrics Changes - The company reported a 28% year-over-year increase in adjusted EPS for Q4, driven by a 6% net revenue growth and a record adjusted EBITDA margin of over 14.4% [6][12] - For the full fiscal year 2025, adjusted EPS grew by 16%, supported by mid-single-digit net revenue growth and strong margin expansion [6][12] - The consolidated backlog increased by 6% year-over-year to a record $23.1 billion, with a trailing 12-month book-to-bill ratio of 1.1 times [12][19] Business Line Data and Key Metrics Changes - Infrastructure and Advanced Facilities operating profit increased by 16% year-over-year in Q4, with a 13% increase for the full fiscal year [16][17] - PA Consulting's revenue grew by 10% year-over-year in Q4, contributing to a 17% increase in operating profit [17] - The water and environmental sector saw net revenue growth of just over 4% for the fiscal year, while critical infrastructure grew by about 6% [13][15] Market Data and Key Metrics Changes - In Q4, net revenue in critical infrastructure increased by more than 9% year-over-year, driven by key programs in the transportation sector [13][14] - The life sciences and advanced manufacturing sector experienced a net revenue growth of just over 5% in Q4, with strong growth in life sciences and data centers [15] - The water and environmental end market was roughly flat year-over-year in Q4, with mixed demand impacting performance [16] Company Strategy and Development Direction - The company aims to redefine the asset life cycle and expand its addressable market with core clients, particularly in the water sector, which remains a high-growth area [7][9] - The strategy includes leveraging AI and digital capabilities to enhance service delivery and operational efficiency [46][47] - The company is focused on maintaining a disciplined capital returns policy while investing in growth opportunities [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering FY26 with strong momentum, backed by a record backlog and healthy demand across sectors [21][20] - The company anticipates continued tailwinds in transportation and energy sectors, with expectations for water to remain a key growth driver [15][16] - Management highlighted the importance of regulatory stability in the environmental sector for future growth [32] Other Important Information - Free cash flow generation for fiscal year 2025 was $607 million, with a commitment to return approximately 150% of free cash flow to shareholders [18] - The company approved a $0.32 per share dividend, representing a 10% year-over-year growth [19] - The fiscal year 2026 outlook includes expectations for adjusted net revenue growth of 6%-10% and adjusted EPS growth of 16% year-over-year [19][20] Q&A Session Summary Question: Impact of federal government shutdown on fiscal 2026 bookings - Management indicated that there was no impact from the federal government shutdown on bookings, as awards occurred before the shutdown [24][25] Question: Update on PA Consulting negotiations - Management confirmed that negotiations are progressing and a decision is expected before March 2026 [26] Question: Softness in environmental business - Management noted that regulatory volatility and a pause in spending from private sector clients contributed to softness in the environmental sector [32][33] Question: Free cash flow guidance and unusual items - Management explained that the guidance includes a one-time tax event and cash expenses related to PA Consulting negotiations [36] Question: Margin performance in infrastructure and advanced facilities - Management expects a sequential slowdown in Q1 margins but anticipates a linear progression throughout FY26 [43] Question: Leveraging AI for margin opportunities - Management highlighted ongoing AI initiatives and partnerships that are expected to contribute to margin expansion [46][47] Question: Transportation funding visibility under IIJ - Management confirmed that transportation remains a catalyst for growth, with strong performance seen globally [52] Question: Regional performance across end markets - Management reported double-digit growth in the Middle East and recovery in Europe, with strong performance across all regions [53] Question: Bridging margin expansion between fiscal years - Management outlined several factors contributing to margin expansion, including global delivery and operational efficiencies [60][61] Question: Changes in data center assignments - Management noted increased interest in data center projects in the Middle East and Europe, with a fivefold increase in the pipeline [64][71]

Financial Data and Key Metrics Changes - Fiscal 2025 was marked by strong earnings growth, with the company exceeding initial earnings guidance for the fifth consecutive year [5][14] - The company achieved a net financial earnings per share (NFEPS) of $3.03-$3.18 for fiscal 2026, consistent with a long-term growth rate of 7%-9% [5][18] - Total capital expenditures (CapEx) for fiscal 2025 were $850 million, with a five-year outlook of $4.8 billion-$5.2 billion, representing a 40% increase compared to the previous five years [16][17] Business Line Data and Key Metrics Changes - New Jersey Natural Gas is expected to achieve high single-digit rate-based growth through 2030, supported by responsible investments in safety and reliability [6][8] - Storage and Transportation (S&T) is projected to more than double net financial earnings by 2027, driven by favorable recontracting of both Adelphia and Leaf River [6][9] - Clean Energy Ventures (CEV) anticipates expanding capacity by over 50% in the next two years, with a robust pipeline of Safe Harbor projects [7][11] Market Data and Key Metrics Changes - The company noted a significant increase in contract rates at Leaf River, with average contract rates rising from approximately $0.09 to nearly $0.20 per decatherm [25] - The market demand for energy infrastructure is expected to grow, with the company positioned to capitalize on this trend through its capital investments [41] Company Strategy and Development Direction - The company plans to invest approximately $5 billion over the next five years, with about 60% allocated to New Jersey Natural Gas [5][6] - A disciplined capital investment strategy is in place to ensure sustainable growth, with minimal dilution to shareholders [7][8] - The company aims to maintain a healthy balance sheet with strong cash flows and ample liquidity, requiring no block equity issuance to execute its capital plan [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the importance of energy efficiency programs and affordability for customers [20][38] - The company is prepared to work with the new administration in New Jersey to address electricity prices and affordability issues [20] Other Important Information - The company celebrated 30 consecutive years of dividend increases, reflecting confidence in its long-term strategy [13] - The company achieved record investments in its Save Green program, which helps customers reduce energy usage and costs [13][14] Q&A Session Summary Question: Can you discuss the contract renegotiations and the timing for FIDing larger expansions at Leaf River? - Management indicated that there is a bias towards longer-term contracts, with significant upgrades in contract rates driving earnings growth [25][26] Question: What is the current status of construction for Clean Energy Ventures projects? - Management confirmed that many projects are shovel-ready and positioned to meet the state's capacity needs, with a strong project pipeline [28][29] Question: How should investors model the earnings cadence for the upcoming years? - Management suggested that the capital plan provides the most accurate picture of achievable growth, with potential for accelerated deployment of safe harbor projects [31] Question: What are the affordability efforts in New Jersey? - Management highlighted natural gas as the most affordable heating option and emphasized ongoing energy efficiency programs to help customers reduce costs [38] Question: Are there any headwinds to the growth outlook? - Management expressed confidence in the overall growth strategy, noting that the company is well-positioned to execute its capital program [40][41]