Loading...
01/11 07:25
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company's raised revenue and EBITDA guidance, focus on high-margin sectors like data centers, and strong cash flow are positive indicators. Despite slight margin declines, management provides clear explanations and anticipates future expansion. The Q&A reveals confidence in handling competitive pressures and growth in key sectors. Stock-based compensation reduction and strategic M&A plans further support a positive outlook. Overall, these factors suggest a stock price increase of 2% to 8% in the next two weeks.
Annualized Gross Revenue Pace Surpassed $500 million for the first time, demonstrating the strength of the business model and team capabilities.
Gross and Net Revenue 11% year-over-year growth, supported by strong activity in transportation, power, utilities, and energy markets.
Adjusted EBITDA Grew 7.6% year-over-year, reflecting healthy cash flow generation and a solid balance sheet.
Net Revenue $112 million for the quarter, driven by over 20% growth in transportation and power and utilities and energy markets.
Backlog Grew nearly 18% year-over-year to $448 million, indicating sustained demand across end markets.
GAAP Net Income Increased to $6.6 million for the quarter and $10.9 million for the 9 months ending September 30, compared to $800,000 and a loss of $2.9 million in the same periods last year.
Cash Flow from Operations More than doubled to $26.5 million from $12.4 million year-over-year, affirming capital efficiency.
Organic Net Revenue Grew 6.6% for the quarter and approximately 11% for the 9 months, excluding revenue from acquisitions closed after September 30, 2024.
Overhead as Percentage of Net Revenue Down 290 basis points year-over-year for the quarter to 89.5% and down 500 basis points for the 9 months to 89%, contributing to improved profitability.
Adjusted EBITDA Margin 16.3% on net revenue for the quarter, with adjusted EPS of $0.61, doubling Q3 2024.
Revenue Growth by Segment Transportation up 20%, Power, Utilities, and Energy up 17%, Building Infrastructure up 8%, and Natural Resources & Imaging saw a slight decline due to reallocation of revenue.
Gross Margin by Vertical 53% overall, with Building Infrastructure and Power and Utilities at 56%, Natural Resources & Imaging at 57%, and Transportation at 46%.
Operating Cash Flow $10.2 million for the quarter and $26.5 million year-to-date, both more than twice last year's levels.
Net Debt Approximately $105 million with a net leverage ratio of 1.5x trailing 12 months adjusted EBITDA.
Stock-Based Compensation Reduced to 4.4% of net service billing for the first 9 months of 2025, down from 7.3% a year earlier.
AI-enabled asset control kits: Development of proprietary AI-enabled asset control kits to extend engagement with clients throughout the asset lifecycle.
ORCaS acquisition technology: Deployment of proprietary technology tools from ORCaS acquisition to reduce time for repetitive feasibility and planning functions.
High-end geospatial assets: Modification and evolution of high-end geospatial assets to expand applications, improve quality, and increase ROI.
Transportation: Double-digit growth year-to-date, with strong bridge and roadway pipelines and backlog visibility through 2026. Expanding client base across state and municipal transportation agencies.
Power, Utilities & Energy: Fastest-growing market, up 38% year-over-year, driven by electrification, renewables, and grid modernization. Recent acquisitions enhance capabilities in high-voltage transmission line design and renewable energy.
Building Infrastructure: 8% year-over-year growth in gross revenue, with solid execution in public and mixed-use projects balancing softer residential conditions.
Natural Resources & Imaging: Stable performance with high operating margins, supported by recurring federal programs and municipal demand in water, environmental, and geospatial services.
GAAP profitability and cash flow: Achieved $6.6 million GAAP net income for Q3 2025, up from $0.8 million in Q3 2024. Operating cash flow doubled to $26.5 million year-to-date.
Overhead efficiency: Reduced total overhead as a percentage of net revenue by 290 basis points for Q3 and 500 basis points year-to-date.
Adjusted EBITDA: Increased by 8% to $18.3 million for Q3 2025, with a 16.3% margin on net revenue.
M&A and innovation investments: Invested in acquisitions like Sierra Overhead Analytics, ORCaS, and Lazen Power Engineering to enhance capabilities in high-growth markets. Innovation spending focused on AI and geospatial technologies.
Revenue diversification: Broadened revenue mix across transportation, power, building infrastructure, and natural resources, with a record $448 million backlog.
Government Shutdown Impact: The ongoing government shutdown is causing delays in project progression, invoicing, and collections within select federally supported programs and federally adjacent projects. While direct exposure to federal contracts is limited, prolonged shutdowns could extend near-term revenue further into the future.
Interest Rate Impact on Private Development: Private development in the Building Infrastructure segment remains constrained by high interest rates, which could delay rebound potential until mid- to late 2026.
Transportation Segment Margins: Transportation projects, which are primarily cost-plus contracts, have lower contribution margins compared to other verticals, potentially impacting overall profitability.
Federal Funding Delays: Less than 25% of IIJA funds have been released for permitted transportation projects, which could delay the realization of anticipated growth in this segment.
Integration Risks from Acquisitions: Recent acquisitions, including Sierra Overhead Analytics, ORCaS, and Lazen Power Engineering, require successful integration to achieve anticipated revenue and margin expansion. Failure to integrate effectively could impact strategic objectives.
Economic and Labor Market Uncertainties: Macroeconomic and labor market uncertainties remain beyond the company's control, potentially impacting operations and financial performance.
Backlog Growth and Revenue Visibility: The company reported a record $448 million backlog, up 18% year-over-year, with strong visibility into 2026. Transportation projects, including bridge and roadway pipelines, have backlog visibility through 2026. Ports and harbors projects are also expected to continue growing through 2026.
Transportation Segment Outlook: Transportation is expected to maintain steady, healthy growth, supported by less than 25% of IIJA funds released so far and state programs. The company anticipates multiyear nationwide demand for transportation projects, ensuring stability and recurring revenue.
Power, Utilities & Energy Growth: This division is the fastest-growing market, up 38% year-over-year, driven by investments in electrification, renewables, grid modernization, and data infrastructure. Recent acquisitions enhance capabilities in high-growth areas like high-voltage transmission line design and renewable energy infrastructure. Revenue and margin expansion are expected in 2026 as integration matures.
Building Infrastructure Segment Outlook: The segment grew 8% year-over-year, with long-term revenue visibility through 2027. While private development is constrained by interest rates, a rebound is expected in mid- to late 2026 as financing conditions improve.
Natural Resources & Imaging Segment Outlook: This segment remains a steady performer with robust visibility into 2026, supported by recurring federal programs and municipal demand. Growth is expected to be driven by technology-enabled delivery and long-term public sector funding.
Operating Environment and Government Shutdown Impact: The company has limited direct exposure to federal contracts, with most public sector work performed for state and local governments. While the government shutdown is causing some delays, it is not expected to significantly impact the company’s operations.
2026 Financial Guidance: The company initiated 2026 guidance with net revenue projected between $465 million and $480 million and an adjusted EBITDA margin between 17% and 17.5%.
The selected topic was not discussed during the call.
The company's raised revenue and EBITDA guidance, focus on high-margin sectors like data centers, and strong cash flow are positive indicators. Despite slight margin declines, management provides clear explanations and anticipates future expansion. The Q&A reveals confidence in handling competitive pressures and growth in key sectors. Stock-based compensation reduction and strategic M&A plans further support a positive outlook. Overall, these factors suggest a stock price increase of 2% to 8% in the next two weeks.
The earnings call reveals strong backlog, strategic growth in energy transmission, and effective operational leverage. Despite lower margin guidance, investments in innovation and digital services are positive. The Q&A highlights growth in natural resources, data centers, and infrastructure, with a focus on recurring revenue. The BIG Fund and reshoring present long-term benefits. While some responses lack detail, overall sentiment is positive, driven by strategic initiatives and market expansion.
The earnings call summary indicates strong financial performance with significant revenue and income growth, alongside positive guidance for 2025. The acquisition of Exeltech and focus on transportation projects are strategic moves likely to enhance revenue. Share repurchases signal confidence in the stock. Despite some supply chain challenges and unclear management responses, the overall sentiment from the Q&A is positive. The stock is likely to see a positive movement in the next two weeks, driven by strong financial metrics, optimistic guidance, and strategic acquisitions.
The earnings call presents a generally positive outlook with strong financial performance, increased revenues, and improved margins. The company's strategic acquisitions and expansion in geospatial services and utility demands are promising. Despite some integration challenges and leadership changes, the company's share buyback program and optimistic guidance for 2024 suggest confidence in future growth. The Q&A section supports this with positive feedback on acquisitions and growth opportunities. Overall, the sentiment leans towards a positive stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
