Strategic Performance Drivers

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• Record consolidated revenue of $384 million was driven by significant activity ramps in the Power segment and triple-digit growth in the Industrial segment.

• Management attributes the 53% Power segment revenue growth to the execution of 4.1 gigawatts of gas-fired projects, which now comprise 80% of the total backlog.

• The 111% revenue surge in the Industrial segment was fueled by a major $125 million data center contract for thermal expansion and energy storage tanks.

• Operational outperformance was highlighted by reaching early completion milestones on Midwest solar and battery projects, which management notes provides favorable margin benefits.

• The acquisition of ValCor Communications strategically expands the Teledata segment into New England, targeting Fortune 500 technology, defense, and aerospace clients.

• Management emphasizes that while they maintain an 'all-of-the-above' energy approach, natural gas remains the core competency due to its role in providing 24/7 reliable power for an electrifying economy.

• The company maintains a 'bankable' EPC partner status through a debt-free balance sheet with approximately $1 billion in cash and investments.

Outlook and Strategic Initiatives

• Management expects to add a handful of new projects over the next 7 to 15 months, primarily focused on complex combined cycle natural gas facilities.

• The new fabrication facility in North Carolina is on track for completion in Q3, expected to contribute approximately $10-plus million in quarterly revenue starting late this year.

• Revenue growth in the second half of fiscal 2027 may see limited sequential increases compared to Q2 due to project pull-forwards and anticipated decreases in industrial revenues.

• The company is scaling its workforce to support a target capacity of executing 10 to 12 major projects simultaneously.

• Teledata revenues are projected to potentially double from fiscal year 2026 levels following the integration of ValCor and organic growth synergies.

Risk Factors and Structural Dynamics

• Industrial gross margins of 7.3% were below expectations due to downward revisions in estimates-to-complete for two specific projects, which may impact margins for another 1-2 quarters.

• Backlog decreased to $2.5 billion from $2.9 billion, reflecting a conservative reporting approach that only includes contracts with a formal notice to proceed.

• Management noted regulatory 'back and forth' regarding data center development in Texas but stated developer behavior remains unchanged with high demand for grid infrastructure.

• Consolidated gross margins stepped down to 19.3% from 21% in Q1, reflecting the transition of Power projects into earlier, lower-margin construction stages.