Strategic Performance Drivers and Market Dynamics

• Management attributed the record first quarter to strong execution across a diversified platform, with revenue and EBITDA exceeding guidance through double-digit growth in all segments.

• The company is positioning itself at the center of a 'multi-year opportunity' driven by AI and data center demand, which is catalyzing significant investment in fiber interconnectivity and grid reliability.

• Power Delivery growth was fueled by a multiyear investment cycle in grid hardening and transmission, with utilities responding to aging infrastructure and projected load growth from data centers.

• Clean Energy and Infrastructure performance was driven by a 60% year-over-year increase in renewable revenue and a strategic pivot toward turnkey data center construction management.

• The Pipeline segment saw revenue nearly double year-over-year, benefiting from a consolidated competitive landscape and rising demand for natural gas infrastructure to support gas-fired power generation.

• Management emphasized that recent backlog growth reflects improved pricing and contract terms from 2025 that have not yet fully impacted financial results.

Strategic Outlook and Guidance Assumptions

• Full-year 2026 guidance was raised to $17.5 billion in revenue and $1.5 billion in adjusted EBITDA, reflecting the Q1 beat and an improving outlook for the remainder of the year.

• Management expects 2026 to exhibit lower seasonality than historical trends, with approximately 45% of full-year EBITDA generated in the first half due to proactive project scheduling and mild weather.

• The company anticipates a significant growth inflection in 2027, particularly in the Pipeline segment as long-lead material constraints ease and verbal awards convert to signed contracts.

• Communications margins are expected to expand in the second half of 2026 as new market offices opened in 2025 reach operational maturity.

• BEAD funding for rural broadband is projected to have a 'meaningful impact' starting in 2027, with current activity limited primarily to the design phase.

Operational Adjustments and Risk Factors

• Communications EBITDA margins were negatively impacted by approximately 100 basis points due to one-time costs associated with exiting certain markets in the legacy DIRECTV fulfillment business.

• DSOs increased to 72 days from 65 days at year-end due to higher working capital investment; management expects a return to the mid-60s over the course of the year.

• The company is increasing net cash capital expenditure forecasts to $220 million to support accelerated organic growth and equipment needs.

• Management signaled a return to a more active M&A strategy for 2026, focusing on strategic bolt-ons to expand geographic reach and technical capabilities in core segments.